This document contains slides from a marketing management class discussing wholesaling and market logistics. It defines wholesaling and lists the key functions of wholesalers, including selling, buying, warehousing, and providing market information. It then discusses wholesaling marketing decisions around target markets, product assortment, pricing, and promotion. It also covers the concepts of supply chain management and marketing logistics, including the four decisions of order handling, warehousing, inventory levels, and transportation.

1. MG 220 Marketing Management
BBA 09 – Sec C
Fall 2010
Muhammad Talha Salam, Asst. Professor
talha.salam@nu.edu.pk
Access it online: www.slideshare.net/talhasalam
Part 6:
Delivering Value
> Covering balance from prev session
> Two topics from Part 6 to be covered:
> Wholesaling
> Market Logistics: SKIM
> Overall review of Part 7
> Quiz 7: Part 5 (complete part)
Class Presentation | Session 27 | 22 Nov 2010

2. Access it online: www.slideshare.net/talhasalam
Wholesaling
Wholesaling defined
• Includes all the activities involved in selling goods or services to those who buy for
resale or business use.
• Wholesaling excludes farmers and manufacturers because they are primarily
engaged in production. Differences of Wholesalers from retailers are:
– Less concerned about promotion, location etc | larger transactions | Different regulatory framework
Key functions of Wholesalers
• Selling and promoting
• Buying and assortment building
• Bulk breaking
• Warehousing
• Transportation
• Financing
• Risk bearing
• Market information
• Management services and counseling
MG 220 Marketing Management 2

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Wholesaling
Marketing Decisions
Target Market
• Identifying customers
• By size (only small retailers to be served) | By type (grocery stores, general stores) | Need
for service (customers needing credit)
Product Assortment and Services
• Pressure of carrying full line and sufficient stock for immediate delivery
• Costs are incurred because of this
Price decision
• Charge a certain markup (a certain %age of price)
• Own expenses (calculated as a certain %age of price)
• Difference is earning
Promotion decision
• Mainly using own salesforce
Place decision
• Located in low-rent, low tax areas. Not much investment in physical setting
• Concept of automated warehouses
MG 220 Marketing Management 3

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Marketing Logistics
Concept of SCM – Supply Chain Management
• It starts before distribution
• Involves procuring right raw material, equipment and using them efficiently for
converting into product, and dispatching them to final destinations
Marketing Logistics
• Involves planning the infrastructure to meet demand, then implementing and controlling
the physical flows of materials and final goods from points of origin to points of use to
meet customer needs at a profit
Four important decisions for Marketing-Logistics
• How should orders be handled? Order processing
• Where should stocks be located? Warehousing
• How much stock should be held? Inventory
• How should goods be shipped? Transportation
MG 220 Marketing Management 4

5. MG 220 Marketing Management
BBA 09 – Sec C
Fall 2010
Muhammad Talha Salam, Asst. Professor
talha.salam@nu.edu.pk
Access it online: www.slideshare.net/talhasalam
Part 7:
Communicating Value
> Overall review
Class Presentation | Session 27 | 22 Nov 2010

6. Access it online: www.slideshare.net/talhasalam
Review of Part 7
17: Designing and Managing Integrated Marketing Communications
• The Role of Marketing Communications
• Developing Effective Communications
• Deciding on Marketing Communications Mix
• Managing the Integrated Marketing Communications Process
18 Managing Mass Communications:
Advertising, Sales Promotions, Events and Public Relations
19 Managing Personal Communications:
Direct Marketing & Personal Selling
MG 220 Marketing Management 6

7. MG 220 Marketing Management
BBA 09 – Sec C
Fall 2010
Muhammad Talha Salam, Asst. Professor
talha.salam@nu.edu.pk
Access it online: www.slideshare.net/talhasalam
Part 7:
Communicating Value
> The Role of Marketing Communications
> Developing Effective Communications
> Deciding on Marketing Communications Mix
> Managing the Integrated Marketing Communications
Process
Class Presentation | Session 28 | 24 Nov 2010