Wholesaling:

Concept, Importance, Functions Wholesaler Marketing Decisions Trends in Wholesaling

Wholesalers:

Buy in bulk (large quantities)

from manufacturers and sell them to retailers

Keep producers informed

about market demand

Wholesaling concept:
The concept of wholesaling is of bulk buying And bulk selling, link between producer and retailer/consumer also they finish goods by grading, packing, branding 3 major categories: Merchant wholesaler- buy & sell. Manufacturers sales branches. Merchandise agents & brokers

Why Are Wholesalers Used?

Management Services & Advice Market Information Risk Bearing Selling and Promoting Buying and Assortment Building Bulk Breaking

Wholesaler Functions

Financing

Warehousing

Transporting

Importance of wholesalers:

Appropriate quantity. Wider geographical access. Ensuring & maintaining quality. Cost effective. Access to supply of goods. Assembling & arranging goods. Minimizing buyer transportation. Consumerism. Help in coping with the market change. Flow of information.

Wholesaling
Types of Wholesalers
Merchant Wholesalers Brokers and Agents Manufacturers and retailers branches and offices
Full-service wholesalers
Wholesale merchants Industrial distributors

Limited service wholesalers

Cash-and-carry wholesalers Truck wholesalers (jobbers) Drop shippers Rack jobbers Producers cooperatives Mail-order wholesalers

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Wholesaling
Types of Wholesalers
Merchant Wholesalers Brokers and Agents Manufacturers and retailers branches and offices
Brokers
Bring buyers and sellers

together and assist in negotiation

Agents
Manufacturers agents Selling agents Purchasing agents Commission merchants
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Wholesaling
Types of Wholesalers
Merchant Wholesalers Brokers and Agents Manufacturers and retailers branches and offices
Sales branches and offices
Branches carry inventory:

lumber, auto equipment, parts Offices do not carry inventory: dry goods

Purchasing officers
Perform roles similar to

brokers and agents, however these individuals are employees of the organization

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Major Wholesaler Types

Merchant Brokers Agents Manufacturers and

wholesalers Full-service wholesalers Limited-service wholesalers

retailers branches and offices Miscellaneous wholesalers

Wholesaler Marketing Mix Decisions

Wholesaling
Wholesaler Marketing Decisions
Targeting may be made on the basis of:
Size of customer Type of retailer Need for service

Positioning

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Wholesaling
Wholesaler Marketing Decisions
Marketing mix decisions

Product and service assortment: inventory, line Pricing: usual markup on COG is 20% Promotion: largely disorganized and unplanned Place: location, facilities
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Wholesaling
Trends in Wholesaling
Price competition is still intense Successful wholesalers must add

value by increasing efficiency and effectiveness The distinction between large retailers and wholesalers continues to blur
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Wholesaling
More Trends in

Wholesaling
More services will be

provided to retailers Many wholesalers are going global

Wholesaler McKesson offers pharmacists a wide range of online resources
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Challenges in Wholesaling
Must Learn to Compete Effectively Over Wider and More Diverse Areas Increasing Consolidations Will Reduce Number of Wholesalers Surviving Wholesalers Will Grow Larger Through Acquisitions and Mergers
Vertical Integration Will Remain Strong Will Continue to Increase Services Provided to Retailers Global Expansion

Match the word combination (1-7) to their definitions (a-f).

Concept: Explanation of the term
a. Money received from sales (2

1. Figures 2. Forecast 3. Growth 4. Revenue 5. Target 6. Turnover 7. Volume

expressions) b. Sales aimed for a particular period. c. The number of things sold. d. Increase in sale. e. Statistics showing the amount sold. f. sales predicted in a particular period.