Lecture : STRATEGIC WHOLESALERS MANUFACTURERS
Document Summary
1. location- inexpensive facilities help wholesalers maintain their net profit margins. The wholesaler strategic location decision is to locate near their customers, on a tactical level, the decision is to minimize the land and building costs of the particular location. 2. product/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. Products without these characteristics usually cannot be handled effectively and efficiently by wholesalers. (for example, technical equipment like a computer is usually sold directly by the manufacturer to the industrial user). 3. pricing- from the manufacturer"s perspective, establishing the price at which to sell products to wholesalers involves setting functional trade discounts that 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 better relationships with them.
