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8/2/2019 Retailing and Wholesaling MRKTG 211
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MARKETING 211
Principles of Marketing
RETAILING & WHOLESALING
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RETAILING
Retailing refers to the businessactivity of selling goods or services tothe final consumer.
Retailer any business firm that sellsmainly to final consumer.
Manufacturer produces the finished
goods. Final consumer one who uses the
product.
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Functions:
They provide convenience; They provide guarantee and service;
They provide financing of transactions;
They perform promotional activities; They perform storage functions;
They perform intelligence function for
the manufacturer They serve as buying agent of the
consumers.
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Functions:
CONVENIENCE they are locatednear the ultimate consumers. Theyoperate at hours more convenient to
the consumers. GUARANTEE & SERVICE Because
of his accessibility, retailers can
immediately replace a defectiveproduct or perform services likeinstallation of the purchased item.
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Functions:
FINANCING provide financing byselling on credit terms.
PROMOTION they stimulate sales
by display of products and otherpromotional activities.
STORAGE they serve as storage for
things that the consumer may notneed to buy for now or themanufacturers wont have to absorb or
forego production.
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Functions:
INTELLIGENCE they are in a betterposition to gather information from theconsumers and relay them to the
manufacturers. BUYING AGENT they have the time,
skill and bargaining power to perform
the task of selecting the products &making them available to theconsumers.
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TYPES OF RETAILERS
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Retailers are classified accdg.To: Sales volume
Small, medium and large
Product mix offered
General merchandise & specialty stores
Form of ownership
Chain store, independent & franchise
stores Method of operation
Full service retailers, supermarkets,
discount stores or non-store retailers.
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By Sales Volume
SMALL retailers - have annualsales volume of less thanP100,000.
MEDIUM-SIZED retailers - havesales volume of P100,000 to
P1million. LARGE retailers - have sales
volume of more than P1 million
annually.
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By Product Mix Offered
GENERAL MERCHANDISE stores carry a great variety of product lineswith a number of assortments in each
product line.
SPECIALTY STORES those that
carry a specific line of products.
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By Form of Ownership
CHAIN store composed of two ormore outlets that are ownedcommonly by a person or company.
INDEPENDENT Stores owned andoperated by independent retailers.
FRANCHISE stores an independent
retailer given a right, usually exclusive,by the manufacturer to sell hisproducts in a definite market area.
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Method of Operation:
FULL SERVICE RETAILERS assistance in a variety of ways isextended to the customers.
Salespeople answer product relatedquestions.
SUPERMARKETS a large
department store that offers a varietyof goods. There is minimum customerservice.
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Method of Operation:
DISCOUNT STORES self-serviceretailer that sells a wide variety ofgoods at less than traditional retail
price. Only saleable items are carriedto make its discount operations morefeasible.
NON-STORE RETAILERS thosewho sell outside the store. Consists ofat-home retailers, telephone retailers,vending machine & mail-orderretailers.
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WHOLESALING
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WHOLESALING:
Refers to all activities involved inselling goods and services to thosewho intend to resell or use the same
goods for producing goods orservices.
WHOLESALER one who performswholesaling activities.
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FUNCTIONS:
They anticipate customer needs;
They do selling and promotion;
Financing;
Storage;
Breaking bulk;
Transportation;
Risk taking.
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Functions:
FINANCING They provide financingservices and credit line to bothcustomers and retailers.
STORAGE They perform thisfunction when the manufacturer orretailer is not in a position to accept
such task. BREAKING BULK They purchased
in bulk but sell in smaller quantities to
retailers.
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Functions:
TRANSPORTATION Since theirlocation is near their customers,delivery becomes faster & may reduce
costs. RISK TAKING assumes the risks of
not selling the goods or losing the
goods due to theft, fire, obsolescenceand other hazards.
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TYPES OF WHOLESALERS
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Classification accdg toFunction: FULL FUNCTION WHOLESALERS
Perform most, if not all, functions
LIMITED FUNCTION
WHOLESALERS Provide wholesaling functions like order
taking & processing
INDUSTRIAL WHOLESALERS They served the industrial market.
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Full Function Wholesalers:
MERCHANT WHOLESALERS independently owned establishmentswhich take title to the merchandise theycarry.
Manufacturers have very little controlover them.
SALES OFFICES & BRANCHES - amanufacturer owned & controlled
wholesale outlet. Sales Branches carries inventories.
Sales Offices are organized to
maximize sales.
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Full Function Wholesalers:
AGENTS acts as representatives ofmanufacturers in the selling process.
Classified as manufacturers agents and
selling agents.
BROKERS neutral middleman thatcan serve either the buyer or seller.
COMMISSION HOUSES they
negotiate the sale of the productsincluding prices, deliver, and payment
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Limited Function Wholesalers:
CASH & CARRY WHOLESALER sellto customers in their warehouse on cashbasis.
COOPERATIVES they stock sufficientinventory for distribution to various unitsof the members.
RACK JOBBERS maintain their ownracks within a retail establishment. Theysell them to retailers & consumers.Unsold products are returned to
producer.
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Industrial Wholesalers:
They serve the industrial market.
They serve the retailers.
They stock products which they later
sell.
They serve the customers by acting aspurchasing agent , storing and
delivering goods, extending credit,providing service and supplyinginformation.
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Any Questions???
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Quiz: sheet of paper
What is the importance of KCC Mall ofGensan to the people of GSC, thebusinesses of GSC and its
neighboring areas and the localgovernment?
Explain in 7-10 sentences only.15pts