Knowledge that Transforms

N SINGLE meaning can be attached to the term Definitions must vary according to the purposes to be served. Correspondingly, there can be no one best method of measuring productivity. The best measure will vary with the definition and the purpose. For this reason a meaningful discussion of productivity in distribution and its measurement must start with a clear understanding that the questions generally asked about the productivity

The formula which is set forth below rests on the assumption that an index of productivity is a ratio between input and output. Thus the basic problem is simply that of developing suitable expressions to represent input and output in distribution. A practical index should of course be one which makes use of data which are readily available. At the present rather speculative stage of consideration it is justifiable to conceive of an ideal index in relation to the objectives of measurement and leave the problem of collecting the necessary data for discussion at a later time. It is believed, however, that all of the data required could be readily obtained by various research and statistical methods.

3. Take full cognizance of the dip by withdrawing the fall-winter-spring vehicle from the airwaves for a summer period and providing no summer replacement. This usually runs for eight weeks. The networks charge a hiatus for this privilege. The penalty works out, on the average, to the time cost of about six or seven shows. Hence, he does not save the full time and talent of the eight shows he's off the air. The actual saving amounts, on the average, to the talent cost alone of nine or ten shows.

Editor's Note: This is the third committee report to be presented under the recently adopted policy of printing reports as submitted without editorial revision, after approval by the Board of Directors of the American Marketing Association.

Editor's Note: The authors explain the need for the development of marketing theory and indicate some of the sources from which such a body of knowledge will come as well as some of the directions that further work along these lines might take. The editors invite comments and papers concerning the views expressed by the authors, gaps in existing theory not mentioned by them, possible additional areas upon which theory may draw and the proper organization of marketing theory into an integrated whole.