All activities involved in selling goods and services to
those buying for resale or business use.
A firm engaged primarily in wholesaling activity.
Wholesalers add value by performing the
Selling and promoting
Buying and assortment building
Management services and advice
1. Full-service wholesalers
2. Limited-service wholesalers
Brokers and Agents
Manufacturers’ and retailers’ branches and offices
FULL SERVICE W/SALERS
Cash-and-carry wholesalers -Sell a limited
line of fast moving goods to small retailers for
Truck wholesalers (jobbers) – sell and
deliver a limited line of semi perishable goods to
stores, hospitals, restaurants and hotels
Drop shippers – serve bulk industries such as
coal, lumber, heavy equipment. They assume
title and risk from the time an order is accepted
to its delivery.
Rack jobbers – serve grocery retailers in non
food items. Delivery people set up
displays, price goods, keep inventory
records, they retain title to goods and bill
retailers only for goods sold by the retailer.
Producer’s cooperatives – assemble farm
produce to sell in local markets.
Mail-order wholesalers – send catalogs to
retail, industrial and institutional
customers, orders are filled and sent by
mail, rail, plane or truck
BROKERS AND AGENTS
Brokers and agents do not take title of the goods.
Bring buyers and sellers together and assist in negotiation
MANUFACTURERS’ AND RETAILERS’
BRANCHES AND OFFICES
Wholesaling operations conduced by
sellers or buyers themselves rather
than through independent wholesalers.
Major retailers set up purchasing
offices in major marketing centers.
Purchasing officers - Perform roles
similar to brokers and agents;
however, these individuals are employees
of the organization
Trends in Wholesaling
Price competition is still intense
Successful wholesalers must add value by
increasing efficiency and effectiveness
The distinction between large retailers and
wholesalers continues to blur
More services will be provided to retailers
Many wholesalers are going global
A privilege or right granted to a person or a
group by a government, state or sovereign.
Authorisation granted by a manufacturer to a
distributor or dealer to sell his products.
Franchising is a method used by business for the
marketing and distribution of products and
The two parties involved are:
1. The Franchisor: The Franchisor is the
provider of the franchise. Typically he
owns the trademark/product/service and
licenses the trademark to another party.
He may provide support for the running of
the franchise. In exchange, he receives a
fee, commonly known as the royalty or
franchise fee. This fee varies from
industry to industry.
Franchisee is the person who pays for and
purchases a franchise from a franchisor and
operates a business using the
name, product, business format and other items
provided by the franchisor. The franchisor helps
the franchisee in setting up the business and
1. Site selection
4. Products to be
6. Advt. &
At national level
Chooses with approval
Incurs the cost
Hires and pays
Can change only with
Field supervision of operations
Merchandising and employee retraining
Market data and guidance
Auditing and record keeping
Group insurance plans
ADVANTAGES OF FRANCHISING
-- eliminates the risk of learning from a completely
-- risk of whether the business will be successful or
not is much lower for the franchisee.