Principles of Marketing

Chapter 11:
Retailing and
Wholesaling
 Definitions

Retailing
refers to the business activity of
selling goods or services to the final
consumer.

Retailer
is one whose business firms sells mainly
to the final consumers.
 Functions of Retailers

1. They provide convenience;

2. They provide guarantee and service;
3. They provide financing of transactions;
4. They perform promotional activities;
5. They perform storage function;
6. They perform intelligence service for
the manufacturer; and
7. They serves as buying agent of the consumers.
 Types of Retailers

1. By sales Can classified as:

volume
2. By product Small Medium
mix offered
3. By form of
ownership
4. By method
of operation Large
 Types of Retailers

1. By sales General Merchandise

stores
volume - are those that carry a large
variety of product line.
2. By
product mix Department stores
Variety Stores
offered
Specialty Stores
3. By form of
- are those which carry only a specific
ownership line of products.
4. By method Single line specialty store
of operation Limited-line specialty store
 Types of Retailers

1. By sales Corporate chain

volume stores
2. By product
mix offered Independent stores
3. By form
of
ownership Franchise stores
4. By method
of operation
 Types of Retailers

1. By sales Corporate chain

volume - composed of two or
stores
2. By product more outlets that are
mix offered owned commonly by a
person or a group of
3. By form
persons selling similar
of
products
ownership
Independent stores
4. By method - are owned and
of operation operated by
independent retailers.
 Types of Retailers

1. By sales
volume
2. By product Franchise stores
mix offered -is an independent
3. By form retailer given the
of right to sell his
ownership
products in a
4. By method
definite market
of operation
area.
 Types of Retailers

1. By sales Full Service

volume Retailers
- are stores where
2. By product
assistance in a
mix offered
variety of ways is
3. By form of
ownership extended to the
4. By
Supermarkets
costumers.
method of - large department
operation stores which offers a
variety of goods.
 Types of Retailers

1. By sales
volume
Discount Stores
2. By product
mix offered - are self-service
3. By form of retailers that sells a
ownership wide variety of goods
4. By at less than
method of traditional retail
operation prices.
 Types of Retailers

Nonstore Retailers
1. By sales
volume - refer to those who sell
outside of the store. They
2. By product
may be classified as:
mix offered
3. By form of at home retailers
ownership telephone retailers
vending machine
4. By retailers
method of mail-order retailer
operation mail-order retailers
internet retailers
 What is Wholesaling?

Wholesalin
g -refers to all activities involved
in selling goods and services to
those who intend to resell or use
the same for producing goods or
services.
Functions of the Wholesaler

1. anticipating customer needs;

2. selling and promotion;

3. financing;
4. storage;
5. breaking bulk;
6. transportation;
7. risk-taking.
 Types of Wholesalers

A. Merchant Wholesalers
1. Full Function Merchant wholesalers can
Wholesalers be classified into the ff:

2. Limited
the general line
function merchant wholesaler who
wholesalers carry a general assortment
of goods; and
3. Industrial
wholesalers the specialty line
merchant wholesaler who
carry only a limited number
of lines.
 Types of Wholesalers

B. Sales office and

1. Full Function branches
Wholesalers C. Agents
2. Limited manufacturers
function agents- sell only
wholesalers a portion of a
3. Industrial manufacturers output.
wholesalers selling agents- are
required to sell the
firms entire output.
 Types of Wholesalers

Limited function
wholesalers provide only some
1. Full Function wholesaling functions, like order
Wholesalers taking and processing.

2. Limited They may be classified as

follows:
function
wholesalers 1. drop shippers
2. truck distributors
3. Industrial 3. mail-order
wholesalers
wholesalers 4. cash-and-carry
wholesalers
5. cooperatives
6. rack jobbers
 Types of Wholesalers

The following types of

1. Full Function wholesalers serve the
Wholesalers industrial market:
2. Limited
1. those also serving the
function retailers:
wholesalers a. sales branches
3. Industrial b. brokers
wholesalers c. manufacturers agents
d. combination houses

.
 Types of Wholesalers

2. industrial distributors
1. Full Function
serving only the
Wholesalers industrial market:
2. Limited
function a. general line
wholesalers wholesalers- carry
complete assortment of
3. Industrial goods in a single line.
wholesalers
b. specialty line
wholesalers- carry only
 End of the
Chapter 11

Reported By:
Casimiro, Ma. Keena Therese
Dela Cruz, Sharmaine
Recto, Jesy Kay