Exercise no.

2 Date:-___/___/____
Functions Perform by Retailer and Wholesaler
Functions of retailer:
(1) Buying and Assembling: A retailer deals in different variety of goods which he purchases from different
wholesalers for selling to the consumers. He tries to locate best and economical source of the supply of goods.
(2) Warehousing or Storing: After assembly of goods from different suppliers, the retailers preserve them in
stores and supply these goods to the consumers as and when required by them. The goods are kept as reserve
stocks in order to ensure uninterrupted supply to the consumers.
(3) Selling: The end objective of the retailer is to sell the goods to consumers. He undertakes various methods
to sell goods to the ultimate consumers.
(4) Credit Facilities: He caters to the needs of the customers even by supplying them goods on credit. He
bears the risk of bad debts on account of non-payment of amount by the customers.
(5) Risk Bearing: A retailer has to bear different type of risks in relation to goods. While in stores, goods are
exposed to various risks like deterioration in quality, spoilage and perishability etc. The products are
confronted to natural risks viz; fire, flood, earthquake and other natural calamities.
(6) Grading and Packing: The retailer grades the goods which are left ungraded by the manufacturers and
the wholesalers. He packs the goods in small packages and containers for the convenience of the customers.
(7) Collection and Supply of Market Information: The retailers are in direct touch with the consumers.
They gather invaluable information with regard to likes dislikes tastes and demands of the consumers and pass
on this information to the wholesalers and the producers which are very helpful to them.
(8) Helps in Introducing New Products: Without the services of retailers, new products cannot be
introduced properly in the market. This is so because a retailer has a direct link with the consumer. He can
explain nicely about the utility and the characteristics of a new product.
(9) Window Display and Advertising: The retailer displays the products in show windows in order to
attract the customers. This leads to immense publicity for the product.
(10) Buying: A retailer buys a wide variety of goods from different wholesalers after estimating customer
demand. He selects the best merchandise from each wholesaler and brings all the goods under one roof.

Marketing Functions Performed by Wholesaler:

1. Assembling and buying

2. Storing or Warehousing
3. Transporting
4. Financing
5. Risk-bearing
6. Grading, Packaging and Packaging wholesaler
7. Providing market information
8. Dispersing and selling
1. Assembling and buying:
The assembling function performed by wholesaler consists in the collection of agriculture produce
in small quantities from numerous widely – scattered small scale producers for the purpose of family
them more economically. In case of manufactured products, assembling functions involves bringing
together stocks of goods from different manufactures producing the same line of products.
2. Storing or Warehousing:
Closely related to the assembling function is the function of storing or holding stocks. It has been
seen that there is a time gap between the production and the consumption. Neither the production nor the
consumption of goods takes place in an uninterrupted flow. Therefore to avoid periodic shortage, goods
must be held in reserve.

3. Transporting:
Wholesaler purchase in bulk from manufactures and transports these goods to their own
warehouse. Also they make arrangements for the transportation of goods from their warehouse to the
retailers shop.

4. Financing:
Retailer, who is in need of financing assistance, is granted by the wholesaler a fairly generous term
of credit. Manufacturer too generally wishes to avoid getting his capital locked-up in finished goods;
book debts etc. wholesaler takes delivery of goods and asks for a restively short period of credit from
manufactures. Further a great deal financial burden of holding stocks is carried by the wholesaler, who
stores finished goods of manufactures in his own warehouse. Thus, manufacturer is relived of the
financial burden of carrying stock.

5. Risk-bearing:
Risk is involved when never goods are owned. The wholesaler assumes the risk of loss likely to
arise from the fall in the price of goods. The risk of damage, deterioration in quality, spoilage, pilferage,
theft or loss by fire of goods kept in the warehouse is also borne by the wholesaler.

6. Grading, Packaging and Packaging:

Wholesaler sort out product of different grades according to the quality, size, shape, moisture
contents etc. they also break open the packed cases break them into smaller lots and repack them for
delivery to retailers.
7. Providing market information:
Wholesaler provides information to the retailers about the goods, which are available in the
market. Also they collect information from the retailers about the changes in the tastes, fashions, buying
habits of the consumers etc. and then pass them on to the manufacturers.

8. Dispersing and selling:

The goods assembled by the wholesaler are kept by them in stock only to the distributer among the
retailers who are obtaining scattered over a large area. Whenever retailers find their stocks depleted in
smaller quantities from this wholesaler to replenish their stock. Thus wholesalers help in the desperation
process of marketing