SIRXMER001A - Merchandise Products

7/28/2019 SIRXMER001A - Merchandise Products

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Certificate IIin

Retail

Learning and Assessment Material

SIRXMER001A

MERCHANDISE PRODUCTS

SIRXMER001A Merchandise products January 2008 Version 1 Page i of 23


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SIRXMER001A MERCHANDISE PRODUCTS

Element of competency:1. Place and arrange merchandise2. Prepare display labels and tickets3. Place, arrange and display price labels and tickets4. Maintain displays5. Protect merchandise

Types of promotions

There is a huge array of promotional activities you can choose from, from thehumble letterbox flier to skywriting, and everything in between. The followingis a list of promotional activities and tools with which you may already befamiliar:

Brochures and newsletters

Cash back incentives

Celebrity endorsements

Com petitions

Conferences and seminars

Coupons

Direct mail-outs

Discounts

Exhibition displays

Free gifts

Free trials

In-store marketing materials

Loyalty card schemes

Media advertising

Media stories

Money back guarantees

Newspaper stories

Open days

Other advertising

Personal networking

Point of sale advertising

SIRXMER001A Merchandise products January 2008 Version 1 Page 3 of 23


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Tempt customers to switch from a competitors product.

Sales promotions can target customers, suppliers, or even the sales force,through the use of special incentives. Customer sales promotions encouragecustomers to buy the product by discounting it, or through special offers, oraim to increase the customers spend by offering a discount for largerpurchases (e.g. upsizing).Sales promotions aimed at suppliers and trade work in a similar way, and mayinclude discounts for making large purchases or committing to longercontracts. Some companies offer suppliers free or discounted operationalequipment (e.g. soft drink fridges) that display the brand logo. This not onlyhelps the supplier save money on operating costs, it also works to promotethe product at the point of sale. Common examples of these types ofpromotions include:

Run out sales designed to clear old models of vehicles in preparationfor the arrival of new models.

Buy one, get one free offers.

Mums night out restaurant deals, where the mother eats free,provided that the rest of the family pays for meals.

Value offers, for example, getting 20 percent extra for the same price.

Promotional products

Aside from product samples, many promotions require additional promotionalproducts. These may include:

Posters and promotional display materials;

Gifts and novelty items, such as pens, water bottles, stationery, mousemats, badges, stickers, hampers, show bags, etc., printed with the

company logo and/or promotional message;

Special uniforms;

Sales and training materials; and

Brochures.

The type of products you require depends on the promotion itself, butremember to plan ahead and include the time and cost involved in purchasing

these products in your action plan.



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Visual Display Tips

If your store front is fortunate enough to feature one or more windows, thenyou have one of the most proven (and least expensive) forms of advertising atyour disposal. A creative display can draw the customer in, promote a slow-moving product, announce a sale, or welcome a season. Some stores locatedin a mall or other structure may lack windows, but don't despair. There aremany places throughout the store to build beautiful displays.

Visual Display Tool Box

Before designing a product display, put together a visual display tool box tokeep on hand. By having all of these items in one location it will save time inactually preparing the display.

Scissors, Stapler, Two-Sided Tape, Pins

Hot glue sticks and glue gun

Monofilament Fishing Line

Tape Measure

Razor Blade/Utility Knife

Hammer, Nails, Screwdriver, Screws

Notepad, Pencil, Marker

Signage, Sign Holders Glass Cleaner/Paper Towels

Props (Non-merchandise Items)

Take time to plan the display.

Consider what you want to accomplish, develop a budget and determine acentral theme. You may even want to sketch your display on paper. Gather

your visual display tool box, the merchandise and any props. Make sure allmaterials and location (tables, windows, racks) are clean. Choose a slow timeof the day or build the display after hours.



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Elements of Effective Visual Merchandising

Balance: Asymmetrical rather than symmetrical balance with thedisplay.

Size of Objects: Place the largest object into display first.

Colour: Helps set mood and feelings.

Focal Point: Where product and props/signage and background cometogether.

Lighting: Should accent focal point, if possible.

Simplicity: Less is more so know when to stop and don't add too manyitems.

Once the display is finished, add appropriate signage. Take photos of thedisplay and keep record of the product sales during the display's existence.Save your information in a file folder for easy reference. By documenting itssuccess, you can re-create the display next year or if it flops, you can makesure you don't repeat the same mistakes.

Your local community may have individuals or visual merchandisingcompanies you can hire to dress your window, but if you're concerned withsaving money, these tips will help you create an attractive display. Like anyother aspect of retailing, creating an attractive display takes skill and lots oftrial and error. As your store changes, so will your opportunities for visualdisplays. Keep working at designing eye-catching and innovative ways tomake your retail store profitable through visual merchandising.

Pricing

Pricing is one of the four p's of the marketing mix. The other three aspects areproduct management, promotion, and place. It is also a key variable inmicroeconomic price allocation theory.

Pricing is the manual or automatic process of applying prices to purchase andsales orders, based on factors such as: a fixed amount, quantity break,

promotion or sales campaign, specific vendor quote, price prevailing on entry,shipment or invoice date, combination of multiple orders or lines, and manyothers. Automated systems require more setup and maintenance but mayprevent pricing errors.



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Questions involved in pricing

Pricing involves asking questions like:

How much to charge for a product or service? While this is the waymost businesses think about pricing, since it focuses on what thebusiness sells, the real question is how much do customers value whatthey are buying?

What are the pricing objectives?

Do we use profit maximization pricing?

How to set the price?: (cost-plus pricing, demand based or value-basedpricing, rate of return pricing, or competitor indexing)

Should there be a single price or multiple pricing?

Should prices change in various geographical areas, referred to aszone pricing?

Should there be quantity discounts?

What prices are competitors charging?

Do you use a price skimming strategy or a penetration pricing strategy?

What image do you want the price to convey?

Do you use psychological pricing?

How important are customer price sensitivity and elasticity issues?

Can real-time pricing be used?

Is price discrimination or yield management appropriate?

Are there legal restrictions on retail price maintenance, price collusion,or price discrimination?

Do price points already exist for the product category?

How flexible can we be in pricing? : The more competitive the industry,

the less flexibility we have.

The price floor is determined by production factors like costs (often onlyvariable costs are taken into account), economies of scale, marginalcost, and degree of operating leverage



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The price ceiling is determined by demand factors like price elasticityand price points

Are there transfer pricing considerations?

What is the chance of getting involved in a price war?

How visible should the price be? - Should the price be neutral? (ie.: notan important differentiating factor), should it be highly visible? (to helppromote a low priced economy product, or to reinforce the prestigeimage of a quality product), or should it be hidden? (so as to allowmarketers to generate interest in the product unhindered by priceconsiderations).

Are there joint product pricing considerations?

What are the non-price costs of purchasing the product? (eg.: traveltime to the store, wait time in the store, disagreeable elementsassociated with the product purchase - dentist -> pain, fish market ->smells)

What sort of payments should be accepted? (cash, cheque, credit card,barter)

What a price should do

A well chosen price should do three things:

Achieve the financial goals of the firm (eg.: profitability)

Fit the realities of the marketplace (will customers buy at that price?)

Support a product's positioning and be consistent with the othervariables in the marketing mix

Price is influenced by the type of distribution channel used, the type of

promotions used, and the quality of the product

Price will usually need to be relatively high if manufacturing is expensive,distribution is exclusive, and the product is supported by extensive advertisingand promotional campaigns

A low price can be a viable substitute for product quality, effective promotions,or an energetic selling effort by distributors

From the marketers point of view, an efficient price is a price that is very closeto the maximum that customers are prepared to pay. In economic terms, it is a

price that shifts most of the consumer surplus to the producer.



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Definitions

The effective price is the price the company receives after accounting fordiscounts, promotions, and other incentives.

Price lining is the use of a limited number of prices for all your productofferings. This is a tradition started in the old five and dime stores in whicheverything cost either 5 or 10 cents. Its underlying rationale is that theseamounts are seen as suitable price points for a whole range of products byprospective customers. It has the advantage of ease of administering, but thedisadvantage of inflexibility, particularly in times of inflation or unstable prices.

A loss leader is a product that has a price set below the operating margin.This results in a loss to the enterprise on that particular item, but this is donein the hope that it will draw customers into the store and that some of thosecustomers will buy other, higher margin items.

Promotional pricing refers to an instance where pricing is the key element ofthe marketing mix.

The price/quality relationship refers to the perception by most consumers thata relatively high price is a sign of good quality. The belief in this relationship is

most important with complex products that are hard to test, and experientialproducts that cannot be tested until used (such as most services). The greaterthe uncertainty surrounding a product, the more consumers depend on theprice/quality hypothesis and the more of a premium they are prepared to pay.The classic example of this is the pricing of the snack cake Twinkies, whichwere perceived as low quality when the price was lowered. Note, however,that excessive reliance on the price/quantity relationship by consumers maylead to the raising of prices on all products and services, even those of lowquality, which in turn causes the price/quality relationship to no longer apply.

Premium pricing (also called prestige pricing) is the strategy of pricing at, or

near, the high end of the possible price range. People will buy a premiumpriced product because:

1. They believe the high price is an indication of good quality;

2. they believe it to be a sign of self worth - "They are worth it" - Itauthenticates their success and status - It is a signal to others that theyare a member of an exclusive group; and

3. They require flawless performance in this application - The cost ofproduct malfunction is too high to buy anything but the best - example :

heart pacemaker



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The term Goldilocks pricing is commonly used to describe the practice ofproviding a "gold-plated" version of a product at a premium price in order tomake the next-lower priced option look more reasonably priced; for example,encouraging customers to see business-class airline seats as good value formoney by offering an even higher priced first-class option.

Similarly, third-class railway carriages in Victorian England are said to havebeen built without windows, not so much to punish third-class customers (forwhich there was no economic incentive), as to motivate those who couldafford second-class seats to pay for them instead of taking the cheaperoption.

The name derives from the Goldilocks story, in which Goldilocks chose neitherthe hottest nor the coldest porridge, but instead the one that was "just right".More technically, this form of pricing exploits the general cognitive bias ofaversion to extremes.

Demand-based pricing is any pricing method that uses consumer demand -based on perceived value - as the central element. These include:

Price skimming,

Price discrimination and yield management,

Price points,

Psychological pricing,

Bundle pricing,

Penetration pricing,

Price lining,

Value-based pricing,

Geo

And

Premium pricing.



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Implement specific store security policies

Within this step we will be looking at implementing store security policies andprocedures for the following:

Customers

Staff/staff property

Visitors, sales representatives, contractors, vendors

Stock/records

Cash and cash movement

Equipment and premises

Opening and closing of premises

Theft/armed robbery

Events likely to endanger customers or staff.

The focus of this Step looks at implementing store policy and procedures.

Before being able to implement these, it is first necessary to identify andcollect those policies and procedures which currently exist within theworkplace, dealing with the issues as listed.

Monitor and assess security procedures

This step looks at the monitoring and assessment of current store securityprocedures in terms of:

Customers - identifying areas where customers are not permitted oridentifying the actions and activities of customers which are prohibited.

Staff - identifying activities or actions of staff which are prohibited.

Staff property - identifying the security of staff property together withitems/articles which are prohibited from being brought into the store.

Visitors, sales representatives, contractors, vendors - access to various

locations within the store, delivery and removal of products/equipment.

Stock/records - maintenance and safekeeping.



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Equipment and premises - presentation of equipment and premises, toensure the safety of all persons coming into contact with or using them.

Opening and closing of premises - the sequence of proceduresensuring that unauthorised persons are not in a position to be onpremises during prohibited periods.

Armed robbery - to ensure the safety of staff and customers should theevent occur.

Other events likely to endanger customers or staff - events such as theoccurrence of a fire or some other event requiring the evacuation ofpeople from the store.

As a reminder, the issues of theft and cash movement have been excluded asthey constitute the greatest threat to store security and as such are dealt withspecifically later.

The best and most effective way to monitor store security procedures forthese issues is to prepare a checklist which identifies the essentialrequirements.

Checklists can be used to assess how effectively store security proceduresare being applied within the workplace.

Checklists provide a visual summary of the issues involved in security andprovide an overview of the most common deficiencies.

The checklist can be used as a tool to identify whether staff have the requiredskills and knowledge and how they apply these skills and knowledge in theworkplace. As such, a checklist is a valuable aid in determining any trainingrequired by the team and can help to identify what methods could be used toaddress any deficiencies for example, group training, individual counselling.



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Implement store security procedures relating to theftof merchandise

Theft of merchandise by customers or employees represents the singlehighest reason for loss to retailers.

One issue to highlight is that theft is theft, no matter who steals. The processfor dealing with theft should be the same whether the offender is a customeror an employee. The only difference between customer theft and employeetheft is that in the case of employee theft, dismissal is an additional option.

Look at your store security policy on theft and answer the following questions:

Does the policy:

Apply to customers and employees?

Identify a process for denying the opportunity for theft?

Identify a process for delaying the opportunity for theft?

Identify the process for deterring the opportunity for theft? Identify the process dealing with theft should it occur?

Should you answer no to any of the questions listed above, revisit your policyand make amendments so that the no answers change to a yes response.

Reporting matters likely to affect store security

Throughout any workplace coaching delivery or group training process, issuesassociated with store security arise.

It is essential that when such issues are dealt with they result in some form ofaction.

In most situations the type of action generated results in a report beingprepared for management.



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SIRXMER001A MERCHANDISE PRODUCTS

TRAINING AND ASSESSMENT ACTIVITIES AND QUESTIONS

The Trainee will be required to demonstrate competence on the job, inpractical demonstration; observation, question/answer and role-playsituations, incorporating verbal questions and written work, includingcompleting workplace forms, either to the RTO Trainer or Supervisor, underthe guidance of the RTO Trainer.

Element of competency:1. Place and arrange merchandise2. Prepare display labels and tickets3. Place, arrange and display price labels and tickets4. Maintain displays5. Protect merchandise

1. What are promotional activities?

2. What determines the kind of promotional activity to be used?



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3. How should you time your advertising?

4. What does promotional pricing refer to?

Assessment task

Demonstrate for your workplace assessor, your ability to safely andeffectively:

Place and arrange merchandise

Prepare display labels/tickets

Place, arrange and display price labels and tickets

Maintain displays

Protect merchandise

You may like to prepare a portfolio of your merchandising works to assist yourassessor with assessment of this unit.



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ASSESSMENT MODE A - Oral questioning

Trainee name:

Name of Workplace:

RTO Trainer name:

Unit/s of competency: SIRXMER001A

Unit Name: MERCHANDISE PRODUCTS

Date of training/assessment visit:

Instructions: In addition to written answers provided above, the trainee is required toprovide verbal answers to the following questions that will be asked by the RTO Trainer.Read the questions prior to the Trainers visit, and be prepared to answer them, obtaininghelp where necessary.

Did the trainee satisfactorily answer the following questions: Yes No





5. What should you consider before constructing displays?

6. How do you ensure that promotional stock is replenished?

The trainees underpinning knowledge was:

Satisfactory Not Satisfactory

Notes/comments :

Question 1:

Question 2:

Question 3:

Question 4:

Question 5:

Question 6:

RTO Trainer signature:

Trainee signature:

Date of assessment:



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The trainees performance was: Not Satisfactory Satisfactory

Feedback to trainee:

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Trainee signature:

RTO Trainer signature:

I confirm competence for this unit SIRXMER001A _________________(Manager signature)

_________________

(Date)



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C O M P E T E N C Y R E C O R D - SIRXMER001A

After assessment the assessor, the supervisor and participant should sign the competency record. If competency is not achieved at the first attempt, strategies toaddress the performance gaps need to be identified and a time for re-assessment organized.

Assessor Comments

_____________________________________________

_____________________________________________

_____________________________________________

_____________________________________________

_____________________________________________

_____________________________________________

Valid Sufficient Authentic Current

The participant is competent has shown competence in all of the followingelements:

Place and arrange merchandise

Prepare display labels/tickets

Place, arrange and display price labels and tickets

Maintain displays

Protect merchandise

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ D A T E _ _ _ _ _ _ _ _ _

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ D A T E _ _ _ _ _ _ _ _ _

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ D A T E _ _ _ _ _ _ _ _ _

D A T E F O R R E A S S E S S M E N T : _ _ _ _ _ _ _ _ _ _ _

Assessment Strategies

C U R R E N T C O M P E T E N C I E S

Oral/written questions

Activities

Workplace project

Supervisor/3rd party report

Self-Assessment

Other

The evidence supplied is:

Trainee Signature:

Supervisor Signature:

Trainer Signature

The Trainee isNOT YET COMPETENT:

Strategies to address gaps intrainee performance:


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Off-the-Job Training Log

Trainee Name:____________________________________ Supervisor signature:_________________________________

Company: __________________________________________________________________ Date:______/______/200____

Certificate: II III IV in

Business (Office Admin/Admin) Civil Construction Extractive Industries Food Processing

Hospitality Process Manufacturing Retail Operations TDT (Road Transport)

TDT (Warehousing) Telecommunications (Call Centres) _________________

List below the times allocated to Off-the-Job training for: SIRXMER001A Merchandise products

DateActivity

code Duration DateActivity



code Duration

Activity Code1. Read self-paced guides 2. Developed knowledge of use and safety requirements3. Met with Workplace Coach 4. Worked on assessment tasks5. Discussion on phone 6. Discussed assessment tasks7. Researched store policy and procedures 8. Researched legislative requirements9. Researched workplace policies and procedures 10. Researched industry codes of practice11. Observed other staff member/s merchandising products 12. Performance appraisal13. Other research 14. Read relevant industry publications15. Staff training 16. Talking to the supervisor 17. Complete appropriate paperwork relevant to task 18. Other: (specify) __________________________________________



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Participant survey of materials

Unit code: SIRXMER001A Unit name: Merchandise products

Date..

Instructions:

Please complete the questionnaire by circling the one number that best describes your answer to eachquestion. Please read each question carefully. For mailed surveys, place the completed questionnaire inthe enclosed reply paid envelope and post it back within seven days

Q1. Thinking in general about the material you were given for this unit, how would yourate it overall?

Circle only one answerPoor .... 1Fair .. 2Good ... 3Very Good .. 4Excellent ..... 5Dont know ........ 6

Q2. How strongly do you agree or disagree with the following statements about the unitmaterial?

Circle one answeronly for each statement

StronglyDisagree

Disagree

NeitherAgreenor

Disagree

Agree

StronglyAgree

Dontknow/

NA

a. The layout of the reading material made it easy to use/read 1 2 3 4 5 6b. The layout of the assessment material made it easy to use/read 1 2 3 4 5 6

c. The font size of the material was large enough 1 2 3 4 5 6

d. The reading material assisted me to complete the assessment 1 2 3 4 5 6

e. The material was easy to understand 1 2 3 4 5 6

f. The graphics/pictures were useful 1 2 3 4 5 6

g. The graphics/pictures were sufficient in number 1 2 3 4 5 6

h. The graphics/pictures were legible 1 2 3 4 5 6

i. The materials was free from typing errors 1 2 3 4 5 6

j. The material was relevant to my job/workplace 1 2 3 4 5 6

Comments: Please expand on the above points if you rated any of them less than 3



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______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

Suggested Answers

SIRXMER001A Merchandise products


Broadly speaking, promotional activities are marketing tools that aim to raise the profile aproduct or service in the eyes of the targeted customer. There are a variety of promotional

activities you can undertake to promote a product or service.


The type of promotional activities you choose will be determined by the objectives of thepromotion, the type of product and its position in the market, and organisationalrequirements, including timing, budget, and industry codes of practice.


As with any part of a promotional campaign, the timing of your advertising should

correspond with the purchasing habits of your target audience, and with your distributionand supply capabilities.


Promotional pricing refers to an instance where pricing is the key element of the marketingmix.

Documents

SIRXMER001A - Merchandise Products