Explain the marketing decisions faced by wholesalers

Question

What will be an ideal response?

Answer 1

Wholesalers are faced with the marketing decisions of segmentation and targeting, differentiation and promotion, and the marketing mix. Progressive wholesalers are adapting their services to the needs of target customers and are seeking cost-reducing methods of doing business. Faced with slow growth in their domestic markets and developments such as the North American Free Trade Association, many large wholesalers are also now going global. Wholesalers must decide on product and service assortments, prices, promotion, and place. Wholesalers add customer value though the products and services they offer. Price is also an important wholesaler decision. Wholesalers usually mark up the cost of goods by a standard percentage. As their retail and industrial customers face sales and margin declines, these customers turn to wholesalers, looking for lower prices. Wholesalers may, in turn, cut their margins on some lines to keep important customers. They may also ask suppliers for special price breaks in cases when they can turn them into an increase in the supplier's sales. Although promotion can be critical to wholesaler success, most wholesalers are not promotion minded. They use largely scattered and unplanned trade advertising, sales promotion, personal selling, and public relations. They need to develop an overall promotion strategy and make greater use of supplier promotion materials and programs. Digital and social media are playing an increasingly important role. Finally, distribution (location) is important. Wholesalers must choose their locations, facilities, and Web locations carefully.