marketing channel

1. MARKETING CHANNEL

16. WHOLESALING
 According to S.E Thomas – “The wholesaler or the wholesale trader is a trader
who purchases goods in large quantities from manufacturers and sell it to
retailers in small quantities.”
 They are intermediary in the marketing channel that sell to customers other
than individual or house hold consumers.
 Wholesaler buy mostly from producers and sell mostly to retailers, industrial
consumers and other wholesalers.
KEY TASK OF WHOLESALERS
 Assembling goods
 Warehousing of the goods
 Transportation of the goods
 Order taking
 Financing of the goods
 Risk bearing
 Packing
 Providing market information
WHOLESALER TYPES
Merchant wholesaler: Independently owned business that take title to the
merchandise they handle.
Full service wholesalers: Carry stock, maintain a sales force, offer credit, make
deliveries.
Limited service wholesalers: Sell a limited number of fast moving goods to small
retailers for cash

17. Brokers and agents: Brokers bring buyers and sellers together and assist in
negotiation.
Real estate brokers, insurance brokers, food brokers etc…
RETAILING
 The word retail is derived from the French term Retailler which means “ TO
BREAK THE BULK”.
 Retailing includes all activities involved in selling of products and services to
ultimate consumer for their personal or home consumption.
 They are considered to be the last link in the distribution channel.
 They have more knowledge about the customers aspirations and requirement.
 Retailers can influence on the buying decision of the customers.
HOW CONSUMER DECIDE WHICH RETAILER TO BUY
 Price( value offered, credit and discounts)
 Place( convenience ,parking , safety , nearby)
 Product variety
 Special services( home delivery , gift wrap, free parking)
 Helpful sales people( fast check out, knowledge)
 Fairness in dealing( honesty, return privileges)
TYPES OF RETAILERS
 Department store: It is often the most complex, offering a wide range of
products and can appear as a collection of smaller retail stores managed by
one company.
 Supermarkets: It concentrates in supplying a range of food and beverage
products

18.  Warehouse retailers: This type of retailer is usually situated in retail or Business
park where premises rents are lower. This enables to stock, display and retail a
large variety of goods at very competitive prices.
 Specialty retailers: Specialising in specific industries or products.
i. E-tailer: This type enables the customer to shop online via the
internet and buy products which are then delivered.
ii. Convenience retailer: Usually located in residential areas. It offers
limited range of products at premium prices.
iii. Discount retailer: It offers a variety of discount products. They offer
low prices on less fashionable branded products.