Wholesale and Retail Trade, and Marketing
Wholesale and retail are the two branches of home trade. Marketing is the wider managerial function that identifies and satisfies consumer needs profitably. The paper tests functions, the services each trader renders, and the marketing mix.
The wholesaler
Buys in large quantities and sells in smaller lots to retailers. Functions: breaking bulk, warehousing (so production continues smoothly), transport, granting credit to retailers, financing producers by paying early, grading, packing and branding, bearing the risk of price falls and deterioration, supplying market information, and stabilising prices by holding stock. Services to producers: a ready market, fewer customers, working capital. Services to retailers: small quantities, credit, delivery, a wide assortment.
The retailer
Sells to final consumers. Types: hawker or itinerant trader, market stall at a periodic market, kiosk or boutique, general store, specialised single-line shop, chain store, supermarket, cooperative store and online seller. Services: convenient location and hours, small quantities, credit, advice, after-sales service and variety.
Marketing
Marketing is not advertising. It begins with market research, then segments the market (by income, location, age, gender), then designs the mix:
- Product - quality, design, brand, packaging, guarantee.
- Price - cost-plus, penetration, skimming or competitive pricing; VAT at 19.25% must be added where applicable.
- Place - the distribution channel.
- Promotion - advertising media (radio, billboards, social media, sponsorship), sales promotion, personal selling, publicity. Functions of marketing: buying, selling, transporting, storing, standardising and grading, financing, risk bearing and market information.
Worked example
A Douala soap maker launches a low-cost 200-gramme bar for low-income households. Product: cheaper formulation and sachet-style wrapper under an easy brand name. Price: below the market leader. Place: kiosks and markets in Bonabéri and Ndokotti rather than supermarkets. Promotion: radio in French and Pidgin plus free samples at markets. Reasoning: each decision follows from the identified segment's income and shopping habits.
Traps
- Listing retailer functions without saying who benefits.
- Treating marketing and selling as synonyms.
- Defining a market as a physical place; in commerce it means the buyers and sellers of a good.
- Ignoring packaging and branding when asked about product decisions.