Principles of Business, Marketing, and Finance
Principles of Business, Marketing, and Finance
Wholesalers in a Private Enterprise System
Manage the Middle
•
Producers use wholesalers to reach
all of the consumers in its target
market
•
Numerous retailers
•
Easier for a retailer to work
with a wholesaler than
Benefits of Wholesalers
•
Provide important marketing services
for the
channels in which they participate
•
Provide
one or more of the needed marketing
activities
better or at a lower cost
•
Combine the orders
of several small retailers
and purchases in efficient quantities
•
Specialize in storage and inventory
management
•
Provide facilities
for product storage that
Buying
Buying
Selling
Selling
Transporting
Transporting
Storing
Storing
Financing
Financing
Wholesaling Activities
•
Accumulate products of many manufacturers, develop
appropriate assortments for customers, and distribute
the products to their customers
•
Assist manufacturers in determining needs of retailers
and final consumers and provide market information to
retailers
•
Collect and analyze information on sales, costs, changes
in demand, and inventory levels
•
Purchase products from producers and manufacturers
and selling them to their customers
•
Assume risk by investing money in products that may be
Full-Service Wholesalers
•
Take title to the products they sell
•
Provide a full range of distribution activities
•
Provide or arrange transportation services
• Offer Credit
•
Provide promotion assistance,
Limited-Service Wholesalers
•
May not provide services such as research,
credit, or promotional support
•
Concentrate on one or two
important functions such as
warehousing and storage,
product delivery, or
Locating
Suppliers
Selling
Financing
Arranging
Shipment
Do Not Take
Title to Products
•
Independent businesses
•
Provide specialized exchange functions
Other Wholesaling Businesses
•
Wholesale franchises and cooperatives
-groups
of small businesses that affiliate because of the
benefit gained from cooperating for marketing and
distribution activities
•
IGA
•
FTD
Wholesale Member Clubs
•
Sam’s and Costco
•
Open to final consumers and
businesses
•
Products displayed in large
warehouses
• Limited product assortments are available in
large quantities
Changing Role of Wholesalers
•
Large retailer may prefer working directly with
producers
(such as a particular designer)
•
There are more small- and medium-sized retailer
and manufacturers than there are large
•
Access to markets
•
Product awareness
•
Export and import organization
-important in building international business
•
Better communications and information
-improved technology, broader customer service
•
Work to identify their customers
-understand their needs
•
Learn the problems the customers are having
-with products and marketing activities and help them to
solve those problems
Specialized Services
•
Marketing Research and Marketing Information Services
•
Provide Customers with Important Data
•
Computer Technology to Process Orders Quickly
•
New Methods for Storing and Handling Products to
Reduce Product Damage, Cost of Distribution, and Time
Needed for Delivery
RFID applications in “smart
Adding Customer Service
•
Marketing and Promotional Planning
•
24-Hour Ordering and Emergency
Deliveries
•
Specialized Storage Facilities
