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58MANAGEMENT AND MARKETING
MERCHANDISING: ITS ESSENCE AND ROLE IN SELLING
GOODS
1Doctor of Philosophy in Economics Grishchenko E. M., 2Ph. D. of Economic Science Nesterenko S. S., 2Ph. D. of Technical Science Kutlina I. Y.
1Ukraine, Kiev, Interregional Academy of Personnel Management 2Ukraine, Kiev, Open international University of human development "Ukraine"
Abstract. The article reveals the essence of merchandising and its importance in a highly competitive environment. It highlights basic interpretations of the "merchandising" phenomenon by different authors and scholars. A brief review of merchandising, its role and tasks in product selling system
Keywords: merchandising, product, trade, marketing, promotion, marketing complex
Problem setting. In the highly competitive environment of today's conditions there is an actual problem of increasing turnover in the product selling market. In the retail trade of great importance are issues of maintaining existing and attracting new customers.
Being an important tool for obtaining additional income, merchandising is given one of the central places among the ways of enhancing product sale and setting up economic, trade and technological cooperation between producers and traders. Therefore it is important to determine the nature of merchandising and its role in increasing the sales of goods.
Analysis of recent research and publications. The essence and content of merchandizing in the enterprises has been the subject of study in papers of the following foreign and domestic scholars: B. Berman, A. Wellhoff, M. Grishanova, J. Evans, S. Esterling, Y. Bogachova, N. Ilchenko, T. Dibrova, K. Kanayan, R. Kanayan, O. Kotlyarenko, J.E. Masson, O. Nikitina, P. Smith, V. Snyegiriova, T. Starytskyi et al. Despite the numerous studies of scholars of the merchandizing issue, scientific literature still lacks the unified approach to the definition of the phenomenon and essence of merchandising.
The main material under study. Merchandising came to light when people were not actively using money yet. Back at the time of barter trade, skills to correctly and nicely spread out the wares, and organize the trade and exchange place gave first traders good results. In ancient times, traders were in much heavier conditions than our contemporaries, also because they often spoke different languages to the customers. Since certain period of time was established one of the merchandising rules, stating that everything should be clear to the buyer with minimal explanation from the seller's part.
Merchandising is not an exact science, most likely it is regarded an art, and like any living creature lives by its own rules, as well as events undertaken within the trade marketing can not exist beyond the consumer market. Originally the product is manufactures by the manufacturer in the industry, which its unique properties are developed, it is then marketed and distributed in the retail trade.
The store then sets the price of the goods in accordance with the positioning and chooses suitable place for a particular brand on the trading floor. It can independently or together with the manufacturer create additional impact on the end consumer, by highlighting once again the product on the shelf. To achieve this, the following is carried out: the outlet is chosen and coordinated.
The task of each manufacturer is to distinguish his products among hundreds of similar products. This is done by calculations, distribution of promotional materials, design, packaging, special actions to promote the product.
An important aspect of the issue in question is the need of interpreting the term "merchandising", which has many definitions. In our opinion, the essence of the term is most fully revealed in the following definitions (Table 1).
Oxford Dictionary of Business defines merchandising as sales policy of the retailer, promotion and sales of certain products in the store, while the French Academy of Commercial Sciences gives the following definition of 'merchandising': "marketing, which includes methods of sale that can present a product or service to a potential buyer in the most favorable material and psychological conditions." [8]
The French Institute of Merchandising consider merchandising a collection of research and applied methods used together or separately by retailers and manufacturers with the aim to increase the profitability of commercial establishment and increase sales through constant adaptation of the
assortment to the market needs and adequate presentation of the product. [8]
Table 1. The definition of "merchandising" by various authors
Author Characteristics of the term
W. Wellis, J. Vernet S. Moriarty [1] Merchandising is a complex of measures on the trading floor, aimed at promotion of a particular product, brand, packaging type. The result of this process is always a desire to stimulate consumers to select and purchase goods.
A. Wellhoff [2] Merchandising is one of the 'young' marketing tools, which became an integral part of the trading culture for well-known manufacturers of consumer goods and retailers until the end of the twentieth century.
K. Kanayan, R. Kanayan [3] Merchandising is a retail marketing, development and implementation of methods and technical solutions aimed at improving the supply of goods in the place where consumers traditionally comes with the purpose to purchase. Merchandising is an applied science that embodies knowledge about trading techniques and advertising, logistics, psychology and sociology, principles of design and composition. It is a complex of "marketing within the store," which includes programs of stimulating sales, marketing communication, behavior management of customers in the trading floor.
M. Hryshanova [4] Merchandising include measures of product specific location and promotional materials directly in the commercial establishments.
E. Romat [5] Merchandising is a integral part of marketing activities on promoting the most effective product promotion at the retail level; stimulating activities in trading sphere.
K. Udalova [6] Merchandising is a complex of tools aimed at promoting a product, brand, packaging in the trading floor, that is in the place where the seller has the last chance to show product to the buyer; influence its choice; encourage him to buy more units of the product
B. Ivanchenko [7] Merchandising is the art of marketing. Merchandising with all the characteristics affects physical location and clearance of goods at the point of sale, which fully encourages the consumer to impulsive purchase, and correct and detailed knowledge of sellers about products.
So merchandising is a number of tools aimed at promoting a product, brand, packaging on the trading floor, the place where the seller gets the last chance to show the customer his product, affect his choice, influence his choice, encourage him to buy more units of the product. Ignoring this chance means to voluntarily give up improving product image in the eyes of customers, and allow the buyer to prefer rival products.
Merchandising means compliance with certain rules of product placement on store shelves, provides the priority of products placement based on the position of colors, using design elements (promotional counters, test samples, refrigerating cabinets, cabinets, shelving systems) that help the buyer find a product and facilitate the purchase. [9]
There is a difference between goals of provider's merchandising and store merchandising. The store is interested in increasing total revenue and building customer loyalty, that is why it is important for trader that all the goods in his store looked nice and decent. To carry out productive cooperation he needed most manufacturers to make efforts on improving quality of their products.
Despite these different merchandising objectives of the provider and the store, it is well-known, that successful suppliers understand the principles the retailer is guided by. One of them is to guess what they want and what buyers expect from a particular store to offer. Meeting the needs of the buyer is the underlying concept of merchandising.
General rules of governing the company in setting standards of placing their promotional materials include the following [10]: placing product directly at the point of sale of the particular product; the product should be clearly visible to the buyer; be relevant (materials of specific advertising campaigns are set at the beginning of the event and removed after it ended.).
The purpose of placing advertisements is to remind the buyer that he can buy some particular goods in a particular store. If the same advertising material stays at the point of sale a long time, customers no longer pay attention to it, so producers worry about the constant updating of advertising materials. [10]
The main purpose of merchandising is to maximize the presence of the company's products at point of sale and maximize its visibility (the possibility of getting the attention of the consumer). After all, in order that consumers want to buy company products, they should at least see these products. Tasks of merchandising according to marketing mix elements are shown in Table 2. [11]
Table 2. Merchandising tasks according to the elements of the marketing mix
Marketing mix components Merchandising tasks
Product Taking a decision about product assortment (adaptation o assortment to customer needs), methods of presentation, distribution and display of goods in a retail outlet. Improving the design of packaging products to increase sales. Guarantee the quality of the offered goods.
Price Improving pricing strategy, implementation of flexible pricing policy and purchase conditions for stores. Improving logistics services for stores by the manufacturer (supplier).
Place Creating a unique atmosphere of the store, using combinations of architecture and design means, sensory stimulation. Improvement of the store planning, placement of various departments and groups of products to create maximum appeal to customers. Effective use of signs and instructions.
Promotion Improving types and use of advertising and information at points of sale. Preparation and placement of promotional materials that contain information about products directly in places where the consumer makes choice and preliminary assessment of possible options for purchase. Consulting on basic qualities and product benefits and service specifics in the trading outlet. Persuading customers in the offered products' high-quality. Activities on promoting specific products in the store and retailer's participation in shaping demand. Note. Merchandising tasks partially coincide with instruments of promotion, like special actions at point of sale, demonstration, tasting and providing effective activity of the manufacturer trading system.
Altogether, well organized merchandising allows you to increase sales; create competitive advantage of the store and some particular brands; to create commitment to the store and some particular marks; increase the number of loyal customers and attract new ones; to introduce products to market effectively; draw buyer's attention to goods, draw attention to new products, special offers; to fix in the minds of buyers distinctive features of brands; to provide customers with necessary information; to influence consumer behavior, observing the social legality and ethical sensitivity; raise the level of decision making of the buyer in-store, increase the time spent in the store and the number of purchases.
So, summarizing the existing definitions of scientists, and given the current economic conditions we can formulate the following definition of 'merchandising': merchandising is a marketing trend that helps stimulate retail sales by attracting attention of end buyers to certain brands or groups of products at points of sale without the active participation of specialized personnel.
Thus, in order to increase the volume of sold products, to attract customers to a new product, unknown to him, encourage for unplanned purchases, you must use merchandising.
REFERENCES
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2. Vellhoff A. Merchandajzing: ehffektivnye instrumenty i upravlenie tovarnymi kategoriyami / A. Vellhoff, ZH.-EH. Mason. - M.: Izdatel'skij Dom Grebennikova, 2004. - 280 s.
3. Kanayan K., Kanayan R. Merchandajzing / K. Kanayan, R. Kanayan. - RIP-holding, 2005. - 236 s.
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8. Migal' O.F. Formuvannya ínstrumentív merchandajzingu torgshovel'nogo pidpriemstva // Global'ni ta nacional'ni problemi ekonomiki. - Vipusk 4. 2015. - Mikolaïvs'kij nacional'nij universitet imeni V.O. Suhomlins'kogo. - S. 486-490.
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ПРИМЕНЕНИЕ МНОГОМЕРНЫХ (МАТРИЧНЫХ) МЕТОДОВ И ПРИЁМОВ В АНАЛИЗЕ МАРКЕТИНГОВЫХ
ИССЛЕДОВАНИЙ
старший преподаватель Абдурахманова Ф. Ф., студент Атамуратов А. Р.
Узбекистан, Ташкент, Ташкентский государственный экономический университет
Abstract. В статье рассматривается применение многомерных (матричных) методов в диагностике финансово-хозяйственного положения, и прежде всего, в анализе стратегической позиции предприятия на рынке.
The article discusses the use of multivariate (matrix) methods in the diagnosis of the financial and economic situation, and above all, in the analysis of the strategic position of the company on the market.
Keywords: многомерные методы, рынок, анализ, матрица, модель, маркетинг, маркетинговые исследования.
Обеспечение эффективного использования имеющихся ресурсов и удовлетворение запросов потребителей требуют от предприятия анализа протекающих на рынке процессов. С этой целью проводятся маркетинговые исследования в рамках осуществляемой предприятием маркетинговой деятельности.
Осуществление маркетинговых исследований предполагает использование широкого спектра методов и приёмов анализа. Первой задачей выбора методов проведения маркетинговых исследований является ознакомление с отдельными методами, которые могут использоваться при сборе и анализе маркетинговой информации.
В данной статье подробнее остановимся на рассмотрении многомерных (матричных) методов, которые широко применяются, в диагностике финансово-хозяйственного положения в рамках стратегической диагностики, и прежде всего, анализ стратегической позиции предприятия на рынке.
Многомерные (матричные) методы представляют собой моделирование ситуаций на основании построения и анализа многомерных матриц, моделей поведения. Использование данных методов позволяет охарактеризовать позицию предприятия на рынке, отражающую комбинацию сложившейся рыночной ситуации и собственных возможностей. Среди наиболее известных можно выделить:
- SWOT-анализ.
Название метода по первым буквам английских слов, составляющих основное содержание анализа (Strength - достоинство, Weakness - недостаток, Opportunities -возможность, Threat - угроза). Используется для определения всех сильных (S) и слабых (W) сторон предприятия, а также в изучении рыночных возможностей (O) и потенциальных угроз (T). Результатом является оценка конкурентоспособности предприятия в целом и (или) отдельных видов продукции, а также формирование рыночной стратегии (рис. 1).
