Merchandising zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFED by Francis Buttle 104 Overview The majority of marketing and retailing literature gives only scant attention to mer- chandising as a means of lifting sales performance. This is a grave injustice when its power and cost-effectiveness is compared to its promotional kindred—advertising, per- sonal selling, sales promotion and public relations. This article has been designed to fill that gap in the literature and promote its more widespread understanding and use. We start by putting forward a definition of merchandising and explaining how and why it works so effectively. Then we discuss its extraordinary power and cost- effectiveness as a means of ensuring a vital, final pre-purchase exposure of consumers to persuasive or informative material. We then discuss five merchandising techniques— manipulation of store traffic flow, shelf positioning (location of product categories and brands), allocation of limited shelf space between competing claims, use of point- of-sale material and the mounting of special displays. We show how these techniques can be used profitably by both the retailer and the manufacturer. Merchandising—The Silent Salesman? A sales volume increase of 400 per cent is just one of many successes attributable to effective merchandising. Details of this and other merchandising triumphs appear in a later section of this article. However, this example serves to emphasise the major point that it can be highly effective. Additionally, merchandising can be cheap and in some cases can actually cost nothing. It is worthwhile trying to define the term "merchandising" because a much clearer picture of its scope will emerge. It is one of a selection of promotional tools available to both retailer and manufacturer. To communications professionals this selection is known as the "promotional mix"; it contains advertising, sales promotion, personal selling, public relations and merchandising. Where merchandising differs from other tools of the promotional trade is that it is exercised exclusively at the retail store or other point of sale such as a car yard or showroom. The definition of merchandising which I prefer—"merchandising is any form of on-store or in-store promotion other than personal selling which is designed to trigger purchasing behaviour"—clearly distinguishes our subject matter from all other forms of promotion. Merchandising has been nicknamed the silent salesman,