STUDY OF THE MARKET 1. What is meant by the market?—The study of the market follows the study of the product. The market, for the purpose of this study, is made up of those people who chiefly influence demand. Even for the manufacturer who sells thru jobbers and retail ers, the most important part of the market is the ulti mate consumer. If a manufacturer makes cardboard cartons for package goods, his chief market consists of other manufacturers who buy the cartons for their products, and for bim these other manufacturers are the ultimate consumers. In the same way, dealers themselves might be the most important part of' the market for a manufacturer producing store fixtures. In every case, of course, the middlemen are a part of the market, but the first study of the manufacturer must be directed toward those who use his goods in stead of toward those who merely add place and time utility to them.
2. Purpose of market analysis.—The market is studied to ascertain the most effective and economical method of marketing. The market facts that are worth investigating in one business are not always the same as those worth investigating in another business.
The points presented in this chapter are merely sug gestive. Ordinarily most of them must be consid ered, and ordinarily each business will present other phases of market analysis that are peculiar to it and which must be taken into consideration before the plan for the campaign is completed.
3. Who compose the market and where do they live?—The manufacturer must first find his market. If be is putting out a new brand of talcum powder, for instance, he asks: Who is going to buy it? To whom must he appeal? Who are the people who are to influence demand and determine his success or fail ure and where will he find them? He must decide whether his market is to be found among men, women or children, and he must remember that the people who will actually pay their money for bis goods are not necessarily the ones who really influence tbe pur chase. Manufacturers of automobiles are advertis ing to some extent in boys' magazines, because it is thought that the boy often exercises influence in tbe purchase of a motor car. Few men control the fam
ily choice of a piano, but the man of the household usually buys the instrument. Life insurance is sold chiefly to men, but thousands of policies would never be placed except for judicious sales activity directed toward those who are to be the beneficiaries. The question as to who should be the chief object of the selling appeal is often a nice problem, requiring great care in the solution. The manufacturers of business phonographs are facing this problem, and are doing an interesting work in harmonizing the apparently conflicting interests of stenographers and office man agers.
Often, however, a single appeal can be made be cause the person who actually buys is influenced only by his OWII opinions and needs. Whether he is a man, a woman or a child is a question of importance in the choosing of sales channels and sales and advertising arguments, in standardizing the personality of the sales force, in fixing prices, in deciding on the use of demonstrations or of sampling campaigns, and in many other phases of the manufacturer's plan of mar keting.
Are the possible purchasers rich or poor? What are their occupations? Are they lawyers, hod-car riers or railroad employes? Obviously these ques tions have a bearing on sales methods. A piece of expensive jewelry can be profitably sold by high grade salesmen calling on the exclusive jewelry trade. Cheap jewelry which is to be sold in variety stores must be marketed in an entirely different way. The. trade channels, the prices, the advertising mediums, the sales appeal for an article to be sold to profes sional men must differ greatly from the methods used in reaching the market of day laborers.
Finally, what is the environment of the possible purchasers? Do they live in the city, in smaller towns,.or in the country? For some articles the an swer to this question is easy. The manufacturer of windmills would scarcely seek his market in the cities.