place - wholesalers

Question 1

advantages for manufactures of using a wholesaler

Answer 1

-Wholesalers can promote products to retailers, which saves the manufacturer promotion costs

-The wholesaler carriers the risk of products going out of fashion as manufacturers get rid of goods as soon as they are produced

-Packaging and displaying of goods is carried out by the wholesaler, saving the manufacturer time and costs

-Wholesalers buy in bulk, saving manufacturers from making lots of smaller deliveries

Question 2

disadvantages for manufacturers of using a wholesaler

Answer 2

-Manufacturers make less profit as a cut is taken by wholesalers

-The manufacturer loses control of how the product is marketed

-The manufacturer loses control of which retailers the product is sold to

Question 3

advantages for retailers of using a wholesaler

Answer 3

-Retailers can save on storage facilities by buying smaller quantities from wholesalers than they would get from manufacturers

-Retailers can benefit from promotions offered by wholesalers that they may not get direct from manufacturers

-Retailers can trial smaller orders of newer products and not be left with large amounts of unsold inventory

Question 4

disadvantages for retailers of using a wholesaler

Answer 4

-It is more expensive than going directly to manufacturers as wholesalers add on a margin of profit

-Wholesalers offer the same products to retailers’ competitors, so other areas of the marketing mix have to be relied on

-The retailer may miss out on exclusivity deals by not going direct to manufacturers