copyright 1999 prentice hall 8-1 lesson 6.4 – merchandising copyright © 2014 by sports career...

Copyright 1999 Prentice Hall

8-18-1

Lesson 6.4 – Merchandising

Copyright © 2014 by Sports Career Consulting, LLC

Merchandising

When the demand for licensed products is minimal, an organization may choose to handle their merchandising in-house

In-house Merchandising:

Refers to managing the merchandising process within the organization itself, rather than outsourcing or acquiring licenses

LESSON 6.4

Branding & Licensing


Steps in the in-house merchandising process

Merchandising

1) Design the logo and slogan or tagline (if it is not already available)

2) Determine merchandise type, quality and quantity

3) Interview local merchants (vendors) and select the company that can best fit the organization’s needs

4) Determine distribution outlets

5) Train sales staff

6) Prepare on-site merchandising strategies

LESSON 6.4



If an organization feels an in-house merchandising approach may not be the most

efficient strategy, they may choose to outsource the effort to a third party

MerchandisingLESSON 6.4



Outsourcing the merchandising effort




For example, last year the Big 10 Conference signed an exclusive five-year deal with sports retail vendor MainGate to sell merchandise for its football championship and the men’s and women’s basketball tournaments

Merchandising

Organizations maximize income through the sales of food and beverage and merchandise

On-site Merchandising:

Refers to the process of selling merchandise at the physical location of the event

LESSON 6.4



Four key considerations of on-site merchandising

Merchandising

1)The location of where the merchandise is being sold

2)The physical layout and appeal of where the merchandise is being sold

3)How well the sales operation is performed

4)The appeal of the merchandise or product itself

LESSON 6.4



Best practices for selling on-site merchandise

Merchandising

The heaviest traffic for merchandising is upon arrival and departure

Test marketing is important to ensure the effectiveness of a good or service

Training of sales personnel varies with the event

LESSON 6.4



Merchandising

Making merchandise available online opens up a new sales channel for a sports or entertainment organization to purchase related goods and services

Online Merchandising:

Refers to the process of selling merchandise on the Internet

LESSON 6.4



Online Merchandising

Merchandising

Organizations maximize income by providing a customized shopping environment and allowing consumers access to a wider variety of products and services

Global e-commerce sales surpassed $1 trillion in 2013

LESSON 6.4



Online Merchandising




Overall, eMarketer estimates, US retail e-commerce sales will reach nearly $39 billion in 2013, up 56.5% over 2012 and almost triple the amount spent in 2011.

Online Distribution Methods




Direct shipping to consumer

In-store pickup

Online Advantages

Merchandising

Easier to control inventory

Opportunity to offer exclusive merchandise

Opportunities to reach out-of-market consumers

LESSON 6.4



Reaching out-of-market customers

Merchandising

LESSON 6.4



FIFA's Marketing Director Thierry Weil told Yahoo! in an interview: "The ecommerce platform is a vitally important component of our global licensing program. We have a great range of merchandise available and we want to ensure that accessibility to this range is optimal. The online store will give football fans worldwide the opportunity to own their very own piece of the FIFA World Cup."

Online Disadvantages

Merchandising

Security concerns in making transactions online

Potentially higher distribution (delivery) costs

Consumers inability to touch, feel or “test-drive” products before buying can be a deterrent and lead to higher return rates

LESSON 6.4



Blank Slide Available

for Teacher Edits

LESSON 6.4




LESSON 6.4 REVIEW (ANSWERS)LESSON 6.4 REVIEW (ANSWERS)

1) Identify the four key considerations of on-site merchandising


1-The location of where the merchandise is being sold

2-The physical layout and appeal of where the merchandise is being sold

3-How well the sales operation is performed

4-The appeal of the merchandise or product itself

copyright 1999 prentice hall 8-1 lesson 6.4 – merchandising copyright © 2014 by sports career...

Documents

merchandising copyright

merchandising effort

party merchandising

sports career consulting

inhouse merchandising

branding licensing copyright

services online merchandising

onsite merchandise