PRESENTED BY JITHIN KURIAN

Retailing and Wholesaling

Definition

Retailer

is one whose business firms sells mainly to the final consumers.

Retailing

Retailing can be defined as the buying and selling of goods and services. It can also be defined as the timely delivery of goods and services demanded by consumers at prices that are competitive and affordable.

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 volume

2. By product mix offered

3. By form of ownership

4. By method of operation

Small

Large

Medium

Can classified as:

Department storesVariety Stores

Types of Retailers

1. By sales volume

2. By product mix offered

3. By form of ownership

4. 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 volume

2. By product mix offered

3. By form of ownership

4. By method of operation

Corporate chain stores

Franchise stores

Independent stores

- are owned and operated by independent retailers.

Types of Retailers

1. By sales volume

2. By product mix offered

3. By form of ownership

4. 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 volume

2. By product mix offered

3. By form of ownership

4. 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 volume

2. By product mix offered

3. By form of ownership

4. 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 volume

2. By product mix offered

3. By form of ownership

4. By method of operation

Types of Retailers

Discount Stores

1. By sales volume

2. By product mix offered

3. By form of ownership

4. 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

Non store Retailers

Types of retailers

Basis of classification

Amount of service

Self service

Limited service

Full service

Product line breadth and

depth

Specialty stores Department

stores

supermarket Convenience stores

superstores Supercenters

Category killer Hypermarkets

Service retailers

Relative prices

Discount storesOff-price retailers

Independent off-price retailers

Factory outlets

Warehouse clubs

Organization

Chain storesFranchise

organization

Merchandising conglomerates

WHOLESALING

What is Wholesaling?

Wholesaling is a distribution channel function where one organization buys products from supplying firms with the primary intention of redistributing to other organizations (but, in general, not to the final consumer).

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 two:

the general linemerchant 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 branches

C. 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

Types of wholesalers

wholesalers

Merchant wholesalers

Full-time wholesalers

Limited-service wholesalers

Broker AgentManufacturer’s sales branches

and offices