Brief classification of wholesaling and retailing with classifications and their functions.

1. RETAILING & WHOLESALING

2. RETAILING
• Retailing is the set of activities involved in the
selling of goods to ultimate consumers for
personal, non business consumption.
• A retailer or retail store is any business
enterprise whose sales volumes comes
primarily from retailing.

3. • Any organization selling to final customers is
doing retailing, no matter whether it is a
manufacturer, wholesaler or retailer.
• It does not matter how the goods or services
are sold ( in person, by mail, vending machine,
or on the internet) or where (in a store, in the
street, or in the consumer’s home).

4. Changes in the
Retail Environment
• New retail forms and combinations
• Growth of intertype competition
• Competition between store-based and non-
store-based retailing
• Growth of giant/mega retailers
• Decline of middle market retailers
• Growing investment in technology
• Global profile of major retailers
• Retail stores as communities or hangouts.

5. Retailers’ Marketing Decisions
• Retailers have to take many marketing
decisions in their operations and they are in
the below mentioned areas
Target market
Product assortment
Procurement
Prices
Services
Store atmosphere
Store activities
Communications
Locations

6. • Target market : The first & most imp marketing
decision taken by the retailer is to identify & define the
target market properly.
• Product assortment : The customer requirement is
checked & decides the depth and width of the product
mix & product line
• Procurement : The demand is properly forecasted and
required products are made available for sale.
• Prices – Pricing is a key positioning factor, and is done
related to the target customer group.

7. • Services : Proper service has to be delivered as services
are a differentiating factor.
• Store atmosphere : Factors like lighting, signage,
flooring etc has to be arranged attractively.
• Store Activities : Special programs to attract and
entertain customers.
• Communications : Customer communications to
improve customer traffic and sale. Includes special
sales, ads, reward programs etc.
• Locations – Most importer decision for a retailer is to
decide upon the location of store.

8. Major Retailer Types
• Specialty store
• Department store
• Supermarket
• Convenience store
• Discount store
• Off-price retailer
• Superstore
• Catalog showroom

10. WHOLESALING
• Wholesaling includes all the activities in selling goods or
services to those who buy for resale or business purpose
• The business of selling of goods in large quantities and at
low prices, typically to be sold on by retailers at a profit
• Wholesaler : a firm engaged primarily in wholesaling
activity.

11. Functions: Wholesalers add value by
performing following functions
• Selling & Promoting – The sales force of the
wholesalers help manufacturers reach many
small business customers at relatively low
cost.
• Buying & Assortment Building – They are able
to select and collect the items required for its
customers.
• Bulk Breaking – They buy large bulks and
break it into smaller sizes suitable for their
business customers.

12. • Order Processing – Important function done
by the wholesalers. Proper quantity and
variety of the required items are given timely.
• Warehousing – They hold and store the
inventories there reducing costs and risks to
suppliers and customers.
• Transportation – They are closer to the
business customers and they offer faster
delivery of the goods to the customers.

13. • Financing – They do finance for the
procurement of their goods for business
• Risk Bearing – Along with the payment of
money and transfer of ownership, wholesalers
also bear the risk of owning and operating on
a product category.
• Marketing Information – Along with their
regular operations, they pass
information(feedback) to the top.

14. TYPES OF WHOLESALERS