Retailing and Wholesaling

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Retailing and Wholesaling

  1. 1. Principles of MarketingChapter 11: Retailing and Wholesaling
  2. 2. DefinitionsRetailing refers to the business activity of sellinggoods or services to the final consumer.Retailer is one whose business firms sells mainly tothe final consumers.
  3. 3. Functions of Retailers1. They provide convenience;2. They provide guarantee and service;3. They provide financing of transactions;4. They perform promotional activities;5. They perform storage function;6. They perform intelligence service for themanufacturer; and7. They serves as buying agent of the consumers.
  4. 4. Types of Retailers1. By sales Can classified as: volume2. By product mix Small  Medium offered3. By form of ownership4. By method of operation Large
  5. 5. Types of Retailers1. By sales General Merchandise stores volume - are those that carry a large variety of product line.2. By product mix offered Department stores Variety Stores3. By form of Specialty Stores ownership - are those which carry only a specific4. By method of line of products. operation Single line specialty store Limited-line specialty store
  6. 6. Types of Retailers1. By sales Corporate chain stores volume2. By product mix offered Independent stores3. By form of ownership4. By method of Franchise stores operation
  7. 7. Types of Retailers1. By sales Corporate chain stores volume - composed of two or more2. By product mix outlets that are owned offered commonly by a person or a group of persons selling3. By form of similar products ownership4. By method of Independent stores operation - are owned and operated by independent retailers.
  8. 8. Types of Retailers1. By sales volume2. By product mix Franchise stores offered -is an independent3. By form of retailer given the right ownership to sell his products in a4. By method of definite market area. operation
  9. 9. Types of Retailers1. By sales Full Service Retailers volume - are stores where2. By product mix assistance in a variety of offered ways is extended to the3. By form of ownership costumers. Supermarkets4. By method of operation - large department stores which offers a variety of goods.
  10. 10. Types of Retailers1. By sales volume Discount Stores2. By product mix offered - are self-service3. By form of retailers that sells a wide ownership variety of goods at less4. By method of than traditional retail operation prices.
  11. 11. Types of Retailers Nonstore Retailers1. By sales volume - refer to those who sell outside of the store. They may be2. By product mix classified as: offered3. By form of • at home retailers ownership • telephone retailers • vending machine retailers4. By method of • mail-order retailer operation • mail-order retailers • internet retailers • cellphone service retailers
  12. 12. What is Wholesaling?Wholesaling -refers to all activities involved inselling goods and services to those whointend to resell or use the same forproducing goods or services.
  13. 13. Functions of the Wholesaler1. anticipating customer needs;2. selling and promotion;3. financing;4. storage;5. breaking bulk;6. transportation;7. risk-taking.
  14. 14. Types of Wholesalers A. Merchant Wholesalers1. Full Function Merchant wholesalers can be classified into the ff: Wholesalers2. Limited function the general line merchant wholesaler who wholesalers carry a general assortment of goods; and3. Industrial wholesalers the specialty line merchant wholesaler who carry only a limited number of lines.
  15. 15. Types of Wholesalers B. Sales office and1. Full Function branches Wholesalers C. Agents2. Limited function manufacturer’s wholesalers agents- sell only a portion of a3. Industrial manufacturer’s output. wholesalers selling agents- are required to sell the firm’s entire output.
  16. 16. Types of Wholesalers Limited function wholesalers provide only some wholesaling1. Full Function functions, like order taking and processing. Wholesalers2. Limited They may be classified as follows: function 1. drop shippers wholesalers 2. truck distributors 3. mail-order3. Industrial wholesalers 4. cash-and-carry wholesalers wholesalers 5. cooperatives 6. rack jobbers
  17. 17. Types of Wholesalers The following types of1. Full Function wholesalers serve the industrial market: Wholesalers2. Limited function 1. those also serving the retailers: wholesalers a. sales branches3. Industrial b. brokers wholesalers c. manufacturer’s agents d. combination houses .
  18. 18. Types of Wholesalers 2. industrial distributors serving1. Full Function only the industrial market: Wholesalers2. Limited function a. general line wholesalers- carry complete assortment of wholesalers goods in a single line.3. Industrial b. specialty line wholesalers- wholesalers carry only limited range of products in a given line
  19. 19. End of theChapter 11  Reported By: Casimiro, Ma. Keena Therese Dela Cruz, Sharmaine Recto, Jesy Kay

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