tailieunhanh - Lecture Sales and distribution management: Chapter 11 - Krishna K Havaldar, Vasant M Cavale

Chapter 11, channel institutions - Wholesaling. After studying this chapter you will be able: Understand functions of a wholesaler, understand various classes of wholesalers, major wholesaling decisions, benefits and limitations of wholesalers, understand about a – distributor in more detail, trends in wholesaling practices. | Chapter 11 Channel Institutions - Wholesaling SDM- Ch 11 Tata McGraw Hill Publishing Learning Objectives Understand functions of a wholesaler Understand various classes of wholesalers Major wholesaling decisions Benefits and limitations of wholesalers Understand about a – distributor in more detail Trends in wholesaling practices SDM- Ch 11 Tata McGraw Hill Publishing Need for Wholesalers Widespread economy – consumers can only reached by thousands of retailers (except for consumer durables and industrial products) Reaching these retailers by a company directly is not possible (except for consumer durables and industrial products) Hence the need for wholesalers in two forms: Well established free-lance wholesalers Contracted distributors, stockists and agents Characteristics . SDM- Ch 11 Tata McGraw Hill Publishing Characteristics of Wholesalers Operate on large volumes but with chosen group of products Food, grocery, pharma or automobile spares etc The company itself, . | Chapter 11 Channel Institutions - Wholesaling SDM- Ch 11 Tata McGraw Hill Publishing Learning Objectives Understand functions of a wholesaler Understand various classes of wholesalers Major wholesaling decisions Benefits and limitations of wholesalers Understand about a – distributor in more detail Trends in wholesaling practices SDM- Ch 11 Tata McGraw Hill Publishing Need for Wholesalers Widespread economy – consumers can only reached by thousands of retailers (except for consumer durables and industrial products) Reaching these retailers by a company directly is not possible (except for consumer durables and industrial products) Hence the need for wholesalers in two forms: Well established free-lance wholesalers Contracted distributors, stockists and agents Characteristics . SDM- Ch 11 Tata McGraw Hill Publishing Characteristics of Wholesalers Operate on large volumes but with chosen group of products Food, grocery, pharma or automobile spares etc The company itself, contracted parties or free lancers, can operate as wholesalers Mostly B2B business – trade and institutions Wholesaler could also be a retailer – in rural markets – W/s sells to other retailers and also to consumers SDM- Ch 11 Tata McGraw Hill Publishing Characteristics of Wholesalers Sell physical inputs or products – tangible goods ( Ws in some service industries) Optimise results, maximise service (effectiveness) and minimise operating costs (efficiency) Buy goods for resale, keep inventory, take risks of price changes, negotiate terms, procure orders, deliver and extend credit. Definition SDM- Ch 11 Tata McGraw Hill Publishing Definition Wholesaling is concerned with the activities of those persons or establishments that sell to retailers and other merchants and / or industrial, institutional and commercial users but do not sell in large amounts to consumers – US Bureau of Census Delivering value SDM- Ch 11 Tata McGraw Hill Publishing Delivering Value Keep goods .