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8/3/2019 Whole Selling
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Wholesaling:
Concept, Importance, Functions Wholesaler Marketing
Decisions Trends in Wholesaling
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Wholesalers:
Buy in bulk (large quantities)from manufacturers and sell
them to retailers
Keep producers informedabout market demand
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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
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Wholesaler
Functions
ManagementServices & Advice
Selling andPromoting
MarketInformation
Buying andAssortment Building
Risk Bearing Bulk Breaking
Transporting
Financing Warehousing
Why Are Wholesalers Used?
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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.
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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
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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
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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
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Major Wholesaler Types
Merchantwholesalers
Full-servicewholesalers
Limited-service
wholesalers
Brokers
Agents
Manufacturers
andretailers branchesand offices
Miscellaneouswholesalers
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Wholesaler Marketing Mix
Decisions
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Wholesaler Marketing Decisions
Targeting may be made on the basis of: Size of customer
Type of retailer
Need for service Positioning
Wholesaling
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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
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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
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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
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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
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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.
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