Specific features vary from one system to another. The Ontario Cattlemen's Association has recently approved a proposal to develop and conduct a five-month trial of a computerized electronic auction for slaughter cattle in Ontario. Cooperating auction sales and commission firms at the Ontario Stock Yards will be the focal points of receiving listings to be offered on the electronic auction. They will also act as third party referee in verifying that the cattle loaded for delivery match the description of the offering, and will be responsible for resolving any disputes that may arise. This system, which has been applied in areas of the United States, involves the use of a conference telephone hookup whereby buyers phone in bids.
Sellers make consignments to a market agent prior to the actual sale.
At sale time, a conference telephone operator connects interested buyers and an auction is conducted with sales awarded to the highest bidders. Limitations and Prospects There are several conditions for successful application of new developments in electronic marketing systems. Most important is that the trade volume be large enough to permit the system to operate on an economically viable basis, so that the benefits exceed the cost to users. Also necessary to electronic marketing are organized trading rules and sanctions against those who do not comply with them. Electronic marketing may face strong opposition from established marketing channels and operators with a vested interest in keeping their share of the market.