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Chapter 10: Wholesaling and Product Movement

Chapter Summary:

In this chapter we first examine another reselling group - wholesalers - and see how they come into play when a marketer attempts to reach the final customer. We show wholesalers exist in many formats, affect a wide range of industries, and offer different sets of features and benefits depending on the markets they serve. In the second half of the chapter we examine the tasks that must be carried out in order to physically move products to customers. In some cases the marketer will take on the responsibility of carrying out some functions, while other tasks may be assigned to distribution service providers. Whether handled by the marketer or contracted to others, these functions are crucial to having a cost-effective and efficient distribution system. It is worth noting that while most product movement is concerned with moving tangible products, some of the issues covered here are also applicable to intangible products, such as services, and to digital products.

Key Issues:

  • What is Wholesaling?
  • Benefits of Wholesalers
  • Ways to Categorize Wholesalers
  • Wholesale Formats
  • Managing Product Movement
  • Ordering and Inventory Management
  • Transportation
  • Product Storage

Links to Cited References:

(note: Some links may no longer be active, if this is the case check Accessing Marketing Stories for hints on accessing.)

  1. "2002 Census of Wholesale Trade," United States Census Bureau. http://www.census.gov/econ/census02/
  2. Lawrence, C., "Hawaiians Hit by Skyrocketing Shipping Costs," CNN, June 18, 2008. http://money.cnn.com/2008/06/18/news/economy/Lawrrence_Hawaii_shipping/
  3. Wholesale Central website. http://www.wholesalecentral.com/
  4. Malta, C. and R. Cowie, "Drop Shipping Pros and Cons: The Cost of Convenience," Worldwide Brands. http://www.worldwidebrands.com/articles/detail2.asp?i=1874
  5. Christ, P., "Patenting Marketing Methods: A Missing Topic in the Classroom," Journal of Marketing Education, 27 (1), 2005.
  6. Mintz, J., "Amazon unveils TextBuyIt," USA Today, April 2, 2008. http://www.usatoday.com/tech/products/services/2008-04-02-amazon-textbuyit_N.htm
  7. "U.S. Domestic Freight Market Share," Bureau of Transportation Statistics - U.S. Department of Transportation. http://www.bts.gov/publications/bts_special_report/2007_07_27/html/figure_03.html
  8. West, E., "These Robots Play Fetch," Fast Company, July 2007. http://www.fastcompany.com/magazine/117/next-these-robots-play-fetch.html

 

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