396
MARKETING
it can effect economies in distribution through the elimination of
the national advertising and selling expenses which are required
of a manufacturer in establishing his brands.
Seasonal mark-down sales are rarely employed except by dry-
goods and department-store chains, the effort being to move goods
immediately at a low price. The use of premiums and profit-
sharing coupons as a device for increasing patronage is sometimes
used, especially by cigar-store chains. This practice, however, is
not common for chains as a whole and is subject to serious objec
tions as a method of competition. In general, chain-store selling
methods are standardized as a result of constant study, analysis,
and experimentation by trained executives. Standardization is
apparent in the training of salesmen, window and counter dis
plays, and local advertising. “The chains have done more toward
making a scientific study of retail selling than any other retail
organizations in the country, with the possible exception of some
department stores.” 1
Personnel Administration—In all chain stores the selection
and training of employees is of vital consequence because of the
impersonal relationships between the management and the public.
Large chain systems maintain personnel departments and the
smaller chains, as a rule, adopt certain definite policies of em
ployment and promotion.
Generally speaking, the sales person is expected to be able to
master the store policies, acquire a definite knowledge of the goods
sold, and meet customers with courtesy and effectiveness. In
five-and-ten-cent stores clerks of lower selling ability can be
employed because the goods are expected to sell themselves.
Certain general principles of promotion are followed by nearly
all chains: 2
(1) A man must start at the bottom and work up.
(2) Higher positions are filled within the organization.
(3) Promotion is made on merit and not primarily because of
length of service.
1 Hayward and White, Chain Stores.
3 Hayward and White, ibid., p. 201.
