Merchandising

Merchandising is used to describe a marketing practice in which the brand image of one product, the core brand, is used to sell another product. For example, a famous character such as Mickey Mouse is used to sell Disney merchandise such as bags and clothes. The goal is to increase retail sales.

Promotional merchandise.

Gifts with purchase can increase sales. Examples include:

• in-pack offers – items inside the packaging, such as a toy in a box of breakfast cereal
• on-pack offers – gifts, including money-off offers and competitions, which are promoted on the packaging and can be obtained by following the instructions given.

Other types of promotional gift include:

• freebies or goodies – promotional items which are given away, such as free perfume samples or sun hats with the company logo
• corporate gifts – luxury items with a company logo, given to special clients or VIP’s.

Sports clubs can develop additional revenues by selling team products, such as shirts and memorabilia, at a premium price. They can also sign merchandising deals or licensing deals with sponsors or other commercial partners. The club authorizes, or licenses, the partner to use the club’s logo on their products. For example, Lego bought the right to use the NBA league logo on their figurines.

Merchandising is often used in the promotion of films, books, bands and pop stars.

Comprehension questions:

1. What is merchandising used for?

2. What do the types of promotional gift include?

3. Where is merchandising often used?

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