Marketing

“ MARKETING.—In modern business, special emphasis rests on the importance of proper arrangements for “marketing.” Marketing is essentially buying and selling. The central fact is the sale. But to secure sales the goods must often be assembled from the places where they were produced, graded when qualities differ, sorted when there are different varieties, moved to market and in many cases thence to the place of consumption. ”

“ They will tell their friends about the good quality, dependable produce which they have been able to purchase at some particular stand. Furthermore, a wide variety of products can be sold in this way at one stand, which might have to be segregated and shipped to different markets if some other method of marketing were being followed. ”

“ Like any other new industry, the selling should be developed slowly in order to minimize the possibility of loss and to assure stable business. One should study the situation carefully both from the manufacturing and marketing standpoints. ”

“ Producer Direct to Consumer.—The simplest form of marketing and the most primitive is the sale by the producer directly to the consumer. The village boy or girl who raises flowers and sells them to passing tourists, the truck gardener near cities who disposes of his vegetables and fruits by sale direct to consumers, either from house to house or at a market-place frequented both by producers and consumers, the dairyman who peddles or delivers milk direct to consumers, are illustrations. ”

“ In marketing, we would not advise roaming from one store or market to another, after one has become sufficiently acquainted in a city or village to have a correct idea of the quality of the produce and the character of the vender. ”

“ Variation in marketing occurs through variations in ownership of the goods to be marketed. To illustrate, producers or local buyers usually sell outright to wholesalers all goods marketed through the wholesaler-retailer channel of distribution ”

“ Think of the tremendous buying power that we have. It would be absolutely impossible for you to give trading stamps of your own and have any chance with competition. Now, I don't think for a moment that you are not as keen a business man as the next fellow, but the big concerns realize that it is specialization that means success, and we have simply specialized in this one branch of marketing to help you fellows do something which you could do yourselves, but not nearly so effectively or cheaply as we can. ”

“ But though their methods of production are of the simplest, the arrangements for marketing their produce are far more advanced in organisation than those already described for the marketing of home grown produce. ”

“ We will assume that you have qualified yourself to succeed; that you have developed your best capabilities in knowledge, in manhood, and in sales skill; that you have completed the general preparation necessary to assure your success in marketing your particular qualifications; and that you also have learned how to find and to make the most of your prospects. After these preliminaries you are ready to take the next step in the selling process, and to begin putting your capabilities, and what you have learned from preparation and prospecting, to specific use in actual selling. ”

“ Marketing, the actual selling, is a business quite by itself, and since it is one which has changed greatly in the past few years and is destined to change even more in the near future, a few observations on the subject are worth putting on record. ”

“ The nearby market plan is greatly to be recommended because you can keep in touch with your selling concern, build up a line of desirable goods and promote its sale by advertising.
Of course you can get more money for your goods if you have time and the opportunity to sell direct to the consumers. You will of necessity have to sell cheaper to the grocers because they too must make their profit. Marketing direct to the consumer has a special appeal to many people. ”

“ The same common sense principles apply in selling manuscripts to the magazines and newspapers as in marketing any other kind of produce. The top prices go to the fellow who delivers his goods fresh and in good order to buy [Pg 30] ers who stand in need of his particular sort of staple. ”

“ We do not find in strictly commercial undertakings the tremendous aggregations of men and capital which have become characteristic of modern transportation and manufactures. Modern trusts, it is true, have invaded the field of commerce to a certain extent, and have effected some of their chief economies in improved methods of marketing their products. ”

“ Monitoring what others do ————————————- The best business opportunities are outside your company, in the external world. We need to monitor customers and markets, find technologies to help develop and build products, research new business actions, find new subcontractors and suppliers, people to hire, and persons to influence to boost sales. In this marketing age, where sales calls cost hundreds of dollars and business-to-business marketers use the telephone or the mails to reach prospects, complete and accurate market lists are most valuable commodities. ”

“ We have attacked the problem on one side by the promotion of cooperative marketing, and we might well inquire into the benefits of cooperative buying. Admittedly, the consumer is much to blame himself, because of his prodigal expenditure and his exaction of service, but Government might well serve to point the way of narrowing the spread of price, especially between the production of food and its consumption. ”

“ Unit Price and Distributing Markets.—The price of the product to dealers and to consumers, whether high or low, constitutes another factor governing the channels to be selected in marketing. A low-priced article with a small margin of gross profit to the seller cannot be sold in the same way as an article that offers a wide margin. A 25-cent (or shilling) article, such as a handkerchief, a magazine or a screwdriver, could scarcely be sold direct. The margin above costs of production could not possibly permit the article to be advertised and sold by itself by the mail-order method. ”

“ In other lines of merchandise, it is urged, there is the same oversupply of dealers, needless duplication of stores, equipment, and needless sales and delivery people, all of which must be paid out of the business. Criticism has become more pointed and perhaps more constructive as information concerning distribution and its real functions has accumulated. From such studies as have been made it seems safe to state that for most goods the costs of marketing, including transportation, run higher than those of production. ”

“ As emphasized in my last message, the Government should assume no responsibility in normal times for crop surplus clearly due to overextended acreage. The Government should, however, provide reliable information as a guide to private effort; and in this connection fundamental research on prospective supply and demand, as a guide to production and marketing, should be encouraged. Expenditure of public funds to bring in more new land should have most searching scrutiny, so long as our farmers face unsatisfactory prices for crops and livestock produced on land already under cultivation. ”

“ Watson’s Jeffersonian Magazine
All selling finally resolves itself into buying—buying the services of good men, buying business-bringing booklets and form letters, good advertising copy and advertising mediums—buying orders at a profitable figure.
An advertising medium is a known quantity. Why buy advertising space as you must choose a salesman, why trust to intuition or snap judgment, when you can work with figures? ”

“ In the present time, after a large manufacturing concern has perfected all arrangements for making perhaps, a new breakfast food, a new perfume, toilet soap, candy, tooth paste, or some other desirable article, the next step that is taken to market the product is in organizing a good sales force. Then, the manufacturers consult with one of the big advertising agencies for the purpose of launching a national advertising campaign. ”

“ Should you have a product that you intend to give wide publicity to, whether it is your intention to sell to the consumer direct or to sell to him through the retail trade, it is a good plan to engage the services of an advertising firm to conduct the campaign for you. ”

“ But our selection of goods presented directly to us through the choice of advertising brings us a greater percentage of best products.
Now the manufacturer is using the direct primaries of advertising. It remains for the people to take the final step—to use this advertising in order to make the most intelligent and advantageous selection for themselves.
Advertised products are the field for the consumer's selection, because they present their merits and are willing to stand on them. Determining the qualities he wants, the consumer buys the products; the dealer supplies them. ”

“ Mail order business will pay fairly well from any point if you deal right. Never sell anything unless it is worth the money, and don't introduce any fake schemes. Get some good novelties, household articles, books, etc.; select good leaders to advertise, and when you make a sale enclose circulars of the other goods; soon you can have a catalogue. Study the papers you advertise in; there are many quacks—you can tell them by the character of their advertising. Public catalogues soon become too common; also you should handle the goods you sell. ”

“ Learn all you can in an open, fair way, but do not resort to trickery, or [179] to any methods which you would be unwilling to have a competitor use with your house.
The second rule for meeting competition is “Know Competitors’ Goods.” This again involves not only being familiar with the quality and uses of the goods, but with the reputation of the manufacturer and his selling agents, as well as the class of trade to which competitors cater, the class of salesmen they employ, and the ethics they observe in doing business. ”

“ Success of the “Imitation Cigar”—The Dealer’s Seeds of Gold are Black—Barnum’s Belief in Humbugs—Tricks for Trade—Politics for the Men, Novels for the Women—How the Remington Typewriter was Boomed—A Business Man’s Experience in Advertising.
New articles in all lines of trade are constantly appearing. Inventors of mechanical appliances, authors of books, proprietors of patent medicines, introducers of something novel in groceries, and promoters of new departures in dry and fancy goods, are all anxious to have the public take their products and pay them in cash. ”

“ But what business ever started with the manufacturer and ended with the consumer? Where does the money to make the wheels go round come from? From the consumer, of course. And success in manufacture is based solely upon an ability to serve that consumer to his liking. He may be served by quality or he may be served by price. He is best served by the highest quality at the lowest price, and any man who can give to the consumer the highest quality at the lowest price is bound to be a leader in business, whatever the kind of an article he makes. ”

“ The reason is that an investment in enough advertising space to make any commodity known nationally requires a considerable outlay of money, besides a well-developed selling organization to coöperate with the advertising, and harvest its results. ”

“ Under the present system of commercialism the one object, and the complete justification, of producing any article is, that it can be made either by its intrinsic value, or by the fictitious value put upon it by advertisement, to sell with a sufficient profit to the manufacturer. ”

“ These three pre-eminent characteristics which have distinguished the last years which have seen the greatest leaps in advertising expenditure are the fast growing specialization in production, the rapidly increasing speed with which commercial operations are now carried on and the greatly lengthening distance between the manufacturer and the market. ”

“ It should be one of the first objects of all manufacturers to produce stuffs not only beautiful and quaint in design, but also adapted for every-day service, and decorous in humble and secluded life. And you must remember always that your business, as manufacturers, is to form the market, as much as to supply it. ”

“ Very often the sale of farm products can be supplemented to the advantage of the stand by offering small ornamental plants or by the display of pet animals, particularly for the younger members of the traveling public.
Success Factors.—A definite program of advertising can be developed with many original features that apply directly to the type of business. If the operator has pride in his products he will be glad to have his name on every package of commodities that he sells. ”

“ Remember that every sale you make is an advertisement that will either help or hinder your business. It is an advertisement of the character and general policy of your firm. It advertises the squareness, the honesty, or the cunning, the trickery of the whole concern; in other words, the man you approach will get a pretty good idea of your firm,—their policy and methods of doing business,—by the impression which you make on him. ”

“ To do this they become promoters who bring inventor and manufacturer together, agents who mediate between buyer and seller, peddlers, venders and all other middlemen who go between producer and consumer and live on a commission, also literary men who devote their talent to purposeless fiction belong to the class actuated by the lower phases of the force in the common signs. ”

“ I have found in a long experience with advertising and salesmen that a good live traveller is always awake to the benefits of advertising, and that nine times out of ten it is the result-producing salesman who uses your advertising matter intelligently rather than wastefully and who takes advantage of all your local advertising to use as a lever on the merchant for bigger business. ”

“ When the reputation of a certain brand of goods of this nature becomes established, consumers make no further efforts to test its quality, and the retail price often becomes a customary price. If a manufacturer of such goods finds his trade injured by a rival, his most effective means of competition will often be, not a lowering of the price, but an increase of the outlay on advertising. ”