J.T. Wassink and S.I. Wisselius
J.T. WASSINK and S.I. WISSELIUS are with the Royal Tropical Institute of the Netherlands, Amsterdam.
This is a practical guide, especially for producers, although consumers may also find it worthwhile reading. The booklet compiles the knowledge of the mechanism of marketing of tropical timber and is the result of 15 years of active study in this field. After defining what the word "marketing" really stands for, it starts to emphasize the interrelationship between marketing and management at the producers' end. It is, on the one hand, impossible to sell what the producer cannot: make, while, on the other hand, management is obliged to produce timber in type and form, quality and quantity which can really be marketed. Therefore, market research is a must.
To be able to carry out market research on an efficient basis, it is necessary to have a good insight into the whole process of handling of timber from forest to end user. This sequence of operations is then linked to the unit costs for each one of them in percentages of the price at the factory gate in Europe. This picture clearly shows the importance of each step to the ultimate price of the merchandise. Again, the relation with management is pointed out. In principle, the man felling the tree should know what the ultimate product made from that tree is going to be. If he does not, management and the marketing office should know.
Market research means in the first place scouting for information; the booklet gives hints about where to find data answering these questions: who wants what; why does he want it; when does he want it; what price can he afford; how does he want his merchandise presented; where should it come from, and of course, how much is wanted. After discussing the functions and responsibilities of the different participants in the trade (producers, exporters, agents, importers, etc.) it deals with the sales contract and what can go wrong with it. A good contract is by no means a guarantee against trouble between seller and buyer.
The study of the local timber market in the tropics is a much neglected activity. Therefore, some aspects of this market are presented. A better exploitation of the local market may have a very strong influence on the profitability of the producers' enterprise. Some mechanisms which influence the tropical timber market, such as who decides on the choice of material for building purposes, what is the influence of growing prosperity on timber consumption and the attitude of the ultimate consumer, are discussed, as well as the attitude of trade and industry toward the introduction of new species.
Much attention is paid to the role of trade fairs in the complex of marketing activities: why go to a fair, or why not, and how to act at a fair are points which are highlighted. (Also see Unasylva, Vol. 29, No. 115, "Come to the fair," by J.T. Wassink.)
Exporting semi-finished and finished products is currently coming much to the fore in timber-producing countries. The booklet pays some attention to this much desired activity, but warns against too much optimism, for there are strong socio-economic counter-forces within the potential consumer countries. The text ends with a paragraph on the possibilities of national! international cooperation between timber producers in geographically restricted areas. Psychologically, cooperation between parties that are fundamentally competitive is very difficult but, particularly in this field, much can be gained by trying.
Of the appendixes, the one containing the addresses of the most important organizations could be very useful. They are presented in three categories: United Nations and related bodies; international and regional organizations, addresses per country (Western Europe and USA) which include addresses of governmental institutions, trade organizations, institutes and trade journals.
The other appendix lists some subjects that may occur in publications on marketing of timber.
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