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Essay / Research Paper Abstract
A 3 page paper that discusses wholesalers and their value in the distribution chain as well as to the manufacturers, retailers and consumers. The paper also comments briefly on the impact of the Internet on retailing and wholesaling. Bibliography lists 3 sources.
Page Count:
3 pages (~225 words per page)
File: MM12_PGwhlsl.rtf
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Unformatted sample text from the term paper:
deal more to distribute their products directly to the consumer or to the retail outlets that stock those products. Manufacturers or producers of goods must use many intermediaries to get
their products to the final customer. Gerth (2006) commented that producers "try to develop a distribution channel (marketing channel) to do this." Just as the supply channel is comprised of
many different companies and agencies so is the distribution channel. These independent organizations in the distribution channel help get the product to the consumer or other business owner (Gerth, 2006).
These independent organizations may be wholesalers, brokers, agents or even retailers (Gerth, 2006). The distribution channel, like other factors, directly affect marketing decisions (Gerth, 2006). For example, price would be
affected by who the final retail business is and this affects how products are distributed. A huge corporation, or mass merchandiser, like Wal-Mart requires a different pricing objective than would
a small boutique shop (Gerth, 2006). In many cases, Wal-Mart buys directly from the producer rather than through a wholesaler because it has the sales volume to negotiate the cost
of the product. The value of the wholesaler is that they buy in large quantities and then, break that quantity into parts to resale to retailers (Gerth, 2006). In
other words, it is wholesalers that make the product available to the customer, usually a retail outlet. They provide the quantity, time and place of delivery the retailer needs (Gerth,
2006). They provide efficiencies regarding the flow of the products from producer to customer (Gerth, 2006). One of those efficiencies is reducing the number of transactions the producer must make
(Gerth, 2006). They do this for many different producers at the same time. They also reduce the number of transactions the retailer must make by buying different products in
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