What does the term 'category definition' imply?

The term 'category definition' primarily refers to identifying products that fit within a specific category. This process involves classifying a group of products based on shared characteristics or customer needs, thereby creating a coherent category that retailers and suppliers can use for effective management and strategy formulation. By clearly defining the products included in a category, businesses can better understand customer preferences, optimize inventory, and tailor marketing strategies.

Understanding the specific products that belong to a category helps in various decision-making processes, such as merchandising, promotions, and overall pricing strategies. It sets the foundation for effective category management, allowing businesses to analyze sales data, consumer behavior, and market trends relevant to the products within that defined category. By clearly establishing what products are included, companies can enhance their ability to meet customer demands and improve overall performance.