MKTG6 Lecture 3: STRATEGIC WHOLESALERS MANUFACTURERS
Document Summary
1. location- inexpensive facilities help wholesalers maintain their net profit margins. 2. products/service mix- the types of products wholesalers usually handle are: a. non-perishable, b. simple and not technically complicated, and c. purchased from stock rather than custom-made. 3. pricing- from the manufacturer"s perspective, establishing the price at which to sell products to wholesalers involves setting functional trade discounts, these discounts are based in the wholesalers" place in the channel; they represent payment for performing certain marketing functions. 4. target market decisions- within the target group, wholesalers can identify more profitable customers and design stronger offers and build relationships with them. 5. promotion- wholesalers rely primarily on their sales force to achieve promotion objectives. They can benefit from adopting some of the image making techniques used by retailers. 1. public warehouses- public warehouses are storage facilities available for producers, wholesalers, and retailers to rent space in a warehouse instead of constructing their own facilities using a merchant wholesaler"s storage services.
