mm wholesale

8/8/2019 Mm Wholesale

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WHOLESALE


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THE GOD WHOM SCIENCERECOGNISES MUST BE A GOOD OF

UNIVERSAL LAW EXCLUSIVELY, AGOD WHO DOES A WHOLESALE,NOTA RETAIL BUSINESS.HE CANNOTACCOMMODATE HIS PROCESSES TOCONVENIENCE OF INDIVIDUALS.


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DEFINITION

Wholesaling

All activities involved in selling goodsand services to those buying for resale or

business use.

Wholesaler

A firm engaged primarily in wholesaling

activity.


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Chain of Distribution Diagram

ImportersHome Producers &

ManufacturersExporters

Wholesalers

1st outlet

Retailers

2nd outlet

Ultimate

Consumers & Users

Sales to

Wholesalers

Normal Channels

Sale to Retailers

Local MarketTransport &

Warehousing

Central Market

Foreign Goods

Sales to

Retailers

Sales Abroad


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Wholesaling

Wholesalers add value byperforming the following functions: Selling and promoting

Buying and assortment building Bulk-breakingWarehousing

Transportation Financing Market information


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Wholesaling

Wholesaler Marketing Decisions Target market and positioning

Targeting may be made on the basis of size

of customer, type of retailer, need forservice

Marketing mix decisions Product and service assortment

Pricing: usually markup standard percent Promotion: largely disorganized and

unplanned

Place: location, facilities


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Wholesaling in INDIA

Delhi biggest consumption center.

It has attained the status major

distribution center. Employed -160000 persons

In storage- 7000 persons

In warehousing 27000


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Places Speciality

Azadpur Fruits / vegetables

Okhla Fruits / vegetables

Narela Food grains

Naraina Iron/steel

Sanjay Gandhi transportcentre

Transport/warehousing

Rohtak road transportcentre

Transport/warehousing

Najagarh Food grains

Sub city level distribution


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Wholesale Vs Retail Trade

Wholesale

Operate on largescale.

Needs large capital

Low price andmargins

Act as 1st outlet indistribution

Showroom notrequired.

Retail

Operate on smallscale.

Needs limitedcapital

Relatively highprices and margins.

Act as end outlet indistribution

Showroom is

required.


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Types of Wholesalers

Wholesale Categories:

Products CarriedPromotional activities

Distribution

Service level

Product ownership


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Products carried

General merchandise

Specialty merchandise


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Promotional activities

Extensive promotion

Limited promotion


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Distribution

Stationary location

Customer accessible

Not customer accessible

Non Stationary location

MobileNo facilities


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Service

Full service

Limited service

No service


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Ownership

Do take title

Do not take title


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Functions of Wholesalers

Maintenance of sales force

Storage

Delivery to retailers

Financial help to both manufacturers &retailers

Merchandising

Sales promotional work Product servicing

Marketing information

Risk-bearing


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R

OD U

C

E

P R

WHOLESALER

R E T A I L E R


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Services to the MANUFACTURER

Order collection

Risk transfer

Concrete relief

Expert advice


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Services to the RETAILERS

No need to Hold Large Stocks of VariedGoods

Prompt Delivery of Goods

Benefits of Specialization

Announcement ofNew Products

Grant of Credit


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The Type of Wholesale Middlemanto be used in a Channel ofDistribution

Merchant Wholesaler

i. Production isstandardized

ii. Product sold tomany customers

iii. Buyers scattered

iv. Order frequency

& delivery timev. Profit margin-

Larger

Agent Wholesaler

i. Production iscustom-made

ii. Product sold to fewcustomers

iii. Buyers concentrated

iv. Order infrequency &

delivery timev. Profit margin-

Smaller


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Benefits ofwholesaling

Provide Access toProducts

Provide Access to

Markets


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Trends in Wholesaling

Price competition is stillintense

Must add value by increasing

efficiency and effectivenessThe distinction between large

retailers and wholesalerscontinues to blur

More services will be providedto retailers


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Concerns

Disintermediation

Facility Location

Transportation Costs

Adapting to New Technologies

Offering Non-ProductAssistance


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I shoot an arrow into the air,

where it lands I dont care, Iget my arrow onWHOLESALE.

mm wholesale

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