MKTG6 Lecture 5: WHOLESALING
Document Summary
Is defined as activities that are carried out to sell a product or service to a reselling business or entity. Wholesalers are involved in carrying out all these wholesaling activities. Are marketing intermediaries who buy in large quantities and sell to other intermediaries, who buy resale or for industrial use. Wholesalers perform a variety of functions essential to the marketing processes; and frequently they are able to perform these functions more effectively at a lower cost than are other members of the distribution channel. Buying and breaking bulk- the primary function of the wholesaler is to purchase in large quantities and then sell smaller quantities to other intermediaries- a process called bulk-breaking. Transportation- wholesalers frequently assume the function of delivering products to retailers. Storage and inventory maintenance- wholesalers provide a warehousing or storage function that benefits both manufacturers and retailers. Marketing information- the manufacturer of the product often has no regular direct contact with its customers.
