Transportation: Wholesalers can provide quicker delivery to buyers because they are closer than the producers.Financing: Wholesalers finance their customers by giving credit, and they finance their suppliers by ordering early and paying bills on time.Risk bearing: Wholesalers absorb risk by taking title and bearing the cost of theft, damage, spoilage, and obsolescence.Market information: Wholesalers give information to suppliers and customers about competitors, new products, and price developments.Management services and advice: Wholesalers often help retailers train their salesclerks, improve store layouts and displays, and set up accounting and inventory control systems.Question 6Wholesalers fall into three major groups:merchant wholesalers,brokers and agents,andmanufacturers’ and retailers’ branches and offices.Merchant wholesalersare thelargest single group of wholesalers and include two broad types: full-service wholesalers andlimited-service wholesalers.Full-service wholesalersprovide a full set of services, whereas the variouslimited-service wholesalersoffer fewer services to their suppliers and customers.The different types of limited-service wholesalers perform varied specialized functions in the distribution channel.Brokersandagentsdiffer from merchant wholesalers in two ways: They do not take title to goods, and they perform only a few functions. Like merchant wholesalers, they generally specialize by product line or customer type. Abrokerbrings buyers and sellers together and assists in negotiation.Agentsrepresent buyers or sellers on a more permanent basis.Manufacturers’ agents(also calledmanufacturers’ representatives) are the most common type of agent wholesaler.The third major type of wholesaling is that done inmanufacturers’ and retailers’ branches and officesby sellers or buyers themselves rather than through independent wholesalers.Lesson 11: Communicating Customer Value: Advertising and Public RelationsThe next three lessons in this course cover the fourth and final ‘P’ in the marketing mix— promotion. An exhaustive marketing program that can deliver value and build profitable relationships with customers calls for more than just developing a good product, pricing it attractively, and making it available to target customers. Marketers should also communicate with their customers. Promotion provides the primary communications function. As one of the four major elements of the marketing mix, promotion uses advertising, sales promotion, public relations, personal selling, and direct, online, social media, and mobile marketing to achieve the organization’s communications objectives and shape its positioning.
Lesson 11 provides a broad overview of promotion, also known as the marketing communications mix. It advocates the use of an integrated marketing communications strategy, which involves identifying the target audiences and designing well-coordinated promotional programs to elicit the desired audience responses. In other words, effective
- Spring '15