The document discusses wholesalers, defining them as businesses that purchase goods in bulk from manufacturers and sell them in smaller quantities to retailers, industrial users, or institutions. It highlights the roles and functions of wholesalers, their characteristics, growth potential, trends, and types, emphasizing their importance as a link between producers and retailers. Additionally, it addresses the need for improved relationships between wholesalers and manufacturers through communication and value-added services.

1. Chapter 3
• Wholesalers
Chapter 3 Wholesalers

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. 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. 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. Characteristics
1. Vital link between the manufacturer and
the retailer
2. Buys in bulk quantities from the
manufacturers and resells them to the
retailers in small quantities
3. Deals with limited no. of products
4. Present samples to the prospects
5. Wholesaler operates in a specific area
Chapter 3 Wholesalers

6. Functions of the wholesaler
1. Assembling, bulk-breaking, product
assortments
2. Warehouse and Storage
3. Grading and packing
4. Transportation
5. Financing
6. Ensuring uninterrupted flow of goods
7. Risk bearing
8. Providing market information
Chapter 3 Wholesalers

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. 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. 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. 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. 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. Improving relationship of
wholesaler –manufacturer
1. Clarity requires
2. Visits and Regular Communication
3. Commitments
4. Value-added Services
5. More Investment
Chapter 3 Wholesalers

13. Types of Wholesalers
1. Merchant Wholesaler
2. Miscellaneous Wholesaler
3. Sales Branches and Offices
4. Brokers and Agents
5. Full service Wholesaler
6. Limited Service Wholesaler
7. General Merchandise
Chapter 3 Wholesalers

14. Types of Wholesalers
8. Specialty Merchandise
9. Industrial distributors
10. Cash and Carry Wholesaler
11. Truck Wholesaler
12. Mail Order
13. Selling Agents
14. Manufacturers’ Agents
15. Commission Houses
Chapter 3 Wholesalers

15. Wholesaler Marketing Decisions
1. Selection of Target Market
2. Product Assortment
3. Pricing
4. Place
5. Promotion
Chapter 3 Wholesalers

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. 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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