Middlemen 1 - wholesaler - class-XI

In product development, an end user (sometimes end-user) is a person who ultimately uses or is intended to ultimately use a product.In information technology, end users are not "customers" in the usual sense—they are typically employees of the customer.

Business-to-business is a situation where one business makes a commercial transaction with another. This typically occurs when: A business is sourcing materials for their production process for output .Example- Providing raw material to the other company that will produce output

Distribution is one of the four elements of the marketing mix. Distribution is the process of making a product or service available for the consumer or business user who needs it. This can be done directly by the producer or service provider, or using indirect channels with distributors or intermediaries.

Wholesalers act as intermediaries who purchase goods in bulk from manufacturers and sell them in smaller quantities to retailers, taking ownership and risk in the process.

The statement that functions performed by wholesalers can be easily eliminated is generally considered false in business theory, as they provide essential services like storage, breaking bulk, and financing that are difficult to eliminate without replacing them with other efficient systems.

Wholesale trade involves the sale of goods in large quantities to retailers or industrial users for resale or further processing, rather than direct sale to final consumers.

Wholesaling, jobbing, or distributing is the sale of goods or merchandise to retailers; to industrial, commercial, institutional, or other professional business users; or to other wholesalers and related subordinated services. In general, it is the sale of goods to anyone other than a standard consumer.

Wholesaling, jobbing, or distributing is the sale of goods or merchandise to retailers; to industrial, commercial, institutional, or other professional business users; or to other wholesalers and related subordinated services. In general, it is the sale of goods to anyone other than a standard consumer.

Manufacturers mainly focus on production and creating products or finished goods. Manufacturers rarely sell their products directly to consumers or the end users of the products. Instead, manufacturers usually sell their products to other businesses down the chain like a retailer, dealer, or wholesaler.

Distribution systems can be defined as the sequential flow of procedures, systems, and activities which are designed and linked to facilitate and monitor the movement of goods and services from the source to the consumer.

A distribution channel is the route through which goods or services move from the company to the customer or the transfer of payment happens from the customer to the company. Distribution channels can mean selling of products directly or selling through wholesalers, retailers etc.

Elements of marketing mix such as price, promotion, and distribution are also equally important in designing product mix. Company tries to maintain consistency among these all elements to carry out marketing activities effectively and efficiently.

An intermediary in the channel is called an agent/middleman. Channels normally vary from two-level channels without intermediaries to five-level channels with three intermediaries. For example, a leather handbag manufacturer who prepares handbags and sells it directly to the customer is in a two-level channel.

Market influences sometimes called the internal environment include price, human resources, and firm culture. External influences, or the external environment, include technology, competitors and the economy. 

Zero Level channel / Direct Marketing Channel. Consists of a manufacturer directly selling to the end consumer. This might mean door to door sales, direct mails or telemarketing. Dell online sales is a perfect example of a zero level channel marketing.

Product and service promotion is the most common form of marketing. Promotional activities can include: advertising you can advertise your product, service or brand in newspapers, radio, television, magazines, outdoor signage and online

Wholesaler is a person or a firm that buys a large quantity o goods from the manufacturers, producers, vendors and sells it to the retailers or other businesses who further sell it to the consumers. The wholesaler does not sell the products directly to the consumer, the product flows from wholesaler to the retailer and then to the end user.

Wholesalers perform multiple functions including bulk purchasing, breaking bulk, storage, transportation, and market information collection, all while taking title to the goods.

A warehouse is a building for storing goods. Warehouses are used bymanufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial parks on the outskirts of cities, towns or villages.

Wholesalers are middlemen between the manufacturers and the retailers. They increase the cost of marketing and price of the products goes up. The consumers have to pay higher price. By eliminating wholesalers, prices of the products will decrease and the consumer shall benefit. The manufacturers will be earning more profit on account of lesser prices of the products.

Elimination of Wholesalers:

1. Wholesalers are middlemen between the manufacturers and the retailers. They increase the cost of marketing and price of the products goes up. The consumers have to pay higher price. By eliminating wholesalers, prices of the products will decrease and the consumer shall benefit. The manufacturers will be earning more profit on account of lesser prices of the products.

2. Wholesalers are unnecessary links between manufacturers and retailers. Their presence in the distribution channel obstructs the smooth and quick delivery of goods from the manufacturers to the ultimate consumers. If they are eliminated, the unrestricted supply of goods takes place from the manufacturers to the retailers and the consumers.

3. During the slack seasons and scarcity in business activities demand, the wholesalers resort to hoarding and stocking of goods and sell them at exorbitant prices charging excessive profits.

4. In certain regions, the wholesaler is the sole distributor of the product. He occupies the monopolistic position and exploits both the retailers and the consumers by charging higher prices if the wholesalers are eliminated it would be in the best interest of both the retailers and the consumers.

5. Big and established retailers such as large departmental stores can afford to make their own purchases directly from the manufacturers without approaching the wholesaler. The wholesalers are easily eliminated.

Wholesaling, jobbing, or distributing is the sale of goods or merchandise to retailers; to industrial, commercial, institutional, or other professional business users; or to other wholesalers and related subordinated services. In general, it is the sale of goods to anyone other than a standard consumer.

Middlemen include wholesalers, retailers, agents and brokers. Wholesalers and agents are closer to the producers. Wholesalers buy goods in bulk and sell them to the retailers in large quantities. Consumers may also choose to bypass the intermediaries and buy goods directly from the producers.

The advice given by someone who has studied a subject thoroughly or who is very skilled at a particular job. You should seek expert advice before going into business. If you are travelling to a malarial area, get expert advice before you set off.

They help move goods between producers and retailers and the advent of modern technologies help them do this more efficiently. A wholesale merchant operates in the chain between producer and retail merchant. Some wholesale merchants only organize the movement of goods rather than move the goods themselves.

The main exchange functions are buying and selling. Both buying and selling functions have their primary objectives as the negotiation of favorable terms of exchange. This function is concerned with seeking out the sources of supply, assembling of products, and activities associated with purchase.

A mercantile agent is a person who is appointed by those in business to act on their behalf or to represent them in dealing with other persons. The person on whose behalf he acts as an agent is known as the 'Principal'.

Wholesaling, jobbing, or distributing is the sale of goods or merchandise to retailers; to industrial, commercial, institutional, or other professional business users; or to other wholesalers and related subordinated services.

A mercantile agent is a person who is appointed by those in business to act on their behalf or to represent them in dealing with other persons.

A mercantile agent is a person who is appointed by those in business to act on their behalf or to represent them in dealing with other persons. The person on whose behalf he acts as an agent is known as the 'Principal'.

Tradable commodities consist of basic goods used in commerce that are often interchangeable with other goods of the same type. 

A del credere agency is a type of principal-agent relationship wherein the agent acts not only as a salesperson or broker for the principal, but also as a guarantor of credit extended to the buyer.

The stock of a corporation is all of the shares into which ownership of the corporation is divided. In American English, the shares are commonly called stocks. A single share of the stock represents fractional ownership of the corporation in proportion to the total number of shares.

Transport or transportation is the movement of humans, animals and goods from one location to another. In other words the action of transport is defined as a particular movement of an organism or thing from a point A to the Point B. Modes of transport include air, land, water, cable, pipeline and space.

Marketing Support Service. A Marketing Support Service would typically include some or all of the the following elements Stationery & Marketing Collateral management  design, print, logistics. Website portfolio design and development. Advertising Campaign media planning / buying, creative, delivery & management.

Large scale production refers to the production of a commodity on a large scale with a large sized firm. It requires huge investments in plant and machinery. Large scale production can be carried out if the market size is large and expanding.Large scale firms are division of labor and production and sale of goods in large quantities. They cater to a large market. The industrial revolution laid the foundation of the factory system. The factory system which extensively used machinery and adopted division of labor made large scale production possible.

The following are some of the motives of large scale production.

1. Desire for economy.
2. Desire for increase in sales.
3. Desire for a large customer base.
4. Desire for large profits.
5. Desire to become a global company.
6. Desire for economic power.
7. Desire for continuous growth and expansion.
8. Desire to increase demand.
9. Desire to overcome competition.
10. Desire to achieve monopoly status.
11. Desire for achieving long term profitability.

Retailers' cooperatives, where independent retailers join together to perform wholesale functions, are often referred to as voluntary chains.

An agent middleman (like a broker or commission agent) facilitates transactions but does not take legal title to the goods they handle.

Wholesalers often provide credit to retailers, which allows retailers to stock goods without needing to pay upfront, thus managing with less working capital.