What is meant by product placement in retail?

Product placement in retail refers to the strategic positioning of products within a store. This practice involves carefully selecting specific locations for products to maximize visibility and accessibility, thereby influencing customer purchasing behavior. The goal is to place high-demand or high-margin items in areas where they are most likely to attract customers' attention and encourage sales.

For instance, placing popular items at eye level on shelves or near checkout counters can increase the likelihood of impulse purchases. Retailers often analyze customer traffic patterns and buying habits to determine the most effective placements within their store layout.

The other options do not accurately define product placement. Discounting products for special sales pertains to pricing strategies rather than product positioning. Promoting products via online advertisements relates to digital marketing efforts, which differ from the physical layout of merchandise in a store. Labeling products for easy identification focuses on organizational practices rather than the strategic placement aspect that drives customer engagement in a retail environment.