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3. Basis of company's competition

A. Price.
B. Quality of product.
C. Size of company.
D. Location.
E. Service.
F. Trade name and goodwill.
G. Transportation.
H. Patents.

I. Number of competitors. 4. Other considerations.

A. Dissimilar products serving same purpose.
B. Sectional or regional competition.
C. Cost of overcoming competition.

(1) Profitableness. 5. Possibility of mergers.

CUSTOMERS OF THE COMPANY 1. Kinds of customers.

A. Distributors.
B. Ultimate consumers.

C. Industrial users.
2. Reasons for buying the product.

A. Quality.
B. Price.
C. Advertising.
D. Credit terms.

E. Quicker delivery.
3. Classification of customers.

A. Number.
B. Age.
C. Volume of business.

D. Location. 4. Former customers.

A. Reasons for discontinuing purchases.
B. Efforts made to resell them.

THE ULTIMATE CONSUMER

1. Classification of consumers.

A. Age.
B. Sex.
C. Income class.
D. Location.

E. Number.
2. Reasons for buying the product.

A. Price.
B. Quality.
C. Habit.
D. Recommended.
E. Credit terms.
F. Advertising:

G. Better servicing. 3. Effect on market of

A. Race.
B. Religion.
C. Prejudices.
D. Climate.
E. Age.
F. Occupation.
G. Class.
H. Technical knowledge.

I. Literacy. 4. Buying habits.

1

THE MARKET 1. Extent of market.

A. National.
B. Regional.
C. Local.
D. Urban.

E. Rural.
2. Effect on market of-

A. Transportation.
B. Credit terms.
C. Advertising.
D. Legislation - National, State, and local.

E. Competition.
3. Character of the market.

A. Number of consumers.
B. Per capita consumption.
C. Effect of price.

(1) Income range,

(2) Widened market through lower price. 4. Location of potential market through other products.

A. Ownership of homes.
B. Ownership of automobiles.
C. Income-tax returns.
D. Literacy.

E. Other factors.
5. Limitations of original market.

A. Degree of saturation.
B. Replacement demand.
C. Life of product.

D. Second-hand sales.
6. Factors limiting extension of market.

A. Price.
B. Fashion.
C. Cost of operation.
D. Seasonal Auctuation of demand.

E. Climate and weather. 7. Effect of business conditions.

CHANNELS OF DISTRIBUTION

1. Trend in the industry.

A. Integration and elimination of middlemen.

B. Multiplication of functions. 2. Determinants of distribution methods of the industry. A. The product.

(1) Price.
(2) Size.

(3) Perishability.
B. Volume of company's business.

(1) National.
(2) Regional.

(3) Local.
C. The market.

(1) Location.
(2) Urban or rural.

(3) Size of customers' business.
D. Service.

(1) By manufacturer.
(2) By distributor.

(3) By retailer.
E. Financing

(1) Ability to finance direct distribution. F. Credit extension. (1) Need for installment terms.

(a) Company's ability to finance. (2) Customers as credit risks.

3. Channels best fitted to company's problems.
A. Direct distribution.
(1) Customers.

(a) Large or small.

(b) Scattered or in concentrated markets. (2) Product.

(a) Qualities affecting consideration of direct distribu

tion.
B. Indirect distribution.
(1) Present distribution links.

(a) Function of each.

(6) Need for each.
(2) Possible distribution links.

(a) Manufacturer's branch.
(6) Manufacturer's agent.
(c) Jobber.
(d) Commission man.
(e) Broker,
(5) Mail-order house.

Chain-store organizations.
(h) Retailer.

(0) Other types.
C. Company's past experience.
(1) With company branches.

(a) Effectiveness.

(5) Cost.
(2) With jobbers.

(a) Kind.
(6) Effectiveness.

Cost.
Other lines handled.
Stocks carried.
Relations with company.

Geographical location.
(3) With retailers.

(a) Kind.
(6) Effectiveness.
(c) Cost.
(d) Stocks carried.

Relations with company.
Geographical location.

SALES PROMOTION
1. Sales policies.
A. With jobbers.

(1) Prices and terms.
(2) Protection in territory.

(3) Protection in price.
B. With exclusive agencies.

(1) Prices and terms.
(2) Protection in territory.

(3) Protection in price.
C. With retailers.

(1) Prices and terms.
2. Sales force.
A. Type of salesman.

(1) High-priced for expensive item.
(2) Less salesmanship for cheap item.
(3) Special training.
(4) Turn-over.

(5) Duties in addition to selling.
B. Relations with company.
(1) Method of compensation.

(a) Salary.
(6) Commissions.

(c) Bonuses.
C. Demonstrations.

(1) Necessary or feasible.

33514°-38-18

3. Possibility of sales tests.
4. Advertising.
A. By whom.

(1) Agency.

(2) Independently.
B. To whom directed.

(1) Jobbers.
(2) Retailers.

(3) Ultimate users.
C. Scope and appeal.

(1) National consumer.
(2) Trade.

(3) Institutional.
D. Media used.
E. To develop new business.

(1) Competitive.

(2) Instructional. F. To retain old business.

(1) Necessity. G. Educational. H. Cooperation of advertising department with

(1) Sales department.

(2) Purchasing department. I. Checks on campaigns.

B. TYPICAL "CONDITIONS OF SALE”

To illustrate the general agreements that frequently obtain between American sellers and foreign buyers, there are reproduced below three sets of “General Conditions of Sale”—(1) for c. i. f. and c. & f. sales, (2) for sale f. a. s. vessel, and (3) for sale f. o. b. mill—as stipulated and required by a well-known American company which enjoys very substantial and world-wide markets for its heavy goods:

GENERAL CONDITIONS OF SALE, C. I. F. AND C. & F. SALES

The seller referred to in these Conditions of Sale is the

Co.

DELIVERY

1-a. Tender to the purchaser or his authorized agent of shipping documents, consisting of proper bills of lading, and, in the case of c. i. f. sales, a negotiable insurance certificate, shall constitute full and final delivery on the part of the seller, and shall entitle it to immediate payment in full for the goods covered by said shipping documents, without prejudice to the subsequent adjustment of just claims on the part of the purchaser.

1-b. The seller shall not be responsible for the arrival of the goods at destination nor for loss or damage in transit from the manufacturer's works, and in case of such loss or damage shall be under no obligation to replace goods so lost or damaged. The purchaser accepts and agrees to all usual and customary clauses in the bills of lading as well as such additional clauses and stipulations as may be lawfully imposed by the carriers as a condition of their accepting the goods for transportation.

1-c. Unless otherwise agreed in writing, the purchaser undertakes to receive the goods at destination ex ship's tackles as fast as the vessel can discharge, failing which, any demurrage or other charges shall be for the purchaser's account. It is further agreed that the seller is entitled to select the route, port of shipment, and vessel, with privilege of stopping in transit at a port or ports. Unless otherwise agreed in writing any charges at destinations, including lighterage, wharfage, or landing charges, dues, duties, etc., are not included in the seller's prices.

INSURANCE 2. Unless otherwise agreed in writing in connection with the particular c. i. f. transaction, the insurance to be covered by the seller is understood to be marine insurance only, free of particular average, English conditions, for a sum equal to the amount of the invoice plus 10 percent. Other forms of insurance, if obtainable, must be agreed upon in writing prior to the making of the contract, the additional cost to be for account of the purchaser, but no form of insurance will protect against rust or other damage unless caused by a peril of the sea.

CONSULAR INVOICES 3-a. All consular fees for legalizing invoices, stamping bills of lading or other documents required by the laws of the countries of destination, are payable by the purchaser and are not included in the seller's prices. Unless otherwise arranged, the seller is authorized to pay all such charges for the purchaser's account and to add the cost of same to the amount of the invoice.

3-b. Unless otherwise arranged, the seller will take out consular documents as agent for the purchaser, who must state how the goods are to be declared, and, if the purchaser does not furnish the necessary instructions, the seller will make declaration according to its best judgment, but will not in any case be responsible for any fines or other charges due to errors or incorrect declarations.

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