Marketing Assignment #8

1a.) Do wholesaling intermediaries provide any ultimate value to customers, or do they just interfere with the process of retailing? Explain the reasons for your answer.

Yes the wholesaling intermediaries provide a valuable service to the customer and do not interfere with the process of retailing. They in fact add value by performing the following:

Create Utility

*Time - They make sure the products are available for the consumer to purchase them

* Place - Helping deliver the goods or services to convenient locations for purchase.

* Ownership - Provide a smooth exchange of title to the purchaser.

Provide Services

* Selling – Create a low-cost method for servicing smaller retailers and business owners.

* Buying - Anticipates customers needs and provides alternative sources if necessary to meet these needs.

* Storing – Maintains warehouse facilities at a cheaper cost then the producer could, keep the cost of the product down.

* Transportation –Delivers are made in a timely manner in response to the customer’s needs.

* Financing – Provides credit that might not be available allowing purchases directly from the manufacture.

* Risk Taking – They are assuming all of the risk by keeping the inventory in warehouses they are paying for. Also by extending credit to customers that qualify. If something should go wrong in any one of these situations, the wholesaler has lost not the retailer or small business.

* Market Information – Offer important information to suppliers and customers about competitors, new products, and price developments. Along with price and legal changes and so forth.

Lowering The Cost

This is done by limiting the number of contacts. With the help of the wholesaling intermediaries the manufactures do not have to have contact with each customer. They deliver the product to the wholesaling intermediaries who then deliver the product to the customer.

1b.)Has the emergence of the Internet played a role in retailing and wholesaling...