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m Wholesaling
À All activities involved in selling goods
and services to those buying for resale or
business use.
m Wholesaler
À A firm engaged primarily in wholesaling
activity.
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 Wholesaling
m Wholesalers add value by
performing the following functions:
À Selling and promoting
À Buying and assortment building
À Bulk-breaking
À Warehousing
À Transportation
À Financing
À Market information
 Wholesaling
m Wholesaler Marketing Decisions
À Target market and positioning
m Targeting may be made on the basis of size
of customer, type of retailer, need for
service
À Marketing mix decisions
m Product and service assortment
m Pricing: usually markup standard percent
m Promotion: largely disorganized and
unplanned
m Place: location, facilities
 Wholesaling in INDIA
m Delhi biggest consumption centerñ
m It has attained the status major
distribution centerñ
m
mployed -160000 persons
m In storage- 7000 persons
m In warehousing 27000
Sub city level distribution

Places Speciality

Azadpur Fruits / vegetables

Okhla Fruits / vegetables

Narela Food grains

Naraina Iron/steel

Sanjay Gandhi transport Transport/warehousing

centre
Rohtak road transport Transport/warehousing
centre
Najagarh Food grains
 Wholesale Vs Retail Trade
Wholesale Retail
m Mperate on large m Mperate on small
scale. scale.
m Needs large capital m Needs limited
capital
m Low price and
margins m Relatively high
prices and margins.
m Act as 1st outlet in
m Act as end outlet in
distribution distribution
m Showroom not m Showroom is
required. required.
 Types of Wholesalers
m Wholesale Categories:

· Products Carried
·Promotional activities
·Distribution
·Service level
·Product ownership
Products carried
m General merchandise

m Specialty merchandise
romotional activities
m wxtensive promotion

m Limited promotion
Æistribution
m Stationary location
· Customer accessible
· Not customer accessible

m Non Stationary location

· Mobile
· No facilities
§ervice
m Full service

m Limited service

m No service
M nership
m Do take title

m Do not take title

 ~unctions of Wholesalers
m Maintenance of sales force
m §torage
m Æelivery to retailers
m ~inancial help to both manufacturers &
retailers
m Merchandising
m §ales promotional ork
m roduct servicing
m Marketing information
m Risk-bearing
  
 
 




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å Mrder collection

å Risk transfer

å Concrete relief

å Expert advice
 §ervices to the RETAILER§
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 The Type of Wholesale Middleman
to be used in a Channel of Æistribution

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 genefits of holesaling
m Provide Access to
Products

m Provide Access to
Markets
Trends in Wholesaling
ÀPrice competition is still
intense
ÀMust add value by increasing
efficiency and effectiveness
ÀThe distinction between large
retailers and wholesalers
continues to blur
ÀMore services will be provided
to retailers
 Concerns
m Disintermediation
m Facility Location
m Transportation Costs
m Adapting to New Technologies
m Mffering Non-Product
Assistance

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