Principles of Marketing

Retailing and Wholesaling

Chapter 11:

Definitions

Retaileris one whose business firms sells mainly to the

final consumers.

Retailing refers to the business activity of selling

goods or services to the final consumer.

Functions of Retailers

1. They provide convenience;2. They provide guarantee and service;3. They provide financing of transactions;4. They perform promotional activities;5. They perform storage function;6. They perform intelligence service for the manufacturer; and7. They serves as buying agent of the consumers.

Types of Retailers

1. By sales volume2. By product mix

offered3. By form of ownership4. By method of operation

Small

Large

Medium

Can classified as:

Department storesVariety Stores

Types of Retailers

1. By sales volume2. By product mix

offered3. By form of ownership4. By method of operation

- are those which carry only a specific line of products.

General Merchandise stores

Specialty Stores

- are those that carry a large variety of product line.

Single line specialty storeLimited-line specialty store

Types of Retailers

1. By sales volume2. By product mix

offered3. By form of ownership4. By method of operation

Corporate chain stores

Franchise stores

Independent stores

- are owned and operated by independent retailers.

Types of Retailers

1. By sales volume2. By product mix

offered3. By form of ownership4. By method of operation

Corporate chain stores- composed of two or more outlets that are owned commonly by a person or a group of persons selling similar products

Independent stores

-is an independent retailer given the right to sell his products in a definite market area.

1. By sales volume2. By product mix

offered3. By form of ownership4. By method of operation

Types of Retailers

Franchise stores

- are stores where assistance in a variety of ways is extended to the costumers.

1. By sales volume2. By product mix

offered3. By form of ownership4. By method of operation

Types of Retailers

Full Service Retailers

- large department stores which offers a variety of goods.

Supermarkets

- are self-service retailers that sells a wide variety of goods at less than traditional retail prices.

1. By sales volume2. By product mix

offered3. By form of ownership4. By method of operation

Types of Retailers

Discount Stores

1. By sales volume2. By product mix

offered3. By form of ownership4. By method of operation

- refer to those who sell outside of the store. They may be classified as:

• at home retailers• telephone retailers• vending machine retailers• mail-order retailer• mail-order retailers• internet retailers• cellphone service retailers

Types of Retailers

Nonstore Retailers

What is Wholesaling?

-refers to all activities involved in selling goods and services to those who intend to resell or use the same for producing goods or services.

Wholesaling

Functions of the Wholesaler

1. anticipating customer needs;2. selling and promotion;

3. financing;

4. storage;

5. breaking bulk;

6. transportation;7. risk-taking.

Types of Wholesalers

A. Merchant WholesalersMerchant wholesalers can

be classified into the ff:

the general line merchant wholesaler who carry a general assortment of goods; and

the specialty line merchant wholesaler who carry only a limited number of lines.

1. Full Function Wholesalers

2. Limited function wholesalers

3. Industrial wholesalers

1. Full Function Wholesalers

2. Limited function wholesalers

3. Industrial wholesalers

B. Sales office and branchesC. Agents

manufacturer’s agents- sell

only a portion of a manufacturer’s output.

selling agents- are required to sell the firm’s entire output.

Types of Wholesalers

1. Full Function Wholesalers

2. Limited function wholesalers

3. Industrial wholesalers

Limited function wholesalers provide only some wholesaling functions, like order taking and processing.

They may be classified as follows:

1. drop shippers2. truck distributors3. mail-order wholesalers4. cash-and-carry wholesalers5. cooperatives6. rack jobbers

Types of Wholesalers

1. Full Function Wholesalers

2. Limited function wholesalers

3. Industrial wholesalers

The following types of wholesalers serve the industrial market:

1. those also serving the retailers:a. sales branchesb. brokersc. manufacturer’s agentsd. combination houses

.

Types of Wholesalers

1. Full Function Wholesalers

2. Limited function wholesalers

3. Industrial wholesalers

2. industrial distributors serving only the industrial market:

a. general line wholesalers- carry complete assortment of goods in a single line.

b. specialty line wholesalers- carry only limited range of products in a given line

Types of Wholesalers

End of the Chapter 11

Reported By:

Casimiro, Ma. Keena ThereseDela Cruz, Sharmaine

Recto, Jesy Kay