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In this presentation, we will discuss about the concept and definition of wholesaling, characteristics of wholesaling, functions of wholesaler. We will also talk about services provide by the wholesaler to producers, retailers, consumers, growth and trend of wholesaler, types of wholesalers and wholesaler marketing decisions.
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  1. 1. Chapter 3• Wholesalers Chapter 3 Wholesalers
  2. 2. Chapter Plan• Concept• Characteristics of Wholesaler• Functions of Wholesaler• Services Provided by Wholesaler• Growth of Wholesaling• Trends in Wholesaling• Types of Wholesaler• Wholesaler Marketing Decisions Chapter 3 Wholesalers
  3. 3. Concept• ‘Wholesale’ means to sell goods in relatively large quantities.• The wholesalers buy goods and commodities in large quantities from the manufacturers for the purpose of further selling them in small quantities to the retailers. Chapter 3 Wholesalers
  4. 4. Definition• “ a business unit which buys and resells the merchandise to the retailers and the merchants or to the industrial, institutional and commercial users but does not sell insignificant amounts to the ultimate consumers.” Chapter 3 Wholesalers
  5. 5. Characteristics1. Vital link between the manufacturer and the retailer2. Buys in bulk quantities from the manufacturers and resells them to the retailers in small quantities3. Deals with limited no. of products4. Present samples to the prospects5. Wholesaler operates in a specific area Chapter 3 Wholesalers
  6. 6. Functions of the wholesaler1. Assembling, bulk-breaking, product assortments2. Warehouse and Storage3. Grading and packing4. Transportation5. Financing6. Ensuring uninterrupted flow of goods7. Risk bearing8. Providing market information Chapter 3 Wholesalers
  7. 7. Wholesaler-Producer Services– It is possible for the producers to go for the large-scale manufacturing– He reduces administrative and financial burden of the producers by bearing above costs– Manufacturers can cover wide area with help of wholesaler– Provides valuable information in the strategic planning by the producer– Helps in avoiding stocks out Chapter 3 Wholesalers
  8. 8. Wholesaler-retailer• The gap between the producer’s offerings and retailers’ expectation is bridged by the wholesaler• Provides necessary supports to retailer• Risk and investment at retailer level is substantially reduced• Helps retailer by providing P-O-P materials. Chapter 3 Wholesalers
  9. 9. Wholesaler-Consumer• Variety of products for consumer, is possible through support of wholesaler• Consumers are benefited with price stability• Market information provided by wholesalers helps consumer in decision making Chapter 3 Wholesalers
  10. 10. Growth of Wholesaling• Tremendous potential in retail sector• Manufacturer will need more no. of wholesalers• Development and advancements in the mass production techniques• Many companies found distributing themselves very costly• Thus, there is ample scope for the wholesaling activities Chapter 3 Wholesalers
  11. 11. Trends in wholesaling• Interested to promote private labels or their own brand• Maintaining stock of only running products• Lack of timely and updated market information to the manufacturers• Wholesalers do not support retailers etc. Chapter 3 Wholesalers
  12. 12. Improving relationship of wholesaler –manufacturer1. Clarity requires2. Visits and Regular Communication3. Commitments4. Value-added Services5. More Investment Chapter 3 Wholesalers
  13. 13. Types of Wholesalers1. Merchant Wholesaler2. Miscellaneous Wholesaler3. Sales Branches and Offices4. Brokers and Agents5. Full service Wholesaler6. Limited Service Wholesaler7. General Merchandise Chapter 3 Wholesalers
  14. 14. Types of Wholesalers8. Specialty Merchandise9. Industrial distributors10. Cash and Carry Wholesaler11. Truck Wholesaler12. Mail Order13. Selling Agents14. Manufacturers’ Agents15. Commission Houses Chapter 3 Wholesalers
  15. 15. Wholesaler Marketing Decisions1. Selection of Target Market2. Product Assortment3. Pricing4. Place5. Promotion Chapter 3 Wholesalers
  16. 16. Summary• Wholesale’ means to sell goods in relatively large quantities.• Wholesaler provides vital link between the manufacturer and the retailer• Manufacturer will need more no. of wholesalers• Now a days wholesalers are interested to promote private labels or their own brand Chapter 3 Wholesalers
  17. 17. Summary• Improving relationship of wholesaler – manufacturer requires clarity, regular communication, commitments, value- added services and more investment• There are different types of wholesalers ranging from full service providers to limited service wholesalers. Chapter 3 Wholesalers
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