,Significant lrlarketing Trends Forerast

' Here is a forecast of two significant building materials marketing trends which warrant the attention of retail lumber dealers.

(I) Dealers will become more selective of the markets they serve.

(2) Closer cooperation between dealers and supplying manufacturers is ahead.

'Ihese changes are foreseen by J. P. Weyerhaeuser, manager of marketing planning for Weyerhaeuser Company wood products division. They were emphasized in his message to several hundred dealers attending the panel on "Marketing Trends of the Future" at the recent Northeastern Retail Lumbermens Association convention at New York City.

He recognizes dealers increasing utilization of o'package selling" as an efiective rnerchandising tool. To his mind, however, package selling contributes to the even more significant future move to selective rnarketing.

"The trend among individual independent dealers will be to select the market (or markets) which appears to hold the greatest promise for each of them. Each dealer, then, will concentrate his efiorts on serving that particular market (or markets)," is his observation. "Specialization is the rule of the day. Modern business is so complicated that highlighting becomes a necessity rather than a luxury."

This pinpointing, as he see it, will lead each dealer to tailor his products and services to one, or perhaps two, major markets for his principal volume and profit. These markets include: package homes, remodel and repair, farm buildings, shoulder trade and.cash and carry.

To competitively, and profitably, serve the chosen rirarket, dealers will be drawn closer to supplying manufacturers. This appears a necessity to develop the required services to meet the buyers needs and to convert prospects into customers. Among the services that contribute to successful target marketing are: o'The future will see manufacturers placing increasing emphasis on tailoring their products and services to the needs of this new type of dealer," observes Weyerhaeuser. t'However, the manufacturer cannot afiord the cost of customized services for a casual customer. The additional cost (to the manufacturer) incurred becomes economically practical only under specified conditions."

(1) Resale assistance to dealers.

(2) Materials handling and yard layout advice.

(3) Personnel training programs and assistance.

(4) More extensive promotional materials such as point of purchase displays, samples and literature.

(5) Finance plans.

(6) Supply commitments.

These factors will result in closer cooperation between the retail buildine materials dealer , and the supplying maiufacturer, according to the spokesman. "The manufacturer will supply much more comprehensive service than he does today in return for which he will expect to receive greater product volume and. more intensive promotion of his brand name," Weyerhaeuser forecasts.

The result will be that the successful dealer of the future is going to be doing business with fewer suppliers than he is today. Dealers are going to select manu{acturers, and manufacturers are going t6 select retail dealerc.

"This trend toward specialization on the part of dealers, and the resultant ramifications, constitute the most significant of all marketing trends which I can see on the horizon," concluded Weyerhaeuser.