Merchandising is the business of promoting and selling products, especially by making them attractive and easy for customers to buy. When you walk into a store and see colorful displays near the checkout counter, action figures arranged at a child's eye level, or a special section featuring items from a popular movie, that's merchandising at work.

Merchandising is about the strategy behind selling goods. A toy company practices merchandising when it creates lunch boxes, t-shirts, and backpacks featuring characters from its popular animated series. A grocery store uses merchandising when it places candy bars where kids will notice them, or arranges fresh flowers near the entrance to make shoppers feel welcome.

Merchandising also refers to product placement and presentation. The way items are arranged on shelves, the signs that advertise sales, and the mannequins wearing the latest fashions in store windows are all merchandising techniques designed to catch your attention and make you want to buy something.

In the entertainment world, merchandising has become hugely important. When a successful movie comes out, the studio might earn more money from merchandising (selling toys, clothes, video games, and other products) than from the movie tickets themselves. Smart merchandising turns a popular character or brand into dozens of different products that fans want to own.