Retail Merchandising
Is about creating displays, maximizing revenue per square foot, designing traffic flow around particular goods or offerings so that they gain exposure, etc.
Marketing
Is selling a brand, or creating a feeling around something that drives people and companies to buy from you, your company.
For example
Wal-mart wants you to buy Dell computers from them. They market Wal-mart low prices, and that they sell Dell at a discount in all types of media. That is marketing.
When you walk in the store, you find that Wal-mart has a Dell counter set up in the store and Dell merchandise is arranged in such a way that a consumer can shop for it as easily as possible. That is Retail Merchandising.
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