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Marketing Intermediaries
Course: Introduction To Business (BUS 100)
16 Documents
Students shared 16 documents in this course
University: Jefferson Community College (New York)
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Marketing Intermediaries: Wholesalers
Wholesalers Provide Services to Retailers and Manufacturers
• Wholesalers help retailers by:
− Buying in large quantities and selling to retailers in smaller quantities and delivering goods to
retailers
− Stocking in one place the variety of goods that retailers otherwise would have to buy from
many producers
− Providing assistance in other vital areas, including promotion, market information, and
financial aid
• Wholesalers help manufacturers by:
− Performing functions similar to those provided to retailers
− Providing a sales force, reducing inventory costs, assuming credit risks, and furnishing market
information.
Types of Wholesalers
MERCHANT WHOLESALERS
• Merchant wholesaler: An intermediary that purchases goods in large quantities and sells
them to other wholesalers or retailers and to institutional, farm, government, professional, or
industrial users
− Usually operate one or more warehouses at which they receive, take title to, and store goods
− Most are businesses composed of salespeople, order takers, receiving and shipping clerks,
inventory managers, and office personnel
− Must analyze available products and market needs and be able to adapt the type, variety, and
quality of its products to changing market condition.
Full-service wholesaler: An intermediary that performs the entire range of wholesaler functions
− General-merchandise wholesaler: An intermediary that deals in a wide variety of products
− Limited-line wholesaler: An intermediary that stocks only a few product lines but carries
numerous product items within each line
− Specialty wholesaler: An intermediary that carries a select group of products within a single
line.
AGENTS AND BROKERS
• Agent: An intermediary that expedites exchanges, represents a buyer or a seller, and often is
hired permanently on a commission basis
• Broker: An intermediary that specializes in a particular commodity, represents either a buyer
or a seller, and is likely to be hired on a temporary basis
• Agents and brokers perform a small number of marketing activities and are paid a
commission that is a percentage of the sales price.
