whole selling

8/3/2019 Whole Selling

1/16

Wholesaling:

Concept, Importance, Functions Wholesaler Marketing

Decisions Trends in Wholesaling


2/16

Wholesalers:

Buy in bulk (large quantities)from manufacturers and sell

them to retailers

Keep producers informedabout market demand


3/16

Wholesaling concept:

The concept of wholesaling is of bulk buyingAnd 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


4/16

Wholesaler

Functions

ManagementServices & Advice

Selling andPromoting

MarketInformation

Buying andAssortment Building

Risk Bearing Bulk Breaking

Transporting

Financing Warehousing

Why Are Wholesalers Used?


5/16

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.


6/16

14- 6

Wholesaling

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

MerchantWholesalers

Brokers and

AgentsManufacturers

and retailers

branches and

offices

Types ofWholesalers


7/1614- 7

Wholesaling

Brokers

Bring buyers and sellers

together and assist innegotiation

Agents

Manufacturers agents

Selling agents

Purchasing agents

Commission merchants

MerchantWholesalers

Brokers and

AgentsManufacturers

and retailers

branches and

offices

Types ofWholesalers


8/1614- 8

Wholesaling

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, howeverthese individuals areemployees of the organization

MerchantWholesalers

Brokers and

AgentsManufacturers

and retailers

branches and

offices

Types ofWholesalers


9/16

Major Wholesaler Types

Merchantwholesalers

Full-servicewholesalers

Limited-service

wholesalers

Brokers

Agents

Manufacturers

andretailers branchesand offices

Miscellaneouswholesalers


10/16

Wholesaler Marketing Mix

Decisions


11/1614- 11

Wholesaler Marketing Decisions

Targeting may be made on the basis of: Size of customer

Type of retailer

Need for service Positioning

Wholesaling


12/1614- 12

Wholesaler Marketing Decisions

Marketing mix decisions Product and service assortment:

inventory, line

Pricing:usual markup on COG is 20%

Promotion: largely disorganized andunplanned

Place: location, facilities

Wholesaling


13/1614- 13

Trends in Wholesaling

Price competition is still intense Successful wholesalers must add

value by increasing efficiency andeffectiveness

The distinction between largeretailers and wholesalers continuesto blur

Wholesaling


14/16

14- 14

More Trends in

Wholesaling More services will be

provided to retailers

Many wholesalers

are going global

Wholesaling

Wholesaler McKesson offers pharmacists awide range of online resources


15/16

Challenges in Wholesaling

Must Learn to Compete Effectively Over

Wider and More Diverse Areas

Increasing Consolidations Will ReduceNumber of Wholesalers

Surviving Wholesalers Will Grow LargerThrough Acquisitions and Mergers

Vertical Integration Will Remain Strong

Will Continue to Increase ServicesProvided to Retailers

Global Expansion


16/16

Match the word combination (1-7) to their

definitions (a-f).

Concept: Explanation of the term

1. Figures

2. Forecast3. Growth

4. Revenue

5. Target6. Turnover

7. Volume

a. Money received from sales (2

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 particularperiod.

whole selling

Documents