10. Analysis of labor quantity and kind of labor is usually an important item in an analysis of the product. Is it skilled or unskilled; is a large supply available, or is there likely to be a shortage at any time? The question of union labor versus the open shop may also have a bearing on mar keting. It is possible at times to base a selling ap peal on one or the other of these policies. Labor conditions in the factory may also vitally affect the stability of the output. Of course, the possibility of' strikes should not cause entire cessation of selling ac tivities, but if conditions were notably unsettled in a factory an extensive marketing campaign might be unwise unless, indeed, the advertising had for its pur pose the creating of a public sentiment both within and without the factory that would lessen the proba bility of a shut-down.
11. Cost of manufacture.—In connection with the conditions of manufacturing another point to be con sidered is the cost of making the product in varying quantities. Goods are usually sold at the price they can be made to command, instead of on a mathemat ical basis of cost-to-make plus cost-to-sell plus amount of profit desired. The selling price must, however, cover all these three items, the variable fac tor being the amount of profit obtained. Before the amount to be spent in pushing sales can be deter mined, and before a price can be fixed, the cost to manufacture must be definitely known. A gas en gine manufacturer was having trouble in marketing his product. One day be received a visit from a rep resentative of a great mail-order house who offered him a certain price for his entire output. The man ufacturer, glad of this easy solution of his selling prob lem altho the price offered was low, did a bit of hasty fit:71ring, and accepted the proposal. Shortly after ward he was induced to instal 'a real cost system. For the first time he discovered his actual cost to manufacture, and be found that thc price at which he bad contracted to sell the entire output was just enough to cover the manufacturing cost without leav ing a cent of profit.
12. Question of to the considera tion of conditions of manufacturing are various ques tions about the capital of the business. Is capital easy or hard to obtain? Can a large campaign be planned, or must the marketing expenditures be low? How much capital is now available or in sight? What rate of return must be earned? Is it neces sary to conduct a concentrated campaign that will bring immediate results, or will the stockholders be willing to wait for results until the full force of a large expenditure for good-will can be realized? Are there any prejudices among the influential stockhold ers that must be catered to? This last question may seem out of place in a scientific investigation of the possibilities of a business. Unfortunately, it is only
too frequently asked, and answered in the affirmative. Many stories are told of advertising accounts that are inefficiently handled, and which yet remain in ineffi cient bands because of influences that count for more than the business judgment of the advertising or sales manager.
13. Choosing the right the product is one that is to be trade-mark-ed or named, the selection of the right name is a rnatter of primary importance. After a name is tentatively chosen, it should be criti cized from every possible point of view. 1\Tot unless it can pass every test should it be finally selected.
Can it be protected by registry at the patent office? The requirements of government registry are many and varied. No name should be selected, of course, that has ever been registered by anyone else or that has been in use even tho unregistered. The man who is choosing a name for his product can well afford to give this matter his most careful attention, to searcii widely among the names in his field of business, to read the best books on the subject, and finally to get the advice of a lawyer or business expert who has spe cialized on trade names and trade-marks.
Protection, however, is only a part of the problem. The name must be one that will help sell the goods. It should be so distinctive that no one could confuse it with any other name, even tho the similarity might not be obvious enough to prohibit registration. A naphtha soap that has long been on the market bears the name of the maker—Fels Naphtha soap. When the Procter & Gamble Company decided also to put out a naphtha soap, they too gave it their own name —P. & G. Naphtha. The earlier name was so dis tinctive that it had become firmly fixed in the public mind, and the newer name simply fitted into the old brain grooves in such a way that many people who . wanted the new product asked for "P. & G. Fels Naphtha soap." Certainly it is better to select an invented or unusual word or words, such as Listerine, Tarvia, Wooltex, or Uneeda, than to try to join the crowd of Standard's, Quality's, Acme's, and other similar too-common brand names.