Marketing methods and policies
From the introduction:
The author has long felt that there was a need for a book covering the general field of marketing, which would serve as an introduction to both the college student and the young man- in business. Both often desire a broad knowledge of the marketing machinery that is operating around them. It was with this thought in mind that the author entered upon the preparation of this volume. He frankly admits that he has no first-hand knowledge of every topic treated in this book. If the publication of such a book were delayed until a man was found who could prepare such a volume entirely from first-hand information it would probably never be written.
This is true for the simple reason that no one man could make a thorough study of every phase of marketing and write a book before much of the information became obsolete.
The author has, however, been able to draw on studies and Investigations conducted by himself for much of the material contained in fifteen chapters of this volume. A part of this information has appeared in publications of the Federal Trade Commission and due credit is given by specific citations when such information is used. There are many phases of marketing that, for lack of space, are not treated in this book.
This is true, for example, of advertising, personal salesmanship, and sales management. The reader can, however, find many books on these subjects. All topics are of necessity treated briefly. Somewhat extensive bibliographies are given at the end of several chapters which the interested student can use in continuing his studies.
Extensive bibliographies are not given for all topics covered for the reason that very little information concerning them is available in published form. The field of business is divided into two parts — production and market distribution. Production is to a large extent a technical matter for engineers and mechanics. In the past, we have placed greater emphasis on production than on marketing. It is shown in Chapter I that it now costs more to market many articles than to produce them.
From this, it is clear that marketing is now of much greater im- portance than most people have supposed. "Business," as the term is generally understood, refers to the commercial transactions involved in getting goods from the producers to the place of consumption and into the hands of the consumers.
The "business" man must exercise general supervision overproduction in order to determine what shall be produced and in what quantities. It is also necessary to purchase raw materials and finance the enterprise. Still, the main function of "business" is to market goods. Accounting, banking, insurance, and transportation are only aids, very important aids it is true, to the production and marketing of goods. Students of business have, in the past, devoted more attention to the aids than to the heart of the business — marketing. This has been true largely because more information has been available on these subjects.
These professions have benefited from the study- given to them. More information is constantly becoming available on marketing. The increasing amount of study that is now being devoted to marketing should improve marketing methods, increase marketing efficiency, and reduce marketing costs.
Some contents:
I — Meaning and Functions of Market Distribution 1
The place of marketing in economics; The object of market distribution; Nature of human wants; Marketing a part of business; Little attention has been given to the efficiency of market distribution; Importance of market distribution; More attention be- ing paid to market. Marketing Functions — Assembling; Dividing; Grading; Methods of grading; Transportation; Storage; Modern storage methods; Financing; The assumption of risks.
II — Physical Marketing Facilities . . 20
Transportation — Movements involved in transportation; Number of movements illustrated; Importance of transportation; Our transportation system; Adequacy of our railroad system; Poor terminal facilities; Suggested remedies for terminals; Car shortages; Wastes and losses due to poor transportation facilities; High costs; Poor facilities in New York; Multiplicity of terminals increases the cost of handling food; Delays; Damages to foodstuffs; Messengers in charge of cars; Car shortages are expensive; Risks increase the margin between the producer and the consumer. Storage — Importance of storage facilities; Storage facilities; Public warehouses; Non-fungible and fungible goods; Adequacy of storage facilities; Adequacy of cold storage facilities in various cities; Wastes due to poor storage facilities; Inadequacy of facilities for marketing foods.Remedy For Situation In Terminals — Central Wholesale Markets — ^Location; Outbound rail shipments; Proper public regulation; Advantages; Limitation; Difficulties in establishing central wholesale markets; Establishment of central wholesale markets for foods.
Ill — Trade Channels ...... 62
Producer direct to consumer; One middleman; Two middlemen; Three middlemen; Four middlemen; Imported goods; Variation in methods of distribution; Longer trade channels; Necessity for sales in the same stage of distribution; Sale of raw and semi-finished goods.
IV — Brokers and Sales Agents . . .81
Definition of Brokers, Sales Agents, and Commission Merchants — Brokers; Sales agents; Commission merchants; Merchandising brokers; Overlapping of activities. Functions of Brokers and Sales Agents — Specialized, independent salesmen; Giving information; Financing principals. Buying Brokers and Agents Operations of Brokers and Sales Agents — Organization; Little capital required; Selling ability necessary to success; Must know supply and demand; Prices; Canners often suspicious of brokers; Tend to lower prices; Brokerage contracts. Number of Brokers — Articles sold; No accurate figures available; Number of brokers handling typical commodities. Rates of Commission — Rates generally small; Rates on Chicago Board of Trade; Rates on smaller exchanges; Change from unit to percentage basis; Rates on canned foods; Rates on insurance and ships; Rates on cloth; Rates on foodstuffs; Rates on anthracite coal; Reasonableness of rates.
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