PUBLICATION 420-145 for Wood Products Companies

Bob Smith, Extension Specialist, Forest Products Marketing, Virginia Tech; Eric Hansen, Assistant Professor and Extension Specialist, Forest Products Marketing, Oregon State University; and David Ola, Graduate Research Assistant, Virginia Tech Marketing: Why it is Vital to Your This quote helps to illustrate just how misunderstood and misused the term marketing really is. It is hard to Firm define and includes such functions as sales, distribu- No matter the size of the company, the principles of mar- tion, , , products, and many others. keting applied properly can improve one’s profitability. Here is an example of a definition which attempts to Marketing is an evolutionary process that links firms encapsulate the many different aspects of marketing: to customers. Marketing encourages the exchange of “Marketing is the discovery or identification of needs goods and services for money in a way that is profitable and the execution of those activities necessary to plan to the firm and satisfying to the customer. The market- and provide need-satisfying products and services and ing process is constantly being adjusted and tailored to price, promote, distribute, and effect exchange of to different situations based on three strategic business these products at an acceptable cost and in a socially factors: the company, the customers, and the competi- responsible manner” (Shaw and Semenik, 1985). tion. It is important that wood products’ organizations and their managers be aware of how these three factors There are many definitions similar to this one which interact and constantly adjust business strategy. try to capture everything which marketing actually involves. Most, however, fall short. Others would like It must never be over-looked that marketing is the to believe that marketing is simply promoting and sell- income generating activity of the firm. Marketing is ing a product. It must be realized that these are simply also the function of the firm that reaches out to cus- pieces of the puzzle. And we all know what happens tomers and communicates with them. Regardless of when some of the pieces of a puzzle are lost or ignored; how good the product is, without acquiring satisfied it just doesn’t fit together. Another way to view market- customers, and the business that they generate, wood ing is as a philosophy - “a disciplined way of think- products’ firms will not be able to operate at their opti- ing about organizational goals and their relationship to mal profitability level. Marketing is the mechanism overall business goals” (Ghosh 1988). through which this can be achieved. Because of the difficulty in defining this abstract con- cept called marketing, it is often thought of as a con- OK, so it’s important, but WHAT IS cept. This Marketing Concept is based on two simple IT? objectives. The objectives are aimed at satisfying its Somewhere around the time all garbage collectors customers, while making a profit (McCarthy and Per- became sanitation engineers and all janitors became reault 1987). This is a fairly simple concept that is vital maintenance supervisors, a funny thing happened to to the success of the firm. Unfortunately, marketing can a lot of sales people: they became marketing manag- be difficult at times to implement. ers, marketing engineers and marketing associates, and In upcoming sections, we will examine the main some even became marketing representatives. (Blake, functional areas within marketing. Perhaps through a 1983) deeper understanding of these areas you will develop your own philosophy of what marketing is.

www.ext.vt.edu Produced by Communications and Marketing, College of Agriculture and Life Sciences, Virginia Polytechnic Institute and State University, 2010 Virginia Cooperative Extension programs and employment are open to all, regardless of race, color, national origin, sex, religion, age, disability, political beliefs, sexual orientation, or marital or family status. An equal opportunity/affirmative action employer. Issued in furtherance of Cooperative Extension work, Virginia Polytechnic Institute and State University, Virginia State University, and the U.S. Department of Agriculture cooperating. Alan L. Grant, Dean, College of Agriculture and Life Sciences, and Interim Director, Virginia Cooperative Extension, Virginia Tech, Blacksburg; Wondi Mersie, Interim Administrator, 1890 Extension Program, Virginia State, Petersburg. Markets overall group of customers and breaking them up into • Product Attributes: reason to go there is for the product - the food. How- similar smaller groups. Products and marketing activi- ever, the total product including all of the intangibles Markets are typically defined as all current and poten- ties are generally focused on two or more well defined -Moisture Content and extras is what is actually evaluated, and paid for, tial buyers of a product or service. A key assumption in groups. -Price by the customer. this definition is that these buyers are able to financially -Dimensional Requirements make the purchase. A good example of this type of strategy is used by the hardwood lumber industry. Hardwood lumber comes in • Demographics: Types of Products is typically organized around target different grades. These different grades are marketed -Age markets. These target markets are segments of the mar- • Commodity Products toward different market segments. Generally, higher -Income ket toward which a firm targets its products or services. primarily on price. grade lumber goes to furniture and cabinet manufactur- -Gender The markets can be segmented based on a variety of Standard industry product line. ers, while lower grade lumber is used by flooring and different characteristics, which can range from demo- Mass marketing. pallet manufacturers. graphics to product application to geography. Product • Specialty Products There are three alternative methods used for defining Characteristics of Effective Segmentation: Total Product Concept Compete by best meeting customer needs. target markets. They are mass marketing, niche mar- Firms should never be so shortsighted as to think they Customized products. • People in segment differ from those not in segment keting, and . Each of these three only provide customers with a physical product. In Targeted to market niche. techniques can be effective when used properly in the today’s marketplace it takes more than that to com- • People in segment are similar enough to develop a • Differentiated Products right situation for the right product. These methods are pete. Customers expect more. Customers no longer marketing program Variations of standard products for targeted cus- discussed in more detail below. view the physical product in isolation from the services tomer groups. associated with that product. Often services can be a • Segment must be large enough to be economical Evolutionary process from specialty to commodity deciding factor when choosing among firms providing product. Mass Marketing • Segment must be reachable a commodity product such as softwood lumber. When Mass marketing involves a single marketing program considering products such as softwood or hardwood aimed at large numbers of customers with essentially the • Product needs of customers in segment must be lumber, for example, it is critical to consider things Product Positioning same product, promotion, etc. Mass marketing assumes easily defined and different from others like credit, service, quality and delivery. Not only is the Creating a favorable image of your product in the that all customers have similar needs in relation to a customer concerned that they are getting a bundle of #1 minds of customers is very important. If you can posi- particular product. It is rare to find mass marketing in Risks of Market Segmentation Common Red Oak, but also that they will be extended tively position your product in relation to a competi- the wood products industry. It is hard to achieve for the credit they need and can count on the wood being • Market segments are too small tor’s products, it offers an advantage. This is known smaller firms and few markets are that homogeneous. A there when they need it. as product positioning. This can be achieved in many couple of examples would be 3/8” sheathing products • Market segments are not accessible ways. Some products are known for their superior qual- such as OSB and softwood plywood as well as SPF No. This view is known as the total product concept ity, others for durability. A good example of product 2 and better studs. (TPC). The concept includes all of the intangibles and • Market segment is shrinking positioning in the wood products industry is Truss extras that are both perceived and paid for by the cus- Joist’s silent floor system. Many consumers view this • Segment is open to strong competition tomer. Adhering to this total product concept is a good as the top of the line flooring system, and request “the Niche Marketing way for firms to differentiate their product through attri- stuff with the elephant on it.” This example also illus- The opposite of mass marketing is niche marketing. butes other than just price. The TPC is especially true Approaches to Market Segmentation trates the benefits of product branding in that customers With this technique, a particular group of customers is in the commodity market, where price is often used as associate the elephant with the Truss Joist silent floor concentrated on and given specialized attention. Mar- • Geographical: the only method of differentiation. When asked to rate system. keting to this group is very focused. This can be a very -International the importance of a variety of product/service charac- effective method for smaller companies with limited -National teristics to the quality of the softwood lumber they buy, financial resources. Creating a niche market can be -Regional buyers rated many non-product characteristics (service achieved not only with the product, but also with spe- characteristics) as high as product characteristics. For cialized attributes and services as well. These markets • Customer Class: example, consistent, on schedule delivery was consid- “If farms and factories are the heart of industrial generally bring a price . Examples of these -Professional Home Builders ered more important than overall lumber appearance! America, distribution networks are its circulatory sys- are specialty hardwood boards for the do-it-yourself -Do-it-Yourselfers tem.” (Corey et al. 1989) homeowner market or environmentally labeled green -Light Commercial Construction Another great example of this total product concept This statement helps to show how vital distribution is products. is illustrated by up-scale restaurants. Let’s face it, a • Products: USDA grade A choice cut steak is just that, regardless to the industrial sector. Without proper distribution, -Furniture Parts of where you get it. However, atmosphere, superior products have no way of reaching the ultimate con- Market Segmentation -Windows service, and prestige might be reasons for eating that sumer. Distribution systems are organized into chan- -Plywood Sheathing nels. These channels are an organized set of institutions Somewhere in between mass and niche marketing is steak at an up-scale restaurant. The list of reasons could whose goal is to move goods from point of manufac- market segmentation. This essentially means taking the go on much further, but the key here is that the primary

2 3 ture to point of consumption. The institutions that exist Channel Strategies Table 1. Channel Length Selection within these distribution channels are known as inter- Selecting the appropriate channel strategy for your Circumstance Short Long mediaries or middlemen. products is a very important aspect of marketing. This # of Potential customers Small Large is especially true today, where competition exists even Geographic concentration Highly concentrated Widely dispersed Functions of Middlemen/Channel between alternate channels, i.e., the entire channel is a competitive unit. Some examples of different channel Order size per transaction Large $ value Small $ value Intermediaries decisions faced by organizations are shown below: Complexity of product Complex, requiring service Simple These intermediaries or middlemen serve many impor- Product quality maintenance Much control required Little control required tant functions, some of which are listed below: • Go direct or use intermediaries? • Distribution intensity? (exclusive or intensive?) Company resources Adequate Inadequate • Maintain contact with buyer • Channel ownership? (independent or captive?) Middlemen availability Inadequate Adequate • Negotiate price and delivery • Establish contracts and delivery The selected channel strategy should always match up price of a product has to include a number of variables Competitive Environment: This also relates to the • Transfer title with the overall marketing objectives in order to be in addition to just the product cost. For instance, when amount of control the manufacturer has over price. If • Provide credit/collection successful and achieve the firm’s overall goals. Choos- a load of lumber is purchased the price charged must you are operating in a market-controlled price envi- • Service product and provide other services ing the right channel strategy can be a difficult task. be sufficient to cover the following costs: the cost of ronment there is little control over pricing. High com- • Provide inventory/storage Many firms experiment with different strategies over producing the actual product, marketing that prod- petition and similar products are characteristic of this • Arrange transportation the course of time before finding the best fit for that uct, transportation, packaging, insurance, and any type of environment. This is very common in the wood particular market. They may use a different strategy for necessary taxes. It is also necessary to consider com- products industry and the case for most commodity As you can see the middleman serves a number of func- a different market. pany objectives when arriving at a price. As you can markets such as plywood sheathing and photocopy tions that the individual firm would be hard pressed to see, pricing can be a very complicated process that is paper. If you are operating in a company-controlled handle itself. This is because individual firms specialize Physical Distribution/Logistics affected by many different variables. It is important for environment there is strong control over pricing. Mod- and are experts in the specific function they perform. the individuals in charge of this task to understand how erate competition and highly differentiated products As you know, there are many channels through which The actual physical handling and subsequent delivery to account for these factors when setting a price. are characteristic of this type of environment. This is lumber and other sawmill products move on their way of products represents a significant portion of total usually the case in markets with high product differen- to the final consumer. An individual sawmiller would costs of goods. In this area it is important to keep a tiation such as specialty custom cabinets and furniture. have a tough time being an expert in all these different healthy balance between two important concepts, Total Basic Considerations markets. product concept and Total cost concept. We recall that Certainly the costs of developing, manufacturing, and the total product concept was mentioned earlier. Costs distributing a product are substantial contributors to Pricing Objectives are clearly important as well and the total cost concept the final price. It is important to realize, however, that Setting a price is also partly a function of what direc- Who are these Intermediaries? seeks to maximize the effectiveness of the entire dis- there are also some non-cost factors that have an effect tion the company is trying to take. For this reason it is The majority of these intermediaries can be divided tribution channel, rather than one piece at-a-time. No on price setting. These factors are listed below with good to decide on certain pricing objectives. This will into two broad groups. These are Agents and Mer- stock-outs may maximize service, but typically at an brief explanations of their relevance. help to clarify what role pricing is to play in overall chants. The main difference between the two is that unacceptable cost. corporate strategy. The three basic pricing objectives, agents typically do not take title to the goods they han- Price Elasticity: This relates to customer reactions to with short explanations, are listed below. pricing changes. If a change in price results in a large dle. Merchants, on the other hand, usually do take title Additional Factors Influencing Channel to the products they sell. Some specific examples are change in demand, then it is referred to as highly elas- Profit-oriented: This objective concerns profit maximi- shown below: Choice tic demand. If a change in price results in little or no zation or target rate of return on either investment or Another important decision in channel strategy needs change in demand, it is referred to as inelastic demand. sales. This is often used early in the product life cycle • Agents to be made regarding channel length. Whether or not it This is largely dependent on urgency of need and before intense competition develops and price has not Brokers is best for your company to use longer channels (mul- availability of substitutes. For example, as steel studs yet become the major focus for product differentia- Manufacturer’s Rep tiple intermediaries) or shorter channels (one or two become more accepted in the construction industry, the tion. One important consideration with this objective intermediaries, possibly direct) depends on the product demand for wood studs becomes more elastic. is whether to aim for long-term or short-term profit • Merchants and situation. Some general guidelines to aid you in maximization. Reload Centers Impact of Wholesalers and Retailers: The distribution this decision are set up in Table 1. Lumber Trading Companies/Office Wholesaler channel also has an effect on pricing. Prices must be Sales-oriented: This objective concerns increasing Wholesaler/Distribution Yard set so that members of the distribution channel for that sales and/or market share. This is often used when Industrial Distributor Pricing product can make a profit as well. In general, longer companies are trying to get a foothold for achieving Jobber Pricing is a complex process that is important to the channels afford less control over price to the manufac- long-term success through increasing market share. success of a company. Price is the amount of money turer, while shorter channels provide more control. that is charged for a product or service. However, there Status quo-oriented: This objective is simply concerned is much more involved in setting a price than this. The with meeting competition. Normally, in markets domi-

4 5 nated by this objective, there is a price leader who sets What The Industry Really Does can be done through many different types Different examples of this would be news releases, a price and the competition follows their lead. A good Most wood products companies use some form of of media. These can include: articles in trade magazines, or newspaper articles. example of this is in the paper industry. markup pricing. This has the advantage of being rela- is often achieved with new plant openings, • Radio tively simple in theory. The problem is many compa- new product developments, and recent environmental • TV Pricing Strategies nies are not sure of exactly what all of their costs are. improvements to new or existing manufacturing facili- • Magazines ties. This can be a valuable method for creating posi- Once the appropriate pricing objective has been deter- Larger commodity producers generally use some form • Newspapers tive public perception of your firm. mined, it is time to begin the process of determining a of status quo type pricing. This is normally based on • Billboards price. There are three basic pricing strategies that can industry figures from publications such as Random • Direct Mail An effective promotional program can include all or be used. These are cost-based strategies, demand-based Lengths or the Hardwood Market Review. • Business Cards any combination of the promotional mix. Whatever strategies, and competition-based strategies. Each of • Letterhead combination is selected must achieve the following; these three strategies determines price based on differ- What does this mean for you? Well, it is important to getting the correct message to the correct audience ent variables and inputs. A short explanation of each is remember that pricing practices should both fit into through the correct media. given below. and help determine overall company strategy. Setting Personal selling is a person-to-person presentation of the right price is important to the success of any firm. Choosing the Right Message Cost-based: Basically cost-based methods determine Try not to use price as the focal point of differentiation information about a firms’ products or services. This price based on the costs associated with bringing the efforts. It is always possible to add value to your prod- type of promotion is used often in the wood products Choosing the right message can be a difficult process. product to the market. These costs can be considered uct through some non-price attribute. This will help industry. It has many advantages over other forms of The first thing you have to consider is what your main from different perspectives. Three of these commonly to set your company apart from the competition in the promotion. objective is. It may be to inform, persuade, remind, or used methods are markup pricing, target return pricing, minds of customers and help create the opportunity for any combination of these. The message will depend on First, the message can be tailored to each individual and break even pricing. a price premium. the product, the buying situation, and the customer. customer. Second, it is possible to receive immediate Demand-based: This type of strategy determines the feedback. This is important because it gives company For instance, if the product you are marketing is rel- price of the product based on what the market is will- Promotion representatives a chance to become problem solvers as atively new and early in the product life cycle, your ing to pay. The price of producing the product is still well. It is in this area that skilled sales representatives objectives are probably to inform and persuade. An Any personal or non-personal communication that cre- important and determines the minimal acceptable can create a great advantage for a company. Finally, example of this would be environmentally certified or ates a favorable disposition toward a good, service, or price. However, often customer value/quality associa- personal selling is effective because people like dealing green products. An effective way of doing this could be idea in the mind of the recipient of the communication. tions and perceptions allow for a higher margin to be face to face - it helps to create peace of mind. trade shows, advertisements in trade journals, or per- (Shaw and Semenik 1985) obtained than when using a set cost-based strategy. sonal selling. Perceived-value and price/quality association pricing Personal selling has disadvantages as well. It is very This is a very appropriate definition of promotion. Many are examples of this type of strategy. This is often used expensive when examined on a per contact basis. Also, If the product that is being marketed is well estab- times promotion is misunderstood as only selling. Sell- with specialty type products. because there are only so many hours in the day, the lished and in the middle to later stages of the product ing is only part of it. The key objectives of promotion total number of contacts is limited. It should be noted, life cycle, the objective could be to remind customers are to inform, persuade, and/or remind. This is accom- Competition-based: Competitor pricing is the basis for however, that personal selling has the highest success of your company and product. Attempting to persuade plished by communicating information about a product pricing with this strategy. This is largely observed in per contact rate of any form of promotion. potential customers to switch to your product from or service that will create a favorable impression in the commodity type markets. Firms need to realize it is competitor’s products could also be a goal to gain mar- minds of the recipients of this communication. possible in this situation to create some extra value for ket share in a stagnate market. An example of this could their product and gain a price premium. They may use There are many different tools available to help com- be large commodity markets such as 2 x 4 studs and status quo type pricing where they use one of the many Sales promotion is a non-personal communication in municate this message. These tools fall into four dif- panel products. This can be effectively accomplished published wood product price lists. This is rare, how- the form of free samples, coupons, point-of-purchase ferent categories that make up the promotional mix. using advertisements in the appropriate media in order ever, because it is believed price is the sole determinant literature, trade shows, contests, etc. Trade shows have Advertising, Personal Selling, Sales Promotion, and to remind, and personal selling as a way to persuade. in the buying decision, which is not true. become a very good way to promote products within Publicity are the categories that make up this mix. the industry. They happen quite frequently and are nor- It is important to select the correct media to use for Another strategy that can be used concurrently with one mally well attended. This is an especially effective way a promotional program. The media is the connection of those discussed above is price adjustments. Basi- Advertising to introduce newer products. The yearly High Point between the audience and the message. No matter how cally this involves giving discounts on price for vari- good the message is, if it does not reach the intended Advertising is a paid form of non-personal presenta- furniture show is a good example of the magnitude ous reasons. Generally, this is done for large purchase audience it is worthless. tion of a good, service, or idea. It is probably the most some trade shows can obtain. It is attended by nearly volumes, seasonal reasons, or to compensate channel familiar form of promotion. Each of us sees hundreds every furniture manufacturer and thousands of visitors. intermediaries for covering costs such as freight and of advertisements everyday. The ability to reach a storage. large audience at a relatively low price is one of the Publicity positives of advertising. One of the drawbacks, as we Gathering information on potential markets is often Publicity includes non-paid methods of disseminating all know, is that advertisements are easily ignored. overlooked by wood products firms. This can be information about the firm, its products and services. important when attempting to determine whether cer- 6 7 tain markets are attractive for entry. Good marketing U.S. and state government sources of information in For example, suppose your firm produced customized Reference Books research can prevent premature attempts to enter a mar- Appendix 1. cabinets or mouldings. You could approach contrac- Forest by Dr. Steven Sinclair. Pub- ket that should not have been entered in the first place. tors or kitchen repair & remodeling specialists with lished by McGraw-Hill in 1992. A little bit of extra time spent up front can save a lot Locating Customers samples of your product offering. This may not result of wasted time and money in the long run. There are in a sale every time but it gets your product and name A Marketing Guide for Manufacturers and Entrepre- many sources from which this type of information can Locating customers can be a difficult process. This is circulating within the industry. neures of Secondary Processed Wood Products in the be obtained. especially true for smaller firms or new firms. Below Northeastern United States by Ed Cesa. U.S.D.A. For- are some suggestions to assist in the identification of Another method for your company would be to develop est Service publication # NA-TP-09-92. potential customers. a simple web page on the Internet. There are numerous Get Out and Look Around texts and web sites that can assist a company in pro- Marketing Forest Products by Jean Mater, S.M. Mater, One simple way to get an idea of what is happening in Word-of-Mouth and References moting their products directly to consumers. You may and C. Mater. Published by Miller-Freeman, Inc. in certain markets is to go out and see for yourself. Visit- also want to link to other sites which may assist you in 1992. ing local home centers and retailers that carry wood Have you ever gone to a certain service station to have promoting or selling your merchandise. products can provide lots of useful information. You your car worked on because a friend recommended Management Guidelines for Sawmill Operators by can observe how products similar to yours are being it? Or contacted a certain contractor to inquire about David E. Tooch. Published by University of New marketed. Discussions with store managers can also remodeling your kitchen because you liked the job he/ Summary Hampshire Cooperative Extension Service in 1982. help to gain insight on what’s selling and what’s not. she did on your neighbor’s kitchen? This demonstrates The wood products industry is changing. We face new the power of word-of-mouth. This may be an impor- forms of competition from within our own industry and Value-Added Wood Products: Manufacturing and Mar- Attending trade shows can be a good source of infor- tant way to gain new customers. To accomplish this, from other products. Plastics and steel now directly keting Strategies by Ed M. Williston. Published by mation as well. It provides an opportunity to create new it is necessary to obtain a satisfied customer base and compete in traditional wood markets. Engineered wood Miller-Freeman, Inc. in 1991. contacts and observe what the competition is doing. It develop a good reputation. Good references come from products are taking away market share from what were also affords an opportunity to discuss new market pref- providing quality products and reliable service to new solid wood markets for construction lumber. Oriented Commonwealth of Virginia Agencies erences with knowledgeable individuals. customers. First impressions are hard to change. Loyal, Strand Board (OSB) now is the leading structural panel satisfied customers will often recommend your firm to being produced. International competition is greater The Center for Forest Products Marketing and Management Trade Associations and Trade their friends. Satisfied customers may also be used as than ever. Hardwood furniture from American species references for potential customers. is being made in China and Mexico and sold back in the Department of Wood Science and Forest Products Publications US at competitive prices. Reconstituted veneers have 1650 Ramble Road - Mail Code 0503 Virginia Tech. Trade associations can be a valuable source of market Yellow Pages the potential to compete aggressively in traditional information. These exist for nearly every major wood solid wood veneer markets. Radiata Pine from Latin Blacksburg, VA 24061 product. These associations often have market analysts The yellow pages are a tool that might be used to work America and New Zealand now is readily available in Dr. Bob Smith, Associate Professor/Extension Spe- who are available to assist member companies. They both ways. Not only can it help you to locate poten- the US for many applications. Other countries recog- cialist also normally publish economic market reports and tial customers, but also it provides a way for potential nize that we are the largest consumer of wood products Phone: 540-231-5876 have newsletters with updated market information per- customers to locate you. For instance, if you were tar- in the world. American wood products producers need Virginia Department of Forestry taining to their specific industry. geting your product to local hardware stores, a simple to continually monitor and adjust their markets to meet P.O. Box 3758 turn of the pages to the appropriate section immedi- the changing needs of the consumer. Trade publications such as Southern Lumberman and ately gives you a list of potential customers. From the Charlottesville, VA 22903 the Northern Logger and Timber Processor contain other perspective, a well written ad in the yellow pages In summary, marketing is a primary determinant of Phone: 804-977-1375 useful information also. These publications generally can create a lot of business opportunities. Just think of company success. Only by properly identifying what Virginia Department of Agriculture and Consumer update prices and market information in weekly or how often you use the yellow pages to locate or iden- customers want and need on a continual basis, can Services monthly newsletters. Specific market reports or direc- tify places of business. wood products firms be successful. Competition will Division of Marketing tories can also be purchased from certain organizations. only increase in the years ahead. Those companies that Commonwealth of Virginia have a good understanding of markets and implement Direct Sales 1100 Bank St; Suite 907 a well thought out marketing program to meet their Government Richmond, VA 23219 This is a direct and effective method for finding and needs will have an advantage in the 21st Century. U.S. and state governments can be a helpful source of acquiring potential customers. It involves directly Phone: 804-786-3953 information. U.S. and state forest service agencies often approaching possible users of your product. It is often Virginia Economic Development Partnership publish market reports and offer marketing assistance effective to provide either samples of or literature about Appendix: Marketing Information P.O. Box 798 to companies. Some of the major land grant universi- your product or service. These samples or literature No one article or brochure can provide all the informa- 901 East Byrd Street ties have a forest products department that often has should be accompanied by a business card with infor- tion necessary to effectively develop a good marketing Richmond, VA 23218-0798 Extension specialists available for consultation. For the mation on how to get in touch with your firm. program for your company. A few additional sources of Phone: 804-371-0662 most part, information obtained through government information for your wood products firm include: entities is free of charge. There is a listing of different

8 9 Virginia Department of Business Assistance Directory of the Forest Products Industry The Logger and Lumberman Wood Component Manufacturers Association 707 East Main Street Miller-Freeman Publications S/K Publishing Group 1000 Johnson Ferry Road Suite 300 500 Howard Street 257 North Main Suite A-130 Richmond, VA 23219 San Francisco, CA 94105 Wadley, GA 30477 Marietta, GA 30068 Phone: 804-371-0488 Phone: 415 905-2200 Phone: 1-800-634-1261 Phone: 770-565-6660 e-mail: [email protected] Web site: www.woodcomponents.org Green Book Ç Hardwood Lumber Market Directory Market Reports and Directories Miller Publishing Co. Trade Associations U.S. Industrial Outlook for the current year. Pub- Price Reports 1235 Sycamore View National Hardwood Lumber Assoc. lished annually by the U.S. Department of Commerce, Weekly Hardwood Review and Hardwood Review P.O. Box 34908 P.O. Box 34518 Superintendent of Documents, Government Printing Export Memphis, TN 38184-0908 Memphis, TN 38184-0518 Office, Washington, D.C., 20402. Hardwood pricing information Phone: 800 933-0318 Trade Journals P.O. Box 471307 Web site: www.natlhardwood.org Standard & Poor’s Industry Surveys. This source Charlotte, NC 28247-1307 Wood & Wood Products Email: [email protected] examines industries and their environment, including P.O. Box A-3844 Phone: 800 638-7206 trends and problems. Chicago, IL 60690-9952 Hardwood Manufacturers Assoc. Fax: 800 444-2230 Fax: 312 922-3165 Suite 205, Building B Web site: www.hardwoodreview.com Regional Business Directory and Industry 2831 Airways Boulevard Web site: www.iswonline.com Hardwood Market Report. Lumber News Letter Specific Directory(s) Memphis, TN 38132 P.O. Box 241325 Pallet Enterprise Phone: 901 346-2222 Dun and Bradstreet Information Services Memphis, TN 38124-1325 Industrial Reporting, Inc. Fax: 901 346-2233 3 Sylvan Way Phone: 901 767-9126 1893-D1 Billingsgate Circle Web site: www.hardwood.org Parsippany, NJ 07054-3896 Fax: 901 767-7534 Richmond, VA 23233-4239 Phone: 201 605-6700 Web site: www.hmr.com Phone: 804 740-1567 Appalachian Hardwood Manufacturers, Inc. P.O. Box 427 U.S. Dept. of Commerce. For data on consumers, busi- Fax: 804 740-2826 Wood Markets Quarterly. International Solid Wood High Point, NC 47261 nesses, and virtually anything you can think of, the Web site: www.palletenterprise.com Report Phone: 919 885-8315 source with the most information is the U.S. Dept. of Suite 501-543 Granville Street CabinetMaker and Furniture Design and Manufacture Fax: 919 886-8865 Commerce. Publications include: Vancouver, B.C., Canada V6C 1X8 Chartwell Communications, Inc. Web site: www.woodcom.com/woodcom/ahmi/index. • Census of the population Phone: 604 801-5998 (country code 1) 380 E. Northwest Highway, Suite 300 html • Economic census Fax: 604 801-5997 • Census of housing Des Plaines, IL 60016-2208| Virginia Forest Products Assoc. Web site: www.woodmarkets.com • County business patterns Phone: 847 390-6700 P.O. Box 160 • Census tract reports Fax: 847 390-7100 Random Lengths Yardstick and Random Lengths Sandston, VA 23150-0160 • Survey of current business Web site: www.cabinetmag.com Export Phone: 804 737-5625 • “Measuring Markets: A Guide to the Use of P.O. Box 867 Southern Lumberman Fax: 804 737-9437 Federal and State Statistical Data Eugene, OR 97440-0867 Hatton-Brown Publishers, Inc. e-mail: [email protected] Phone: 541 686-9925 225 Hanrick St. Fax: 800 874-7979 Directories of Manufacturers (by state) Montgomery, AL 36104 Southern Forest Products Assoc. Web site: www.randomlengths.com Commerce Register, Inc. Phone: 800 669-5613 P.O. Box 641700 190 Goldwin Avenue Fax: 334 834-4525 Kenner, LA 70064-1700 Midland Park, NJ 07432 Web site: www.southernlumberman.com Phone: 504 443-4464 Websites Fax: 504 443-6612 Phone: 201 445-3000 e-mail: [email protected] Steve Schook’s Directory of Forest Products, Wood Web site: www.southernpine.com Science, and Marketing Encyclopedia of Associations. Provides details on over The Northern Logger and Timber Processor Southeastern Lumber Manufacturers Association Web site: www.forestdirectory.com 19,500 national associations. NL Publishing Inc. 671 Forest Parkway Gale Research PO Box 69 Lumber Quest Forest Park, GA 30297 835 Penobscott Building Old Forge, NY 13420-0069 Web site: www.lumberquest.holowww.com Phone: (404) 361-1445 Detroit, Michigan 48226-4094 Phone: 315-369-3736 Fax: (404) 361-5963 Phone: 800 877-4253; 313 961-2242 e-mail: [email protected] Lumber Trader Web site: www.slma.org Web site: www.Lumber-Trader.com

10 11 Center for Forest Products Marketing and Manage- ment Web site: www.vtwood.forprod.vt.edu/cfpmm/index. htm

References Blake, L. C. 1983. “Marketing,” What’s in a Name? Industrial Marketing (March): 110.

Corey, E. R., F. V. Cespedes, and V. K. Rangan. 1989. Going to Market: Distribution Systems for Industrial Products. Harvard Business School Press. Boston, MA.

Ghosh, A. 1988. Presentation at the 1988 AMA Edu- cators Meeting. San Francisco, CA.

McCarthy, E. J. and W. D. Perreault, Jr. 1987. Basic Marketing. Irwin. Homewood, IL.

Shaw, R. T. and R. J. Semenik. 1985. Marketing. SouthWestern Publishing. Cincinnati, OH.

Sinclair, Steven A. 1992. Forest Products Marketing. Published by McGraw-Hill.

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