1. Merchandising and Point of Sale
CHAPTER 19
Merchandising and Point of Sale
© 2011, PR Smith
These resources accompany the publication of Marketing Communications, 5th edn, PR Smith and Ze Zook (2011),
published by Kogan Page, London,

2. Learning Objectives Appreciate the impact of merchandising techniques
Empathize with a retailer’s strategies and merchandising policies
Discuss retail strategies and how they incorporate store image, store layout, merchandise ranges, colour blocking, POS and promotions and a range of miscellaneous items
Ensure a culture of constant analysis and improvement is employed so that results can constantly be improved
© 2011, PR Smith
These resources accompany the publication of Marketing Communications, 5th edn, PR Smith and Ze Zook (2011),
published by Kogan Page, London,

3. Merchandising and POS Introduction Merchandising tools
Retail strategies 
Measuring merchandising effectiveness 
Advantages and disadvantages
© 2011, PR Smith
These resources accompany the publication of Marketing Communications, 5th edn, PR Smith and Ze Zook (2011),
published by Kogan Page, London,

4. Introduction Point-of-sale (POS) Distributor empathy required
Marketers must empathise with distributors (as well as customers)
© 2011, PR Smith
These resources accompany the publication of Marketing Communications, 5th edn, PR Smith and Ze Zook (2011),
published by Kogan Page, London,

5. Merchandising Tools Leaflets and dispensers Stickers Posters
Showcards and cardboard cut-outs
Branded racks or display units
Dump bins
Three-dimensional:
injection moulded characters
holograms
free-standing floor displays
© 2011, PR Smith
These resources accompany the publication of Marketing Communications, 5th edn, PR Smith and Ze Zook (2011),
published by Kogan Page, London,

6. Merchandising Tools (cont...)
Electronic gadgetry:
spotlighting systems
video walls
plasma screens
illuminated display systems with fibre optics
lenticular technology
magic mirrors
interactive POS systems
Shelf space (number of facings, colour blocking)
Shelf positioning (premium locations, cross-merchandising, etc)
In-store sampling
Window displays
Digital imaging and web-based merchandising analysis
tools
© 2011, PR Smith
These resources accompany the publication of Marketing Communications, 5th edn, PR Smith and Ze Zook (2011),
published by Kogan Page, London,

7. Retail Strategies Store image Store layout Merchandise ranges
Colour blocking 
Point-of-sale displays and retail sales promotions 
Miscellaneous
© 2011, PR Smith
These resources accompany the publication of Marketing Communications, 5th edn, PR Smith and Ze Zook (2011),
published by Kogan Page, London,

8. Measuring Merchandising Effectiveness
Scanners at the checkout:
record what is being sold instantaneously
measure sales responses to new advertising campaigns and price changes
Store-by-store around the country
daily, weekly or even hourly basis
provide operational stock control data to central warehouses
© 2011, PR Smith
These resources accompany the publication of Marketing Communications, 5th edn, PR Smith and Ze Zook (2011),
published by Kogan Page, London,

9. Advantages Present at the point a customer makes a decision to buy
Last opportunity to communicate with a customer before the decision is made
The message can be controlled
Messages can range from:
ensuring customers are aware of the brand
encouraging them to buy now
Special offers and sales promotions can be highlighted
© 2011, PR Smith
These resources accompany the publication of Marketing Communications, 5th edn, PR Smith and Ze Zook (2011),
published by Kogan Page, London,

10. Disadvantages Retail space is premium Brands compete to get this space
Limited and expensive to secure this space
Creation, delivery and installation of POS is expensive
Reverse logistics can be incurred at the end of a promotion
© 2011, PR Smith
These resources accompany the publication of Marketing Communications, 5th edn, PR Smith and Ze Zook (2011),
published by Kogan Page, London,

11. Key Points from Chapter 19
Merchandising techniques not only offer a last chance to communicate with the buyer, they can have major impact on the customer’s choice
Manufacturers need to empathize with their distributors’ strategies and merchandising policies
Retail strategies incorporate store image, store layout, merchandise ranges, colour blocking, POS and Promotions and a range of miscellaneous items
Constant analysis and improvement boosts results
© 2011, PR Smith
These resources accompany the publication of Marketing Communications, 5th edn, PR Smith and Ze Zook (2011),
published by Kogan Page, London,