What is Wholesaling

Principles of MarketingRetailing and WholesalingChapter 11:

DefinitionsRetaileris one whose business firms sells mainly to the final consumers.Retailing refers to the business activity of selling goods or services to the final consumer.

Functions of RetailersThey provide convenience;2. They provide guarantee and service;3. They provide financing of transactions;4. They perform promotional activities;5. They perform storage function;6. They perform intelligence service for the manufacturer; and7. They serves as buying agent of the consumers.

Types of Retailers

1. By sales volumeBy product mix offered3. By form of ownership4. By method of operationSmallLarge

Medium

Can classified as:

Department storesVariety Stores

Types of Retailers1. By sales volume2. By product mix offered3. By form of ownership4. By method of operation

- are those which carry only a specific line of products.General Merchandise storesSpecialty Stores

are those that carry a large variety of product line.

Single line specialty storeLimited-line specialty store

Types of Retailers1. By sales volume2. By product mix offered3. By form of ownership4. By method of operationCorporate chain storesFranchise storesIndependent stores

- are owned and operated by independent retailers.Types of Retailers1. By sales volume2. By product mix offered3. By form of ownership4. By method of operationCorporate chain stores- composed of two or more outlets that are owned commonly by a person or a group of persons selling similar productsIndependent stores

-is an independent retailer given the right to sell his products in a definite market area.1. By sales volume2. By product mix offered3. By form of ownership4. By method of operationTypes of RetailersFranchise stores

- are stores where assistance in a variety of ways is extended to the costumers.1. By sales volume2. By product mix offered3. By form of ownership4. By method of operationTypes of RetailersFull Service Retailers- large department stores which offers a variety of goods.Supermarkets

- are self-service retailers that sells a wide variety of goods at less than traditional retail prices.1. By sales volume2. By product mix offered3. By form of ownership4. By method of operationTypes of RetailersDiscount Stores

1. By sales volume2. By product mix offered3. By form of ownership4. By method of operation-refer to those who sell outside of the store. They may be classified as:

at home retailerstelephone retailersvending machine retailersmail-order retailermail-order retailersinternet retailerscellphone service retailers

Types of RetailersNonstore Retailers

What is Wholesaling? -refers to all activities involved in selling goods and services to those who intend to resell or use the same for producing goods or services.Wholesaling

Functions of the Wholesaleranticipating customer needs;2. selling and promotion;3. financing;

4. storage;

5. breaking bulk;

6. transportation;

7. risk-taking.

Types of WholesalersA. Merchant WholesalersMerchant wholesalers can be classified into the ff:the general line merchant wholesaler who carry a general assortment of goods; and

the specialty line merchant wholesaler who carry only a limited number of lines.

Full Function WholesalersLimited function wholesalersIndustrial wholesalers

Full Function WholesalersLimited function wholesalersIndustrial wholesalers

B. Sales office and branchesC. Agents manufacturers agents- sell only a portion of a manufacturers output. selling agents- are required to sell the firms entire output.

Types of Wholesalers

Full Function WholesalersLimited function wholesalersIndustrial wholesalers

Limited function wholesalers provide only some wholesaling functions, like order taking and processing.

They may be classified as follows:

1. drop shippers2. truck distributors3. mail-order wholesalers4. cash-and-carry wholesalers5. cooperatives6. rack jobbers

Types of Wholesalers

Full Function WholesalersLimited function wholesalersIndustrial wholesalers

The following types of wholesalers serve the industrial market:

1. those also serving the retailers:a. sales branchesb. brokersc. manufacturers agentsd. combination houses

.

Types of Wholesalers

Full Function WholesalersLimited function wholesalersIndustrial wholesalers

2. industrial distributors serving only the industrial market:

a. general line wholesalers- carry complete assortment of goods in a single line.

b. specialty line wholesalers- carry only limited range of products in a given lineTypes of Wholesalers

End of the Chapter 11 Reported By: Casimiro, Ma. Keena ThereseDela Cruz, SharmaineRecto, Jesy Kay