Marketing intermidiaries

PREPARED BY Desalegn N.

ADDIS HIWOT SCHOOL

1
A marketing organization that links a producer and user within a marketing
channel is called a middleman or marketing intermediary.
1. Wholesalers
Wholesaler is a middleman that sells products to other firms. Wholesale
transactions are all transactions except the transaction with the ultimate
consumer.
Reasons for the Use of Wholesalers
 to improve exchange efficiency.
 specialists in the exchange process.
Wholesaler's Services to Manufacturers
 Providing an Instant Sales Force
 Reducing Inventory Costs
 Assuming Credit Risks
ADDIS HIWOT SCHOOL
 Furnishing Market Information 1
Wholesaler's Services to Retailers
 Promotion.
 Market information
 Financial Aid
Types of Wholesalers
They are merchant wholesalers; commission merchants, agents and brokers;
and manufacturers' sales branches and sales offices.
A. merchant wholesaler is a middleman that purchases goods in large
quantities and then sells them to other wholesalers, or retailers and
institutional, farm, government, professional, or industrial user
B. Commission Merchants, Agents and Brokers: Commission merchants,
agents, and brokers are functional middlemen.
C. Manufacturers' Sales Branches and Sales offices. A manufacturer's
branch is, in essence, a merchant wholesaler
1
that is owned by a manufacturer.
Wholesaler's Services to Retailers
 Promotion.
 Market information
 Financial Aid
Types of Wholesalers
They are merchant wholesalers; commission merchants, agents and brokers;
and manufacturers' sales branches and sales offices.
A. merchant wholesaler is a middleman that purchases goods in large
quantities and then sells them to other wholesalers, or retailers and
institutional, farm, government, professional, or industrial user
B. Commission Merchants, Agents and Brokers: Commission merchants,
agents, and brokers are functional middlemen.
C. Manufacturers' Sales Branches and Sales offices. A manufacturer's
branch is, in essence, a merchant wholesaler
1
that is owned by a manufacturer.
2. Retailers
retailer is a middleman that buys from producers or other middlemen and
sells to consumers.
retailers can be classified as store and non-store retailers.
store retailers: are middle men and stores goods in their selling activities.
Kinds of Non Store Retailing: Non-store retailing is selling that does not
take place in conventional store facilities; consumers purchase products
without visiting a store.
A. Direct selling is the marketing of products to customers through face-to-
face sales presentation at home or in the work place.
I. Door-to-door selling: going directly to the customers' home for sale
II. Party-plan/Home-sales parties: invites some friends to a party and will
make a sales presentation.
1
B. Direct marketing: is .the use of the telephone and non personal media to
communicate product and organizational information to customers, who can
then buy products by mail or telephone. It includes telemarketing, Television
home shopping, and online retailing.
C. Automatic vending: is the use of machines to dispense convenience
goods automatically when customers deposit the appropriate amount of
money.
Warehousing
Warehousing is the set of activities involved in receiving and storing goods
and preparing them for reshipment
Warehousing includes the following activities:
1. Receiving goods
2. Identifying goods
3. Sorting goods 1
4. Dispatching goods to storage
5. Holding goods
6. Dispatching goods to storage
7. Holding goods
8. Recalling, selecting, or picking goods
9. Marshalling Shipments
10. Dispatching Shipments
Types of Warehouses
Warehouses classified into private and public warehousing
Public warehouses: offer their services to all individuals and firms with fee.
private warehouse: is owned and operated by a particular firm. It can be
designed to serve the firm's specific needs.
Bonded Warehouses: are used for items
1 to be imported or exported
Mode of Transportation
The common modes of transportation are (a) trucks, (b) railroads, (c)
airplanes, (d) waterways and (e) pipelines. In developing countries like ours,
animal transport is the dominant one.
A. Road
B. railroads: There is only one railway in Ethiopia; that is from Addis Ababa
to Djibouti.
C. Waterways: Cargo ships offer the least expensive but slowest form of
transportation
D. Air transport: is the fastest but most expensive transportation.
E. Pipelines: are a highly specialized mode of transportation. They are used
primarily to carry petroleum and natural gas.

1
workout:
s

1. XX company is engaged in the production of

shoes. The total cost of the company is 20,000,
estimated sales is 400, and fixed cost is 5000.
also, the mark up rate and target rate of return
are 10% and 20%. Then:
A.Find unit selling price by using cost plus
method?(12.5pts)
B. Find unit selling price by using target rate of return?(12.5pts)
1
 THE END

MANY THANKS FOR YOR

OBSERVATION!!