manufacturer-owned operations that provide services normally associated with agents. Sales branches, which fall under
Manufacturers' wholesalers, are manufacturer-owned middlemen
who sell products and often support the manufacturer's sales
force. Sales branches act as middlemen, and perform the associated wholesale functions, such as promotion, extending credit
transporting goods, etc.
The 2 types of Manufacturer Wholesaling
Sales branches -
Sales offices -
manufacturer-owned operations that provide services normally associated with agents . Sales offices differ
in that they are like manufacturer-owned agents.
Merchant Wholesalers (aka: Jobbers & Distributors)
- are independently
owned wholesalers that take title to goods and assume
the risks associated with ownership.
Make up about two-thirds of all wholesalers.
2 main types of merchant wholesalers
Full service Merchant Wholesalers -
middlemen who offer the widest possible range of wholesaling functions, and
can be broken down into general merchandise, limited-line, and specialty-line wholesalers. Divided into three categories
depending on how wide of a product line they carry, from general merchandise wholesalers with a wide product mix but
limited depth, to specialty
-line wholesalers, with a narrow, but deep product mix.
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.
many of them do not extend credit or transport goods.
Include cash-and-carry wholesalers, drop shippers, and
are Full-Service Merchant Wholesalers who own and maintain their own display racks in supermarkets
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.
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: