Often leftover goods overruns irregulars obtained at reduced prices from

Often leftover goods overruns irregulars obtained at

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sold at less than retail. Often leftover goods, overruns, irregulars obtained at reduced prices from manufacturers or other retailers (Winners, Costco) Superstore: a very large store traditionally aimed at meeting consumers’ total needs for routinely purchased food and non-food items (Walmart, Superstore, PetSmart) Major types of retail organizations: Corporate chain store: two or more outlets that are commonly owned and controlled. (Sears) Voluntary chain: wholesaler-sponsored group of independent retailers engaged in group buying and merchandising (Independent Grocers, True Value) Retailer cooperative: group of independent retailers that jointly establish a central buying organization and conduct joint promotion efforts Franchise organization: contractual association between a franchisor and franchisees (McDonalds, Subway) Wholesalers add value by performing one or more of the following channel functions: Selling and promoting Buying and assortment building Bulk breaking Warehousing Transportation Financing Risk bearing Market information Management services and advice Major types of wholesalers Merchant wholesalers : independently owned business that take title to all merchandise handled. There are full-service wholesalers and limited-service wholesalers Full-service wholesalers : provide a full line of services; carrying stock, maintaining a sales force, offering credit, making deliveries, providing management assistance. Full-service wholesalers merchants and industrial distributors Wholesale merchants : sell primarily to retailers and provides a full range of services. General merchandise wholesalers carry several merchandise lines, whereas general line wholesalers carry one or two lines in great depth. Specialty wholesalers specialize in carrying only part of a line Industrial distributors : sell to manufacturers rather than to retailers. Provide several services, such as carrying stock, offering credit, and providing delivery. May carry a board range of merchandise, a general line or a specialty line Limited-service wholesalers : offer fewer services than full-service wholesalers. Limited-service wholesalers are of several types Cash-and-carry wholesalers : carry a limited line of fast-moving goods and sell to small retailers for cash. Normally do not deliver 7 | P a g e
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Marketing 396 Notes Final Exam Truck wholesalers (or truck jobbers): perform primarily a selling and delivery function. Carry a limited line of semi perishable merchandise (such as milk, bread, snack foods), which is sold for cash as deliveries are made to supermarkets, small grocery stores, hospitals, restaurants, factory cafeterias, hotels Drop shippers: do not carry inventory or handle the product. On receiving an order, drop shippers select a manufacturer, who then ships the merchandise directly to the customer. Drop shippers operate in bulk industries, such as coal, lumber and heavy equipment Rack jobbers : serve grocery and drug retailers, mostly in non-food items. Rack jobbers send delivery
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