Basis of Difference 1.

Meaning

2. He is a chain of Middleman 3. Sale and Purchase 4. Need of Capital

5. Sale-purchase policy

6. No. of Goods 7. Area of Trade 8. Risk Factor 9. Contact with Consumers 10. Trade Centre 11. Decoration of Goods

12. Efficiency in Salesmanship 13. Credit Facility

14. Selection of Place

15. Number

16. Storing Goods 17. Standardization of Types 18. Resale of Goods 19. Advertising 20. Free from Sale 21. Services

Wholesaler Wholesaler is a person or trading organization which purchases goods in large amount from the manufacturers and sell them to retailers and industrial users in small-small quantity. He is a chain between producer and retailer. They purchase goods from manufacturers and sell them to retailers. They need more capital because their area is more big in comparison to retailers. They generally purchase goods on cash payment but they do less sale on cash. They generally sale goods on credits. They generally trade in one ding of commodity. His market is spread at various places and in various cities. In has more risk factor in comparison to retailing. They do not have direct link with consumers. They open their shop in an area where retailers can easily reach. They do not pay much attention on decoration of shops because their objective is not attract the public. Wholesalers need not be a good salesman. They have more credit facility because they have more dealing on credit and less on cash payment. For them selection of place is not very important because they do not require to attract the customers. The number of wholesalers in comparison to retailers is very less. They store goods in huge quantities. They do not have any types.

Retailer He is a trader purchases goods from wholesalers or manufacturers and sells them to the consumers according to their need.

Whereas he is a chain between wholesaler and consumers. Whereas they purchase goods from wholesaler and sell them to consumers. Whereas they need less capital because their areas is limited. Whereas they purchase on credit. They do more cash selling.

Whereas they sale various kinds of commodity. Whereas their area is limited it takes place at one place. Whereas their risk is comparatively less. Whereas they have direct link with the consumers. Whereas they open their shops in an area which is approachable for consumers. Whereas they pay special attention on the decoration of shops because their objective is to attract the public.

Whereas retailer should have expertise in salesmanship. Whereas their credit facility is limited because they do cash business.

Whereas for them selection of place is very important so that a large no. of customers can reach. They even have to decorate their shops to attract the customers. Whereas their number is more.

Whereas they stored goods in very less amount. Whereas retailers are of two types : (i) Small Scale Retailers Street Sellers. (ii) Large scale Retailers Departmental Stores Super Market etc. Whereas good sold by retailers cannot be resold. Whereas retailer spend very less on advertising. Whereas this saves wholesalers from selling goods in small quantities. Whereas he serves wholesalers and consumers.

Good sold by wholesalers can be resold. He has to spend lot of money on advertising. He saves the producers from selling goods in small quantities. He serves producers and retailers.

Distinguish Between a Wholesaler and Retailer. Wholesaler denotes a type of middlemen between the producers and retailers. They generally sell goods and commodities to the retailers, industrial consumers and professional users. There are two types of wholesaler like manufacturer agents and merchant wholesalers. The manufacturer and selling them in small quantities to the retailers who serve the ultimate consumers. Retailer denotes the last linkage in the channel of distribution between the producers and the consumers. The establishment engaged in selling goods for personal consumption is known as retail trade. The retailers have close contact with the customers/consumers because they attend them personally. Retailing establishment is an old age business and are found in every areas of the country The following difference between wholesalers and retailers can be drawn: Wholesalers

It is the first link in the chain of distribution which links between manufactures and retailers. The wholesaler trade is conducted in bulk quantities. Most of the transactions are effected on the basis of credit. The capital requirement of this business is heavy. This type of trade deals in specific goods. It does not emphasize on proper display of goods. It does not experience direct dealing with consumers. It avails the economics of bulk purchasing. They operate in big cities and towns. It does not give emphasis on home delivery facility. It does not provide facility. It does not provide after sale service.

Retailers

It is the last link in the chain of distribution which links wholesalers and consumers. It is conducted in small quantities. Most of the transactions take place on cash basis. This type of business usually require less capital. This type of trade deals in variety of goods. It gives a lot of emphasis on proper display and advertisement. It always deals directly with the ultimate consumers. It does not avail such economies because it does not incur bulk purchase of goods. They operate in small villages and in big cities. It gives much emphasis on home delivery facility. It provides after sale service to the consumers.

Three Levels of a Product

For many a product is simply the tangible, physical entity that they may be buying or selling. You buy a new car and that's the product - simple! Or maybe not. When you buy a car, is the product more complex than you first thought? In order to actively explore the nature of a product further, lets consider it as three different products - the CORE product, the ACTUAL product, and finally the AUGMENTED product.
These are known as the 'Three Levels of a Product.' So what is the difference between the three products, or more precisely 'levels?' The CORE product is NOT the tangible, physical product. You can't touch it. That's because the core product is the BENEFIT of the product that makes it valuable to you. So with the car example, the benefit is convenience i.e. the ease at which you can go where you like, when you want to. Another core benefit is speed since you can travel around relatively quickly. The ACTUAL product is the tangible, physical product. Product planner must turn the core benefit in an actual product. They need to develop product and services features, design, a quality level, a brand name and packaging. You can get some use out of it. Again with the car example, it is the vehicle that you test drive, buy and then collect. The AUGMENTED product is the non-physical part of the product. It usually consists of lots of added value, for which you may or may not pay a premium. So when you buy a car, part of the augmented product would be the warranty, the customer service support offered by the car's manufacture, and any after-sales service. Consumer sees products as complex bundles of benefits that satisfy their needs. When developing products, marketers must first identify the core customer value that customer seek in the product. Then, they must design the actual product and find ways to augment it in order to create customer value and the most satisfying customer needs.

The elements of the promotions mix are integrated to form a coherent campaign. As with all forms of communication. The message from the marketer follows the 'communications process' as illustrated above. For example, a radio advert is made for a car manufacturer. The car manufacturer (sender) pays for a specific advert with contains a message specific to a target audience (encoding). It is transmitted during a set of commercials from a radio station (Message / media). The message is decoded by a car radio (decoding) and the target consumer interprets the message (receiver). He or she might visit a dealership or seek further information from a web site (Response). The consumer might buy a car or express an interest or dislike (feedback). This information will inform future elements of an integrated promotional campaign. Perhaps a direct mail campaign would push the consumer to the point of purchase. Noise represents the thousands of marketing communications that a consumer is exposed to everyday, all competing for attention. The Promotions Mix. Let us look at the individual components of the promotions mix in more detail. Remember all of the elements are 'integrated' to form a specific communications campaign. 1. Personal Selling. Personal Selling is an effective way to manage personal customer relationships. The sales person acts on behalf of the organization. They tend to be well trained in the approaches and techniques of personal selling. However sales people are very expensive and should only be used where there is a genuine return on investment. For example salesmen are often used to sell cars or home improvements where the margin is high. 2. Sales Promotion. Sales promotion tend to be thought of as being all promotions apart from advertising, personal selling, and public relations. For example the BOGOF promotion, or Buy One Get One Free. Others include couponing, money-off promotions, competitions, free accessories (such as free blades with a new razor), introductory offers (such as buy digital TV and get free installation), and so on. Each sales promotion should be carefully costed and compared with the next best alternative. 3. Public Relations (PR). Public Relations is defined as 'the deliberate, planned and sustained effort to establish and maintain mutual understanding between an organization and its publics' (Institute of Public Relations). It is relatively cheap, but certainly not cheap. Successful strategies tend to be long-term and plan for all eventualities. All airlines exploit PR; just watch what happens when there is a disaster. The preplanned PR machine clicks in very quickly with a very effective rehearsed plan. 4. Direct Mail. Direct mail is very highly focussed upon targeting consumers based upon a database. As with all marketing, the potential consumer is 'defined' based upon a series of attributes and similarities. Creative agencies work with marketers to design a highly focussed communication in the form of a mailing. The mail is sent out to the potential consumers and responses are carefully monitored. For example, if you are marketing medical text books, you would use a database of doctors' surgeries as the basis of your mail shot.

5. Trade Fairs and Exhibitions. Such approaches are very good for making new contacts and renewing old ones. Companies will seldom sell much at such events. The purpose is to increase awareness and to encourage trial. They offer the opportunity for companies to meet with both the trade and the consumer. Expo has recently finish in Germany with the next one planned for Japan in 2005, despite a recent decline in interest in such events. 6. Advertising. Advertising is a 'paid for' communication. It is used to develop attitudes, create awareness, and transmit information in order to gain a response from the target market. There are many advertising 'media' such as newspapers (local, national, free, trade), magazines and journals, television (local, national, terrestrial, satellite) cinema, outdoor advertising (such as posters, bus sides). 7. Sponsorship. Sponsorship is where an organization pays to be associated with a particular event, cause or image. Companies will sponsor sports events such as the Olympics or Formula One. The attributes of the event are then associated with the sponsoring organization. The elements of the promotional mix are then integrated to form a unique, but coherent campaign.

International Marketing
International marketing is simply the application of marketing principles to more than one country. However, there is a crossover between what is commonly expressed as international marketing and global marketing, which is a similar term. For the purposes of this lesson on international marketing and those that follow it, international marketing and global marketing are interchangeable. international marketing in the absence of global marketing. international marketing a one stage of an internationalisation process.

International Marketing and Culture

What is the influence of culture on international marketing?
Culture is the way that we do things around here. Culture could relate to a country (national culture), a distinct section of the community (sub-culture), or an organization (corporate culture). It is widely accepted that you are not born with a culture, and that it is learned. So, culture includes all that we have learned in relation to values and norms, customs and traditions, beliefs and religions, rituals and artefacts (i.e. tangible symbols of a culture, such as the Sydney Opera House or the Great Wall of China). Therefore international marketing needs to take into account the local culture of the country in which you wish to market.
The cultural nature of an international market. It is very straight-forward, and uses eight categories in its analysis. The Eight categories are Language, Religion, Values and Attitudes, Education, Social Organizations, Technology and Material Culture, Law and Politics and Aesthetics.

Language
With language one should consider whether or not the national culture is predominantly a high context culture or a low context culture (Hall and Hall 1986). The concept relates to the balance between the verbal and the non-verbal communication. In a low context culture spoken language carries the emphasis of the communication i.e. what is said is what is meant. Examples include Australia and the Netherlands. In a high context culture verbal communications tend not to carry a direct message i.e. what is said may not be what is meant. So with a high context culture hidden cultural meaning needs to be considered, as does body language. Examples of a high context cultures include Japan and some Arabic nations.

Religion
The nature and complexity of the different religions an international marketer could encounter is pretty diverse. The organization needs to make sure that their products and services are not offensive, unlawful or distasteful to the local nation. This includes marketing promotion and branding. In China in 2007 (which was the year of the pig) all advertising which included pictures of pigs was banned. This was to maintain harmony with the country's Muslim population of around 2%. The ban included pictures of sausages that contained pork, and even advertising that included an animated (cartoon) pig.

In 2005 France's Catholic Church won a court injunction to ban a clothing advertisement (by clothing designers Marithe and Francois Girbaud) based upon Leonardo da Vinci's Christ's Last Supper.

Values and Attitudes

Values and attitudes vary between nations, and even vary within nations. So if you are planning to take a product or service overseas make sure that you have a good grasp the locality before you enter the market. This could mean altering promotional material or subtle branding messages. There may also be an issue when managing local employees. For example, in France workers tend to take vacations for the whole of August, whilst in the United States employees may only take a couple of week's vacation in an entire year. In 2004, China banned a Nike television commercial showing U.S. basketball star LeBron James in a battle with animated cartoon kung fu masters and two dragons, because it was argued that the ad insults Chinese national dignity. In 2006, Tourism Australian launched its ad campaign entitled "So where the bloody hell are you?" in Britain. The $130 million (US) campaign was banned by the British Advertising Standards Authority from the United Kingdom. The campaign featured all the standard icons of Australia such as beaches, deserts, and coral reefs, as well as traditional symbols like the Opera House and the Sydney Harbour Bridge. The commentary ran: "We've poured you a beer and we've had the camels shampooed, we've saved you a spot on the beach. We've even got the sharks out of the pool,". Then, from a bikini-clad blonde, come the tag line: "So where the bloody hell are you?"

Education
The level and nature of education in each international market will vary. This may impact the type of message or even the medium that you employ. For example, in countries with low literacy levels, advertisers would avoid communications which depended upon written copy, and would favour radio advertising with an audio message or visual media such as billboards. The labelling of products may also be an issue. In the People's Republic of China a nationwide system of public education is in place, which includes primary schools, middle schools (lower and upper), and universities. Nine years of education is compulsory for all Chinese students. In Finland school attendance is compulsory between the ages of 7 and 16, the first nine years of education (primary and secondary school) are compulsory, and the pupils go to their local school. The education after primary school is divided to the vocational and academic systems, according to the old German model. In Uganda schooling includes 7 years of primary education, 6 years of secondary education (divided into 4 years of lower secondary and 2 years of upper secondary school), and 3 to 5 years of postsecondary education.

Social Organizations
This aspect of Terpstra and Sarathy's Cultural Framework relates to how a national society is organized. For example, what is the role of women in a society? How is the country governed - centralized or devolved? The level influence of class or casts upon a society needs to be considered. For example, India has an established caste system - and many Western countries still have an embedded class system. So social mobility could be restricted where caste and class systems are in place. Whether or not there are strong trade unions will impact upon management decisions if you employ local workers.

Technology and Material Culture

Technology is a term that includes many other elements. It includes questions such as is there energy to power our products? Is there a transport infrastructure to distribute our goods to consumers? Does the local port have

large enough cranes to offload containers from ships? How quickly does innovation diffuse? Also of key importance, do consumers actually buy material goods i.e. are they materialistic? Trevor Baylis launched the clockwork radio upon the African market. Since batteries were expensive in Africa and power supplies in rural areas are non-existent. The clockwork radio innovation was a huge success. China's car market grew 25% in 2006 and it has overtaken Japan to be the second-largest car market in the world with sales of 8 million vehicles. With just six car owners per 100 people (6%), compared with 90% car ownership in the US and 80% in the UK, the potential for growth in the Chinese market is immense.

Law and Politics

As with many aspects of Terpstra and Sarathy's Cultural Framework, the underpinning social culture will drive the political and legal landscape. The political ideology on which the society is based will impact upon your decision to market there. For example, the United Kingdom has a largely market-driven, democratic society with laws based upon precedent and legislation, whilst Iran has a political and legal system based upon the teachings and principles Islam and a Sharia tradition.

Aesthetics
Aesthetics relate to your senses, and the appreciation of the artistic nature of something, including its smell, taste or ambience. For example, is something beautiful? Does it have a fashionable design? Was an advert delivered in good taste? Do you find the color, music or architecture relating to an experience pleasing? Is everything relating to branding aesthetically pleasing?

Tariff and Non-Tariff Barriers.

There are a number of fences that companies need to plan for when initialising international marketing. Tariff and non-tariff barriers are still very common, even today. Tariff barriers are charges imposed upon imports - so they are a form of import taxation. This could mean that your margins are reduced so much that trading overseas becomes too unprofitable. However they are normally transparent and you can plan to take them into account. Non-tariff barriers are trickier to spot. Governments sometimes act in favour of their own domestic industries rather than allow competition from overseas. Bureaucracy is a hurdle often encountered by exporting companies - it takes many forms and includes unnecessary hold-ups and red tape. Quotas are another form of non-tariff barrier i.e. restricting the quantity of a product that can be imported into a particular country.