1. Visual Merchandising & Display Chapter 18

2. Display Features – Chapter 18.1

3. Main Idea  Visual Merchandising and displays are important promotional strategies to sell products and services, attract potential customers, and create a desired business image.

4. Objectives  Explain the Concept and purpose of visual merchandising  Identify the elements of visual merchandising  Describe the types of display arrangements  Understand the role of visual merchandisers on the marketing team

5. Key Terms Encompasses all of the physical elements that merchandisers use to project an image to customers. Visual Merchandising Refers to the visual and artistic aspects of presenting a product to a target group of customers. Display Includes a store’s sign or logo, marquee, banners, awnings, windows, and the exterior design, ambiance, and landscaping.. Storefront An architectural canopy that extends over a store’s entrance. Marquee

6. Key Terms Refers to ways that stores use floor space to facilitate and promote sales and serve customers. Store Layout Permanent or moveable store furnishings that hold and display merchandise. Fixtures Consumer sales promotion device. Example ATMs, vending machine. Point-of-Purchase Displays (PDPs) Small, moveable selling displays, also known as interactive point-of- purchase. Kiosk

7. Types of Interior Displays Architectural Displays Store Decorations Open Displays Closed Displays Point-of- Purchase Displays  Retailers use interior displays to show merchandise, etc.

8. Visual Merchandising & Display  Visual merchandising promotes interest in merchandise or services.  It also encourages purchasing, and reinforces customer satisfaction.  It encompasses the visual and artistic aspects of the entire business environment.

9. The Role of a Visual Merchandiser  Visual merchandisers are responsible for the total merchandise or service presentation, the overall business/brand image, and even the building and placement of design elements.

10. Elements of Visual Merchandising  One goal of visual merchandising is to create a positive shopping experience that will compel customers to return.  There are 4 elements to achieve this goal:  Storefront  Store Layout  Store Interior  Interior Displays

11. Storefront  Storefront encompasses a store’s sign or logo, marquee, banners, awnings, windows, and the exterior design, ambiance and landscaping.  Storefront project brand identity and help the company distinguish itself from its competitors.

12. Storefront Signs are designed ro attract attention, advertise a business, and project brand identity. Marquee is an architectural canopy that extends over a store’s entrance. For example, movie theatre entrances.

13. Storefront Entrances are usually designed with customer convenience and store security in mind. Smaller stores normally have one entrance while larger stores tend to have several. The average mid-sized business needs at least two entrances. One leading in from the street for pedestrians and another adjacent to the parking lot for those who drive.

14. Storefront Window Displays are especially useful for visual merchandising. Window displays initiate the selling process, create excitement, and attract prospects.

15. Store Layout Store Layout refers to the way that stores use floor space to facilitate and promote sales and serve customers.

16. Store Layout A typical store layout divides a store into four distinct spaces: 1. Selling Space- is used for interior displays, wall, and floor merchandising, product demonstrations, sales transactions, and aisles for customer traffic flow. 2. Storage Space- is for the items that are kept in inventory or stockrooms.

17. Store Layout 3. Personnel Space- is allocated to store employees for office space, lockers, lunch breaks, and restrooms. 4. Customer Space- is designed for comfort and convenience of the customer and may include sandwich, soda, and coffee shops, in- store restaurants, seating, lounges, and recreation areas for children.

18. Store Interior Once the general placement of merchandising has been determined, store personnel can develop the visual merchandising approaches for the building’s interior. Mannequins, decorations, comfortable seating, all things in creating a memorable shopping experience.

19. Store Interior Color, Lighting, Graphics, and Paint Bright colors and light pastels (or plain white) appeal to different types of customers. Stores catering to teens might favor bright colors and lighting. Stores catering to adults often choose soft colors and subtle lighting effects.

20. Store Interior Fixtures are the principle installations in a store.  Display cases  Tables  Counters  Wall Shelving units  Racks  Bins

21. Interior Displays When interior displays are done exceptionally well, they enable customers to make a selection without the assistance of a sales clerk.

22. Interior Displays There are five types of interior displays are: 1.Closed displays 2.Open displays 3.Architectural displays 4.Point-of-purchase displays 5.Store decorations

23. Interior Displays Architectural Displays consists of model rooms that allow customers to see how merchandise might look in their homes. Store Decorations are displays that often coincide with seasons or holidays. Banners, signs, props, and similar items are used to create the appropriate atmosphere.

24. Interior Displays Open Displays allow customers to handle and examine merchandise without the help of a salesperson. Tables and shelves for groceries or countertop and shelf displays for cosmetics are examples. Closed Displays allow customers to see but not handle merchandise. They are typical displays in places like jewelry stores, where security or breakage is concerned.

25. Interior Displays Point-Of Purchase Displays are designed to promote impulse purchases. They are usually more effective at supporting new products than established ones. They usually contain bold graphics and signage that hold, display, or dispense products. Examples are vending machines and automatic tellers machines.

26. Advertising Media- Chapter 19.1

27. Main Idea  Advertising is an important element of promotion. Businesses use different types of advertising media to promote their images, products, and services.

28. Key Terms The goal to increase sales Promotional Advertising Tries to create a favorable image for a company and foster goodwill in the marketplace. Institutional Advertising Agencies, means, or instruments used to convey advertising messages to the public. Media Includes advertising newspapers, magazines, direct mail, signs, and billboards; one of the oldest and most effective types of advertising. Print Media

29. Key Terms Can be found on public transportation Transit Advertising Encompass radio and television commercials Broadcast Media A form of advertising that uses either email or the World Wide Web. Online Advertising Giveaways or advertising specialties. They are relatively inexpensive, useful items featuring an advertiser’s name or logo Specialty Media

30. Key Terms Process of selecting the advertising media and deciding time or space in which the ads should appear to accomplish a marketing objective. Media Planning

31. Promotional and Institutional Advertising  The targets of promotional advertising are consumers or business-to-business customers.  Promotional advertising can introduce a new business, change a company image, promote a new product, advertise an existing one, or encourage the use of a particular service.  Sometimes the goal of promotional advertising is to encourage potential customers to ask for information, call for an appointment, go online, or enter a store.

32. Types of Media  Print- newspapers, magazines, direct mail, signs, billboards.  Broadcast- television and radio  Online- email and Internet  Specialty- sweepstakes and raffles

33. Media Planning and Selection Advertisers use three basic questions to establish the media plan and select the right medium to use: 1.Can the medium present the product and the appropriate business image? 2.Can the desired customers be targeted with the medium? 3.Will the medium get the desired response rate?

34. Monopolies  Monopoly = Exclusive control over a product or the means of producing it:  Monopolies are not permitted in a free enterprise system because they prevent competition. (Microsoft)  The U.S. Gov’t has allowed a few monopolies to exist, mainly in industries where it would be wasteful to have more than one firm. (Natural gas & electric companies).

35. Risk  Business Risk = The potential for loss or failure  As the potential for earnings increase, so does the risk. (Putting the money in the bank with guaranteed interest is less risky than investing in the stock market.)

36. Profit  Profit = Money earned from conducting business after all costs and expenses have been paid.  Profit is the motivation for taking risk of starting a business. It is the potential reward  Profits are good for our economy. It drives the free enterprise system. It allows people to develop new products and services in the hope of making a profit.

37. Economic Cost of Unprofitable Firms  Economic Cost of Unprofitable Firms  When profits decline, companies lay off employees which equals a rise in unemployment.  When unemployment rises, so does the cost of social services.  Investors cal lose money is the stock value of a public company falls below what they paid for it.  Government suffers when businesses are doing poorly, because less taxes are paid to the government.

38. Economic Benefits of Successful Firms  Economic Benefits of Successful Firms  Profitable businesses hire more people  Employees have higher incomes, better benefits and higher morale.  Investors earn money from their investments, which they spend or reinvest.  Vendors and suppliers make more money  The government makes from the taxation of businesses and individuals.

39. Supply & Demand Supply and demand determines the prices and quantities of goods and services produced  Supply = the amount of goods producers are willing to make and sell.  The law of supply is the economic rule that price and quantity supplied move in the same direction.  As prices rises, the supply rises. As prices fall, the supply falls.  In order to be profitable, suppliers want to supply goods at a higher prices.

40. Supply & Demand  Demand = Consumers willingness and ability to buy products.  The law of demand is the economic principle that price and demand move in opposite directions  As the price of a good increases, the quantity of the good demanded falls.  As prices falls, the demand for the good increases.

41. Surpluses, Shortages & Equilibrium  When supply and demand interact in the marketplace, conditions of surplus, shortage or equilibrium are created.  These conditions often determine whether prices will go down, go up, or stay the same.

42. Surpluses, Shortages & Equilibrium  Surpluses = of goods occur when supply exceeds demand. These conditions often determine whether prices will go down, go up, or stay the same.  Shortages = when demand exceeds supply, shortages of products occur. When shortages occur, businesses can raise prices and still sell their merchandise.  Equilibrium = when the amount of a product being supplied is equal to the amount being demanded, equilibrium exists.