Functions of Intermediaries, Wholesaling, and Retailing

A set of vocabulary flashcards covering the key terms, definitions, and concepts related to intermediaries, wholesalers, and retailing.

Sorting

The intermediary function of forming homogeneous groups on the basis of quality and size.

Accumulation

The intermediary function of maintaining a continuous flow of supply.

Allocation

The intermediary function of repacking into marketable smaller lots.

Assorting

The intermediary function of procuring products from different sources and delivering them in combinations.

Product Promotion

Sales promotion activities such as demonstrations, contests, and other promotional efforts undertaken by intermediaries.

Negotiation

The intermediary function of negotiating price, quality, and guarantee with customers.

Risk Taking

Assuming marketing risks such as price and demand fluctuations, pilferage, and spoilage.

Functions of Intermediaries

A diagram showing the main functions of intermediaries/wholesalers: Sorting, Accumulation, Allocation, Assorting, Product promotion, Negotiation, and Risk taking.

Wholesale Trade

All establishments or places of business primarily engaged in selling merchandise to retailers; to industrial, commercial, institutional or professional users or to other wholesalers; or acting as agent in buying merchandise for or selling merchandise to such persons or companies.

Wholesaler

All merchants or traders who purchase and sell in large quantities to the retailer or industrial users and is generally away from the ultimate consumer.

Drop Shippers

Limited function wholesalers that sell merchandise directly from producer to consumer.

Truck Wholesalers

Limited function wholesalers that handle products such as milk, fruits, and vegetables.

Niche Marketing

Micro marketing or selling products or services to a specialized segment of a market.

Proprietary Brand

A patented brand owned by an individual or corporation.

Retailing

Includes all activities incidental to selling to ultimate consumer.

Retailer

According to William.J.Stanton, a business enterprise which sells primarily to ultimate consumers for non business use.

Wheel of Retailing

A model depicting the cyclical progression of retail operations through three phases: Innovation, Trading Up, and Vulnerability.