Title: Explain the role of a merchandising plan in purchasing products and services.
Course: Strategic Marketing (12152) > Section: Purchasing Products and Services

Explanation should include the following concepts:

- Buyers plan their purchases through the merchandising plan before going to market.
- The merchandising plan allocates funds and determines what is purchased and the quantity purchased.
- The target market should be analyzed in the planning stages of the merchandise plan.

Process/Skill Questions:

- How does a business determine an amount of money to allocate toward purchasing?
- How does a business determine the quantity of goods to purchase?
- How is centralized buying different from decentralized buying?
- How often should buyers reevaluate the merchandising plan?
- What are some consequences of not having an effective merchandising plan in place?
- What steps can a business take to improve the chance of success of a merchandising plan?
- What types of data and analytics can be used to help retailers develop their merchandising plan?