How important is product knowledge for a successful merchandising strategy?

Product knowledge is the foundation of any effective merchandising strategy. It helps you understand your customers, create appealing displays, and communicate the value of your products. In this article, you will learn why product knowledge is essential for merchandising success and how to assess and improve it.

1 Know your customers

The first step to a successful merchandising strategy is to know your customers. What are their needs, preferences, pain points, and motivations? How do they shop, compare, and decide? What are their questions and objections? By having a deep knowledge of your target market, you can tailor your merchandising to appeal to their emotions, solve their problems, and meet their expectations.

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Vikram Verma

Strategic Growth Leader | Business Development & Category Management | Driving Revenue Through Data-Driven Innovation
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Product knowledge is absolutely essential for a successful merchandising strategy. Having a deep understanding of the products being sold enables merchandisers to effectively position and promote the items in a way that resonates with customers. With strong product knowledge, merchandisers can accurately communicate the features, benefits, and unique selling points of each product, which in turn helps to increase customer satisfaction and drive sales. Additionally, having a thorough understanding of the products allows for more strategic assortments, effective cross-selling or upselling, and the ability to tailor the merchandising approach to different customer segments.

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2 Create appealing displays

The second step to a successful merchandising strategy is to create appealing displays that showcase your products. Product knowledge helps you design displays that highlight the features, benefits, and uniqueness of your products. It also helps you choose the right colors, lighting, signage, and placement to attract attention, stimulate interest, and encourage action. Product knowledge also helps you optimize your space, inventory, and layout to maximize sales and profitability.

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3 Communicate the value

The third step to a successful merchandising strategy is to communicate the value of your products to your customers. Product knowledge helps you craft compelling messages that demonstrate how your products can solve their needs, satisfy their desires, and improve their lives. It also helps you use the right language, tone, and style to connect with your customers and persuade them to buy. Product knowledge also helps you handle customer inquiries, objections, and feedback with confidence and credibility.

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Jaclyn Ego

Purchaser at Shooter's Choice Ltd, Shotgun Coach
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Product knowledge is extremely important in the hunting industry. Sales staff cannot just repeat what manufacturers have on their websites, the typical customer has already seen that. They need to be able answer the more specific questions. They must be able to compare between lines or even brands of similar items. This knowledge gives the sales staff credibility with the customer. Without this knowledge, the sales staff have to wait for the customer to tell them exactly what they want. Waiting on the customer can cause lost sales when they don’t know exactly what they want.

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Divyapriya Rajendran

Working towards enhancing digital experience @Nicobar. Talks about fashion, buying & planning, marketplace /omnichannel business, books, fitness and everything that sparks joy!
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Apart from the product and its raw materials, it is always important to communicate what one's brand or product stands for. In today's world full of well informed consumers, it is very important to talk about the exclusivity of a product and what it brings to the world apart from the one consumer who purchased the product. It is essential to communicate the sustainability perspective along with the functionality which can increase the affinity towards the products.

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4 Assess your product knowledge

The fourth step to a successful merchandising strategy is to assess your product knowledge regularly. Product knowledge is not static, but dynamic. It changes as your products evolve, your customers change, and your competitors innovate. You need to keep up with the latest trends, developments, and insights in your industry and niche. You can assess your product knowledge by using online quizzes, surveys, tests, or games that measure your understanding of your products and your customers.

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5 Improve your product knowledge

The fifth step to a successful merchandising strategy is to improve your product knowledge continuously. Product knowledge is not innate, but learned. It requires curiosity, research, and practice. You can improve your product knowledge by using various sources, such as product manuals, catalogs, websites, blogs, podcasts, videos, or webinars. You can also learn from your colleagues, managers, suppliers, or mentors who have more experience or expertise in your field. You can also learn from your customers, by listening to their feedback, reviews, or testimonials.

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6 Apply your product knowledge

The sixth and final step to a successful merchandising strategy is to apply your product knowledge in your daily tasks and activities. Product knowledge is not theoretical, but practical. It needs to be translated into action and results. You can apply your product knowledge by using it to plan, execute, and evaluate your merchandising strategies. You can also use it to monitor, measure, and improve your performance and outcomes. You can also use it to innovate, experiment, and adapt to changing market conditions and customer demands.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Chandra Bhaanu Ojha

Nike | Ex - Lanvin Japan | Consultant
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Product knowledge is crucial for a successful merchandising strategy. It ensures that the benefits and unique selling points of a product are accurately communicated to the target audience. Understanding the product deeply allows for more persuasive selling points and can help tailor the merchandising mix to highlight features that appeal to consumers. Informed staff can provide better customer service by answering queries effectively and making appropriate recommendations, thereby enhancing the customer experience and building trust. Brands like #Apple excel in this regard.

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Randy Cogill

Business Owner at Life Skills Coach and L & D Consultant
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Your best weapon on a shop floor is a passionate, energetic and knowledgeable salesperson. Being armed with the relevant product knowledge and speaking with conviction, not salesperson pitches, will sway any customer to believe, trust and buy from said person. A proven selling strategy!

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How important is product knowledge for a successful merchandising strategy?

1

2

3

4

5

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1 Know your customers

2 Create appealing displays

3 Communicate the value

4 Assess your product knowledge

5 Improve your product knowledge

6 Apply your product knowledge

7 Here’s what else to consider

Merchandising

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How important is product knowledge for a successful merchandising strategy?

1

2

3

4

5

6

7

1 Know your customers

2 Create appealing displays

3 Communicate the value

4 Assess your product knowledge

5 Improve your product knowledge

6 Apply your product knowledge

7 Here’s what else to consider

Merchandising

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