Wholesale and retail marketing. Wholesale and retail marketing. Theoretical aspects of wholesale marketing

Retail trade - any activity of selling goods or services directly to end consumers for their personal non-commercial use.

Any business that engages in this activity is a retail business. Moreover, it does not matter how exactly goods and services are sold - by personal sale, by mail, by phone or through a vending machine, and where exactly they are sold - in a store, on the street or at a consumer's home.

Types of retail trade enterprises. There are millions of retail outlets in a variety of sizes and shapes throughout the country. New forms of retail trade are constantly emerging, absorbing certain features of the old Russian and well-known foreign forms.

Self-service retail outlets grew rapidly in the country, which was a consequence of the copying of the American experience in the 60s. Today, the number of self-service shops has decreased, they sell fast moving goods. But don't forget that self-service is the backbone of any low-cost trading.

In retail outlets with free selection of goods the buyer may, if desired, seek assistance from the seller. The client completes the transaction by going up to the seller and paying for the purchase. These stores have a slightly higher overhead than self-service stores due to the additional staff.

Limited service retailers provide the shopper with better assistance from the sales force, as these stores sell more pre-selection items and the shopper needs more information. In addition, services are offered to consumers in the form of selling on credit and taking back purchased goods. The costs of such stores are, of course, higher.

Full Service Retailers- these are fashionable department stores, whose sellers are ready to help the buyer at all stages of the process of searching, comparing and choosing a product. Wealthy consumers prefer these kinds of stores. Well-trained staff, a high percentage in the range of special-demand goods and fashion items, the use of various credit schemes are the attributes of such stores. In addition, the store provides the following services: delivery of purchases, maintenance of durable goods at home, amenities in the form of lounges and restaurants.

Retailers can be classified as follows.

1. The offered product range. Retail outlets vary in product range. The most common are specialized stores, department stores and supermarkets, retail service businesses.

Specialty Stores offer a narrow range of goods of significant saturation. Examples of specialized retailers include clothing stores, sporting goods stores, furniture stores, flower stores, and book stores. Specialty stores can be further subdivided according to the degree of narrowness of the assortment offered. A clothing store is a full-service stand-alone store, a menswear store is a limited supply store, and a men's shirts store is a highly specialized store. According to a number of experts, the fastest growing number of highly specialized stores will take advantage of market segmentation, selection of target segments and product specialization. However, a specialty store can easily go broke if its products lose popularity.

Department stores offer several assortment groups of goods - usually clothing, household items, household goods. Each assortment group is handled by a special department of the department store. The first department store in history is considered to be "Bon march", founded in Paris in 1852. He became an innovator in trade. Introduced low markups and accelerated turnover of goods, disclosure of prices, encouraging buyers to inspect goods without any pressure, liberal review of complaints.

Supermarket Is a large self-service enterprise with low costs, low specific profitability and high sales volume. It is designed to fully satisfy the needs of the consumer in food products, and sometimes in washing and detergents, household goods. Supermarkets first spread to the United States during the Great Depression, which forced consumers to save money and made it possible for entrepreneurs to buy goods cheaply from suppliers and rent large premises for minimal fees.

The new packaging technology made it possible to offer the consumer food products in containers convenient for storage and packaging. Finally, the use of electronics and computers has provided the accounting and control required for today's large supermarkets. In developed countries, they offer up to 10 thousand different goods. In modern Russian conditions, the number of supermarkets has decreased, especially due to the return to their original state of small stores converted during the Soviet era.

Service retailers- these are hotels, banks, airlines, colleges, hospitals, cinemas, restaurants, these are repair services and various establishments for the provision of services, such as hairdressing and beauty salons, dry cleaners and funeral homes. The number of service retailers is growing faster than the number of merchandise retailers.

2. Prices. Retail stores can also be classified based on price levels. Most stores offer mid-priced products and a normal level of service to consumers. A number of shops offer goods and services of higher quality and at higher prices. Conversely, discount stores sell their goods at low prices, organize their activities at the lowest cost, and offer fewer services.

Discount store trades at low prices due to small markups with large sales volumes. The use of discounted prices and sales do not make the merchant a bargain store. It does not make it so, and the sale of goods of low quality on the cheap. A true discount store has a number of features. First of all, he trades in branded goods at low prices with high inventory turnover. Discount trading has a long history in developed countries. The average inventory turnover in it is up to 15 times a year, and not 5-7 times, as in department stores. In our country, such stores have not yet become widespread. Their role is played by traders - "shuttle traders" at fairs and markets.

Warehouse store Is a low-priced, limited-service, no-nonsense, limited-service merchant whose purpose is to sell large quantities of goods at low prices. Traditional furniture stores have long resorted to stock sales. The visitor in the demo department, where the rooms are beautifully furnished, makes their choice and issues the order to the seller. By the time the buyer pays, the purchased goods have already been delivered from the warehouse. The company is focused on serving mid-value furniture buyers. Customers like the wide variety and the low prices.

Stores - showrooms, trading according to price lists and catalogs. They use the catalog trade principle and the discount trade principle to market high-selling branded goods, which usually sell at a high mark-up. Among them are jewelry, computers, power tools, household appliances. The catalogs and price lists show the list price of each item and the discounted price. These stores sell branded goods, mostly unrelated to fashion.

3. Form of trade. Although most goods and services are still sold in stores, the growth rate of out-of-store retailing is very high. Consider some forms of out-of-store retailing.

Retail trade with ordering goods by mail or by phone Is a sales activity using mail and telephone lines to collect orders and facilitate the delivery of goods. The mail order system originated a long time ago, at a time when customers began to send their orders by mail.

Trade with order by catalog are usually practiced by dispatch enterprises with a mixed assortment. Sellers either send catalogs to a certain circle of customers, or provide an opportunity to receive them in their retail premises for free or at a low price. Large retailers have “mail order” sections in their stores.

Direct marketing involves newspaper, radio or television advertisements describing a product that consumers can order by mail or telephone. This is how they usually sell books and household appliances.

They also use such a form of sale as Direct mail. Firms send postal items - letters, leaflets, brochures - to potential clients, whose names are entered into a computer. Mailing lists can be purchased from specialized firms. Postal advertising has proven to be effective in promoting book sales.

This kind of trading as sales by phone, is just beginning to spread in our country. Use the phone to sell anything.

Trade through vending machines. They sell a wide variety of goods: cigarettes, soft drinks, sweets, newspapers, hot drinks. Vending machines are placed in factories, offices, large stores and train stations. The advantages of vending machines are round-the-clock sales and self-service. At the same time, it is a relatively expensive distribution channel.

Discount ordering service assists discrete customer groups — usually workers and employees of large organizations such as government agencies — who procure at discounted prices from a selection of selected retailers. A consumer wishing to purchase a VCR receives a special form from the ordering service, with which he goes to a specific merchant and buys a product at a discount.

Peddling trade originates many centuries ago. Today, peddling trade on the principle of "at every door", in each institution, many firms and entrepreneurs are engaged. Peddling caters to the needs of people in terms of convenience and personal attention, inherent in buying at home. The prices of goods sold in this way cannot be called low, since peddling is an expensive undertaking. The future of this form of retail is rather uncertain. The peddling salesman can perhaps replace the personal computer connected to the network.

4. Shop affiliation. Retail outlets can be classified according to their affiliation. Most stores are independent private enterprises, most often in the form of business partnerships and companies. There are also other forms of ownership, such as corporate networks.

Corporate network Are two or more trading establishments under common ownership and control. They sell goods of a similar assortment, have a common procurement and sales service, and possibly a single architectural design.

The success of corporate networks is based on the cost advantage over independent merchants through increased sales and lower margins. Networks provide their profitability in several ways. First, their size allows you to purchase large quantities of goods with maximum discounts for quantity and at the same time save on transportation costs. Second, they are able to create effective structures, hire good managers, and develop specific methodologies for sales forecasting, inventory management, pricing, and incentives. Third, chains are capable of integrating wholesale and retail functions, while independent retailers have to work with many wholesalers. Fourth, networks save on advertising, as they attribute the cost to a large number of goods. And fifth, chains give their stores some freedom to accommodate local consumer preferences and compete successfully in local markets.

5. A kind of store concentration. This is the final principle for classifying retail outlets. There are four main types of concentration.

Every large and small city has central business district, where department stores, specialty stores, banks and cinemas are located. There are smaller business districts not far from this area, as well as closer to the outskirts.

Regional shopping centers- a group of trade enterprises corresponding in their location, size and type of stores to the trade zone they serve. Large regional shopping streets usually contain several department stores, and the streets themselves are planned in such a way as to ensure unobstructed traffic and an overview of all shops.

District shopping centers may include dozens of retail stores serving up to 100 thousand people who live within a radius of 2-3 kilometers.

Microdistrict shopping centers serve 5-20 thousand inhabitants. These are centers for the sale of consumer goods.

Retailer Marketing Solutions. Let's take a look at the main marketing decisions a retailer needs to make.

Target market decision. The most important decision a retailer makes is choosing a target market. Some stores are perfectly targeted to their target market. For example, a women's fashion store may target a market of high-income women, mainly between the ages of 25 and 45, who live within a 30 to 40 minute drive radius. However, too many retailers are either unclear about their target markets or trying to cater to incompatible markets. As a result, they do not satisfy, as it should, any of them.

The retailer needs to do marketing research. He needs to get a clear idea of which groups of the population will be his main target customers in order to better select his product range, prices, store locations and incentives designed for these groups.

The retailer's product range must meet the expectations of the target market. Often the product mix becomes a key factor in the competition between similar retailers. The retailer will have to decide on the breadth of the product range (narrow or wide) and its depth (shallow or deep). So, in the catering sector, an institution can offer a narrow and small assortment (a small buffet counter), a narrow and deep assortment (a buffet with cold snacks), a wide and small assortment (a cafeteria) or a wide and deep assortment (a restaurant).

Another characteristic of the product range is the quality of the goods offered. The consumer is interested not only in the breadth of choice, but also in the quality of the product.

The retailer will also have to decide on the range of services it will offer to its customers. An important element of the retailer's arsenal is the store atmosphere. Each retail space has its own layout, which can both complicate and facilitate the movement of buyers. Each store makes a different impression. One is perceived as dirty, the other is charming, the third is luxurious, the fourth is gloomy. The store must embody an atmosphere that suits the tastes of the target market consumers. In a funeral home, silence is appropriate, and in a disco - bright colors and loud sounds.

Decision on prices. The prices requested by retailers are a key competitive factor and, at the same time, a reflection of the quality of the products on offer. For example, low mark-ups on some products turn them into “enticement” or “unprofitable leaders” products. This tactic assumes that, once in the store, consumers will also buy other goods with higher mark-ups.

Retailers use conventional media to reach consumers through advertising, personal selling, sales promotion and advocacy. Retailers advertise in newspapers, magazines, radio and television. It is complemented by direct mail advertising. Selling in person requires extensive training for sellers. Sales promotion can take the form of in-store shows, the use of credit cards, and prize draws.

Choosing a location for a store is one of the decisive competitive factors. Customers tend to choose the store that is nearby. When choosing a site, it is necessary to use the most advanced methods for assessing sites.

Wholesale

Wholesale Is any activity for the sale of goods or services to those who purchase them for the purpose of resale or professional use.

Wholesalers differ from retailers in a number of ways. Firstly, the wholesaler pays less attention to the sales promotion, atmosphere and location of his business, as he deals mainly with professional clients. Second, in terms of volume, wholesale transactions are larger than retail transactions, and a wholesaler's trading area is usually larger than that of a retailer. Third, the government approaches wholesalers and retailers from different angles with regard to legal regulations and taxes.

Why do we need wholesalers at all? After all, manufacturers could sell products directly to retailers or end consumers. The answer is that wholesalers make the trade process efficient. First, a small producer with limited financial resources cannot create and maintain trade enterprises. Secondly, even with sufficient capital, the manufacturer would rather prefer to direct funds for the development of production, rather than on the organization of trade. Third, wholesalers are likely to be more efficient because of the scale of their operations, more business contacts, and the specialized knowledge and skills of sellers. Fourth, retailers dealing with a wide range of products often prefer to order the entire range of products from one wholesaler, rather than in parts from different manufacturers.

Thus, both retailers and manufacturers have every reason to use the services of wholesalers. Wholesalers are used when they can more effectively perform the following functions:

1) sales and promotion. Wholesalers have a sales force to help the manufacturer reach many small customers at a relatively low cost;

2) procurement and formation of a product range. The wholesaler is able to select products and form the required product range, thus saving the client from significant hassle;

3) breakdown of large consignments of goods into small ones. Wholesalers provide savings to customers by purchasing goods in wagons and dividing them into small batches;

4) warehousing. Wholesalers store inventory, thereby helping to reduce the associated costs of the supplier and consumers;

5) transportation. The wholesaler provides faster delivery of goods, since he is closer to customers than the manufacturer;

6) financing. Wholesalers finance their customers by providing them with a commodity loan, and at the same time finance suppliers by issuing orders in advance and paying bills on time;

7) risk taking. By accepting ownership of the goods, incurring the costs of theft, damage, deterioration and obsolescence, wholesalers take on some of the risk;

8) providing information about the market. Wholesalers provide their suppliers and customers with information about competitors' activities, new products, price dynamics;

9) management services and consulting services. The wholesaler often helps retailers improve their activities, trains them, and takes part in organizing their work. He also assists in organizing accounting and inventory management systems.

The development of wholesale trade was facilitated by several significant trends in the economy: the growth of mass production at large enterprises, remote from the main users of finished products; an increase in production volumes for the future, and not for the fulfillment of specific orders already received; an increase in the number of levels of intermediate producers and users. The need to adapt products to the needs of users in terms of quantity, packaging and varieties also played a role.

Types of wholesale enterprises. Wholesalers are divided into the following groups.

1. Wholesalers-merchants. These are independent business enterprises that acquire ownership of all the goods with which they deal. In different fields of activity, they are called differently: wholesale companies, bases, distributors, trading houses. This is a large group of wholesalers, accounting for over half of wholesales. There are two types of wholesalers-merchants: with a full cycle of service and with a limited cycle of service.

Full service wholesalers provide services such as stock holding, vendor provision, credit, product delivery, and management assistance. These are either wholesalers or distributors.

Wholesale trade mainly with retailers, providing them with a full range of services. Wholesalers provide customers with a wide range of choices and have a deeper knowledge of the product.

Distributors of industrial goods sell them primarily to manufacturers rather than retailers. They offer services to shoppers such as stock holding, credit, and delivery of goods. They can deal with either a wide product range, or a mixed or specialized assortment.

Limited Service Wholesalers provide their suppliers and customers with much less services. There are several types of wholesale companies with a limited range of services:

a) a wholesaler trading for cash and without delivery of goods, deals with a limited range of hot goods that he sells to small retailers with immediate payment for the purchase without picking up the purchase. For example, a small retailer - a store owner periodically buys goods from such a wholesaler, pays right there, takes the goods to his store and unloads it himself;

b) wholesaler-traveling salesman not only sells, but also delivers the goods to customers. Such a trader deals with a limited range of short-term storage products, which he sells for cash, making detours to supermarkets, small shops, hospitals, restaurants and cafes;

c) wholesaler-organizer works in industries that are characterized by bulk transportation of goods, such as coal, timber, heavy equipment. Such a wholesaler does not hold inventory and does not directly deal with the goods. Having received the order, he finds a manufacturer who ships the goods to the buyer on certain terms of delivery and at a certain time. From the moment the order is accepted until the completion of the delivery, the organizer wholesaler assumes ownership of the goods and all associated risk;

d) wholesaler-exporter serves retail stores. The wholesaler-exporter sends goods to the store, and his representative equips the display in the trading floor. The wholesaler-exporter himself sets the price of goods, arranges expositions and keeps records of inventories. Wholesalers-exporters trade on a consignment basis - they retain ownership of the goods, and retailers are billed only for what is sold out. Under Russian conditions, trade on consignment terms has not yet become widespread;

e) wholesaler-shipper distributes catalogs of jewelry, cosmetics and other small goods to retail, industrial and other clients. The main customers of such a wholesaler are organizations located in nearby areas. Completed orders are sent to customers by mail or delivered by road.

2. Brokers and agents. Agents and brokers differ from wholesalers-merchants in two ways: they do not take ownership of the goods and perform only a limited number of functions. Their main function is to facilitate buying and selling. For their services, they receive a commission in the amount of up to 5-10% of the sale price of the goods. Like wholesale merchants, they usually specialize in either the type of product they offer or the type of customer they serve.

The main function of a broker is to bring buyers and sellers together and help them come to an agreement. The broker is paid by the one who attracted him. The most common examples are food brokers, real estate brokers, insurance brokers, and securities brokers.

Authorized Distribution Agents conclude contracts with manufacturers, obtaining the rights to sell all products manufactured by one manufacturer or another. Such a manufacturer does not take over the sales function. The authorized sales agent serves as the sales department of the manufacturer and has a significant influence on prices, terms and conditions of sale. His activities are usually not limited to any territorial boundaries. Authorized salespeople are found in commercial areas such as textiles, industrial equipment, coal, coke, chemicals and metals. In Russian conditions, such organizations have become notorious for collusion with the heads of manufacturing enterprises.

Purchasing agents usually form long-term relationships with their customers and purchase the necessary goods for them, often checking their quality, organizing storage and subsequent delivery to their destination. A variety of purchasing agents are local buyers in the main clothing markets looking for an assortment to be sold by small retailers in smaller towns.

Wholesalers-commissioners Are agent firms that take physical possession of goods and independently conclude transactions for their sale. They generally do not work on the basis of long-term agreements. Their services are most often used by farmers and agricultural enterprises that do not want to independently engage in marketing and are not members of cooperatives when selling their products. The wholesaler-commissioner delivers the goods to a specific market, sells the entire batch at the most favorable price, deducts his commissions and costs from the proceeds and transfers the remaining amount to the manufacturer.

3. Wholesale offices and offices of manufacturers. The third major type of wholesale trade consists of transactions carried out by sellers and buyers independently, without the involvement of independent wholesalers. There are two types of businesses involved in this activity.

Manufacturers often acquire own sales offices and offices, to keep inventory management, sales and promotion activities under control. Many large retailers maintain their own purchasing offices in major market centers. The buying office plays roughly the same role as brokers or agents, but is a structural unit of the buying organization.

A number of sectors of the economy have their own specialized wholesale organizations. Wholesalers - buyers of agricultural products collect them in large batches for shipment to food industry enterprises, bakeries, bakeries and buyers on behalf of government agencies. Wholesale tank farms sell and deliver petroleum products to gas stations, other retailers and businesses.

Wholesaler marketing solutions. Wholesalers must make a number of marketing decisions.

Target market decision. Wholesalers need to define their target market, not try to serve everyone at once. A wholesaler can select a target customer group based on the following criteria: group size (for example, only large retailers), its type (for example, only grocery stores), severity of interest in the service (for example, customers in need of credit), etc. the target group, the wholesaler can identify the most profitable customers for themselves, develop attractive offers for them and establish closer relationships with them. It can offer such clients an automated reordering system, organize management training courses and consulting services, and even sponsor a volunteer network. At the same time, the wholesaler can discourage less profitable customers by setting higher minimum order volumes or price premiums for small orders.

Decision on a product range and a range of services. The "product" of a wholesaler is the assortment offered by him. Wholesalers are under intense pressure to offer a complete range and maintain sufficient stocks for immediate delivery. But this could have a negative effect on profits. Wholesalers think about how many assortment groups of goods to deal with, and select only the most profitable product groups for themselves.

At the same time, wholesalers decide which services will help them achieve the closest relationship with their customers, and which services should be abandoned or paid for. The main task is to form a clearly defined range of services that are most valuable from the point of view of clients.

Decision on prices. To cover their costs, the wholesaler usually makes a certain markup, say 20%, on the original cost of the goods. Costs can be as high as 17% of gross margin, making the wholesaler's net profit as low as 3%. In a competitive environment, the net profit of the wholesale trade may not even reach 2%. Therefore, wholesalers are beginning to experiment with new approaches to pricing problems. For example, they can reduce the amount of net profit on some products in order to win more of the necessary customers. They can ask the supplier to set a low discount price if this can increase the volume of sales.

Decision on incentive methods. Most wholesalers don't give much thought to incentives. It is mostly random. The technique of personal selling is not well developed, as wholesalers still view selling as one-to-one salesperson-to-customer negotiation, rather than a collective effort to secure sales to major customers, to strengthen relationships with those customers, and to meet their service needs. Wholesalers need to adopt some of the non-personal incentive techniques used by retailers.

Decision on the location of the enterprise. Wholesalers tend to locate their businesses in low-rent, low-tax areas and spend little on landscaping and furnishing. Outdated methods of handling and passing orders are often used. To combat rising costs, cutting-edge wholesalers are developing new methods and techniques. One of these developments was the creation of computer-controlled automated warehouses.

Wholesale trade in Russia has a number of features that seriously distinguish it from retail trade or production.

Firstly, the Russian wholesale enterprise performs a wider range of marketing functions, in comparison with other market participants, as an intermediary providing information about consumer preferences and the state of the market not only to itself, but also to its suppliers and customers.

Secondly, in Russia, in the sphere of wholesale trade, the attitude towards marketing as a predominantly trade and marketing or even advertising activity, which leaves strategic issues beyond the scope of attention, still prevails, which cannot but affect its results.

Wholesalers are engaged in distributing the aggregate of goods produced, bringing them to the retail network, which then sells them to direct consumers.

The number of links in the distribution chain differs depending on the product being distributed.

The main types of wholesale trade organizations are discussed in paragraph 1.1.

The marketing function is most pronounced among independent wholesalers, who acquire their own goods and trade at their own discretion, while exchanges and wholesale markets have practically no marketing function. For dealers and regional distributors of large manufacturers, marketing activities are centralized in the main company, the manufacturer, and distributors are only conductors of the marketing strategy of the central office.

For wholesale companies that acquire ownership of goods for the purpose of further resale, the basis for assessing profitability is the trade margin, the size of which reflects the share of profit in the price of the goods.

Such enterprises are completely free to make decisions regarding the choice of products, their suppliers and buyers, therefore, in order to function effectively in the market, they must have their own marketing policy, study the competitive environment and consumers, have their own market positioning strategy, their own methods of sales promotion.

Thus, the marketing environment in the field of wholesale trade undoubtedly exists, and it has a number of features that distinguish it from other industries.

The first feature is that a special subject appears on the wholesale market - a wholesale consumer, which differs significantly from the end consumer: he actually acts as an intermediary client promoting the product to the end consumer, and unlike the end consumer, he purchases the product. not in order to use it for its intended purpose, but for further resale for profit.

Usually, wholesale consumers differ from other market participants in a lesser degree of independence, since they are guided by both the consumer market and suppliers, they tend to specialize in certain product groups, they are more interested in the economic characteristics of goods (for example, profitability), rather than quality characteristics. , wholesale consumers bear the costs associated with wholesale consumption and the organization of wholesale trade (warehousing, transportation, administrative costs).

A significant part of the subjects of the wholesale market (especially small and medium-sized wholesalers) act in the market in two roles at once, being both sellers and wholesale consumers. On the one hand, they sell goods to a retail network, on the other, they carry out wholesale purchases themselves, so their strategy is usually divided into two sets of measures - sales organization and procurement optimization.

The second feature of the activities of wholesalers is that a wholesaler deals with two levels of demand: demand from wholesale consumers (his direct customers) and demand from end consumers, which often causes certain contradictions - the demand of end consumers is associated, both with price, and with the quality characteristics of goods, and the demand of wholesalers is mainly associated with the margins of products.

The demand of end consumers is primary and cannot be ignored, but the perception of it by wholesale buyers may differ significantly not only from the opinion of the wholesaler, but also from reality, therefore, focusing on primary demand entails responsibility and a certain degree of risk that goods will not in demand from wholesale consumers.

Therefore, the main task of a wholesaler in focusing on the demand of the end consumer is training, informing wholesale consumers about the need to sell certain goods, as well as assistance in the development and use of marketing tools for their promotion.

A wholesaler and a wholesale consumer often compete with each other for a market for further sales, and, therefore, the seller is forced to immediately determine whether his strategy is to organize work through other wholesalers, or, if possible, he is ready to work with any buyers, up to sale. retail

Developing product priorities and analyzing different products, a wholesaler sometimes finds himself in a situation where the performance indicators for the same product for him and his wholesale consumer turn out to be fundamentally different.

The third feature of the activities of wholesalers is that wholesale firms provide marketing information not only for themselves, but also for manufacturers and wholesale consumers, including retailers, through the wholesale trade, the consumer, his requests and needs are influenced by the manufacturer, which determines the volume of production and the assortment of manufactured goods.

Manufacturers have more limited opportunities to study demand and influence it than wholesalers located closer to the buyer. The manufacturer cannot track the dynamics of sales in detail and in a timely manner and promptly respond to changes in the market situation (first of all, the sales structure - for which product groups the growth is slowing down, for which there is insufficient satisfaction of demand, etc.).

At the same time, wholesale consumers do not always have a complete understanding of the market situation and cannot adequately take into account all developing processes in their own strategic marketing. A wholesale consumer is not always able to carry out all the necessary marketing actions, a significant part of which is generally possible only at a level not lower than a large wholesaler.

Thus, under normal conditions, a large wholesaler and its wholesale consumers are not competitors, and by rationally distributing the volume of work among themselves, they contribute to an increase in sales and an increase in inventory turnover.

These features of the wholesale trade have a multifaceted impact on the marketing strategy.

Wholesalers must make a number of marketing decisions, the main ones of which relate to the choice of the target market, the formation of a product range and a range of services, pricing, incentives and the choice of the location of the enterprise.

Target market decision. Like retailers, wholesalers need to define their target market rather than trying to serve everyone at once. A wholesaler can select a target group of customers based on their size, type, degree of interest in the service. Within the target group, the wholesaler can identify the most profitable customers for himself, develop attractive offers for them and establish closer relationships with them. It can offer such clients an automated reordering system, organize management training courses and advisory services, and even sponsor a volunteer network. At the same time, the wholesaler can opt out of less profitable customers by setting higher minimum order volumes or price premiums for small orders.

Decision on a product range and a range of services. A wholesaler's product is the assortment he offers. Wholesalers are under intense pressure to offer a complete range and maintain sufficient stocks for immediate delivery. But this could have a negative effect on profits. Therefore, wholesalers think about how many assortment groups of goods to deal with, and select only the most profitable product groups for themselves.

Decision on prices. To cover their costs, wholesalers usually make a certain mark-up on the original cost of the product. Wholesalers are beginning to experiment with new approaches to pricing problems. They can cut the bottom line on certain items in order to win more of the customers they want. They can approach a supplier with a proposal for a low preferential price if they are able to thereby increase the total sales of that supplier's goods.

Decision on incentive methods. Most wholesalers don't give much thought to incentives. Their use of commercial advertising, sales promotion, propaganda, and personal selling techniques is largely incidental. The personal selling technique lags especially behind retailers, as wholesalers still view selling as a one-to-one salesman-to-customer negotiation rather than a collective effort to secure sales to key customers, strengthen relationships with those customers, and validate their service needs.

Decision on the location of the enterprise. Wholesalers typically locate their businesses in low-rent, low-tax areas and spend little on landscaping and furnishing. To combat the growing costs, they are developing new methods and techniques of activity.

Introduction

1. Theoretical aspects of wholesale marketing

1.1 Classification of wholesale trade

1.2 Forms of wholesale

1.3 Marketing solutions in wholesale trade

2. Analysis of wholesale trade on the example of ALC "Arlon"

2.1 Brief description of the enterprise

2.2 Marketing activities of ALC "Arlon"

2.3 Development of measures to improve the efficiency of marketing activities of ALC "Arlon"

Conclusion

List of sources used

INTRODUCTION

Wholesale trade provides services to manufacturers of goods and retailers. As a result of its activity, the product approaches the consumer, but does not yet fall into the sphere of personal consumption.

The most important task of the wholesale trade is to systematically regulate the supply of goods in accordance with demand. The objective opportunity to successfully solve this problem is due to the intermediate position of wholesale trade: a significant part of commodity resources is concentrated in it, which allows not to be limited to passive operations, but to actively influence the sphere of production, retail trade and, through it, the sphere of consumption.

The relevance of the topic of the course work lies in the fact that wholesale, like no other link associated with the sale of goods, is able to actively regulate regional and sectoral markets through the accumulation and movement of goods. This direction of work should take a decisive place in all its activities. Wholesale enterprises are called upon to improve the links in the distribution of goods, to develop centralized delivery and circular delivery of goods. Currently, along with the positive in the activities of wholesale enterprises, there are significant shortcomings. Often, the terms of delivery of goods are not respected, contractual obligations in terms of the volume, range and quality of the supplied goods are violated.

The effectiveness of the functioning of the entire national economic complex, the balance of the internal market, and the satisfaction of the growing needs of people largely depend on the work of the wholesale trade. In the new economic conditions, the sphere of wholesale trade will be significantly expanded. The strengthening of the role of commodity-money relations is associated not only with the development of wholesale trade in consumer goods, but also with the transition to wholesale trade in the means of production. These two forms are becoming the most important channels for the planned movement of material, technical and commodity resources.

The aim of the work is to study, summarize the experience of analyzing wholesale trade for enterprises and develop recommendations for ensuring a higher level of effectiveness of this type of marketing using the example of ALC "Arlon".

To achieve the formulated goal, the following tasks were solved in the work:

¨ generalization of theoretical and methodological aspects of wholesale marketing;

¨ studying the marketing activities of ALC "Arlon";

¨ analysis of wholesale marketing at Arlon ALC and development of recommendations to improve its efficiency.

1. THEORETICAL ASPECTS OF WHOLESALE MARKETING

From the position of a manufacturing enterprise, wholesale is an important link in distribution, which can and does solve its marketing problems.

From a marketing standpoint, the role of wholesale trade is to maximize the satisfaction of the needs of retailers by supplying them with the necessary goods in certain volumes and on time. Usually located in large settlements (cities), wholesale companies are also well aware of the needs of end customers. Therefore, they, independently or with the help of the manufacturer of the goods, are able to organize powerful marketing support for the retail trade.

As modern experience shows, wholesale companies in most cases perform sales functions better than a manufacturer, since they have established links with retail trade, as well as a good warehouse and transport base. Today, wholesale companies provide their customers not only with goods, but also with a wide range of related services: advertising at the point of sale, organization of sales promotion events, delivery of goods, pre-sale preparation, including packaging and packaging of goods under the brand name of a retailer or retail network. In the market of technically complex goods, wholesale companies organize, with the support of manufacturers, service centers.

Solving the problem of meeting the interests of manufacturers, on the one hand, retailers and end customers, on the other hand, has led to a variety of methods and forms of wholesale.

by assortment breadth

· Wide assortment (1-100 thousand items);

Limited assortment (< 1000 наименований);

Narrow assortment (< 200 наименований);

· Specialized assortment;

by delivery method

· Delivery by own transport;

· Sale from a warehouse (self-pickup);

By the degree of cooperation

· Horizontal cooperation for joint purchases and the organization of wholesale markets;

· Vertical cooperation for the purpose of sales and competition with retail trade for the end-user market;

in relation to the distribution system

· Exclusive distribution system: the manufacturer grants a trade license under the terms of franchising;

· Selective sales system: distribution and dealer agreements between the manufacturer and the wholesale companies chosen by him;

· Intensive sales system: work simultaneously with all intermediaries;

by turnover

· Large wholesalers;

· Medium-sized wholesalers;

· Small wholesalers;

from the point of view of organizing wholesale trade, there are three general categories:

· Wholesale trade of manufacturers;

· Wholesale trade of intermediary enterprises;

· Wholesale trade carried out by agents and brokers.

Wholesale trade is carried out by manufacturers with the help of their own sales bodies, for which a subsidiary wholesale company is created. However, the activities of such a company will be justified if the volume and range of products are sufficient. Otherwise, it is advisable to transfer the functions of wholesale to independent companies.

Independent wholesalers are organized according to the above classification depending on the requirements of the retailer and their own capabilities.

F. Kotler gives a detailed classification of the types of wholesale intermediaries.

The choice of the form of wholesale trade depends on the specific product, its position in the market (in demand; demand is not great, the degree of market saturation), on the specific transaction of the wholesale company with the seller of the product.

There are two main forms of wholesale trade:

transit;

warehouse.

In the transit form, goods are delivered from the manufacturer to a retail network or another wholesale company (smaller or located in another city), bypassing the warehouse of an intermediary wholesaler. This form has the advantage that turnover is accelerated, logistics costs are reduced, and the safety of goods is increased.

Transit delivery is used if intermediate preparation of goods for quality, packaging, bulkhead, etc. is not required. In this case, the intermediary wholesaler does not have the opportunity to form an assortment, except for what was shipped by the manufacturer.

There are two types of settlements for transit deliveries with manufacturers:

with payment for the transit consignment of goods;

b) without investing your own funds by receiving intermediary interest (commission).

In the second case, the wholesale company performs organizational functions and is not the owner of the goods.

In the warehouse form, a batch of goods from the manufacturer goes to the warehouse of the wholesale company, and then is distributed through different distribution channels to retail. Despite the increased logistics costs, in this case the trade needs for pre-sale preparation are better satisfied.

The rhythm of supplying stores is also improving, including in small batches, which is convenient for them. The possibility of forming the product range required for each store opens up.

The most common types of wholesale from a warehouse are:

a) personal selection of goods in the warehouse;

b) by written application (for example, sending a fax) or oral application by phone from the side of the store;

c) through field sales representatives (agents, sales managers);

d) using active calls from the control room;

e) trade at wholesale exhibitions and fairs.

The choice of the type of trade for a wholesaler is determined taking into account the desire and size (capacity) of the retailer.

Wholesale trade with personal selection is advisable when a retailer wants to quickly make a purchase (stocks are running out), expects to form an assortment on the spot, select new products, and receive discounts for self-pickup.

Personal selection is often used when purchasing fabrics, garments and knitwear, vintage wines, fur goods, etc.

For the demonstration of some goods, new products, the wholesale enterprise equips a demonstration or showroom.

With a personal selection, marketers of a wholesale company can conduct a survey of visitors, test products, take into account comments from both the retailer and buyers.

For many standard products, personal selection is organized using self-service. Small-scale mechanization means are used to move the selected goods: freight carts, roller conveyors, stackers, etc.

Wholesale trade by written request or by phone is carried out on the basis of a pre-signed contract between the buyer and the seller. The terms of payment for each order are also discussed there. Delivery of goods to the store can be carried out by the transport of the wholesaler or store. In the first case, the time of the store employee is saved, who does not need to go to the wholesaler for the goods, but the delivery time of the ordered goods to the store may increase.

Wholesale trade with the help of traveling sales agents and managers has become widespread as the most active form of marketing.

For this, the wholesale company organizes an agent network to search for buyers - legal entities (smaller wholesalers and shops). Traveling agents keep in touch with their customers, monitor the availability of goods in the sales area of the store, control the timeliness of payments for goods, etc.

For better coordination of sales agents, the latter can be assigned to a certain territory, to a group of customers, or sell only certain goods.

Wholesale trade using active (outgoing) calls from the office or sales department. For this, a dispatching office is organized, where specially trained sellers work. The dispatchers-sellers transfer the obtained information about potential buyers to the sales managers. The dispatch service can also take orders from old customers, carry out telephone marketing surveys, and keep sales statistics.

Wholesale trade at exhibitions and fairs allows you to conclude supply contracts during a visit to the exhibition by the buyer's representatives or to conduct preliminary negotiations. Exhibitions and fairs attract a large number of professional market figures (manufacturers, intermediaries, consumers), so here you can conduct a large amount of marketing research, get the latest information about new products. The exhibition must be attended by authorized representatives of the sales service responsible for the effectiveness of work at it.

The position of a wholesale company or a manufacturing enterprise engaged in wholesale trade significantly depends on the chosen marketing strategy, marketing policy and the nature of marketing decisions.

The tasks (functions) of wholesale trade marketing are presented in table 1.1.

Table 1.1

Marketing tasks in the wholesale system

Marketing tasks	Content
Development of marketing strategies	retention and increase of market share; design of sales channels; developing competitive behavior.
Marketing research	research of the professional sales market: competitors, small wholesale and retail networks; consumer research; market research of suppliers.
Sales market segmentation	segmentation of professional intermediary buyers; segmentation of consumers; selection of target segments.
Procurement marketing	determining the relationship between the nature of commodity demand and procurement requirements; marketing assessment of suppliers; development of procurement policy.
Marketing logistics	determination of customer requirements for the logistics structure of the wholesaler's sales system; search for competitive advantages in the field of sales logistics.
Sales marketing solutions	wholesale company pricing policy; product and assortment policy; sales policy; service policy; communication policy.
Organization of merchandising	organization of merchandising at the initiative of the manufacturer; organization of merchandising at the initiative of the wholesale company.
Marketing audit of the sales system	organization of work with customer claims; development of a marketing-sales audit program.

Marketing strategies in the field of sales activities of an enterprise are developed in the event of sales expansion in the old market, entry into new markets, when designing new sales channels, for example, when the old sales system has ceased to be effective.

In sales activities, an enterprise inevitably collides with competing firms, and sometimes specifically provides for competition between its own sales channels (horizontal or vertical types).

In relation to external competitors, a competitive strategy or a cooperation strategy is developed. In the case of choosing a rivalry strategy, the company determines the type of competition (price, non-price) and predicts the behavior of competitors.

The scale of competitive rivalry can spread to the world market, the market of a particular country, within one city, in one or several segments. Finally, there may be a struggle for ownership of a particular niche.

The implementation of marketing strategies in sales activities requires a long time, significant financial costs, since, as a rule, investment in sales is required.

Wholesaler marketing research covers the three most important areas:

research of professional subjects of the sales market: competitors, retail chains, other buyers of goods, for example, a restaurant catering system, cafes, small wholesalers working in wholesale and retail markets, etc .;

research of consumers - the population in order to obtain information from them about goods in demand and about the level of dissatisfaction with different brands;

researching the supplier market to solve their own procurement problems.

Other studies may be conducted based on the strategic goals of the companies.

The organization of marketing research depends on the qualifications and availability of marketers. If they are not available, third-party researchers may be involved or a ready-made report may be purchased, drawn up by a marketing firm based on previous research.

At the initiative of the supplier-manufacturer, it is possible to conduct various experimental studies to assess the consumer qualities of the product.

Segmentation of the sales market is a mandatory function of the marketing of a wholesale enterprise. For example, to select target segments of professional buyers and to know the purchasing preferences of different segments of the population and their reactions to the supplied product.

The professional sales market is segmented according to such criteria as: the volume of purchases, the breadth of the assortment, business reputation, solvency, the current pricing policy, etc.

If the consumer is the population, then various systems of indicators are used, choosing from them those that most characterize the consumer segment (social, demographic, economic, behavioral and other indicators).

Procurement marketing serves to gain competitive advantages already at the stage of working with suppliers by purchasing goods that can meet the needs of end customers.

In this case, the following tasks are solved:

purchase goods that are in demand from the consumer;

the procurement process should provide economic benefits for the wholesaler (due to obtaining discounts, deferred payment);

in the case of a substandard product, the wholesaler should be able to replace it.

The manufacturer makes purchases of raw materials, parts of component parts, also taking into account the required quality of the goods produced. The procurement process consists of a number of sequential steps:

a) determining the needs for a specific product, a specific trade mark with the establishment of its quantity;

b) determining the needs for the range, which is desirable to buy from one supplier;

c) defining the criteria that make up the initial basis when evaluating suppliers and negotiating with them (economic, marketing, technical, logistic requirements);

d) search and analysis of suppliers by methods of marketing research of the market;

e) selection of suppliers and organization of negotiations with them;

f) placing trial orders;

g) evaluation of results;

h) conclusion of long-term contractual agreements.

You can formulate the basic requirements for suppliers:

Popularity (brand awareness;

· Reliability;

· availability;

· Interest in teamwork;

· Understanding the role of marketing in promoting their products;

· Minimum delivery time;

· Take on a share of the risk, for example, associated with transportation.

When selecting suppliers, the wholesale company decides whether to choose one supplier (the principle of concentration of orders) or select several suppliers (the principle of dispersing orders).

The advantage of concentrating orders with one supplier allows you to get big discounts due to the larger order size. This is facilitated by close cooperation, including the implementation of joint projects for the production of new goods. A wholesale company can provide information on new trends in demand, new products entering the market from other manufacturers.

However, working with one supplier increases the risk of the wholesaler and limits his ability to quickly adapt to the needs of the retailer.

To reduce this kind of risk, the wholesale company works simultaneously with several suppliers. If suppliers are interested in working with a wholesaler, then this can be used to obtain additional benefits by seeking concessions from them.

Marketing and logistics of a wholesale company consists in the development of such a transport and warehouse scheme that would take into account the requirements of procurement marketing and sales marketing. Like other structures of an enterprise focused on a marketing approach in their work, logistics services must take into account the specifics of the behavior and requirements of retailers that they impose on their wholesale suppliers. These are, first of all, the size of the consignment and the speed of delivery.

Often such requirements lead to the fact that the wholesale company is forced to locate trade warehouses closest to the stores. On the other hand, the wholesaler's own purchases of large quantities of goods from manufacturers forces him to solve the following problem: to have a central distribution warehouse or, bypassing it, to deliver goods to regional warehouses.

Marketing solutions in the sales system aim to support the implementation of the planned volume of goods in the local and regional markets.

Marketing information that feeds sales helps reduce the risk of sales activities.

Sales marketing solutions cover the entire marketing mix.

Product assortment decision

When making decisions on the assortment, it is necessary to take into account the degree of proximity between goods of different product groups, the capabilities of the enterprise (financial, personnel, warehouse, etc.), the requirements of buyers, the presence of competitors.

From a financial point of view, the assortment is formed taking into account the turnover of goods, the size of the turnover and the profit received.

The expansion of the assortment is made for several reasons, including:

for some products of the main assortment, it is necessary to have complementary products (complementary products);

the activity of a wholesale company with this assortment is unprofitable (low turnover);

other marketing tasks are being solved: new products are being promoted, the company is switching to larger retail segments, etc.

Decision on prices.

In the overwhelming majority of cases, when a store concludes a deal with a wholesale company, the main factor is the price, quality of the goods and the terms of payment.

Therefore, the wholesale price should be profitable for the store, taking into account the nature of the demand for this product and the price proposals of competitors.

Decision on distribution channels.

Decisions on methods and distribution channels are made in the same way as the manufacturer.

A big advantage of the sales structure of a wholesale company is the ability to deliver goods to the retail network in small quantities in a short time. In addition, sales should be aimed at finding new customers and developing new markets.

Experience: In Minsk, small firms - carriers or private individuals - deliver goods to many shops of the city in their cars.

Decision on the location of a storage location for stocks

The wholesale company decides on the organization of a warehouse system or one centralized warehouse, and possibly a combination of both.

The starting points are the relationship between the costs of supporting the production of warehouses and improving the customer service of the wholesaler.

Below is an example of the placement of warehouses for a wholesale company.

Rice. 1.1 Organization of warehouses of a wholesale company

wholesale trade marketing product distribution

2. ANALYSIS OF WHOLESALE TRADE ON THE EXAMPLE OF ALC "ARLON"

2.1 Brief description of the enterprise

ALC "Arlon" has been operating in the food market of the Republic of Belarus for almost 55 years. For more than half a century, the base has gone through different stages of its development.

Until February 17, 2003, ALC "Arlon" was a state-owned enterprise. As a result of denationalization and privatization, the base was transformed into ALC "Arlon". Today the state is the holder of 88.5% of the shares.

The main activities of ALC "Arlon" are the organization of wholesale and retail trade.

Main activities:

Wholesale trade through agents;

Wholesale of fruits and vegetables;

Wholesale trade in meat and meat products;

Wholesale of dairy products;

Wholesale trade in tobacco products;

Wholesale of coffee, tea and spices;

Wholesale of other food products;

Retail sale in non-specialized stores;

Organization of cargo transportation;

Creation of a customs warehouse of type A;

Other activities.

2.2 Marketing activities of ALC "Arlon"

Marketing as a set of methods that have developed in world practice for studying markets, identifying ideas, new needs of buyers and their materialization in the form of new products, marketing as a tool for skillfully organizing a system for selling goods, conducting promotional events, etc., is of interest to economic science, and for business organizations of our country. The marketing program allows you to predict changes in needs and fluctuations in market conditions and, with varying degrees of probability, determine the required assortment of goods, production capabilities, the structure of the production network, promotional activities, the necessary changes in the structure of the enterprise as a whole. In addition, based on the principles of marketing, it is possible to form a market for the future products of the company, to organize in the minds of buyers a direct connection between the solution of their problems and the products of the company. That is why the management of marketing activities at ALC "Arlon" is of great importance.

At the enterprise, commercial work on the sale of goods (making marketing decisions) is carried out by the marketing management department, the sales department (trade department). The Marketing Management Department performs the following scope of work:

Organizes the introduction of progressive forms and methods of selling goods, expanding additional services provided to customers;

Examines the premises of existing stores, their layout and equipment from the point of view of the convenience of buyers;

Carries out control over the availability of books of reviews and suggestions, control and sanitary journals in stores;

Together with the commercial department, organizes control over the constant availability of sufficient consumer goods in the sale;

Draws up development plans and supervises the work of a small retail trade network;

Organizes outbound trade contests during city events.

The head of the sales department performs the following functions:

Prepares contracts and the necessary materials for the conclusion of contracts for the supply of goods with enterprises of various forms of ownership, monitors the fulfillment of contractual obligations;

Carries out control over the quality and range of incoming goods; in the course of their implementation, takes operational measures to ensure the constant availability of sufficient assortment of goods in the stores of the enterprise;

Provides rational supply of goods and the necessary conditions for fulfilling the turnover plan and improving the quality of customer service;

Considers letters, applications, complaints from buyers on issues related to their competence and makes proposals for their resolution.

The accounting service monitors the income and expenses of the enterprise, helping the commercial services assess how successfully they are achieving their goals.

Other departments of the company are also actively involved in the implementation of the marketing program. For a commercial enterprise, this is, first of all, a sales team. Sales staff are salespeople. The selection and placement of personnel, as already mentioned, in ALC "Arlon" is carried out on the basis of qualification requirements for all employees.

When purchasing various goods and services, consumers behave differently. The marketer must understand how they make decisions, through what stages the decision-making process goes.

For a wholesaler, customer research is the study of customers, the typical uses of the product being offered, the customer's specific motivations, the motivations for purchasing that kind of product, and much more.

In order to study customers, ALC "Arlon" periodically conducts customer surveys; letters, statements, customer complaints are always carefully considered.

One of the main goals of studying the demand in the firm's stores is to identify buyers' suggestions for improving trade. Firstly, this allows you to avoid complaints and complaints about the organization of trade in stores, and secondly, most importantly, to increase the volume of goods turnover at the expense of goods required by buyers.

Special questionnaires are conducted once or twice a year for this purpose. As a result of such a survey, it is revealed how many buyers apply for this product, and how many do not. By comparing these data with the total number of store visitors, one can obtain information about the degree of satisfaction of customer demand and the correspondence of the assortment of goods available in the store to customer demand, and on this basis, determine the need and quantity of a particular product, and select one or another supplier.

In individual stores, the demand of the population is studied mainly in order to ensure an uninterrupted supply of high quality goods and in the assortment required by the population. This work is carried out mainly in the process of selling goods.

Data on the progress of the sale of goods, the demand for certain types of them are used to present to suppliers justified orders for the supply of food products, to intensify the struggle to improve the quality and improve the range of products.

Based on the study of demand, operational measures are taken to ensure the constant availability of a wide range of goods.

The activity of ALC "Arlon" in the food market has been carried out in recent years in the context of a sharp intensification of competition between trading enterprises of various forms of ownership, which led to a decrease in the volume of wholesale trade in the company as a whole.

To attract buyers, the company adheres to methods of price competition. Due to the presence of several outlets, ALC "Arlon" has the ability to purchase significant quantities of goods at a discount, which allows the prices of goods to be calculated based on the selling price of manufacturers or wholesalers, taking into account the established trade markups for socially important goods.

Wholesale prices for food products are formed in ALC "Arlon" in accordance with the Regulation on the procedure for the formation and application of prices and tariffs, approved by the Resolution of the Ministry of Economy of April 22, 1999 No. 43, with amendments and additions, with the exception of certain groups of goods for which fixed prices are set.

Wholesale prices for goods (products sold to the population) are formed by the retailer based on:

Manufacturer's selling price or importer's price;

Paid wholesale mark-up (when purchasing them on the territory of the republic from wholesale suppliers).

For certain groups of goods, the Ministry of Economy has the right to make a different decision on the application of trade markups.

The procedure for including value added tax in the wholesale prices of goods is determined by the Clarification on some issues of pricing in connection with the introduction of the credit method of calculating value added tax, approved by the Ministry of Economy on January 11, 2003, the Ministry of Finance on January 11, 2003 and the State Tax Committee January 12, 2003 (per. No. 8/2603 dated January 19, 2000). According to the specified regulatory enactments, the price is based on the selling price of the manufacturer or importer (for agricultural products - the purchase price), paid wholesale and trade mark-ups not exceeding the stipulated limit level, and the amount of value added tax at the established rate.

Marginal trade mark-ups have been set for socially important goods, including the mark-up of the wholesale link and the cost of using a bank loan. The indicated markups are charged as a percentage of the selling prices formed by a business entity that has purchased goods outside the republic.

The procedure for dividing the trade markup between wholesale and retail trade enterprises within the established limit is determined by agreement of the parties, and if no agreement is reached, the markup is divided equally. From the established practice of ALC "Arlon", the wholesale mark-up is, as a rule, 7-12%.

In general, a low price tactic is used in order to attract the maximum number of buyers and win a larger market share.

The main consumers of the company's products are the population. Alcoholic products, beer are distributed by the trade department and their delivery is made according to funds.

When choosing distribution channels, the company adheres to a policy of limiting the participation of intermediaries. Marketing intermediaries are firms that assist an enterprise in promoting, marketing and distributing its products to a clientele. These include:

Resellers are business firms that help a company find customers and sell their products directly to them;

Firms-specialists in the organization of commodity circulation - help the company to create stocks of its products (stocks) and promote them from the place of production to the destination;

Marketing service agencies - marketing research firms, advertising media organizations and marketing consulting firms - help a business to more accurately target and promote its products to markets that are right for them;

Financial institutions - banks, credit, insurance companies and other organizations that help the company finance transactions and insure itself against the risks associated with the purchase or sale of goods.

The need to resort to their services arises in cases where accumulation, sorting of batches, transformation of the production assortment into trade, preliminary preparation of goods for sale is required, when the places of production are significantly removed from the places of consumption and there is a seasonality of production or consumption.

If circumstances require the participation of intermediaries in the supply of goods, then it is important that their number is minimal.

In each case, the choice of a supplier and the path of goods movement is based on an in-depth analysis of specific conditions and efficiency calculations.

Products accepted in terms of quantity, quality, completeness must be moved to storage areas and placed in permanent storage areas. The Company has two wholesale warehouses and a logistics warehouse, where such types of goods as eggs, confectionery, groceries, soft and alcoholic beverages, fish and canned meat are stored for storage, which are then sent to the stores of the Company.

Currently, there is a wide variety of advertising media. This often makes it difficult to choose specific tools for promotional events.

Almost all the main means of advertising distribution are used in the activities of ALC "Arlon".

Widely used advertising in the press is represented by advertisements and publications of an overview and advertising nature in the newspapers Zarya, Vecherniy Brest, Brestsky Courier, which are very popular among the population of the city and the region. Advertisements are published most often on the eve of the holidays. Due to its efficiency, repeatability, wide coverage, advertising in the press is one of the most effective.

From advertisements in the press, you can indicate the range of goods sold in food enterprises, catering services (taking pre-orders, making banquet dishes on order, delivering meals to your home, organizing show programs).

Daily and weekly newspapers, in spite of their short life, make it possible to give advertising relevance, and also make it possible to place an advertisement on any convenient day. An important role is played by the size of the ads. They are determined by the need to repeat it, the amount of funds, the characteristics of the advertising appeal, the intended goals, etc. It should be borne in mind that a one-time publication of a large-format advertisement in a newspaper is ineffective. A series of smaller publications in the same edition is practically more effective and is often cheaper.

Print ads are the most widely used and most effective. In ALC "Arlon" print advertising (announcements, inserts, memos, menu design, waiters' invoices) does not require large expenses, is simple, and directly affects a person with its content and form.

Radio and TV advertising are, perhaps, the most massive means of distributing advertising in terms of coverage of consumers. The most common types of radio advertisements are radio commercials, radio advertisements, and radio advertisements. They are most effective when advertising goods and services designed for the general public. Radio advertisements are commonly used for information and reminders. Its preparation in most cases requires the participation of experienced professionals in the field who have to do a lot of work from developing a suitable script to translating it into audio recording.

In ALC "Arlon", radio advertising is most often used from radio advertising media with information about the operating hours of the enterprise, the extension of the operating hours on pre-holidays and holidays, about sales exhibitions, about the goods and services sold.

Television advertising has a number of specific features. First of all, television has ample opportunity to exert a targeted impact and evoke the desired response from the viewer audience. The combination of image, color, movement and sound achieves a high degree of attention-grabbing. In addition, television provides wide coverage as well as good geographic and demographic selectivity.

Outdoor advertising is an effective means of presenting consumer products. It is designed primarily for the perception of the general population.

Among the variety of types and varieties of outdoor advertising, ALC "Arlon" uses illuminated facade advertising, illuminated signs, signboards, shop windows, elements of indoor advertising (signs, information boards, price tags, etc.), overalls for service personnel. Window showcases decorate not only the enterprise, but also become an element of street decoration.

Exhibitions and fairs occupy a special place in the arsenal of means of advertising influence, as they present very wide opportunities for demonstrating advertised goods and establishing direct contacts with direct buyers and business partners. Exhibition events in combination with a set of other advertising media are especially effective. Sales exhibitions are one of the most effective types of advertising. They demonstrate all the products that the enterprise sells. However, they are carried out periodically, which reduces their effectiveness.

2.3 Development of measures to improve the marketing activities of ALC "Arlon"

In general, in order to improve the efficiency of marketing management of ALC "Arlon", it is possible to propose:

1) study the sales markets of goods, their segments, the choice of possible suppliers in accordance with the trade and technological process, since the key link in marketing management is the definition of the marketing strategy and the study of the market for the goods sold. The results of the study should reflect the real demand for food products, which should facilitate the adoption of informed decisions on the advisability of purchasing specific types of products and the volume of their sales. At the same time, attention should be paid to determining the suppliers of the required trade and technological equipment, its technical characteristics and cost, and terms of delivery. Responsibilities for the study of sales markets shall be assigned to the marketing research department.

2) a comprehensive analysis of all technical and economic processes for the sale of goods should cover the period from the initial calculation of the required investments to determining the effectiveness of their investment and rational use. Therefore, economic calculations should be associated with:

Justification of an innovative strategy to improve sales efficiency,

The amount of capital required for the development of trade,

Efficiency of capital investment in fixed and circulating assets, labor resources;

The main directions of distribution and use of profits.

These marketing management functions should be carried out by the marketing management department (trade organization), based on the data provided by the commodity nomenclature departments, sales departments, accounting and planning and economic departments.

3) on the basis of a study of the sales market and competitors, calculate the volume of wholesale turnover on an annual basis, at the same time determining the amount of investment, planning distribution costs, and forming a financial strategy. It is advisable to apply the methods of simulation modeling of sales management tasks and making a profit. This function should be performed directly by the marketing management department in order to more clearly define the strategic directions of the company's marketing activities.

Focusing on long-term success in its production and commercial activities, ALC "Arlon" should at regular intervals assess the effectiveness of its marketing activities. Such an assessment is intended to provide a marketing audit carried out within the framework of strategic control.

All retailers, without exception, like to have the recommended retail prices in the price lists, in addition to the selling price. In part, this speeds up the decision-making process and is consistent with their idea of support for the product from the brand owner and the correct positioning.

The next feature is the requirements of the networks for exhibition samples and their presentation. It all depends on the nature of the positioning of the network itself. If this is a multibrand such as a hypermarket, you are unlikely to be allowed to use POS materials, since usually multibrands sell a product, and not a specific brand.

As for regional chains, which clearly differ in the system of organization and formats of stores, they, on the contrary, will gladly accept all visual aids that will help to inform the consumer as fully as possible about the benefits of goods.

Products of elite categories, as a rule, command respect at all levels, these products are pleasant to sell, and almost always these products provide a good margin (from 50 to 100%) and retail chains are happy to organize small promotional "islands" and even organize and store-in-store design.

Determine the budget for the proposed activities (table 3.7).

According to the author, taking into account the current trends, the economic effect of the proposed measures to develop a program to improve the marketing mix is to increase the volume of sales. The economic effect of an increase in sales is achieved by reducing the share of conditionally fixed costs in the costs of the enterprise, and, accordingly, by increasing the amount of profit per ruble of manufactured products. According to the author, the increase in revenue due to the proposed activities in 2010 compared to the option without activities will be 3%.

Table 2.1

Events budget

Name of the event	Expenditures	Budget, thousand rubles
1	2	3
1. Sale of related products	Costs of organizing the purchase of goods	5000
2. Implementation of a flexible system of discounts at the enterprise	Development of the Regulation on discounts	200
3. Creation of an enterprise website	Website development by Urbis Internet studio (Brest)	1400
4. Sales of the company's products in the regional markets of the Republic of Belarus	Annual salary fund for an additional employee of the marketing department with deductions	13500
5. Purchase of own transport for delivery of goods to the consumer	Purchase of the MAZ-5432A3-322 tractor unit Purchase of the MAZ-975830-3021 semi-trailer Total for the event
Total	-	243200

Let's calculate the increase in gross profit due to the measures being developed in table 2.2.

Table 2.2

Calculation of gross profit from events

Indicator name	year 2009	2010 year
1	2	3
Revenue in current prices (excluding taxes and deductions from revenue), million rubles	25891	26668
Full cost price, mln. Rub.	24602	24919
including:
- variable costs	10579	10896
- fixed costs	14023	14023
Increase in production costs	-
Profit, million rubles	1289	1748
Product profitability,%	5,2	7,0
Profit growth due to an increase in sales compared to 2009, mln. Rub.	-	+459

Calculations show that the annual sales volume will increase in comparison with the option without implementation of measures by 777 million rubles. (or 3.0%) in 2010. At the same time, the cost of sales will increase by 317 million rubles due to a decrease in the share of conditionally fixed costs. Thus, the annual gross profit due to the activities will increase in comparison with the actual level of 2009 by 459 million rubles.

Conclusion: the program for improving the marketing complex of ALC "Arlon" proposed by the author is real and cost-effective. For each ruble invested in the activities (310.4 million rubles), the enterprise will receive 338.6 million rubles in 2010 and subsequent years. an increase in net profit or an average of 1.091 rubles of net profit per 1 ruble of expenses for carrying out these activities.

CONCLUSION

And since the activity of any intermediary increases the value of the goods, the task of the wholesale link in the sales system is to form a minimum wholesale markup (by rationalizing trade and logistics operations) or to deliver additional value to the goods for the buyer, who will perceive the set price as fair.

Based on the results of the calculations, it can be concluded that the implementation of the proposed measures to improve the efficiency of the marketing activities of ALC "Arlon" is cost-effective.

LIST OF USED SOURCES

1. Market Academy: Marketing / Per. with fr. M .: Economics, 2003 .-- 89 p.

2. Balabanov I.T. Foreign economic relations. - Moscow, UNITI, 1998 .-- 263 p.

3.T.S. Bronnikova, A.G. Chernyavsky. Marketing. Tutorial. M .: Unity, 2003 .-- 154 p.

4. Weisman A. Marketing strategy: 10 steps to success. Management strategy: 5 factors of success. M .: Interexpert, Economics, 1995.-426 p.

5. All about marketing: A collection of materials for business leaders, economic and commercial services. M .: Azimut-center, 1982 .-- 265 p.

6. Gavrilova T.V. International economics. Moscow, Delo, 2006 .-- 569 p.

7. Gerchikova I.N. Marketing: organization, technology. M. Higher School, 2005 .-- 236 p.

8. Golubkov E. Marketing: strategy, plans, structures. M .: Delo, 2006 .-- 509 p.

9. Golubkov E.P. Marketing research: theory, practice, methodology. M .: Finpress, 1998 .-- 405 p.

10. Dichtl E., Hershgen H. Practical Marketing: Textbook / Per. with him. M .: Higher school, 2006 .-- 356 p.

11. Zharov A.I., Izosimova N.N. Marketing strategy and tactics, M .: "Finance and statistics", 2007. - 302 p.

12. Kotler F. Fundamentals of Marketing, Moscow: Rostinter, 1996. - 608 p.

13. Levkovich O.A. Accounting: Textbook. Benefit. 2nd ed., Revised / O.A. Levkovich, I.N. Burtsev; Under total. ed. O.A. Levkovich. - Minsk: Amalfeya, 2005 .-- 576 p.

14. Lenchevsky I.Yu., Zubova NI Organization and regulation of international commercial transactions. Moscow, UNITI, 1998 .-- 123 p.

15. Marketing / Ed. I.K. Belyaevsky / M .: MESI, 1997 .-- 506 p.

16. Prokushev E.F. Foreign economic activity. Moscow, Delo, 1998 .-- 260 p.

17. Rubin Yu. Ordinary marketing, S.P. AOZT Korund, AO "Litera plus", 1989. - 295 p.

18. Savitskaya G.V. Analysis of the economic activity of the enterprise .: Minsk: OOO Novoe znanie, 2001. - 200 p.

19. Modern marketing / Ed. Khrutskiy V.E. M .: Publishing house of the Republic, 1989 .-- 395 p.

20. Strovsky L.E. Foreign economic activity of the enterprise. Moscow, Delo, 1999 .-- 301 p.

21. Evans J. Marketing. S.P. JSC Litera plus, 1994 .-- 428 p.

9.4 Retail and wholesale

Retail - any activity of selling goods or services directly to end consumers for their personal non-commercial use.

Types of retail outlets . Self-service retailers provide buyers with the opportunity to independently select goods, they are the basis for organizing trade at low prices. Free selection retailers have vendors to turn to for assistance. The client completes the transaction by going up to the seller and paying for the purchase. The costs in this case are slightly higher than for self-service. Retail outlets with limited service provide the buyer with a higher level of assistance from the sales staff. In such stores, customers are provided with more information, they offer services in the form of selling on credit. Full Service Retailers- these are fashionable department stores, their sellers help the buyer in the process of searching, comparing and choosing a product. Wealthy consumers prefer these stores because of the well-trained staff, the wide range of specialty and fashion items, the variety of credit schemes, shopping delivery, and the like.

The offered product range can be used to classify retail trade establishments. Specialty Stores offer a variety of products of a narrow range. Examples include clothing stores, sporting goods stores, furniture stores, flower stores, and book stores. Department stores offer several assortment groups of goods - usually clothing, household items, household goods. Each assortment group is handled by a special department of the department store. Supermarkets- these are large self-service enterprises with low costs and margins, a large volume of sales. They are designed to fully meet the needs of the consumer in food, and sometimes washing, detergents and home care products. Packaging technology makes it possible to offer the consumer products in containers convenient for storage and packaging. The use of electronics and computers provides automation of accounting and control. Service retailers- these are hotels, banks and airlines; colleges, hospitals, cinemas and restaurants; repair services and establishments for the provision of personal services (hairdressing salons, beauty salons, etc.). The number of service retailers is growing faster than the number of merchandise retailers.

Prices... Trade enterprises can be classified based on price levels. Low prices are typical for the following stores. Discount stores they trade at low prices due to small markups with a large sales volume. The use of discounted prices, trade in low quality goods is not typical for a discount store. Such a store sells quality goods at low prices with a high inventory turnover. The turnover of inventories in it reaches up to 15 times a year, and not 5-7 times, as in department stores. Warehouse store is a limited-service merchant whose purpose is to sell a large volume of goods at low prices. Traditional furniture stores have long used the practice of selling straight from the warehouse. Stores - showrooms sell jewelry, computers, power tools, household appliances and other goods according to price lists and catalogs. The visitor in the demo department makes his choice and issues the order to the seller.

The nature of the retail space ... Although most goods and services are still sold in stores, the growth rate of out-of-store retailing is quite high. Some forms of out-of-store retailing can be listed. Retail trade with ordering goods by mail, by phone or via the Internet is a sales activity using mail and telephone lines, a global computer network to collect orders, facilitate the delivery of goods, and make settlements. At trade with a catalog order sellers usually send catalogs to a certain circle of customers or provide an opportunity to get them in their sales premises free of charge or at a low price. Direct marketing involves newspaper, radio or television advertisements describing a product that consumers can order by mail or telephone. This is how they sell books, household appliances, etc.

Across vending machines sell a wide variety of products: cigarettes, soft drinks, candy, newspapers, hot drinks. Vending machines provide 24-hour sales and self-service options. Discount ordering service assists discrete customer groups — usually workers and employees of large organizations such as government agencies — who procure at discounted prices from a selection of selected retailers. Peddling trade originates many centuries ago. Currently, a lot of enterprises and entrepreneurs are engaged in retail trade according to the principle "at every door".

Shop affiliation ... Retail outlets can be classified according to their affiliation. Most of the stores are independent private enterprises. There are also other forms of ownership. Corporate network are two or more trading establishments in common ownership or under common control. They sell goods of a similar range, have a common procurement and sales service. The success of corporate networks is based on cost advantages through increased sales and lower margins. The size of corporate networks allows purchasing large quantities of goods, receiving maximum discounts. They are able to create effective structures, hire qualified managers and apply special techniques for forecasting sales, inventory management, pricing and sales promotion, integrating the functions of wholesale and retail.

Variety of store concentration ... This is the final principle for classifying retail outlets. There are four main types of concentration: 1) central business district... Every major city has a central business district with department stores, specialty stores, banks and cinemas. Smaller business districts are located closer to the outskirts; 2) regional shopping centers- a group of trade enterprises corresponding in their location, size and type of stores to the trade zone they serve. Large shopping areas may have several department stores; 3) district shopping centers may include dozens of stores serving up to 100,000 people who live in the area; 4) shopping centers of microdistricts, serving 5-20 thousand inhabitants. These are centers for the sale of consumer goods.

Wholesale is any activity for the sale of goods or services to those who purchase them for the purpose of resale or professional use... Wholesalers are divided into the following groups: a) wholesalers-merchants; b) brokers and agents; c) wholesalers and manufacturers' offices.

Wholesalers functions. Wholesalers are used when they can more effectively perform the following functions: 1) sales and promotion- wholesalers help the manufacturer reach many small customers at a relatively low cost; 2) procurement and formation of a product range- the wholesaler is able to select products, form the product range necessary for the client; 3) breakdown of large consignments of goods into small ones- wholesalers provide savings by purchasing goods in wagons and dividing them into small batches; 4) warehousing- wholesalers store inventories, thereby helping to reduce the corresponding costs of the supplier and consumers; 5) transportation- wholesalers provide faster delivery of goods, as they are closer to customers than manufacturers; 6) financing- wholesalers finance their customers by providing them with a commodity loan; 7) risk taking- accepting ownership of the goods, incurring costs in connection with its theft, damage, deterioration and obsolescence, wholesalers take on part of the risk; eight) providing market information- wholesalers provide their suppliers and customers with information about competitors' activities, new products, price dynamics; nine) management and consulting services- a wholesaler often helps retailers by training their sellers, participating in the organization of work, helping to organize accounting, inventory management.

Wholesale merchants... These are independent business enterprises that acquire ownership of all the goods with which they deal. In different fields of activity, they are called differently: wholesale companies, bases, distributors, trading houses. This is a large group of wholesalers, accounting for more than half of the wholesale trade. There are two types of wholesalers-merchants - with a full and limited service cycle. Full service wholesalers provide services such as stock holding, vendor provision, credit, delivery and management assistance. These are either wholesalers or distributors. Wholesale trade mainly with retailers, providing them with a full range of services. Distributors of industrial goods sell them primarily to manufacturers rather than retailers. They offer services to shoppers such as stock holding, credit, and delivery of goods.

Limited Service Wholesalers provide their suppliers and customers with much less services. There are several types of wholesale companies with a limited range of services: a) wholesaler trading for cash and without delivery, - deals with a limited range of popular goods that he sells to small retailers with immediate payment for the purchase without taking away the purchased; b) wholesaler-traveling salesman - not only sells, but also delivers the goods to customers; v) wholesaler organizer - works in industries that are characterized by bulk transportation of goods (such as raw materials, heavy equipment), while he does not deal with the goods directly, but, having received an order, finds a manufacturer who ships the goods to the buyer; d) o exporter- Serves retail stores, sending their goods to the store, equipping displays on the trading floor, setting prices, keeping records of inventory and invoicing retailers for what is purchased; e) wholesaler-shipper - sends catalogs to customers (retail, industrial and all kinds of institutions), orders are sent by mail or delivered by road.

Brokers and agents ... They differ from wholesalers-merchants in two respects: they do not take ownership of the goods and perform limited functions. Their main function is to facilitate buying and selling. For their services, they receive a commission in the amount of up to 5-10% of the sale price of the goods. Like wholesalers-merchants, they specialize either in the type of product range they offer or in the type of customers they serve. The broker brings buyers and sellers together and helps them negotiate. The broker is paid by the one who engages him in mediation.

The agent represents the buyer or seller on a longer term basis. There are several types of agents. Manufacturers agents represent two or more manufacturers of complementary products. They enter into formal agreements with each manufacturer regarding prices, territorial boundaries of activity, procedure for passing orders, services for the delivery of goods and the size of commissions. Authorized Distribution Agents conclude contracts with manufacturers, obtaining the rights to sell products manufactured by this or that manufacturer. The authorized sales agent serves as the sales department of the manufacturer and has a significant influence on prices, terms and conditions of sale. Purchasing agents usually form long-term relationships with their customers and purchase the necessary goods for them, often receiving these goods, checking their quality, organizing storage and subsequent delivery to their destination. Wholesalers-commissioners are agent firms that take physical possession of goods and independently conclude transactions for their sale. They generally do not work on the basis of long-term agreements. The wholesaler-commissioner delivers the product to a specific market, sells the entire batch at the most favorable price, deducts his commissions and costs from the proceeds, and transfers the remaining amount to the manufacturer.

Wholesale branches and offices of manufacturers ... These enterprises carry out wholesale trade without the involvement of independent wholesalers. There are two types of enterprises engaged in such activities: 1) sales offices and manufacturers' offices - keep under stricter control over inventory management, sales and promotion activities. Large retailers often maintain their own purchasing offices in major market centers. The buying office plays roughly the same role as brokers or agents, but is a structural unit of the buying organization; 2) specialized wholesalers - a number of sectors of the economy have their own specialized wholesale organizations (for example, wholesale oil depots sell and deliver petroleum products to gas stations and business enterprises).

Wholesaler Marketing Solutions ... Wholesalers must make a number of marketing decisions.

Target Market Decision ... Wholesalers need to define their target market. A wholesaler can select a target group of customers based on size, type, interest in services and other criteria. Within the target group, the wholesaler can identify the most beneficial customers and establish closer relationships with them.

Decision on the product range and range of services ... The "product" of the wholesaler is the assortment offered by him. Wholesalers are under pressure from the market to offer a full range of products and maintain stocks for immediate delivery. But it comes at a cost. Wholesalers determine the number of assortment groups of goods, select only the most profitable product groups for themselves, decide which services help to achieve the closest relationships with customers.

Pricing decisionsshould be determined on the basis of marketing approaches, taking into account that in a competitive environment, the net profit of the wholesale trade may not even reach 2%.

Decision on incentive methods includes the choice of a combination of the main elements of the incentive complex. Many wholesalers don't give much thought to incentives yet, so the use of advertising, sales promotion, advocacy, and personal selling techniques is often sporadic.

Decision on the location of the enterprise ... Wholesalers usually locate their businesses in low-rent, low-tax areas, spend a minimum

funds for landscaping and equipment of premises. To combat rising costs, they develop new methods and techniques. One of these developments was the creation of computer-controlled automated warehouses.

Articles

WHOLESALE MARKETING

Introduction

The essence of wholesale

Wholesale intermediaries

Literature.

INTRODUCTION

The modern market economy is a flexible system for adjusting production to consumption based on marketing tools. Its mechanism is implemented through the functioning of certain economic institutions and, above all, an integral system of mediation, based on acts of sale and purchase of goods or services.

The domestic history of the development of trade shows that only in the early thirties, after the abandonment of private entrepreneurial activity in the national economy, national statistics socially fixed the categories - wholesale and retail trade, defining their conceptual content. In the previous period, there was virtually no clear economic sign of the division of trade into wholesale and retail.

Traditionally, it is believed that wholesale - it is the sale of relatively large lots, and the division and sale of reduced lots that differ from the standard in size or quantity is retail.

Unlike retail, wholesale trade has almost always been associated with the lot of goods, mediating the initial stage of their movement to the market. Any other sign, in particular, the movement of goods into personal or industrial consumption, the receipt of goods into the trade and distribution network for further resale, etc., did not actually exist. In Russia, the currently valid regulatory documents do not have a specific definition of the concept of "wholesale trade". At the same time, not a single normative document regulates the mandatory size of the minimum delivery lot, and the procedure for settlements has not been established either.

It was during this period, in connection with the abandonment of the practice of private entrepreneurial activity in the country, statistical innovations (for accounting purposes) determined the conceptual content of wholesale and retail trade. The sale of goods for further resale became known as wholesale trade, and the sale of goods for personal, individual consumption - retail trade.

1. ESSENCE OF WHOLESALE TRADE

World practice has identified the following types of wholesale trade:

Trade through a wholesale purchasing network, which includes exchanges, fairs, auctions, wholesale food markets. Carries out the purchase of crops, raw materials and other goods subject to storage, such as grain, cotton, wool, metals, scrap metal. It is necessary to constantly monitor changes in market conditions (stock exchanges, exhibitions, auctions) to reduce the risk associated with price fluctuations;

Trade through direct production links. It usually connects two successive stages of the manufacturing process; it is of particular importance in the trade in ferrous metals and steel;

Wholesale trade in raw materials and supplies. This type of wholesale trade, in turn, includes:

wholesale trade with centralized delivery of goods. The wholesaler supplies retailers with goods and also provides them with an extensive service;

Wholesale trade with the receipt of goods from the supplier. The wholesaler's customer, retailer or large consumer picks up the goods on their own;

Wholesale trade "Cash-and-Carry" with payment in cash before acceptance and transportation of goods by the buyer (wholesale trade by the self-service method). This type of wholesale is carried out to regular consumers (retailers, restaurant and canteen owners) who complete their orders in the warehouse using the self-service method. Payment for the goods is carried out in cash (cash), the client carries out the loading and removal of the goods (carry) independently (self-pickup). For example, a retailer may independently purchase the required daily amount of vegetables and fruits from the central market on a daily basis. A similar operation is performed by restaurants, purchasing consignments of vegetables, fish, meat, etc. in the markets;

Wholesale from racks (Rack Jobber). Large retailers provide the wholesaler with display areas with shelving or shelf space. The merchant, at his own expense, carries out the current filling of the racks, as a rule, with simple goods and takes back unsold goods. In this way, it relieves the burden on the retailer and complements its assortment. Wholesale is defined as “any activity of selling goods or services to those who purchase them for the purpose of resale or professional use”.

At the same time, the expediency of having a wholesale link of commodity circulation is justified by the fact that wholesalers ensure the efficiency of the trade process. This efficiency is achieved by the fact that: firstly, a small manufacturer with limited financial resources cannot create and maintain a direct marketing organization; secondly, even with a sufficient wage, the manufacturer would rather prefer to direct funds for the development of production, and not for the organization of wholesale trade; thirdly, the efficiency of wholesalers is likely to be higher due to the scale of operations, a greater number of business contacts in the retail sector and their special knowledge and skills; fourth, retailers dealing with a wide range of products often prefer to purchase the entire range of products from one wholesaler rather than piecemeal from different manufacturers.

The importance of wholesale for the counterparties involved in transactions is that wholesale provides the following benefits for manufacturers:

Relieves sales authorities. There is no need to complete many invoices, invoices, ledger entries and reminder letters. The costs associated with the sale of products are reduced, since instead of a large number of retailers, supplies are made only to a small number of large wholesalers.

Reduces fluctuations in capacity utilization. The wholesaler places orders several months in advance. Therefore, the manufacturing company can carry out long-term planning. Thus, the loading of production areas becomes more even, and production becomes more rational; production costs are reduced.

Reduces the risk associated with the storage of products in the warehouse. The manufacturer has the option of shipping goods ordered by the wholesaler immediately after manufacture.

The financial advantage is that, as a rule, the wholesaler makes payment at short notice, using a discount for paying cash in advance, or giving promissory notes. Thus, the manufacturer receives the necessary free funds to continue his production.

The presence of wholesale distribution channels provides significant benefits for retailers:

Organization of purchases is made easier. The wholesaler selects the most profitable from a large number of manufacturers' proposals, brings them together into one order, and thereby facilitates the choice for the retailer.

Urgency and small volume of deliveries are ensured. The retailer can stock up on goods at any time in the shortest possible time and in arbitrarily small quantities. There is no need to maintain large warehouse stocks and the risk is reduced.

Credit assistance is provided. The experience of many years of business relationships gives the wholesaler the opportunity to assess the creditworthiness of the retailer and provide him with appropriate credit assistance. Provides services for the organization of sales of goods.

Permitting functions of wholesalers are as follows:

1 Sales and promotion. Wholesalers have a sales force to help the manufacturer reach many small customers at a relatively low cost. The wholesaler has more business contacts, and often the buyer trusts him more than some distant manufacturer.

2. Purchases and formation of a product range. The wholesaler is able to select products and form the required product range, thus saving the client from significant hassle.

3. Breakdown of large consignments of goods into small ones. Wholesalers provide customers with cost savings by purchasing goods in wagons and breaking up large batches into smaller ones.

4. Warehousing . Wholesalers store inventory, thereby helping to reduce the associated costs of the supplier and consumers.

5. Transportation. Wholesalers provide faster delivery of goods because they are closer to customers than manufacturers.

6. Financing. Wholesalers finance their customers by providing them with credit, and at the same time finance suppliers by placing orders ahead of time and paying bills on time.

7. Acceptance of risk. By accepting ownership of a product and incurring the costs of theft, damage, deterioration and obsolescence, wholesalers take on some of the risk.

8. Providing market information. Wholesalers provide their suppliers and customers with information about competitors' activities, new products, price dynamics, etc.

9. Management and consulting services. The wholesaler often helps retailers improve their activities by training their salespeople, taking part in the design of the store layout and arrangement of expositions, as well as in the organization of accounting and inventory management systems. In recent years, the growth of wholesale trade has been facilitated by several significant trends in the economy: 1) the growth of mass production at large enterprises remote from the main users of finished products; 2) an increase in production volumes for the future, and not for the fulfillment of specific orders already received; 3) an increase in the number of levels of intermediate producers and users; and 4) an intensification of the need to adapt goods to the needs of intermediate and end users in terms of quantity, packaging, etc.

According to the assortment, the following types of wholesale trade are distinguished:

Wholesale trade in a wide range of goods. In a wide and not in-depth assortment of various product groups, the consumer finds an offer that meets his demand. For example, wholesale trade in food products;

Specialized wholesale. The wholesaler forms a small but in-depth assortment of goods of various qualities of one commodity group and thereby provides the consumer with a wide selection of goods.

2. WHOLESALE INTERMEDIARIES

Intermediaries are firms or individuals who assume or help transfer to someone else the right to a specific product or service on their way from producer to consumer. The use of intermediaries in the sphere of circulation is beneficial, first of all, for manufacturers. In this case, they have to deal with a limited circle of stakeholders for the sale of products. In addition, a wide availability of goods is ensured when they move directly to the sales market. With the help of intermediaries, it is possible to reduce the number of direct contacts between producers and consumers.

Supply and sales organizations, large wholesale bases, exchange structures, trading houses and shops can act as intermediaries. Among the main reasons for the use of intermediaries are the following:

Organization of the product distribution process requires certain financial resources;

The creation of an optimal system of commodity circulation presupposes the availability of appropriate knowledge and experience in the field of market conditions for their goods, methods of trade and distribution.

Intermediaries, thanks to their contacts, experience and specialization, allow to ensure wide availability of goods and bring them to target markets.

It might be helpful to read: