Question

. As a wholesaler of all kinds of paper supplies, Ajay owns a paper mart in Chawri Bazar, in Delhi. He meets the demands of the retailers by procuring different kinds of paper from different manufacturers. He extensively undertakes advertisements and other sales promotional activities for his products which in turn also helps the retailers in persuading prospective buyers. Many a times he sells goods on credit to his old customers (retailers). He is well appreciated for providing guidance to the retailers about various aspects of marketing. A) Identify the various types of services Ajay is providing to the retailers. B) Also explain any two services that he must be extending to the manufacturers as well

Answer 1

Answer:

A Wholesaler and Retailers

A. Various types of services Ajay is providing to the retailers are:

1. Procuring variety of papers from different manufacturers.

2. Undertaking advertisement and other sales promotional activities to the benefit of retailers.

3. Extending credit sales to retailers.

4. Providing marketing guidance to retailers.

B. Two services that Ajay is extending to the manufacturers as well are:

1. Providing wider market for manufacturers by purchasing in bulk.

2. Helps the manufacturers to distribute their goods.

Explanation:

As a wholesaler, the business acts as the middleman between the paper manufacturers and the retailers.  The wholesaler purchases paper in bulk from the manufacturers, thereby encouraging them to produce more.  He enables retailers, who are at the grassroots, to gain access to a variety of the manufacturers' products at small quantities.  He also helps in the distribution of goods.