2. DEFINITIONS Wholesaling All activities involved in selling
goods and services to those buying for resale or business use.
Wholesaler A firm engaged primarily in wholesaling activity.
3. WHOLESALING Wholesalers add value by performing the
following functions: Selling and promoting Buying and assortment
building Bulk-breaking Warehousing Transportation Financing Risk
bearing Market information Management services and advice
4. Merchant Wholesalers 1. Full-service wholesalers 2.
Limited-service wholesalers Brokers and Agents Manufacturers and
retailers branches and offices
5. FULL SERVICE W/SALERS Buying Creating assortments
Subdividing Selling Transportation Warehousing Financing Risk
taking Market Information Management assistance
6. LIMITED-SERVICE WHOLESALERS Cash-and-carry wholesalers -Sell
a limited line of fast moving goods to small retailers for cash
Truck wholesalers (jobbers) sell and deliver a limited line of semi
perishable goods to supermarkets, grocery stores, hospitals,
restaurants and hotels Drop shippers serve bulk industries such as
coal, lumber, heavy equipment. They assume title and risk from the
time an order is accepted to its delivery.
7. Rack jobbers serve grocery retailers in non food items.
Delivery people set up displays, price goods, keep inventory
records, they retain title to goods and bill retailers only for
goods sold by the retailer. Producers cooperatives assemble farm
produce to sell in local markets. Mail-order wholesalers send
catalogs to retail, industrial and institutional customers, orders
are filled and sent by mail, rail, plane or truck
8. BROKERS AND AGENTS Brokers and agents do not take title of
the goods. Brokers Bring buyers and sellers together and assist in
negotiation Agents Manufacturers agents Selling agents Purchasing
agents Commission merchants
9. MANUFACTURERS AND RETAILERS BRANCHES AND OFFICES Wholesaling
operations conduced by sellers or buyers themselves rather than
through independent wholesalers. Major retailers set up purchasing
offices in major marketing centers. Purchasing officers - Perform
roles similar to brokers and agents; however, these individuals are
employees of the organization
10. WHOLESALING Trends in Wholesaling Price competition is
still intense Successful wholesalers must add value by increasing
efficiency and effectiveness The distinction between large
retailers and wholesalers continues to blur More services will be
provided to retailers Many wholesalers are going global
11. FRANCHISING A privilege or right granted to a person or a
group by a government, state or sovereign. Authorisation granted by
a manufacturer to a distributor or dealer to sell his products.
Franchising is a method used by business for the marketing and
distribution of products and services.
12. FRANCHISING The two parties involved are: 1. The
Franchisor: The Franchisor is the provider of the franchise.
Typically he owns the trademark/product/service and licenses the
trademark to another party. He may provide support for the running
of the franchise. In exchange, he receives a fee, commonly known as
the royalty or franchise fee. This fee varies from industry to
industry.
13. FRANCHISING Franchisee Franchisee is the person who pays
for and purchases a franchise from a franchisor and operates a
business using the name, product, business format and other items
provided by the franchisor. The franchisor helps the franchisee in
setting up the business and managing it.
14. ROLESFunction 1. Site selection 2. Design 3. Employees 4.
Products to be sold 5. Prices 6. Advt. & Promotion Franchisor
Oversees Provides design Training Decides Sets/Recommends At
national level Franchisee Chooses with approval Incurs the cost
Hires and pays Can change only with approval Follows Local
requirements
15. ONGOING BENEFITS Field supervision of operations Management
Reports Merchandising and employee retraining National advertising
Centralized planning Market data and guidance Auditing and record
keeping Group insurance plans
16. ADVANTAGES OF FRANCHISING Low Risk -- eliminates the risk
of learning from a completely new business -- risk of whether the
business will be successful or not is much lower for the
franchisee.