Describe the two major types of independent wholesaling intermediaries and the appropriate situations for using each.Independent wholesaling intermediaries can be divided into two categories:1. merchant wholesalers2. agents and brokers.The two major types of merchant wholesalers are full-function merchant wholesalers, such as rack jobbers; and limited-function merchant wholesalers, including cash-and-carry wholesalers, truck wholesalers, drop shippers, and mail-order wholesalers. Full-function wholesalers are common in the pharmaceutical, grocery, and hardware industries.The food, coal, lumber, cosmetics, jewelry, sporting goods, and general-merchandise industries sometimes use limited-function wholesalers. Agents and brokers do not take title to the products they sell; this category includes commission merchants, auction houses, brokers, selling agents, and manufacturers' reps. Companies seeking to develop new sales territories, firms with unrelated lines, and smaller firms use manufacturers' reps. Commission merchants are common in the marketing of agricultural products. Auction houses are used to sell tobacco, used cars, livestock, furs, and fruit. Brokers are prevalent in the real estate, frozen foods, and used machinery industries.
