Marketing is a dynamic field and is influenced by the internal and external factors. Environment is changing rapidly and so the trends in marketing functions.
Distribution channel has also changed with the changes and development can be seen in wholesalers and retailers.
– Channel participants now work in coordination with the emergence of Integrated Marketing systems whereas earlier they used to work in isolation.
– Firms now believe in direct marketing techniques to have control over the market.
– In retail sector, self-service systems and automatic rending machines.
– These enhancements have changed the trends in wholesaling and retailing of goods and services.
Wholesalers can be classified as follows:
Based on Merchandise
1. General merchandise wholesaler deals in variety of products from different product lines.
2. General line wholesalers deal in variety of products in single product line.
3. Single line or speciality wholesaler sell specific product.
Based on Method of Operations
1. Service wholesalers perform variety of services.
2. Limited functions wholesalers perform few functions or services.
Based on Geographical Coverage
1. Local wholesalers: Those who deal with retailers in the local area.
2. District wholesalers: Those who deal with retailers in the specific district.
3. Regional or National wholesalers: Those who deal with retailers in the national market.
Explain Fixed Shop Retailers.
Fixed Shop Retailers sell their products to consumers, they have fixed place, they do not move place to place for selling the product. They are classified into:
Small Scale Retail Shops.
Large Scale Retail Shops.
Small Scale Retail Shops:
1. Street Stalls: Stalls are set on a small scale in very limited space. They are generally located on the road side.
2. General Merchandise Stores: Small retail shops selling products of daily use like bread and butter, medicines etc. located in residential areas for the convenience of the consumers.
3. Speciality Shops: Small retail shops who deal in particular product line. For example: Medicines, stationery shops, clothes etc.
Large Scale Retail Shops:
1. Departmental Stores are a large scale retail stores selling number of products in different departments under one roof and single management control.
2. Super Market: It is a large scale retail store offering variety of consumer products which are used regularly.
3. Chain Stores are the number of retail outlets located at different locations with standardized business methods and management under one control.
4. Mail Orders Houses: Where retail trading is done by the post office. Orders are received and delivered by mails or parcels.
5. Consumer Cooperative Stores are the retail stores owned by the consumers for the mutual benefits. Main aim is to reduce prices by removing middlemen from the channels.
6. Hire Purchase Trading: Goods are sold on credit basis and payment is made in instalments. Buyers get the possession of the goods but the ownership is transferred after the whole payment is received by the seller.
7. Discount Houses: Purchase the goods from manufacturers and are able to sell goods at discounted prices. Profit of margin is kept small.
8. Super Bazaar: Large scale retail shops set up by co-operative societies. They sell consumer goods.
9. Automatic Rending Machines are placed at most convenient places. Buyers can acquire goods by inserting the required coins in machine.