Principles of Marketing

Chapter 11:
Retailing and
Wholesaling

Definitions
Retailing
refers to the business activity of
selling goods or services to the final
consumer.
Retailer
is one whose business firms sells mainly
to the final consumers.

Functions of Retailers
1. They provide convenience;

2. They provide guarantee and service;

3. They provide financing of transactions;

4. They perform promotional activities;

5. They perform storage function;

6. They perform intelligence service for
the manufacturer; and
7. They serves as buying agent of the consumers.

Types of Retailers
1. By sales
volume
2. By product
mix offered
3. By form of
ownership
4. By method
of operation

Can classified as:

Small

Large

Medium

Types of Retailers
1. By sales
volume
2. By
product mix
offered
3. By form of
ownership
4. By method
of operation

General Merchandise
stores

- are those that carry a large

variety of product line.
Department stores
Variety Stores

Specialty Stores
- are those which carry only a specific
line of products.

Single line specialty store

Limited-line specialty store

Types of Retailers
1. By sales
volume
2. By product
mix offered
3. By form
of
ownership
4. By method
of operation

Corporate chain
stores
Independent stores

Franchise stores

Types of Retailers
1. By sales
volume
2. By product
mix offered
3. By form
of
ownership
4. By method
of operation

Corporate chain
- composed of two or
stores
more outlets that are
owned commonly by a
person or a group of
persons selling similar
products
Independent stores
- are owned and
operated by
independent retailers.

Types of Retailers
1. By sales
volume
2. By product
mix offered
3. By form
of
ownership
4. By method
of operation

Franchise stores
-is an independent
retailer given the
right to sell his
products in a
definite market
area.

Types of Retailers
1. By sales
volume
2. By product
mix offered
3. By form of
ownership
4. By
method of
operation

Full Service
Retailers
- are stores where
assistance in a
variety of ways is
extended to the
Supermarkets
costumers.
- large department
stores which offers a
variety of goods.

Types of Retailers
1. By sales
volume
2. By product
mix offered
3. By form of
ownership
4. By
method of
operation

Discount Stores
- are self-service
retailers that sells a
wide variety of goods
at less than
traditional retail
prices.

Types of Retailers
1. By sales
volume
2. By product
mix offered
3. By form of
ownership
4. By
method of
operation

Nonstore Retailers
- refer to those who sell
outside of the store. They
may be classified as:
at home retailers
telephone retailers
vending machine
retailers
mail-order retailer
mail-order retailers
internet retailers

What is Wholesaling?
Wholesalin
g -refers to all activities involved
in selling goods and services to
those who intend to resell or use
the same for producing goods or
services.

Functions of the Wholesaler

1. anticipating customer needs;
2. selling and promotion;

3. financing;
4. storage;
5. breaking bulk;
6. transportation;
7. risk-taking.

Types of Wholesalers
1. Full Function
Wholesalers
2. Limited
function
wholesalers
3. Industrial
wholesalers

A. Merchant Wholesalers
Merchant wholesalers can
be classified into the ff:
the general line
merchant wholesaler who
carry a general assortment
of goods; and
the specialty line
merchant wholesaler who
carry only a limited number
of lines.

Types of Wholesalers
1. Full Function
Wholesalers
2. Limited
function
wholesalers
3. Industrial
wholesalers

B. Sales office and

branches
C. Agents
manufacturers
agents- sell only
a portion of a
manufacturers output.
selling agents- are
required to sell the
firms entire output.

Types of Wholesalers
1. Full Function
Wholesalers
2. Limited
function
wholesalers
3. Industrial
wholesalers

Limited function
wholesalers provide only some
wholesaling functions, like order
taking and processing.
They may be classified as
follows:
1. drop shippers
2. truck distributors
3. mail-order
wholesalers
4. cash-and-carry
wholesalers
5. cooperatives
6. rack jobbers

Types of Wholesalers
1. Full Function
Wholesalers
2. Limited
function
wholesalers
3. Industrial
wholesalers

The following types of

wholesalers serve the
industrial market:
1. those also serving the
retailers:
a. sales branches
b. brokers
c. manufacturers agents
d. combination houses
.

Types of Wholesalers
1. Full Function
Wholesalers
2. Limited
function
wholesalers
3. Industrial
wholesalers

2. industrial distributors
serving only the
industrial market:
a. general line
wholesalerscarry
complete assortment of
goods in a single line.
b. specialty line
wholesalers- carry only

End of the
Chapter 11

Reported By:

Casimiro, Ma. Keena Therese

Dela Cruz, Sharmaine
Recto, Jesy Kay