CLEP Principles of Marketing Study Notes

2 limited service merchant wholesalers provide only

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2. Limited service Merchant Wholesalers - Provide only some marketing services and specialize in a few functions. Take title to merchandise, but they provide a very limited set of wholesaling functions. For example, many of them do not extend credit or transport goods. Include cash-and-carry wholesalers, drop shippers, and mail-order wholesalers. Rack Jobbers are Full-Service Merchant Wholesalers who own and maintain their own display racks in supermarkets and drugstores. Fall under the category of "specialty-line" wholesalers. They send out delivery persons to set up displays, keep them stocked, maintain records, etc. The retailers only have to furnish the space. Web site can serve a variety of marketing functions, including customer support, promotion, collection of consumer information, and even distribution. This versatility makes it an excellent marketing tool. 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 – independent firms that take title & possession of products they sell. 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
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