Learning Objectives Chapter 15

3.) Describe marketing strategies used by wholesalers.

Target Markets--Wholesalers serving organizational buyers typically segment their markets by geographic area, type of buyer, or end use of the product.

Product Strategies

• Selection of Products--The product mix for wholesalers depends largely on the kinds of customer they serve. The product selection for retailers should be based on the wants and needs of customers.
  
  
• Level of Service--For a wholesaler, "level of service" refers to the number of distribution functions the wholesaler will perform. It can also refer to the amount of intangibles offered with the sale of tangible goods.
  
  
• Pricing--for wholesalers, the nature of pricing decisions varies depending on the type of wholesaler. Retailers typically base their prices on a markup over the price they pay to acquire the merchandise.
  
  
• Channels of distribution--Wholesalers and retailers make distribution decisions on two levels--as participants in the marketing channel and as producers of distribution services.
  
  
• Marketing Communications--Wholesalers promote their services to the producer and to other intermediaries. Retailers promote both themselves and the merchandise they carry.