CLEP Principles of Marketing Study Notes

Types of limited service merchant wholesalers 1 drop

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Types of Limited Service Merchant Wholesalers: 1. Drop Shippers (aka: Desk Jobbers) are Limited Service Merchant Wholesalers who take title to goods and negotiate sales, but never take actual possession of products. Forward orders to manufacturers and then arrange for shipments of items to be delivered directly from producers to customers. 2. Cash-and-carry Wholesalers are Limited Service who handle a limited line of products with a high turnover rate-- customers pay cash and furnish transportation. Usually sell to retailers and industrial firms who are too small for full- service wholesalers to profitably handle. 3. Mail-order Wholesalers Cooperative Advertising is where a manufacturer agrees to pay a certain amount of a retailer's media costs for advertising the manufacturer's products. Occurs when the manufacturer and retailer share advertising costs. The manufacturer helps pay for advertising by the retailer which involves the manufacturer's products. Advocacy Advertising - form of advertising in which an organization expresses its views on controversial issues. Can be defined as paid corporate advertising designed to communicate the company's view on political issues. For example, pending legislation . 3 types of Full Service Merchant Wholesalers: 1. General Merchandise Wholesalers - carry a wide product mix but offer limited depth 2. Limited-Line Wholesalers - offer a few product lines with extensive depth within each product line. 3. Specialty-Line Wholesalers - Offer the narrowest range of products--they offer specialty products. 3 categories of wholesalers : 1. Manufacturer's Wholesalers – products producer performs wholesaling function. 2. Merchant Wholesalers 3. Agents and Brokers - negotiate purchases and expedite sales but do not take title to products. Agents are middlemen who represent buyers or sellers on a permanent basis, while brokers are typically employed temporarily by either buyers or sellers.
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Retailing - all transactions in which the buyer intends to use the product for individual or household consumption. Selling to final consumers, in contrast to wholesaling , which involves selling to organizational buyers, other wholesalers, and retailers. Corporate Chains - group of stores which operate under central ownership and management to market essentially the same product line. Consist of a group of stores owned and managed by the same firm. Contractual Vertical Marketing System (VMS) - When retail stores organize voluntary chains or cooperatives. Contractual VMSs can involve retail stores coordinating their activities, or various levels of a distribution channel, such as wholesalers and retailers working together. Retail stores who use these contractual arrangements get to enjoy some of the advantages enjoyed by corporate chains. Independent Stores
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Types of Limited Service Merchant Wholesalers 1 Drop...

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