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The Columbia University Libraries reserve the right to refuse to accept a copying order if, in its judgement, fulfillment of the order would involve violation of the copyright law. Author: Mahin, John Lee Title: Advertising; selling the consumer Place: [Garden City, NY] Date: 1919 94-P)zyo3-z. MASTER NEGATIVE # COLUMBIA UNIVERSITY LIBRARIES PRESERVATION DIVISION BIBLIOGRAPHIC MICROFORM TARGET ORIGINAL MATERIAL AS FILMED - EXISTING BIBLIOGRAPHIC RECORD ■ USiN 263 M27 3 Ei 3 S 4npMH|f Mahin, John Lee, 1869- Advertising ; selling the consumer, by John Lee Mahin. [Garden City, New York] Pub. by Doubleday, Page & com- pany for the Associated advertising clubs of the world t^i91€i 1919. xxvi, 298 p. plates. 20J«-. $2^ "First edition, 1914; second edition, 1916." "References" at end of most of the chapters. 1. Advertising. Library of Congress — — — — Copy 3i Copyriglit A 445302 HF5823.M15 1916 i30gli 16-22121 tatXk. ■WW— — m —— gGT, iiicirwa iw RESTRICTIONS ON USE: TECHNICAL MICROFORM DATA FILM SIZE: 3^ *tA REDUCTION RATIO: \1x IMAGE PLACEMENT: lA (f^ IB IIB DATE FILMED: 5(^' 1^4 TRACKING # : ^ DD O O O O DD o m Q.~n OQ 0(/) ::^3 X N M "v^: .■V*' A-/ #. c': "^ ■?; ''^ '^: > ^-\*< "\' L^ 'a 'V* > in O 3 3 J^/ > in j^ % .< ^c> KQ > C Cd "o 2 i<' X ^ ^ 0(/) 5 rn 30 O m 6^ t? 4^ i^ fo I—* IS) Ul o 3 3 3 3 1" •B-O 3 I o ^ •< 30 !*«» Mr" "Is 0^^ 5*2 3 X 3 i^ si s o *< 30 M CO ror~ oo■^sl Q WAR SERyiCE UBRMqr BOOKS ARE 1 PROVIDED-Bf 1 THE-PEOPLE OFTHE UNITED-STATES THROUGH-THi AMERICAN LIBRAM I ASSOCIATIOM FOR THE-USIOF THE- SOLDIERS AND-SAILO i V\v] ^ Columbia Bnibersfitp tntf)eCitpof^eto|9orb LlJiRARY School of Business C^l) ADVERTISING— SELLING THE CONSUMER ADVERTISING SELLING THE CONSUMER BY JOHN LEE MAHIN PUBLISHED BT DOUBLEDAY, PAGE & COMPANY FOR THE ASSOCIATED ADVERTISING CLUBS OF THE WORLD 1919 ,*1 CONTENTS Copyright, lOlJ^ and 1916, by The Associated Advebtising Clubs of the World AU right, reserved, including that qf translation into foreign languages, including th* Scandinavian 3a IT Ol CHAPTER I Advertising Can Only Appeal to Free Dollars Creation of style is salesmanship — ^No one is compelled to spend a free dollar — The free dollar builds big business — The consumer enjoys being cultivated — Para- sites live on mortgaged dollars — ^Little businesses die on mortgaged dollars — Big business thrives on free dollars — The auto- mobile industry thrives on free dollars — The free dollar is the consumer's greatest protection and the advertiser's real oppor- tunity — ^Advertising makes possible small capital and reduced selling cost — ^Advertis- ing not a material substance but service to a group. CHAPTER n How Markets Benefit Both Consumer and Producer The markets based on the group — Profes- sional services enhanced by the group — 12 Ml vi CONTENTS— CorUtnuei Marketing a young man's tim^The buyer not an expert judge of intrinsic vaJues^-Sentiment is the basis of satis- faction — ^Disaster follows price competition — ^The salesman's judgment must be re- spected — ^Market control a money-making occupation — ^Publicity will correct all evils of market control — Consumers should pre- fer goods bearing the producer's trade- mark—The dangerous position of some manufacturers. CHAPTER in Salesmanship Is Service Men succeed as they are able to induce others to accept their views — ^Advertising is organized salesmanship — The most suc- cessful salesman is he who gives his cus- tomer the most service — The intelligent salesman appreciates that his responsibility does not end with the sale — The service that merchants give more attractive than the goods — Merchandise plus advice and ideas more valuable than merchandise alone — ^Advertising is service salesmanship directed at a group — ^Advertising should create desires that benefit the consumer — ^Publishers fast realizing their respon- sibility to readers — The days of advertis- CONTENTS—Con/mwcrf rfi PAGS 24 ing "mystery" and fake advertising fast passing — Censorship of advertising a nec- essary service. CHAPTER IV How THE Salesman Becomes a Producer 33 Personal salesmanship enhanced by advertis- ing — The salesman produces satisfactions — The essence of real values — Satisfactory shoes are produced by salesman as well as by shoemakers — ^Identical automobiles have radically different reputations — ^How a paper salesman made his goods more valuable — ^A dealer in ranges, with twenty- nine years* experience, learns something new — ^What a range will do, and not what it cost to produce, determines its value. CHAPTER V Advertising Is Selling the Group . . 41 Salesmanship converts storekeepers into merchants — Getting the confidence of a group is the department store idea — The group is composed of those who think alike — Groups as viewed by philosophers — Groups are really cooperative organi- zations — Cities, fast trains, publications, good examples of the group — Conven- dii CONTENTS— Confonuci CONTENTS— Confonwei iences, luxuries, and education made avail- able for aU because of groups— Member- ship in any group largely a matter of voUtion-lte tremendous proportions of certain groups— In reaching groups ad- vertising multiplies salesmanship-Out- door, street-car, and pubUcation advertis- ing — ^an appeal to a group — Sensing the keynote of group harmony brings success to the salesman and writer of advertise- ments. What the Manufacturer Owes the Con- sumer Every one is a consumer and should be a producer — ^A successful newspaper pub- Usher is an exemplary manufa^turer-A complete plan of production and distri- bution essential-What tiie consumer thinks is a merchandising factor— Con- sumer groups can be organized — The manufacturer cannot escape merchandis- ing responsibility— Unproven superiority of no value to eitiier manufacturer or consumer— A merchandising audit should be made by every manufacturer— Never trust professional work to untrained men —How to decide whetiier or not an article may be profitably advertised. 51 CHAFTER Vn What the Consumer Owes the Manotac TUBER Preference of a group creates and maintains every big business— How tiie newspaper has increased the purchasing power of tiie penny— Modern merchandising has re- duced prices— When a manufacturer gains by reducing prices— The consumer should not be too sure of reduced prices — Con- sumers should appreciate that the adver- tiser is an educator— Advertisers usuaUy reliable — ^Well-advertised articles usually tiie most valuable-The merchants who can usurp the manufacturer's functions are few. CHAPTER Vm The Tools of Advertising ..... Successful iUustrations must tell the story in less space than words — ^Ideas that appieal to the buying group must usually be given to the artist — Mechanical limitations must never be overlooked — Using words to convey ideas — Keep the words simple — The successful use of type — ^Let the master compositor work out details of layout — Building an advertisement likened to 60 67 CONTENTS— C(m I 11 '1 1 16 ADVERTISING-SELLING THE CONSUMER such, and more about how much work the new ma- chine would have saved her mother. This makes the present-day purchase satisfactory, and valuable to the buyer because it is satisfactory. The purchasing power of a dollar has been in- creased enormously by manufacturers who compete on a price basis. But price competition, without re- sponsibility to the consumer for quality, is disas- trous to both the maker and the consumer. Price competition, with full responsibility to the consumer, conserves the manufacturer's self-respect and is truly service to the consumer. But the manufacturer who lets another make his prices for him, and meets this condition by cheapen- ing the quality, destroys his own self- 5^^ respect and positively injures the consumer Prim lyy greatly increasing the cost of service to him. This is always the case where merchandise fails to measure up to a quality stand- ard. No shrewd business man defends competition based on price alone as advantageous either tq con- sumer or producer. The whole service idea of a market is destroyed unless both producer and con- sumer are benefited. Competition on quality and on service widen the market and benefit both the final buyer and the producer. Competition on quality and service is impossible without salesmanship. No salesman is required to move goods on a price basis. But expert 'i BENEFIT CONSUMER AND PRODUCER 17 salesmanship is absolutely essential where the con- sumer has to be taught to appreciate quality and where a market has to be developed and service maintained. It is the introduction of salesmanship into mar- kets that has greatly broadened their scope and has given to those who employed it the greatest degree of influence. Hence it has become almost an axiom that the man who can make sales in the market is a much more important factor than the man who produces the goods. No salesman is worthy of the name until, by giv- ing satisfactory service, he has developed a group The Sales- ^^ customers who accept his judgment as rrmn't superior to their own. Judgment ,~, • . • i • . » Musi Be Ine organization and maintenance of Respected ^^ group constitute the whole value of the salesman. With a group behind him, he has a much surer position in the market than the producer has, who must either take any price offered or em- ploy the services of a salesman. The ideal condition, for the producer, is to develop within himself the ability to get and hold a group of buyers to whom his name is a guarantee of satisfaction. The men who influence or control the market are the men who individually profit most by contact with it. For instance, the Chicago Board of Trade and the New York Stock Exchange are highly developed markets for traflSc in the public's savings. The men ~ ti I If k I I 18 ADVERTISING— SELLING THE CONSUMER who manipulate are the real money-makers. They take toll from the farmer and the maker of securities. They charge the buyer for the privilege of buying. Yet they unquestionably render a service to the general public. An uncontrolled market reflects caprice, fear, or overconfidence — all factors that retard rather than develop real service to producer and consumer. Some years ago a speculator on the Chicago Board of Trade noticed that wheat was being shipped out Market ^^ ^^^ United States, and he was sure that Control a within a few months it would be needed mM^g here to prevent famine. His purchases Occupation arrested exports. As it was, he caught Kansas wheat on its way to our Atlantic ports. Eventually it was shipped back to Kansas flour mills. Had he not controlled the market, this wheat would have been exported. Its return to us would have entailed a vast amount of otherwise unnecessary labor and expense, and would have sent the price of flour to almost prohibitive figures. A ready market which yields cash to the farmer increases his purchasing power. His day's work buys more for him than he could get by exchanging his produce for the product of another's unsupervised labor. Market control can be harmful, but only when the man in power abuses the confidence reposed in him. And if he does, he will ultimately fail. Con- trol is better than chaos, and most leaders recognize BENEFIT CONSUMER AND PRODUCER 19 that they must maintain the confidence of the group which makes their position possible. A bad man anywhere— in the pulpit, on the Publicity WiU Cor- rect All Evils of Market Control bench, in Congress, or in business — does harm. But the control of markets by men who may have no other purpose than making money benefits the pub- lic. Men who exercise power must be forced to ac- cept responsibility for what they do. Publicity will insure this. Because our markets are so large, we scarcely reaKze how dependent upon each other producers and consumers are. The processes of distribution are so involved that consumer and producer seldom come into personal contact. The middleman — the man who influences and often controls the market — sometimes exacts more than his service is worth. I believe that this condition can be largely done away with. First, the producer must recognize his responsi- bility to the consumer. . He can never do this if he considers price only. The Welch Grape Juice Company paid $10 per ton for grapes in 1897, and $35 in 1914. They have paid a constantly increasing price because they wanted better grapes, so as to maintain the highest possible standard of quality in Welch's Grape Juice. I know of farms in Iowa that are now worth three and four times their original value per acre, because their owners have been taught how to raise better i| ^ \ \ I 20 ADVERTISING-SELLING THE CONSUMER cucumbers, cucumbers that bring a higher price in the market. The H. J. Heinz Co. has gladly paid the higher price, because they can give the consumer a better quality of pickles. In 1914 Armour & Company paid nearly three times as much for live cattle as they did twenty- five years before. Railroads and packers operate on smaller margins. The farmer got the increased price. Volume explains the increased earnings which made internal economies possible. A feeling of responsibility prompts the producer to lend his name to his product, because it protects the consumer. Loyal consumer groups s/SpX- bui^t up in this way constitute the finest fer Goods Bearing the Producer's Trade- mark markets in the world, because they are controlled by the man who created them. A manufacturer can determine what his market costs him, by subtracting his sell- ing price from the price to the consumer. An underwear manufacturer who gets $7 per dozen suits pays $5 to the men who control the market if the consumer pays $12 for them. By directing how this $5 shall be spent, it is possible for the producer to exercise control in the market, to give increased service to the distributor who cooperates in the more economical plan of distribution, and to the consumer. He can do this without increasing the price to the consumer. A manufacturer who has no control in the market in which his goods are distributed is in danger, and BENEFIT CONSUMER AND PRODUCER 21 surely should find out at once what salesmanship and advertising could do for him and for his real customer. The the consumer. The consumer should and P^^Zn^^f ^^" welcome the producer's advertised ac- Sojne Man- ceptance of responsibility for quality and ufadurers ^^^ service for which he pays. As I will show in later chapters, I do not advocate any radical change in market conditions, but I do know and am sure I will prove that a distributor serves best himself and all with whom he comes in contact by concentrating on distribution. Manu- facturers who will not accept responsibility for the quality of their product, and those who fail to let the consumer know, by advertising, that they do, are giving competition a chance to manipulate mar- ket conditions, to the detriment of producer, dis- tributor, and consumer. REFERENCES ON CHAPTER II Mr. George E. Roberts, formerly Director of the Mint, and now Assistant to the President of the National City Bank of New York, has clearly ex- pounded the value of accumulated wealth to or- ganized society in an article entitled "The Invest- ment Fund." Mr. Roberts demonstrates conclusively that there would be no advantage in the private ownership of capital unless there were well-organized groups of borrowers to make use of it. The benefit to the borrowers in having access f «2 ADVERTISING--SELLING THE CONSUMER to accumulated capital in the form of "The Invest- ment Fund" is exactly the same as the individual in his dual relation of producer and consumer to organized markets. Mr. Roberts pertinently says: "If it is admitted that all the members of the community as con- sumers derive benefits from the increasing production of goods, let us now turn and see how much benefit the capitalist derives from owning the equipment. Can he absorb any benefits except in the same capacity, i. e., as a consumer? Evidently not. It is true that he will probably consume on a larger scale than his employee. He may live in a larger house, keep an automobile, travel abroad, and spend more on his table and in many other ways. But these expenditiu'es, representing consumption, in- clude the only part of his income that is devoted to himself. All the rest of it is added to the invest- ment fund, in which it is now agreed the entire com- munity is interested." Mr. Roberts will send copies of "The Investment Fund " to any reader of this book who writes him direct. In various speeches before the Interstate Com- merce Commission, 1901-1911, Louis D. Brandeis constantly inveighed against any increase in railroad rates, claiming that the railroads could increase their profits by eliminating useless motion. His book, "Other People's Money" (Frederick A. Stokes Com- pany, New York, 1914), is a most interesting study of leadership in the creation and manipulation of BENEFIT CONSUMER AND PRODUCER 23 groups in American business life during the past twenty years. Not many persons will accept at par all that Mr. Brandeis says, but the story of this man's business career is well worth the attention of every student of advertising. His optimism is re- freshing. He believes in the people, in their good judgment when facts are placed before them, and in their capacity for propei; action when the reasons are explained. He expects that new leaders will arise who will accompUsh great things for all of us by an appeal to the group spirit. Mr. Brandeis afllrms that power to dominate a grbup can be retained only so long as its individual members truly profit thereby. The following quotation is a characteristic sum- ming up of his views as to the value of markets and the effect of publicity upon them: "Every great distributor of merchandise knows the obstacles which he had to overcome before suc- cess was attained; and the large sums that had to be mvested in opening and preparing a market. Individual concerns have spent miUions in wise publicity, and have ultimately reaped immense prof- its when the market was won. Cities must take then- lessons from these great distributors. Cities must be ready to study the problem and to spend prudently for proper pubhcity work.'* Van Antwerp's "Stock Exchange from Within" (Doubleday, Page & Co.) explains fully how the control of the Stock Exchange market makes for stability and public advantage. ii t i' ■ II CHAPTER III SALESMANSHIP IS SERVICE TO EVERY human being comes the opportu- nity and the responsibility for salesmanship. None of us can achieve success without the cooperation of others. The successful parent does not say to his child, "Never do that again!" with the added inference "because I say that you must not." Instead, the wise father "sells" his ideas and ideals to his child, thereby getting intelligent and enthusiastic coopera- tion. That man will surely be a failure who will not make the effort necessary to get others to accept his views about matters on which he needs their help. None of us can be absolutely independent. To be able to get others to accept your ideas about something which benefits you (and fair play demands that you share this benefit with them) is the essence of sales- manship. Ability and ability to sell it = success. Salesman- ship is the abihty to persuade others to accept you at your own estimate, the estimate upon which you Men Suc- ceed a* They Are Abie to Induce Others to Accept Thdr Vieim SALESIVIANSHIP IS SERVICE 25 can continue to "make good." This is as precise a definition of salesmanship as I am able to frame. As appHed to merchandise, it needs only a change of terms, not of essence. Salesmanship is persuading your man to buy what you have to sell at a price which means permanent satisfaction to him and a profitable compensation for you. Advertising is organized salesmanship. As the modem shoe factory has supplanted the cobbler, Ad^ertinng ^? ^^^ ""^^ ""^ ^''''^^' pictures, type, printing /* Organ- platcs, paper, and printers' ink have given t^n.^" *^ salesmanship an impetus, a scope, and a dominion which it could never have had otherwise. Any one who has the selling instinct, and a reason- able amount of experience, can increase the value of his own service and that of the goods he handles, by just the amount of time, thought, and energy he puts into selling them. To many men the word "selling" means un- necessary inflation of prices, an added tax upon the ThiMost consumer, and taking advantage of the Successful ignorance of buyers. The trend of modern Is He Who sales development, however, is to give to ^^ the buyer more and more actual service. ih^ Most The only salesman who may feel safely ^"^^ entrenched is the one who makes sure that everything he does counts in service to the con- sumer. By adapting his merchandise to the needs of I 'I Ill 26 ADVERTISING— SELLING THE CONSUMER his trade, he can easily build for himself a substantial following, n he will study their individuaUty, he can influence the mental attitude of prospective purchasers with regard to the articles which make up his employer's stock. Unless he can do this, un- less he can create for himself a cKentele which will come back to hun again and agam, his employer can- not afford to keep him. 9bviously the state of mind of the purchaser is a weighty factor in determining the value of the article he buys. For example— the intrinsic worth of mil- linery does not change at all from year to year; but its value fluctuates constantly, because fashion, which is the mental attitude of the buying group, changes. A certain salesman sells you a hat, a suit of clothes, or a piece of furniture in such a way that it affords you a great deal more satisfaction than '^^igerd ^^^W the Same article bought from another SaleL^n salesman. Some who pretend to be sales- Appreciates i 11 .1 1 .1 That His nicu losc salcs bccausc they do not know N^End the merits of their wares. The intelligent Sale salesman knows that we all buy things be- , cause the possession of them gives us a definite kind of satisfaction; he knows, too, that lack- ing a convinced state of mind with reference to the article purchased, there can be no satisfaction. The salesman's opportunity to give the customer actual service becomes more apparent when we con- SALESMANSHIP IS SERVICE 27 sider the selling of a kitchen range, a sewing machine, or an automobile. Here he can demonstrate to the prospective purchaser that the construc- sl^e ^^^^ ^^^ method of operation of the range. Thai Met. sewing machine, or automobile will sive i, f ft' '^Mme At- ^™ economical and adequate service. In tractive the last analysis, the man who buys an 1 nan the 1 ^i 1 Goods automobile buys so many hours of pleasur- able transportation, or so many miles of dependable locomotion. It is certain that the sales- man who teaches the buyer how to use his automobile to the best advantage increases its Hfe and materially decreases the cost per hour or per mile of the service purchased. The traveling salesman who calls on dealers eventu- ally becomes a competent counsellor on merchandis- Merchan^ ^^S* financing, and trade-building. One dise Plus sees why a dealer might pay such a man Advwe and , , , , , , , , Ideas More] more for merchandise than he would pay SnMer- ^ another, and still be better off both in chandise the matter of aggregate sales and profits. Alone 1 1 • and more permanent business. The salesman has made himself indispensable who knows he earns, in positive service to the buyer, every cent he receives from his employer. He will never be laid off. Every salesman who aspires to be something more than a necessary link between buyer and seller must realize that his salary and expenses are included in every sale he makes, and that he is either a burden or a benefit to the consumer. I £8 ADVERTISING— SELLING THE CONSUMER The derk who renders the buyer definite service, and has this clearly in mind has taken the first step toward something better. Once the elements of his own service to the buyer are clearly outlined, he is fired with ambition to do just such work for more buyers — more than he can wait upon personally. This means that he soon needs assistants to whom he may delegate a share of his duties. To such men advertising appeals. They see its relationship to modern business methods. Advertising is systematized selling. Pros- pective purchasers are influenced in groups. They may not be aware that they are being reached and influenced in a whole- sale way and that the force which is chang- ing their mental attitude is accomplishing similar results with many others at the same time. In fact, the chances are, if the advertising has been properly planned, that each individual will think he has been singled out for special attention; or, better still, that he has, without outside suggestion, decided himself to do this certain thing. AdverHsing The best salesman uses suggestion in his work. He strives to leave with the pur- chaser the impression that the article has been bought voluntarily, rather than that he has been persuaded to buy. He uses advertising in the same way. He values his self- respect (the one complete satisfaction), and would refuse to lend his ability to the furtherance of AdverHsing Is Service Salesman- ship Di- rected at a Group Should Create Desires That Bene- fit the Consumer SALESMANSHIP IS SERVICE 29 . ^ any plan which would not benefit the final pur- chaser. This does not mean that salesmanship and adver- tising cannot be, or have not been, used by men who did not have the welfare of their fellow men at heart. But it does mean that the man who analyzes his work, who studies his opportunities, who desires to attain for himself the best satisfactions and to keep his self-respect will use his ability to sell (and his powerful selling helper, advertising), for the good of all with whom he comes in contact. Men who have studied newspaper and magazine advertising for the last twenty-five years note with Publishers ^^^* satisfaction the constantly increasing Fast number of pubHshers who realize that ad- TheiT]^- vertising should serve rather than exploit *to ^Srf the subscriber. Advertising space was or- iginally a by-product of the pubhshing business. The pubhsher looked primarily to the subscriber for his compensation and was concerned (1) with organizing a group of people who would take regularly and pay for his pubHcation, (2) with col- lecting, writing, and illustrating the reading matter to be used, and (3) with the mechanical, financial, and executive problems which he must handle in the course of buying paper, putting the reading matter into type, turning the presses, and distributing the publications produced thereon. For many years advertising remained a mystery to publishers. They knew there were people ready Ill III so ADVERTISING-SELLING THE CONSUMER ""'IT ■ f ^ '"-' • to buy space. But most of them believed (since the reader knows that reading and advertising mat- « ter are two separate things, the publisher ofAdvertiih being responsible for the former, and the WW advertiser for the latter) that they (the Fake publishers) had no responsibility to the sub- A.dvertising Fast scriber if the advertiser's name appeared Passing beneath his announcement. This condition was a loophole through which the unscrupulous preyed upon and exploited the reader. All sorts of fake medical, disastrous financial, and un- reKable merchandising schemes were put upon the market, and they paid — in dollars and cents — because their authors possessed a shrewd knowledge of hu- man nature, and ability to write profitable advertis- ing copy. The general magazines are given credit for being the first to "clean up." But I know newspaper publishers, in both large and small cities, who for nearly half a century have refused to carry in their advertising columns the announcement of any busi- ness in which they would not be willing to engage. Publishers and advertisers are recognizing that the complete confidence of the subscriber is the one sure foundation on which to build a success- ^^Adv^^ ful magazine, newspaper, or class publica- Hsing a tiou. Anything which weakens it reduces s^7 the publisher's capital. The reader may not be aware that his confidence has in- creased or diminished- But it is certain that depend- SALESMANSHIP IS SERVICE 31 able, trustworthy news, editorial and advertising announcements, add to confidence slowly but con- stantly, and that unreliability cuts it down rapidly. Of late even the announcements of businesses which are thoroughly reliable are censored, to make certain that they contain nothing which in any wise reflects upon their competitors. Pubhshers take the stand that the buyer's confidence in advertising as a whole cannot be held if one advertiser is allowed to discredit another. This is a very encouraging development of the service idea, a most satisfactory indication that dur- ing the coming twenty-five years advertising is to be a much more important factor in reducing the cost of production and distribution, and in raising the standard of merchandise and human service, than it has been during the last quarter of a century. REFEEENCES ON CHAPTER III Walter D. Moody's "Men Who Sell Things," 1907 (A. C. McClurg & Company, Chicago) supplements this chapter admirably. It is inspiring, informative, and practical. In "Influencing Men in Business," 1911 (The Ronald Press Company, New York), Professor Walter Dill Scott, of Northwestern University, presents the results of scientific tests which bear out the conclu- sions reached by experienced and thoughtful sales- men. Professor Scott has written several other books. All of them deal with his method of testing 82 ADVERTISING— SELLING THE CONSUMER II a! the laws of mental action in his laboratory, and the results he has observed. All are worth careful study. Mr. A. F. Sheldon has written much and thought- fully about salesmanship. He has made a sincere effort to segregate the various elements which pro- duce successful sales, and to explain the laws which govern them in a correspondence course (The Sheldon School, Chicago), which one is required to take in order to secure his text-books. Mr. Sheldon claims every sale takes place in the buyer's mind, and the processes through which his mind passes and which the successful salesman intelligently stimulates are (1) Attention, (2) In- terest, (3) Desire, (4) Conviction. Conviction auto- matically arouses the buying impulse to action, forcing the lips to say the words and the hands to open the purse strings and thus complete the sale. The Business Philosopher, published at Aera, Illi- nois monthly contains Mr. Sheldon's latest thoughts. CHAPTER IV HOW THE SALESMAN BECOMES A PEODUCEH THE retailer's heaviest cost item is for labor. The largest partof distribution is labor. The big rewards in business go to the men who can plan, systematize and manage to get the maxi- mum result with a minimum of labor. The growth of a store which relies upon its sales force to educate each individual customer will be slow, and it will be hmited by the ability or inability of the management to develop in its clerks salesmanship of the highest type. The man behind the counter should know the ad- vertising which his firm is doing; also he ought to Personal i^iiderstand the advertising of trademarked Salesman- brands, nationally known, which are part hancedhy of the stocks he sells. Many people who AdveHising ^avc Considered advertising only super- ficially think, that it limits the opportunities of personal salesmanship. On the contrary, it increases them. Salesmanship is that quality in a man which enables him to get others to accept him at his own valuation. Every leader is a salesman. He has "sold" his group, which is the constant expression S8 ''!!■■•» |-;|T;i,l:;j| Ill il! 'Pi [ 34 ADVERTISING—SELLING THE CONSUMEE^ of his power, on his ideas. Every merchant is a warehouseman plus the ability to bring to his store people who will accept his estimate of the value of the goods displayed there. Granted that what people think about what they buy is the most important factor in determining its value to them, ability to create a favorable state of mind must find a permanent place in every successful merchandising plan. Modern merchandising believes that the salesman's time is too valuable to be spent in doing work that an advertisement can do, and that the salesman who cooperates with advertising and specializes in doing those things which an advertise- ment cannot do is more efficient than the man who attempts to divide his activities. If we grant that present day business is a traffic in satisfactions, that goods are bought because the The SaUi- pm^chaser has been put in and is maintained ^du^^ in a favorable state of mind regarding SatisjMiions them, then the work of the salesman must Mence of always be regarded as productive. Real Values Consider the retail shoe salesman as a case in point. The manufacturer selects his leather and decides upon a correct design. The shoes are made by his expert workmen and shipped to the jobber, who resells them to the retailer as a result of the business-building talks of the jobber's sales- man. But the shoes have not been sold until they have been fitted to the consumer's feet. There is nothing HOW SALESMAN BECOMES PRODUCER 85 which calls for more judgment, tact, and actual ser- vice ability than does the fitting of a pair of 6-C shoes on a woman who asks for a 3-A. No matter what the customer asks for, the salesman must see that she gets a shoe which will give her the satisfaction she honestly craves. He cannot do this as it|[should be done if he deceives her in any way. A shoe that does not fit has back of it all that its maker, the jobber and the retailer can do, just as has a shoe that gives absolute comfort and s^tJ^ thorough satisfaction. The difference is Ct£ wholly a matter of salesmanship. It de- men as Well pends Upon whether or not an adjustment ^mikers between the foot and the shoe has been properly made by the intelligence, tact and good judgment of the salesman. The consumer does not buy leather or labor when she buys shoes. The essence of her purchase is satisfactory service. The consumer buys satis- faction. The salesman delivers satisfaction. This makes him a producer. Some time ago, at an automobile manufacturer's sales meeting, the president of the company said that the best salesman they had ever had, the man who sold the most cars in any given period of time, had involved them in so many difficulties and adjust- ments that he was unprofitable. Half an hour later a North CaroHna dealer was introduced by his field manager with this remark: "In this man's territory 4 :.l |.;,>l I- « ■I 1; Identical Automo- bile Have Radically Different Reputor iitma I 36 ADVERTISING— SELLING THE CONSUMER we never have any kicks, difficulties, troubles or adjustments." When it came my turn to talk I asked whether "the best salesman they had ever had" and the North Carolina dealer had handled the same model and design. Yes, the cars were the same. Had the North Carolina dealer made any changes in the cars before he dehvered them to his customers? No; he merely inspected them. It occurred to me that the difference must be in the state of mind of the purchasers. So I asked this dealer to tell me exactly how he sold his cars. His reply contained the concentrated essence of suc- cessful salesmanship, and proved that the true sales- man is second to no other factor in production. He said: "I never allow a man to take a car off my floor until I am sure he knows how to run it and meet every emergency which might arise in its everyday use. The fact that he thinks he knows how to run it isn't enough for me — ^I've got to know that he knows." In working out merchandising plans for cus- tomers I have had many conferences with traveUng salesmen and retail clerks, the object being Xr" to "sell" them on the advantage to them ff^TSl, of understanding and cooperating with Good. More the advertising plan instaUed in the busi- - ness by which they were employed, i Often I have told them stories of my own experiences. When I managed a printing office in connection HOW SALESMAN BECOMES PRODUCER 37 with a newspaper which my father and I owned in Iowa I bought all paper from one salesman, who offered me nothing better in price or quality than did at least eight others who called on me regularly. This salesman was constantly on the lookout for me when he was visiting in other cities, finding out what merchants, manufacturers, doctors, dentists, lawyers, and commission men were using in the way of printed matter. Whenever he could get hold of them he mailed me samples, which gave me ideas with which to solicit people in the same line of busi- ness in our town. Most of them had never thought of using printing, but they were pretty generally interested in the specific suggestions I gave them. I could not escape the conclusion that this sales- man's goods were worth more to me than any com- petitive article of the same quality could be, even at a much lower price. A range manufacturer who started in business by selling stoves to farmers from a wagon in which he went from farm to farm told me how he had convinced a dealer in Bloomington, 111., that price has Uttle to do with sales. This dealer was an old-time friend of his. So when he began to manufacture ranges he sent the Bloomington dealer three of them. The dealer put them in the front of the store and instructed his clerks to show them to all callers. But at the end of twelve months he had sold only one. He wrote the manufacturer that the A Dealer in Ranges mth 29 Years^ Ex- perience Learns Something New I 'ii people of Bloomington would not pay such a high price for a range. He knew, because he had been in busi- ness there twenty-nine years and had the leading store. The manufacturer went to Bloomington. mile he was in the store the first morning after his arrival a woman entered and asked to see a kitchen stove. A clerk led her to the two ranges in the front of the store. She asked the price. The clerk was about to tell her when the manufacturer stepped up and told her that she had never seen ranges like these before. He opened one of the oven doors, which dropped on hinges, and stood on it. He assured the woman that this range would be giving useful service long after she and he had been laid away. He kept telling her what the range would do. He knew that she was a good cook, for if she weren't she wouldn't be looking at such things as ranges herself. What he would like better than anything else, he told her, was to get her permission to install that range in her kitchen that day, so that she could give her husband the finest biscuits for supper that he had ever eaten. When she mildly questioned the possibility of What a having the range up in time to use it that fPeym night he ordered the stove to be deUvered Do and iVo< '^ wZ It immediately and said that he personaUy £^^^ would see that it was put up. mtn«j lu Then she remembered that she had not yet found out what the price was. He Idd her that she would, of course, have to pay HOW SALESMAN BECOMES PRODUCER 39 more for such a remarkable range than for just an ordinary one. But the difference was so little in consideration of the service she was going to get that he knew she would be glad to pay it. And she was. By using the local newspapers to bring people into the store to see a demonstration of the range in actual use this manufacturer in thirty days sold more than a carload of ranges for the dealer who had been unable to dispose of more than one in a year. I believe the best service is rendered where the salesman and the consumer who prefers to buy from him understand that it is the salesman's knowledge of what the customer needs that makes the goods he buys satisfactory. The consumer does not usually know this. Most buyers think they are using their own judgment, and they would scarcely admit that their favorite salesman knows better than they what will satisfy them. KEFERENCES ON CHAPTER IV In a two-volume work, "Principles of Economics," 1912 (The Macmillan Company, New York, F. W. Taussig), Henry Lee, Professor of Economics in Har- vard University, has defined the creative power of salesmanship in the clearest and most satisfactory manner (page 22, Vol. 1): "All those whose labors satisfy wants— all those who bring about satisfac- tion or utihties — are to be reckoned as taking part \ p J A A TVTn?'DnnTCTXT/^ GT?T T TXT/^ TTTT? /^/^XTOTTTITT?!* 40 AUVhiKllsLNu — 0£iliiiiM(jr IHbi COiNsUMJcJi in production, and are to be called productive la- borers. ... So long as a person who buys a thing or pays for a service really desires it, the labor which yields him the satisfaction is productive." These two volumes, in clear and concise English, are very easily read and wiU help you tremendously in clarifying your own convictions. Professor Taus- sig understands the group spirit, because he says (page 30, Vol. 1) ; "It is strictly true that the workers in a modem society combine in brmging about a iomt output; but the consciousness of cooperation is lost." In "Concentration and Control," 1912 (the Mac- millan Company, New York City), Charles R. Van Hise. president of the University of Wisconsm, dis- cusses at considerable length the debasing effects of price competition as compared with the splendid results which the other two kinds of competition- namely. quality and service competition-get for us. CHAPTER V « ADVERTISING IS SELLING THE GROUP GRANTED that a salesman is one who can get other people to accept his estimate of the value of the article he offers for sale (his valuation to include the value of the article itself plus the value of his service to the customer), how long do you think he will be content to appeal to only one buyer at a time? Certainly the moment he becomes aware of his ability he will want to accom- plish results in a larger and broader way. The distinction between a merchant and a store- keeper depends entirely upon the degree of sales- Salesman- ^^^^hip possessed by the former. Theo- ship Con- retically both handle goods for which there Stoppers exists a buying demand, in a location which is convenient for the purchaser. A store- keeper becomes a merchant when he puts personality into his work and gathers about him a group of people who, consciously or unconsciously, accept as valuable his endorsement or recommenda- tion of what he offers them. Sometimes a certain store draws trade from a long distance past shops where equally desirable merchandise is to be had 41 into Merchants t » ■• 42 ADVERTISINGS-SELLING THE COxNSUMER for practically the same or even less money. That is because the purchaser is definitely influenced by the prestige of the merchant with whom he is accustomed to deal. A striking illustration of this fact was afforded me one day in Detroit. I noticed that next door to a Getting the ■> cut-ratc drug store was the drug section of Confidmce ^ \^xgQ department store. In the latter I J m Group approached a saleswoman who appeared to Dep^nJerd- ^^ ^^ about average intelligence. I made store Idea a small purchase, and then asked her the price of Mennen's Talcum Powder. Eighteen cents." 'What," I ventured, "would you say if I should tell you that I can buy a box next door for 12 cents? " " That often happens. Our manager has told us to tell people that we don't know anything about the goods that are sold next door. We guarantee our Mennen's to be the genuine article, and a lady told me, a few days ago, that she wasn't going to buy any more of that cheap Mennen's, for she had used some on her baby and it had broken out with a rash, and that hereafter she will buy goods where she knows they are genuine." This is an extreme case. But it points out clearly that a department store is fundamentally and essen- tially the group of human beings whose confidence that store has won and is able to hold. We are all fortunate in being members of many social groups. Membership in the family group is c<- €€• » ADVERTISING IS SELLING THE GROUP 43 The Group Is Com- posed of Those Who Think Alike economically of inestimable value, and procures for us one of our most lasting satisfactions. As a rule we are not conscious that we belong to groups. We have never thought about it. We are Democrats or RepubHcans, Prot- estants or Catholics, we are hterary or athletic, we go in for opera or the "movies" but quite without thinking of it as a group activity. We enjoy being with and cooperating with those who think as we do. But unless we take an active part in the administration of their affairs, we benefit by membership in clubs, churches, and othergroups chiefly in that it relieves us of doing our thinking ourselves. Some philosophers, Le Bon and Nietzsche, for example, are of the opinion that human beings lose in individuality by herding in groups. Nietzsche beheved that it is impossible for two or more Viewed by humau bciugs to agree, unless one of them ^^^T ^o^i^ates the thought of the others. Le Bon outlines the process of influencing crowds as aflSrmation, repetition, and contagion. Neither one of these men sufficiently emphasizes the thought that we may enter or leave a group as we please. The man who does not interest himself in the affairs which concern the welfare of the city in which he Groups Are ^^^cs misscs much of the pleasure of being ReaUy Co- a citizeu. Nor can he give his city the operative _ /» # i • • i i» • i Organiza- benefit of his idcas for its betterment until ^'^'^ he can secure the cooperation of his fellow- citizens. He cannot truly enjoy the fruits of coopera- V:- i I ADVERTISING— SELLING THE CONSUMER tion unless he be a member of the cooperating or- ganizations. Every man should find in his own business enough to absorb the bulk of his time and creative energy. By regarding himself with relation to his own busi- ness as the trustee of a group of cooperative buyers, he can offer each member of the group better values at less individual outlay than would be called for should they buy individually. A laxge city is a concrete example of what the group idea, raised to the n*^^ power, is worth. Our transportation facilities are creations of Ciiiea, the Cooperative spirit. Twenty-hour trains ^^ubl^T' between Chicago and New York are facts turns. Good because railroad oflScials know that each Examples i • . i . • i « of the day m the year a certam number of men ^^^'^^ can be depended upon practically to charter a special train for the trip. Each passenger has the same physical comforts, luxuries, and speed that a special train could give him — ^lus a substantial saving on his ticket. Such trains are the highest development, at present, of cooperative service in steam transportation. Magazines, newspapers, and class publications offer the members of their groups definite savings. A technical engineering journal gathers and gives out to a large group of individuals who can make effective use of it, information which has been brought together by many individuals at a cost that would be prohibitive for any one member of the group. t'l Conven- iences, Luxuries, and Edu- cation Made Available for All ADVERTISING IS SELLING THE GROUP 45 Several farm papers keep scientific specialists at work on experiments, the results of which have largely increased the yield per acre and have de- creased the cost of farming. A daily newspaper delivers to one's home, for one cent, a complete canvass of the world by cable and telegraph, plus the local field, which is covered by many capable men. No one person, no matter how large his income, could afford to duplicate this information individually for his own pleasure or use. Magazines have fostered a general ap- ^^oufs^ preciation of art and have increased the abihty of artists by giving them a market for their product. A similar statement might be made with regard to the writing of books. The average of culture and refinement has been materially raised, and men have been developed to cater to those new wants. The pulling force of the group idea is that mem- bership in any group is, in practically all cases, purely a matter of volition. No man need belong to the liquor-drinking or to the tobacco-consuming group unless he wishes. He may also withdraw from either Member- ^^"P ^^ ^^^- ^^^ ^^ busiuCSS of fulfilling ship in the desires of these two groups represents an ^Hr^Ta annual expenditure of $1,800,000,000 and F^1*L^^ $850,000,000 respectively. Another group makes it possible for publishers to do a $190,000,000 business in books and papers each year. I f [ill 11 if n 46 ADVERTISING-SELLING THE CONSUMER , The coffee group drinks $300,000,000 worth of coffee annually. The butter group buys $694,000,000 worth of butter, which is more than twice yj^^ the amount spent for bread, which aggre- Tremendaus gates $300,000,000. I mention the bread of Certain gToup as morc likely to be considered ^®"^* _ compulsory. Statistics show that the total expenditure for what are considered necessities is very small in comparison with that which is paid for luxuries. When a salesman realizes how small a part his personal sales are of the total consumption of the , „ , products he seUs, he begins to see what In Reach. ^.^., ' ^ ° . " ing Groups advertismg may mean to him. No matter IftSSe"? how many assistants he may have, nor Saiemianr how he may organize and systematize their work, to call personally on the num- ber of people whom he could persuade to prefer his product to that offered by others would be impos- sible. Realizing how Httle is needed to determine a preference in the purchaser's mind, he calls on advertising to help him develop a demand for the article he has to sell. The far-seeing salesman realizes that the safest and usually the best way to go through a forest is to follow a blazed trail. He knows that human beings have been grouped in many different ways; he beHeves a group can be formed for his product and that the best way to do it is to use groups al- ready in existence if he can adapt them to his purpose. i" ADVERTISING IS SELLING THE GROUP 47 If the citizens of a small town call at the postoffice every day for their mail, they have that much in com- Outdoor ™^^ ^^^ constitute a group to which the Street-car, salesman can best appeal from a location Publication i^^ar the postoflSce. If there is a public Advertising square in the centre of town, or any other jww/ to a place at which people have the habit of ^^ congregating, the value of a sign there is directly affected by the numerical strength of the group and by the purchasing power of its individual members. A street car is essentially a cooperative unit con- tributing five cents a traveler for transportation which must otherwise cost many times that amount. Lacking the group of customers, there would be no street car. Therefore, the street-car card appeals directly to the group spirit. A newspaper or magazine is an impossibihty unless a well-organized group awaits with constant interest the knowledge which it is accustomed to receive through this particular channel. An advertisement in a magazine or a newspaper is effective in direct proportion to the degree to which it senses and touches the group idea which makes the pubHcations possible. It has been said that the success of the late Ira D. Sankey was due to the fact that he took advantage of a universal group characteristic, sensitiveness to melody, and strengthened the appeal by using in the wording of his hymns the vernacular ilC'l Ill u 'if Seming the Keynote of Group Harmony Brings Success to the Salesman and 48 ADVERTISING— SELLING THE CONSUMER of the particular group to which Mr. Moody wished to present the Gospel truths. The "Ninety and Nine" was specifically directed at sheep-raisers. " Pull for the Shore, Boys !" aimed to get and hold the attention of the citizens of a fishing village. In like manner the master salesman uses the trained writer of advertising copy and W^ of that particular medium which has ac- ^S- knowledged prestige with the group to be reached, to sweep away the barrier which ignorance, prejudice, and indifference have placed between him and a large market for his wares. REFEEENCES ON CHAPTER V The statistics quoted in this chapter and else- where in this book, unless otherwise noted, are from the "Mahin Advertising Book." This vest pocket volume contains lists of newspapers, magazines, and class papers with closing dates, circulations and maximum and minimum rates, also abridged data on Painting, Posting, and Street-cars such as a busy man likes to have constantly accessible. It is pub- lished by John Lee Mahin, New York, at $2 a copy. The "American Newspaper Annual and Direc- tory," published by N. W. Ayer and Son, Phila- delphia, at $5 a copy is a book of 1,290 pages and is the most complete presentation of practical au- thoritative advertising information available in one work. ADVERTISING IS SELLING THE GROUP 49 "Adventures in Common Sense," "Just Human," "Footnotes to Life," "War and World Government," John Lane Company, New York; and "Human Con- fessions," "Lame and Lovely," "God and Democ- racy," "Business in Kingdom Come," Forbes and Co., Chicago, are books that can be profitably read by every advertising writer. They are written by Dr. Frank Crane whose daily editorials in a syndicate of American newspapers with over 5,000,000 circulation prove that a trained advertising writer can present every-day facts in a more interesting and plausible manner than one who is without special ability or experience along this line. For supplementary reading, "The Crowd" (The Macmillan Company, New York), by Gustave Le Bon, and "Crowds," 1913 (Doubleday, Page & Com- pany, Garden City, N. Y.), by Gerald Stanley Lee, are delightfully interesting. Both deal with the group spirit as exemplified in everyday life. Le Bon says that leaders form and dominate groups by processes which he calls" affirmation, repetition, and contagion." H. L. Mencken's "The Philosophy of Friederich Nietzsche," 1913 (Luce & Company, Boston), is a digest of the great philosopher's views. Nietzsche held that "Will to Power," which is identical with Schopenhauer's "Will to Live," is the first law of Nature. Nietzsche championed individuality, and contrasted it unfavorably with the herd idea which he condemned as being the means whereby the un- i M I , t worthy are able to impose their will upon their superiors. His views are interesting because unusual. Maeterlink's "The Life of the Bee," 1912 (Dodd Mead Co., New York), is a model for every ad- vertising writer. It treats a thoroughly technical subject in a completely informing manner and in a fascinating style. The power of the group spirit expressed in the orderly and systematic activity of ap- parently unimportant individuals to accomplish really great tasks has never been more graphically described. Woodrow Wilson's "History of the American People" is a masterly presentation of the manner in which ideas dominating the action of many separate groups of colonists have finally been blended into a national spirit which, in its group-cementing char- acter, makes the American nation what it is to-day. (Harper & Bros., New York, 5 vols., 1911.) For keeping you alive to the necessity of individual action if you are to dominate your group, for de- veloping individuality which will cooperate with others and be benefited by association with them for making it possible for you to share the benefits of cooperation, I recommend the essays of Ralph Waldo Emerson. He is the fountainhead of "ginger talks" and optimism, of plans for meeting conditions as they are and making the best of them. y \: CHAPTER VI WHAT THE MANUFACrrURER OWES THE CONSUMER THERE are consumers who are not producers, but every producer is a consumer. We can- not escape being consumers. We must accept the benefits which the industry of men has provided for us. The reader of any newspaper is a typical consumer. A copy of a newspaper is waste paper as soon as it Every One Is has fulfilled its mission of telling the con- sume^and ^^™^^ ^^^ many things he wants to know. Should Be To be surc, the penny paid for the paper a r ucer ^^ wcck days and 5 cents on Sundays, plus the time devoted to reading its interesting pages, could be saved — if we beheved in that kind of economy. If we were to apply Uterally the theories of many political economists we would not be justi- fied in reading a newspaper for the pleasure of know- ing about what is going on in the world; they claim that it is wasteful to read except for the attainment of some definite, useful purpose. The newspaper is a perfect illustration of the modern idea of justifiable commerce. It deals in satisfactions. The fulfilment of a desire which can I in* * f 52 ADVERTISING— SELLING THE CONSUMER be gratified without harm to its possessor or to his neighbor is the basis of a commercial activity in which any man may honorably engage. A few moments' consideration of the desires gratified each morning by the newspaper, demon- strates how complex, intricate, and varying A ^jl5^^*!j" are the wants of human beings. To make T^per Pub- his newspaper a success the publisher has hiker Is an . •, . . i • j. * n j.i_ t Exemplary to be Constantly cognizant of all the forces Manufac' ^hich stimulate desire, change beliefs and turer customs and increase or diminish the pur- chasing power of the consuming unit. He must accurately appraise conditions and conform to ten- dencies. Yet, if he fails to accept the responsibihty of taking the initiative and assuming an authoritative stand wherever the consumer will profit by it, he will not be faithful to his own best interests. Primarily the pubhsher is a manufacturer. Also, he is a middleman, a salesman, and a distributor. His raw materials are paper, ink, and labor. His finished product is the issue of the paper, many times duplicated, which he produces every day. His mis- sion as a publisher is not fulfilled until he has put a A C vlei ^^Py ^^ ^^ paper into the hands of every Plan of man and woman who would appreciate it. ^m^^^ He has to see that the mail trains are Distribution fuUy utilized and he must conform to the limitations governing them. His carriers have to be organized and disciplined and their work must be supervised, just as is that of an army corps. WHAT MANUFACTURER OWES CONSUMER 53 Newsstands at the big hotels and depots and many minor but absolutely necessary outlets for his product must be reckoned with and adequately and persist- ently followed, in order to complete the task which he has undertaken. If your newsdealer sells out his stock so that you cannot have your paper when you ask for it, the publisher wants to know it. If the carrier sub- stitutes another paper, you do the publisher a favor by telling him about it, so that he can investigate. He does not personally deliver the paper to its readers, but not in the least particular does he avoid personal responsibility for knowing that all the organized channels of distribution are open and working smoothly, so that you get your paper when, where, and how you want it. Not until the consumer has bought, paid for, and used merchandise and is ready to buy again or to What the recommend it to a friend has the manu- rSr^ facturer completed his work. He must aUerchan- reaHze that no matter what price he gets uxng actor ^^ j^^ factory, the consumer must pay the cost of distribution. If, by reason of ignorance or indifference, the manufacturer fails to see to it that his products are distributed to the consumer in the best manner which can be devised his business will be taken away from him by a more efficient competitor. It is not necessary for the manufac- turer to distribute his merchandise to the consumer in order to fulfil this responsibility, but it is his i I 54 ADVERTISING— SELLING THE CONSUMER imperative duty to know how his products reach the consumer and to know what the consumer thinks of them, both before and after he has used them. Modern merchandising recognizes that what the consumer thinks of a product is the most important factor in determining its value and the only ba.is on which a business which depends upon repeated sales to the same people can be built. Modem merchandising avoids the extremes of making goods (1) according to the manufacturer's notion L to how they ought to be made, and (2) of attempt- ing to follow too closely the public's whims and fancies. Organized salesmanship, which is modern adver- tising, has proved that consumer groups can be Consumer ^^^^^^^^^ ^^^ ^^P^ ^^ ^ Constantly favor- Groups able mental attitude toward merchandise ^";„S. ^hich is identified by a trademark. One of the popular fallacies is that the essence of a trademark is an arbitrary symbol or a clever name, or a catchy slogan. It is not. A trademark is an anchor for creative sales work. Its value is as great as its ability to remind the consumer of all the favorable things he has read, heard, and ex- perienced in connection with it. The commercial value of a trademark increases with each individual addition to the group of people who beheve that this mark of identification will be affixed only to articles which possess certain de- sirable qualities. Its value is also enhanced in direct WHAT MANUFACTURER OWES CONSUMER 55 proportion to the intensity of the confidence of its consuming group. The manufacturer's responsibihty for knowing what people think about what he makes and for inspiring and controlling a favorable men- Manufac- tal attitude in any who may have been Cannot i^iclifferent includes a recognition of the Escape consumer's prejudices. What he might Mercharv- (in. m didng Say successfully to one person or group of ^mu^' P^^s^^s might be just the wrong thing to ^ say to another group. Let us assume that a razor made so well that it could not be improved upon were offered for sale in Germany. We are assuming not that SuT^rimity ^^ posscsscs the Same merit as competitive oS no Value articles but that it is superior. Superior- to Either . . ^ . ^ Manufac' ity IS not cuough. Doubt IS a human cTZZ characteristic. Superiority is always ques- tioned. People capable of appreciating it must be informed about it. In Germany the indorse- ment of the Kaiser would be the strongest, most far-reaching and convincing manner in which the superlative quality of the razor could be expressed to the consumer. We could not choose a worse appeal in offering this same razor to the prospective purchaser in England or France, although the men of both these countries would surely want to know about and would gladly pay for a superior razor. The story of the razor's merit would have to be presented in one way in England and in another i ■il lUf a 56 ADVERTISING—SELLING THE CONSUMER way in France if we wished to merchandise it ef- fectively. Since there is so great variation in occupation, earning power, cHmate, and taste, how is the manu- facturer to know (1) what the consumer can be per- suaded to desire, and (2) what the portion of the con- suming pubHc which he would be able to supply ought to be told about what he makes? Modern merchandising answers this question. The same broad conception of service which has made of the bookkeeper an accountant who by an analysis and charting of the past activities and results of a business can forecast its future has developed the merchandising audit. Any producer can have his marketing possibiKties appraised and charted. He can have a written A Mer- ^^c^^d made of what has been accompHshed ckandinng by the Creative sales ability of his own Should Be Organization and by his competitors. He ^^^ can know what consumers think of his Manufao- and of his competitors' goods, and to what ^'^^ extent it would be possible to increase consumption in his line. It is possible to survey and appraise market conditions and, by getting the unbiased opinion of a sufficient number of con- sumers, wholesalers, and retailers, to know the condi- tion of the market as a whole. A plan for gathering and charting this information must be carefully worked out in advance. The data must be gathered by trained investigators I ' WHAT MANUFACTURER^OWES CONSUMER 57 who seek not information which will confirm pre- conceived opinions, but the truth exactly as it is. Never ^^^, determination of such a merchandising Trust audit is as safe a guide for the manu- ''tTtf facturer as is a compass to the mariner or Untrained the actuarial table to the insurance com- Men panics. The manufacturer owes it to the consumer to make and distribute his product according to meth- ods which insure the consumer the greatest pos- sible satisfaction. The man who does not accept and fulfil this responsibility has committed com- mercial suicide. Heisleavingan opening for some one who will rise to the occasion. Two sharp distinctions must be made when we at- tempt to decide whether or not an article may be How to profitably advertised. Because purchased DTcide in large quantities and then manufactured oTmZn (i. e., so changed in form that the identity ^rtic^ and knowledge of the source of supply of Profitably the compoucut parts is lost), raw materials ^^^^ cannot be advertised as profitably, at a large outlay, as can articles of small retail value sold in packages and capable of being used by ahnost every family. Raw materials are usually bought by experts who have explored the market carefully. All that adver- tising can do here is to teach how the goods can be utilized to the profit of the purchaser, thereby in- creasing the demand; or, by constantly demon- ::'i\ ■ik 58 ADVERTISING-SELLING THE CONSUMER strating the superior quality of the merchandise, either get a preference, at the same price, over com- peting goods, or a slight increase in profit. In selling such goods, the names of all possible customers are known, and the personality of competent salesmen is usually sujfficientto thoroughly merchandize the wares they seU. There are salesmen, however, and people who are called salesmen. The man who directs a large busi- ness in accordance with certain definite principles should see to it that his customers get the benefit of them. Some form of regular communication is recommended, in the form of printed matter, between the moving spirit of an organization and the cus- tomer. The salesman should close sales; the mission- ary work usually can be done best with printers' ink. REFERENCES ON CHAPTER VI "Practical Publicity," 1906 (the Matthews-North- rup Works, Buffalo), by Truman A. DeWeese, is a "work for the advertiser, and is intended to be helpful to every man who has anything to sell and who is ambitious to enlarge the market for his prod- uct," to put it in the author's own words. The book is adequate and unusually readable. "The New Business," by Harry Tipper, treats the business of advertising both historically and practically from the standpoint of an engineer who has been signally successful as an advertising man- ager. It is published at $2 by Doubleday, Page & I WHAT MANUFACTURER OWES CONSUMER 59 Co. for the Associated Advertising Clubs of the World. [NoTE-^One of my friends wa^ kind enough to say that Professor Cherington's book covering advertising from the standpoint of the trained ob- server, Mr. Tipper's taking it up in an analytical manner characteristic of the scientifically trained engineer, and this book of mine expressing the views of the man whose whole training ha^ been in the practical work of every-day advertising procedure, gave the student the three different viewpoints that would give him the largest grasp of the subject with the minimum of time on his own part.— J. L. M.] i. WHAT CONSUMER OWES MANUFACTURER 61 r I CHAPTER VII WHAT THE CONSUMER OWES THE MANUFACTUEKR NOWADAYS everybody believes in cooper- ation and realizes how manifold are its bene- fits. Cooperation takes place within a group of persons who are like-minded in some particular; their like-mindedness makes them a group. Every group has a leader. Each one of us is a member of many groups. Membership should be voluntary. It usually is. We are often not aware that we are entering, are dominated by the aim of, or are leaving a group. Chicago's State street department stores are what they are to-day because behind each one stands a group of people who prefer its merchan- Pr^erence jj^^ ^^^ service to any other. The in- Creates dividuals who make up the group of a udns Every Chicago department store live in and out- „ ^^ side of Chicago. They are scattered over Business i-* i i i i a wide territory. But they are held to- gether by that which they have in common — a pref- erence for the manner and materials with which their wants are satisfied at this particular store. 60 < Cooperation in groups is of great advantage to each of us. Because the cost of production and dis- tribution is shared by all the members of the group, the cost to the individual becomes so small that he can have many comforts which he would otherwise have to do without. Twenty-hour trains between Chicago and New York are the last word in luxurious travel. By cooperating with his fellow-travelers in bearing the expense of the trip, eaxih passenger procures for himself the maximum of comfort and luxury. No individual, no group as small as Chi- cago's 100 richest men, could afford to buy such service as the readers of a big metropolitan newspaper, at an expense of only one cent, enjoy daily at their break- fast table. By means of expert correspondents and the cable, the telephone and the telegraph lines, the newspapers gather news of the important activities of the whole world each day. Nms-pa!^ Competent men present this information Has In- in attractive, easily understood form. pZtZ The vast expense of all this work is ab- paper. No one of these expense items could be eliminated if only one copy were printed. The fact that many thousands of people cooperate in buying this service, plus the fact that advertisers materially lower the pubhsher's cost of production gives to a single penny a purchasing power which would have been consid- ered incredible a hundred years ago. Merchan- dising Has Reduced Prices 62 ADVERTISING— SELLING THE CONSUMER Our positive needs are few. We might feed, clothe, and shelter ourselves with what we could buy Modem with only a small portion of our present living expense. Modern merchandising has not increased the cost of needs; it has reduced it, measured in terms of our earn- ing power. But it has multiplied our wants and has made us think that many of them are needs. If we were to grant that we should not have wants, that none of us is entitled to the satisfaction of any- thing but actual needs, we should have to call ad- vertising a tax. Because it does increase the number of our wants. It increases our capacity to enjoy these wants. It increases our power to understand and comprehend the pleasure of the good things of life. Present-day merchandising methods are based upon the belief that we accomplish more by acting aggressively, and that we get more by acting re- ceptively, by acting through group consciousness. By "group consciousness" I mean that something inherent in each of us which makes us want to associate with our f ellowmen, which makes us like to be with people who think and act as we think and act. The manufactiu-er who reduces his price to meet competition is not furthering the best interests of When a the consumcr. The manufacturer who seeks to enlarge his business by an appeal to the group consciousness of the con- sumer deserves the consumer's coopera- tion. He is using the method which gives most to Manufao- iwer Gains By Redticing Prices ! WHAT CONSUMER OWES MANUFACTURER 63 the consumer. Before he fixes his price such a man has had his field thoroughly and comprehensively analyzed, so that his plan of production and dis- tribution can be worked out in the light of know- ledge of actual conditions. Then he names a price which insures complete service to the con- sumer. If such a manufacturer reduces his price because competition forces him to do so, the consumer must get depreciated quality. If he reduces '^nimer^' ^^^ pTice in order to bring his product Should Not within the buying power of a larger con- Be Too . 1 .1 • 1 • 1 Sure of summg group and thus mcreases his vol- ^Pri^ ume, he makes possible internal econ- omies which confer upon the consumer greater benefit than he can obtain in any other way. The consumer ought to give preference to the manufacturer who seeks the largest possible market. Such a man is committed to the policy of per- petuating his business prestige in the market by giving better service than his competitors can give. The consumer should remember that when stand- ard articles are offered at less than their regular price a carefully developed merchandising plan is being interfered with. It's a doubtful economy to spend 10 cents for car fare and two hours' time in getting for 15 cents at a downtown store an article which can be bought at the corner grocery or drug I 64 ADVERTISING— SELLING THE CONSUMER store for 25 cents. When these price cuts are made the merchant is obliged to offset his loss by selling other merchandise at a price which more than makes up the difference. The merchandise on which the dealer elects to make up does not usually bear the name of a manufacturer, and seldom possesses the qualities which ShZdA^ inspire and retain confidence and yield predate satisfaction. The consumer should not Admriiser hesitate in choosing between an advertised ^Zr and an unadvertised article of equal price and apparently equal merit. Advertising has developed our producing and distributing machinery. It has given us. in our spare time, education and information, the value of which cannot be estimated. The merchandiser who ad- vertises is doing business on the soundest and most scientific basis. The consumer who cooperates with him is throwing the weight of his or her influ- ence where it will count for most for the common good. I am not saying that all advertisers deserve prefer- ence and the cooperation of consumers. Much ad- vertising is still unscientifically done. Some of it is a positive waste and harm. But the latter bears the earmarks of inefficiency and is usually short-lived. The best publications are excluding the unworthy advertiser. The federal trade commission is recog- nizing that dishonest advertising is an economic wHnSiie. WHAT CONSUMER OWES MANUFACTURER 65 The fact that advertising is made use of by the unscrupulous is an added reason why the consumer AdverHsers ^^^^^^ S^vc his or her hearty cooperation UmaUy to the advertiser who has established his Reliable {j^i^g^yiy beyond question. To doubt all advertisers because there have been and are imposters would be as fooUsh as to refuse to accept a $10 bill because people do occasionally get a counterfeit. Sometimes a local dealer recommends to the con- sumer an unknown competitor of a well-known, nationally advertised article which she has been using and which has won her confidence. The dealer can have only one motive in pushing an unknown against a known article — he thinks he will make more money by doing so. In this assumption he is often mistaken. Students of business agree that a rapid turnover with a small margin makes more money for the dealer than large profits and slower sales. Well-advertised goods of recognized merit move rapidly. The best dealers know it and concentrate on them. Thereby sav- ing in rent and clerk hire, and by having their merchandise move rapidly. The manufacturer who puts his name on his product must have a greater sense of responsibility for them than does the man who does not identify his wares. Every phase of this responsibility de- velops increased value and service to the con- sumer. 'II ill Wdl- advertised Articles Usually the Most Valuable 66 ADVERTISING— SELLING THE CONSUMER There are merchants who assume many of the functions of the manufacturer, by having goods The produced according to their specifications mfc^ and then backing them with their own Usurp the name. But most dealers buy from com- ^wT ^^^cial men or jobbers who are not famil- Function3 iar with the conditions under which the merchandise was produced. It is decidedly to the consumer's advantage to favor, and to back his preference by buying, only goods merchandised by a method which places responsibility for every factor of production and distribution exactly where it belongs. CHAPTER Vm THE TOOLS OF ADVEKTISING MANY books have been written about the tech- nique of advertising as a trade, . They deal with type faces, sticks, and rules, plumbago, and electric baths, copper and zinc plates, acid baths, matrices, ink-rollers, and presses, paste-pots and scissors, paint cans and brushes, wires and batteries; for these are the tools of the typesetter, the electrotyper, the artist, the engraver, the stereo- typer, the pressman, the writer and editor, the sign painter, the bHlposter, and the electric-sign man. But I shall not attempt to explain those trades, either technically or mechanically. A man who would master any one of them should study all the literature available on the subject and serve a rea- sonable period of apprenticeship. As an advertiser, an advertising manager, an ad- vertising solicitor, or as a writer of advertising copy, he will do better to cooperate with men who specialize in the various phases of advertising, instead of at- tempting to oversee the details of work which must be well done from a technical standpoint, if he is to get the best results. 67 I I KQ A Til Tl?!? 'PTC TXT r* CI?T T TMr* TTTl? rT^MCTTTVyf 17"D A few thouglits are pertinent here, however, which cannot be too frequently emphasized. Illustrations are always desirable if they tell the story in less space than words could do it, for they S,^„^^ have a wider range of appeal aiid do not laustra- need to be translated from one language hons Must , ^" ^ Tell the uito another. ^^sp^. To give a commercial artist free rein in Than Words the matter of illustration is a mistake. He should be used primarily as an artisan, to put into concrete form the ideas which the advertiser wishes Ideas That to project into the consciousness of the ttrBu^'na ^^^P* There are very few artists whose Group Must knowledge of the habits of buying groups ""^^^t is such that they can really contribute any- the AHist thing to the idea which is to go into the advertisement. Not many of them are good judges of relative commercial values. Where arbitrary spaces are to be filled with com- binations of illustration and text matter, it is quite Mechanical essential that just the right proportion, Limitations and uo more, be allotted to the drawing. jvr*k Fortunately for the advertising man (who Overlooked jg ^^^ ^^ artist). Commercial artists can be referred, for master work of this kind, to many of the splendid frescoes of Raphael and Michael Angelo, who filled in arbitrary spaces as if they had been specially made for the pictures they placed therein. A commercial artist who can get around and over the obstacles which rise on every hand in reaching THE TOOLS OF ADVERTISING 69 the group is a rare one indeed and well worth the almost fabulous sums which he can command for his services. Words, at best, are but symbols of ideas. Their value depends entirely upon the stage of develop- . ment of the group spirit. Unless a large Wo^ to group had been taught that an arbitrary ^d3 assemblage of certain letters of the alphabet transmits from one mind to another the idea which has previously been associated with this word, communication through the printed page would be impossible. For a foundation, then, we must have the group spirit. And the idea associated with any certain word must, as far as is possible, be kept the same. In advertising in the United States, it is always best to use Anglo-Saxon words, because more people Keep ike understand them than those which are of Words Latin, Greek, or other derivation. Writers of eflfective advertising copy never cultivate what is called "style." They use words only to transmit an idea effectively, without diverting atten- tion from the message itself. That is why pretty pictures and high-flown phrases often defeat the purposes of the advertiser. Suocesifvl Type, while wholly mechanical, permits ^« of of great variety of effects if skillfully handled. Many advertising men make accurate layouts specifying the sizes and faces of type they wish used. This can be done quite easily f m ii ¥: 70 ADVERTISING-SELLING THE CONSUMER by remembering that all type is now made accord- ing to the point system, i. e., seventy-two points to an inch. Twelve-point type is exactly one-sixth of an inch in depth. Most newspaper columns are two and one-sixth inches wide. In making layouts for advertising, the best plan is to indicate roughly all words and phrases which Let the ^^® ^ ^^ displayed prominently, leaving to Master the good judgment of a thoroughly skillful teSir and experienced superintendent of the Details of typesetting room the selection of the best compositor for the particular work in hand. It is manifestly wiser for the man who can- not get such cooperation to make an accurate lay- out. This is merely a matter of careful measure- ment and correct arithmetic. It is possible for a man versed in the legibility of type faces to reset an advertisement which has Building ^ crowded and confused look (and is there- at ^dtw- fore repellent rather than attractive) in Likened to f ^om 10 to 25 per cent, less space, and still BuMing a have the advertisement appear larger than House _ - ^^ ^ * " before. The architect who builds an apart- ment on a twenty-foot city lot, when compared with the old-time carpenter-contractor who "saved you money by drawing the plans himself," is an illustra- tion of my point. When advertising space costs as much as $112 an inch, the economy of employing the most skillful manipulator of type faces is at once apparent. THE TOOLS OF ADVERTISING 71 Type faces stand very little wear. It is practicable to print direct from them only on small press runs. How Type ^^ne of the larger daily newspapers print /* ^f^ direct from type. Their big perfecting ingaNews' presses require continuous rolls of paper Paper ^^^ cylindrical printing plates, which are made as follows: type set up the size of the page is locked in a form; alternate sheets of tissue and blotting paper, with paste between each, are spread over it; and it is subjected to pressure at great heat. This dries the paper impression, which is called a matrix. The matrix is put in the bottom of a semicircular mold, and type metal is poured over it. In a few seconds the metal hardens, is taken out of the mold, and clamped on the cylinders of the printing presses, which turn out papers at the rate of 20,000 or more per hour per press. The heat nec- essary to make a matrix injures the type by ex- panding it. So those who advertise in a large way in many publications and want the best effects insist on having electrotypes. The printing of books, magazines, and catalogues is quite different. Flat-bed presses are used. Usually the whole type page is electro- Ja Used in typed. To make an electrotype, a wax ^M^^m ^^ ^^^^ impression is taken of the page, . which may contain both type and illus- tration. This impression is dusted with plumbago, and put in a bath. An electric battery deposits a thin sheet of copper on the face of it. A good i t I 72 ADVERTISING—SELLING THE CONSUMER electrotype requires a bath of from four to six hours. This copper shell is backed up with stereotyping metal and a printing plate made of it. A poor electrotype generally has too thin a shell, which will not stand a long run, and is easily damaged. Drawings are changed into printing plates either by the zinc etching or the half-tone process. Wood j,^^ engravings are practically obsolete. Half- Making of tones and zinc etchings can be electrotyped, ngranngs ^^^ ^^^^ half-toucs it is often better to use the original plate and duplicates of the same. An electrotype of a zinc etching will generally stand up better under a long press run than an original zinc. An electrotype can be re-electrotyped indefinitely, but each reproduction sacrifices something in print- ing quality. Men who are familiar with this fact can easily pick out a cheap electrotype or a repro- duction from an electrotype. It shows up in the finished result, and is one of those savings which should not be countenanced. ^ Nothing will demonstrate to the average adver- tiser the fact that the best engraving and plate making house is none too good for his pur- Engrcmngs posc, and that uo moucy is saved by getting iwi^w c^^^P work so well as a trip through a well conducted shop, where he can see for himself how many processes there are where the least lack of knowledge, or of attention, would aflfect the finished result. Printing plates and types are used in advertising THE TOOLS OF ADVERTISING 73 in two ways: (1) in space in newspapers, magazines, or class publications, such as trade, agricultural, and technical papers, street-car cards, and posters, and (2) in specially printed matter, such as circulars, booklets, catalogues, and follow-up material. The blank space upon which printing is done may well be called one of the tools of trade. In con- „ , . , sidering how to get the best results, one Making the i , i • p , i -i Most of must remember the size of the space avail- ''r^"' able, the quality of paper, and the general appearance of the advertisements which will compete with it for attention, so that distinc- tion may be secured either by emphasis or con- trast. Space buying should be delegated to a man who has had years of experience in that work. You can Sj^ be sure, when a publisher's rate-card shows a complicated list of discounts, that there is a minimum rate, and always a way by which the trained buyer, who knows how to present his proposition, can get an ap- proximation of it. In buying space, plates, art work, or printing, three things should be considered: (1) the cost of raw materials which will produce the right quality; (2) cost of supervision required to get the best results with the materials and the machinery used; and (3) the cost of expert help, getting the benefit of the experience of men who have made a life study of that particular kind of work. Their cooperation Buying a Job for a Man of Long Experience III iHi 1 1 B' 74 ADVERTISING— SELLING THE CONSUMER is valuable and is not always included in the service offered you by the lowest bidder. ■^ A prmter who will cooperate with you in a sym- pathetic and intelligent way, understanding the 'H^ u, P»^ose of your printed matter. wDl save Get Good you many times the differences between nnmg j^^ higher price and that of the cheap printer who seeks your patronage through competi- tive bids. If you will frankly state to a competent and trustworthy printer the outside figure you can spend for a specific piece of printed matter, he can save you money in many ways. For example, presses and paper of certain sizes work best together. The big item in printing is the press work and paper. With rapidly moving presses, unless the distribution of the ink and the handling of wet sheets, after they are printed, is carefully [watched, the result will be unsatisfac- tory. Sometimes a catalogue just exceeds the postage limit a^d has to have an extra stamp on it. A „^^ printer who is accustomed to working with Bcjore the advertiser would have foreseen this, \rJr. and would first have made a dummy, on ing Printed specially Selected paper, so that the full amount which Uncle Sam will carry for a specified sum would go into the book itself. The few cents needed for a better quality of paper, which weighs less, would mean a large saving. If a postage expert should make a careful analysis THE TOOLS OF ADVERTISING 75 The Postage' ' saving Ex- pert a Coming Profession of the amount of money spent for postage during the year by some of the large and some of the small commercial houses, no doubt millions of dollars' worth of waste would be discovered. The postage expert is an unheard-of factor in business as yet, but the future holds out splendid prospects for such a profession. Much might be said about various qualities of paper stock and printing inks, and about the rules for Paper Contrasting and combining colors. Whole ^PHnti^ books deal comprehensively with these sub- Inks jects. Trade papers are continually publish- ing elaborate treatisesonpaperstockandcolorprinting. Just in this wealth of information and argument lies a danger for the advertiser. He may be led off into the by-paths of advertising procedure, into investigations and discussions which may be pleasur- able and interesting, but which have little to do with effective merchandising and distribution. The general rule for the use of words applies also to paper stock and colors: the consumer's attention must be gained, but without his being so P^ fully taken up with the manner of expres- Stocfc and sion that the advertiser's story is minimized Thi^nst or lost. This is the danger in using strik- E^hUL ^^S effects. There is fierce competition Itsdf for the advertiser's money, and in making *Sto57 any decision he should keep this test upper- most: Is this the tool which will most adequately interpret my thought? kl m 76 ADVERTISING— SELLING THE CONSUMER Brains and common sense in seeking the reason for Greau^ the rulc instead of following the letter of the law, might be listed as tools of ad- vertising. They are as essential to sat- isfactory advertising service as they are to any other kind of service-^no more and oS M Advertising Tools Are Brains and Common Sense no less. REFERENCES ON CHAPTER VIII The newest and most effective tools of advertising are graphically and intelligently described in the printing-trade papers: The Amerwan Printer (New York), Tk. PrinUng Art (Cambridge, Mass.), and the Inland Printer (Chicago). * 'Making Type Work," published by the Century Co., (1916) is the title of a most interesting book by Benjamin Sherbow. Every advertising man needs it. Theodore Low De Vinne has published two books, "Plain Printing Types," 1900, and "Correct Com- position," 1901 (The Century Company, New York), which should be in every advertising library. A particularly delightful and inspiring book is "Printing in Relation to Graphic Art," 1903 (The Imperial Press, Cleveland), by George French. Many books concerning the various technical phrases of plate-makmg and printmg are advertised in the trade papers. Frank Alvah Parsons' "Principles of Advertising Arrangement," 1912 (the Advertising Men's League of New York City), contains valuable information THE TOOLS OF ADVERTISING T7 for those interested in the different phases of adver- tising display. The book is a series of ten lectures which treat in a technical manner the most important factors to be considered in building a successful advertisement. Two chapters devoted to "The Use and Abuse of Decoration and Ornament" are par- ticularly worth while. Harry M. Basford has written a valuable book, "How to Estimate on Printing," 1913 (Oswald Publishing Company, New York). Good printers, like good lawyers and good doctors, are willing to tell their customers all they want to know. The reader will have more respect for good printers and the work they do after he has finished Mr. Basford's book. ' The "Graphic Arts and Grafts Year Book" (Graphic Arts Press, Hamilton, Ohio) contains the latest examples of color and process printing of all kinds on every variety of paper stock. Invaluable to printers. t ■I I II M I? !». CHAPTER IX ADVEKTISING MEDIUMS THE group spirit creates the advertising me- dium. To think alike, people must contin- ually receive through the same channel new impressions of ideas which m themselves may be old or new. Leaders of groups persistently reiterate and confidently affirm. They find that all the ways and means of accepted advertising procedure con- stitute the best method of "selling" their ideas to their respective groups. Some mediums have greater prestige than others. By "prestige," I mean that standing which an or- glnization or a man mu^t have whose ^^r"^ statements are accepted with Httle or no Medium question. of Greatest c* ii • .1 •!• i« • Prestiae buppose that you are on the mailmg list of a bond house, and are also a regular reader of a daily newspaper, a subscriber to a monthly magazine, and an illustrated weekly of national cir- culation, a daily patron of the street cars and an unintentional though by no means uninfluenced observer of painted bulletins. Suppose that the bond house sends you a circular, 78 ADVERTISING MEDIUMS 79 and that precisely the offer it makes you appears in your newspaper, your magazine, your illustrated A Case Weekly, in street cars, and on bulletin inPoird boards. Which will make the greatest impression? If your purchases from the bond house have been profitable, the chances are its circular would have the most prestige. Had you been indifferently served, or had you later found out, or thought you had found out, that some other house would have given you the same security and a better rate of interest, or if you had never made an investment of that sort and knew nothing at all about this bond house, save through the circular, it would be the least effective of the mediums reaching you. "*But if you were in position to make an investment when you get the circular, but had never heard of the bond house, it is certain that the advertisement in your favorite magazine or in your daily paper would have given to the circular a prestige and in- fluence which it could not possibly have had without this additional support. Prestige, therefore, is either the cumulative result of the best type of advertising, or it is a reinforce- g^yi^ ment of a previously created confidence in Space a medium in the minds of the individual cX/w7 members of the group which makes the Analysis jQe^jjum possible. Because of competition among men who own and control advertising mediums, it is wise to analyze !■• ti # The Intrinsic Value of Mediums and Aggressive Salesman' skip GA A Ti\n? "DTTCTXTr' CI? T T TNir' Tm? r'mvrcTTTvyn7"D oO AUYJl«±tlloUMvj — ^DlJiljJLJiN Ij lilJJi v^UiNoUMJlilt and weigh •carefully before^uymg'spac;; Many delicate factors have to be considered in determining which is the best medium, or the best selection from a number of mediums for your particular business. The keen observer will also discover a disparity between the intrinsic value of mediums and the aggressiveness and convincing power of the personal salesmanship which represents them. For many years newspaper pub- hshers throughout the United States sold advertising space to patent-medicine houses for less than cost. They thought that to get money for space they had to fill anyhow, was like finding it. Skillful salesmen placed these remedies in drug stores and then made space contracts for from one to three years with publishers. Increased enlightenment on the part of the publisher has just about put an end to tliis kind of business. Many of the best and strongest mediums are rep- resented by salesmen of the true service type — men who will not sell the advertiser space unless ^'^J^ they are sure that the nature of his business «nMiveqf and his plans for "cashing in" on his adver- a Medium ... ,., .n , ■ i i ■ .1 Is an tismg expenditure will be acceptable to the ^ fSt"^ readers of the medium for your particular In contrast to this position we have that of a number of splendid advertising mediums which are undersold. The publishers take the ground that it is undignified to send out men to persuade the ADVERTISING MEDIUMS 81 advertiser to use their columns. With still other mediums the personal salesmanship of the adver- tising representative is the most interesting, aggres- sive, and valuable service which the advertiser buys. The first thing an advertiser has to do is to fix clearly in his mind the characteristics of the partic- ular group to which his story will most One Large logically appeal. In some cases this group p,/ may be numerically smaller than that ^«r^ reached by the advertising medium. Then Groups it is wise for him to consider whether he will concentrate on one medium that has prestige, even though he cannot expect his buying group to consist of more than a small portion of that which creates the medium, or if he shall use several units reaching groups smaller than that which he is creating for himself. This is the problem which retail stores in big cities can never get away from. Shall the proprietor con- centrate his appropriation on one publication, know- ing that he could not possibly serve all of its readers if they should come to his store? Or shall he scatter his appropriation among several daily newspapers, knowing that from each he can gather a certain number of individuals most susceptible to his oflPers, just as with a magnet one can pick out from a tray of ashes and iron filings every particle of metal? If some one medium dominates the whole field, he must decide whether he will make his business con- o% A-LI V Tilt 1 i&liN vj — l3l!iliiiiJ>Hjr lilHi L/UiNoUiViriXt form to the characteristics of the group which con- stitutes the medium, or if he will make selections from various groups and build up a following of his own. The problem is intensified as soon as mail-order advertising and national advertising are taken up. But I shaU consider these subjects in a later chap- ter. The mediums which are recognized as worthy of every advertiser's consideration are listed as foUows: Newspapers, Magazines (popular, technical, trade, and class). Street Cars, Posting, Painted Bulletins and Walls, Electric Signs, Window Displays, Store Dem- n, onstrations. Sampling, House-to-House l>i^eru Canvassing, Form Letters and Mailing Used in Cards or Circulars sent to lists of names, Advertwng Novelties, such as Calendars, Blotters, and the like. What the newspaper gives us, no matter where it is published, is news. By "news" I mean a record of things that happen to people. They in- terest us because we are human and they might happen to us, too. The newspaper is ephemeral. Its mission is ended when it has been read. Its life is over when the next issue is on the market. It is as hard to find yesterday's newspaper as it is to remember who was the last vice-president. Two distinct classes of advertisers, differing radi- caUy in character, find the newspaper their best Group of Advertisers Who Find Newspapers the Best Medium ADVERTISING MEDIUMS o3 avenue to a market. First of these is the retail store. In order to pay such constant overhead expenses as interest on capital, rent, Newspaper salaries, insurance, etc., it must do a busi- l^^iXng ness every day. The daily paper is the the Local ideal medium for getting the consumer to come to the store for a definite and specific purpose, a purpose which, if the truth be told, the advertiser has put into his or her mind. The other class consists of those of whose business timeliness is the most conspicuous feature. The newspaper is the best medium for satisfying pt,^^^ occasional, temporary, and emergency busi- Medium ncss needs. The want columns of a metro- Sai^ying politan newspaper show up human nature Immediaie ^^ ^^^ j^^^^ unsettled statc with relation to Needs business. It may seem paradoxical that the best publication for estabHshing a strongly en- trenched department store is also the most com- petent medium for the man out of a job and the employer who needs more help. In the "want ads" the man who has old clothes to sell can most speedily convert them into cash. There rooms are rented and roomers find new quarters. If you never have spent a couple of hours in reading the "Want Sec- tion" of a Sunday newspaper, I recommend it. You will get more thrills out of it and more things to think about, more sideHghts on human nature, than are to be had in the same time in any other way. In the "want" columns and in the daily announce- 'Ill II 84 ADVERTISING— SELLING THE CONSUMER ments of the department store the best appeal to the group which constitutes a newspaper must always be foremost — the timeliness of to-day's presentation and the necessity for immediate action. This is the general practice of the most successful advertisers. Men who sell advertising space in magazines of which fiction is the important feature will tell you Fiction ^^^ there is a universal demand for such Magazines literature; and that it is when you are Advertising relaxed and reading a magazine that you Medium ^^^ most ready to receive new ideas. It is noteworthy, also, that a fiction magazine may be read at any time, now or several months from now, with equal pleasure. The advertiser whose goods can be sold all over the United States is urged to use national fiction magazines, because, having a permanent story to tell, he reaches the public at a time when it is most likely to grant him consideration. Many producers have built up a large business in this way. Some successful magazines, particularly our na- tional weeklies, combine the "pulling" points of mag- azines and newspapers, i. e., (1) their fiction National IS of such quality as to be worth keeping ^Z^^r' ^^^ future reading, and (2) timely features Combina- are dealt with more thoroughly than the paper and newspaper can treat them. Magazine Advertisers classify technical, trade, and class publications as magazines, for the reason that the groups to which they appeal are not ADVERTISING MEDIUMS 85 confined as to locality; they have subscribers in every part of the United States. A number of technical magazines are really trade directories. TfSJn^ The last issue of any one of them may ClatiPub- justly be regarded as a complete and up-to-date manual of a trade which may cover the whole United States, with representatives in almost every city. The same statement might be made concerning class papers, although sectional lines are more clearly drawn in this field. Farm papers are usually listed as class publica- tions. Some of them have a national scope but deal with but one industry, such as horses, cattle, or poultry breeding. Others take up the detail of soil, climate, and the gen- eral conditions of the principal crop of the particular belts or territories they cover. The latter are really the trade papers of over six million American farmers. Each one of these farmers operates a farm large enough to be properly regarded as a business unit, a separate producing and merchandising establishment, as well as a consuming unit, connected with many different consuming groups. In determining the value of class publications, editorial prestige, the censorship of the advertis- ing pages, the circulation of the paper, J^e a its prestige and subscription price, whether « S^i. or not the sale of subscriptions is stimu- lated by offermg premiums — and if so, what kind of premiums — all these are factors which Farm Papers, the Trade Publication of a Oreai Class .M I 86 ADWRTISING-^SELLING THE CONSUMER the advertiser who uses their space should consider seriously. This large number of all kinds of publications gives the advertiser ample opportunity, and, as is al- ways the case where opportunity is large, the respon- sibility for discrimination is increased exceedingly. REFEEENCES ON CHAPTER DC . In "The Art of Newspaper Making,*'' 1895 (D. Appleton & Company, New York), Charles A. Dana, one of the greatest American journalists, has given us his ideas about writing copy for and publishing a paper. He gives standards for discrimination. \ "The Autobiography of Benjamin Franklin,'^ 1902 (Houghton, Mifflin & Company, New York), gives the reader a very good idea of the status of adver- tising in his time. Franklin foresaw the tremen- dous development of advertising mediums, and his pioneer work in system may well be regarded as the foundation of modem and scientific management. "Astir," by John Adams Thayer, 1913 (Small, Maynard & Company, Boston), is a frank revelation of the ways of magazine publishers, their ideals, and their methods. If the book contained nothing more than his correspondence with Mr. Frank A. Munsey, who gave us the low-priced fiction magazine and has so largely influenced the history of pubHshing in the United States during the last twenty-five years — it would be worth careful reading. !F CHAJPTEIv X ADVERTISING MEDIUMS (Continued) THE standard street-car card is eleven inches high and twenty-one inches wide. Many manufacturers and retailers favor this form of advertising because it gives them a chance to re- produce their package in its original colors. Street-car advertising is peculiarly suitable for continuous advertising, because the cars run every streeuar day in the year. They follow the arteries Advertising of trade. The number of cars run on any Analyzed . ,. . . j • . e ±. j.i_ given Ime is mcreased just as last as the number of patrons increases. More people means more cars, and that means more publicity for car cards. The longer the haul, the more time the traveler has for reading these cards. Several different cards may be run by the same manufacturer at the same time. Many advertisers The Use, "^e as many as six at once, with sixty words ChscHn^, on each. Some favor the poster idea and Cost of . , . * . i . • Street-car where large type for the name or suggestive Advertising pictures with the trademark prominent keep alive impressions previously made in the con- sumer's, mind. Others rely whoUy upon text to 87 I 88 ADVERTISING— SELLING THE CONSUMER clearly explain an article's merits and deftly arouse the buying impulse to action. The advertiser is given a list of the numbers of the cars in which his cards are appearing. Check- ers visit the barns to verify these lists. Cards are changed once a month, usually. Pasting sheets of printed paper on walls, the sides of barns, and on specially prepared boards is prob- ably the most elementary form of adver- rw«ner7^ i tising. Time tables tacked up in railway ^odem stations, notices pinned or pasted up in post-offices, the bulletin boards on which most large institutions make announce- ments — these were the forerunners of modern bill- posting. Circus and theatrical attractions, recognizing the power of color with the public, and desiring to create an impression of bigness, kept increasing Evolution the size of posters. In this way the 8- Twmt^' sheet, the 16-sheet, and 24-sheet posters four Sheet of to-day Came about. In an early day ^^^^ it was possible to print only one sheet, 28 X 42 inches, at a time. It had to be sent through the press once for each color; so a 24-sheet poster meant a great deal of detail work in design, me- chanical execution, handling in the printing offices, sampling, shipping, and in finally placing it on the boards. Presses have been increased in size so that a much larger sheet than 28 x 42 inches can be printed ADVERTISING MEDIUMS 89 at one time, but this arbitrary size (28 x 42) is the unit of measurement in referring to 8 sheet, 24 sheet, and other sizes of posters. Posters are still lithographed one color at a time, which requires running the sheet through the press once for each color. Colored process work on posters is possible and it has been done, but it has not come into general use. A process poster seems to lack the color "punch" an ordinary lithographed one has. It suffers in comparison with others on a billboard on which each poster must compete with all others for attention. Billposting has been standardized in the United States. In about four thousand towns and cities there are regular plants which maintain Billvoshng i % m .« i»iii» • • Sermcecui Doards of uuiform height but varymg m staridardr width to accommodatc oue or many posters. tzed in Multiplying 28 inches by 4 to get the height of a 4-sheet poster we have 112 inches or 9 feet 4 inches as the height of the standard 4-8-12-16-20 and 24 sheet poster. Allowing for border, trim, and lap-over, the posting surface is about 9 feet in height, so a board must be at least this height to accommodate a poster. Billboards are as a rule 10 feet in height to permit blanking space above and below the posters. In large cities property owners get high rents for the ground on which the boards stand. This results in a list of special locations for which a higher rate is charged than the regular standardized price per sheet. United States ill 90 ADVERTISING— SELLING THE CONSUMER A billposter agrees to furnish a list of locations on which posters have been placed, and to keep them in good condition for thirty days. The advertiser fur- nishes from 10 to 20 per cent, more paper than the actual number of locations require. Since it is nec- essary to renew paper every thirty days, a month has become the basis on which billposting is usually sold. Some advertisers post continuously, but change the showing once a month; others post alternate months; still others post one month in the spring and one in the fall. Some use posting only when they want to introduce a product. Billposting boards usually differ from bulletin boards only in that posters are pasted on the former and on the latter the advertisement is painted. A painted bulletin is usually twenty-five feet long and made of galvanized iron, and sold on a twelve Painted months' Contract including one or two BvMim repaintings. Rents for locations average higher than for billboards, because the contract runs for a longer period. In very many cities painted boards or walls dominate the most populous centres. Advertisers who want to create an impression of permanence usually prefer paint to posters. In height some city bulletin boards are 8 feet, a greater number are 12 feet. By far the largest num- ber are 10 feet. On boards now being built, the present tendency is toward boards 12 feet in height. Buffalo is the only large city I know to build bulletin boards 8 feet high. ADVERTISING MEDIUMS 91 This was required by municipal ordinances. The sign people in Buffalo have evidently been able to discover some way to evade this law or have it re- pealed, as I understand they are erecting higher boards in the former 'districts where all boards over eight feet in height were prohibited. The cheapest and most effective outdoor paint- ing is on outside store walls, if locations are available. Successful advertisers usually go into a city, buy a well-distributed wall showing, and sup- plement it with painted bulletin locations wherever walls are not to be had. Walls are painted once a year. The minimum price is 5 cents per square foot. At that rate, a 20 x 40 foot wall costs the advertiser $40 for a twelve months' showing, this to include the cost of designing and painting. A 10 X 25 foot painted bulletin, being a selected location as a rule, is considered to have the same „ „ ,. J attention value as an 800-square-foot wall. BvUehns and ^ Walls Forty cents a month per running foot, or eight feet high, means that a bulletin costs twelve times as much per square foot as a wall. But the 250 square feet of space in a 25-foot bulletin is usually considered equivalent to 800 feet in a wall, if one takes into consideration the better location, that the bulletin is painted twice a year, and that its smoother surface makes finer pictorial work pos- sible. A 32-sheet poster, at 20 cents per sheet a month. il 92 ADVERTISING-SELLING THE CONSUMER costs $6.40. It is generally compared with a 25-foot bulletin, as it occupies about the same The Com- space and costs $10 a month. A poster ^oTlf costs $6.40 per month, plus the cost of "^°^" paper, which will vary from 40 cents to $1 '"Faifd" each (in minimum lots of 1,000) plus the cost of expressage. The cost of paint and paper is so nearly the same, therefore, that competition is keen wherever they are handled by different inter- ests. In a number of prominent cities, notably Boston, Cleveland, Detroit, Seattle, Portland, San Francisco, and Los Angeles, paint and posting interests are identical. The tendency of advertisers generally is to use paint for twelve months' showing and paper for all shorter periods. Electric signs have become an important feature of outdoor advertising in large cities. It is difficult for some people to believe that a chewing- ^S^ gum manufacturer, for example, can afford to pay $18,000 a year for an electric sign showing the full length of Broadway from Thirty- third to Forty-second Street. This is less than $50 a day, and it may safely be said that at least 200,000 people, each having money enough to buy chewing-gum, see this sign every day. This completes the list of mediums for which a national service has been organized. It is possible for an advertiser to get accurate information about all these mediums in one office, and also to contract therefor dependable, easily verifiable service which f 1; ADVERTISING MEDIUMS Ho will be billed to him monthly, and may be paid for with a single check. There are other advertising mediums which are quite generaUy handled in the advertiser's organiza- tion. Window displays can be purchased from houses which make a specialty of preparing them. But it is always wisest for the advertiser to have ^^^ his own men put them up. A vast amount of lithographed material sent out to dealers is wasted. They store it, temporarily of course, under the counter; and very often it gets no further. Sometimes it is never unpacked or brought up from the basement. Window display costs anywhere from 25 cents to several dollars per window. Before he undertakes this form of advertising the manufac- turer should be very sure that he has a comprehen- sive workable plan which will positively put his material in the window. Food manufacturers frequently use store demon- strations to introduce a product. The demonstra- Suyre ^^^ should be capable saleswomen who Demonstra- can take cuough orders and make enough ^ direct sales to practically pay their way. Some retailers object to demonstrations, declaring that they divert attention from the regular stock. The average grocery store serves less than one hun- dred families. Actually, the average is only a little more than sixty. Unless the demonstrator does pay her way in sales, the publicity is very expensive. 4 SampUf^ 94 ADVERTISING— SELLING THE CONSUMER Sampling is also favored by food manufacturers. A crew of men, in charge of a dependable super- intendent, gives samples direct to house- wives, or hands out coupons redeemable at a grocery store either in full or part payment for a package of the goods being advertised. The manu- facturer allows the grocer full credit, in lieu of cash for goods, for all coupons redeemed before a cer- I lift ill uciLe. Eause-to- Housc-to-house canvassing is an exten- house sion of the demonstration idea. The can- anvaanng y^gg^j. frequently makes direct sales to the housewife and turns them over to her grocer. Some- times the canvasser goes out with the grocer's order boy, gives a talk about the goods at each stop, and makes direct sales. Form letters, mailing cards, and folders have played a considerable r6le in advertising, and are p^y^ still used by many advertisers. They are {^*» expensive when one considers the number Ju.CLUl7lQ Cards, of people reached, because Uncle Sam does Folders ^^^ make a discriminating rate in favor of printed matter of this kind, as he does for news- papers, magazines, and periodicals which travel as second-class matter. Very often advertisers go to a dealer, sell him a bill of goods, and get the names of his customers and prospectives. The manufac- turer believes he can demonstrate to the customer the merits of his goods more quickly and accurately than the dealer can. He also believes that the ADVERTISING MEDIUMS 95 I Printed Matter Used to Assist SalesTTien literature he sends to these customers influences and reinforces the dealer's attitude toward his product. Mailing cards are sent out in advance of salesmen calling on the trade. They also announce changes in price. A number of wholesale jobbing '^"^T" houses get all orders from dealers through the mail. Such houses get out a catalogue at least once a month. Many jobbers an- ticipate the calls of their salesmen by work- ing the trade by mail, hoping to get a small initial order, or a request for a salesman to call. Others send out printed matter, to keep up the dealer's interest during the interval between the salesman's visits. The use of calendars and novelties is quite a different but very popular form of advertising. Calendars Theoretically, the value of the calendar, and or pocketbook, or knife, or blotter, with the NoveUies advertiser's name on it is that because it is a useful article, it wHl keep the advertiser's name con- stantly before the user. The truth of the matter is that few men could tell you the name which is on the blotter which they have been usmg every day for a week. The best novelty salesmen do not use the "Keep your name before the public" plea, for they know that the advertiser can get this service else- Ideas^Used where for much less money. The plan most %d^Mn ^^^^ ^^ ^^ ^^^ ^ banker, for instance, how he would like to have fifty men who had never been in his bank, all of them desirable patrons. l! \i 96 ADVERTISING— SELLING THE CONSUMER come in to see him and accept a favor from him, at a cost not to exceed twenty-five cents each. The first time it is presented, this proposition is very tempting. The salesman shows a reproduction of a beautiful picture, explains that he will have it made up in a handsome calendar, and hands the banker a copy of a form letter which has been successful in other places. It invites the recipient to stop at the bank some day, when he is going by, and get a calendar that has been set aside for him. The salesman cautions the banker to write the man's name on the envelope before he comes in, so that he will be sure to know he is getting something which has been especially re- served for him. One cannot say this is not successful advertising; and for certain Hues of business it seems the cheapest and quickest approach. Novelty salesmen who want to build a permanent clientele are most concerned about how their cus- Addin t^^^^s use these novelties. Suppose that, Value to having given a clerk a strong sales talk m which he emphasizes the chance to de- velop selling ability by making every effort to sell the article which the salesman has just sold the proprietor, the salesman hands the clerk a pencil and tells him to use it writing out orders. Every time he uses it, that pencil reminds the clerk of that sales talk. To merely hand out the pencil, as if the salesman himself considered it of but little value, would be sheer waste. Calendars and novel- ties should remind the recipient of a forceful sales f I l|. ADVERTISING MEDIUMS 97 talk; when they do, they have a sentimental value quite apart from and beyond their actual cost. SHdes for motion-picture houses are worth while for local merchants who have the exclusive sale of a . nationally advertised brand of goods for j^ure their own city or a restricted community. Slides Attempts have been made to organize the motion-picture business, so that slides might be sold on a national service basis; but very little headway has been made. REFERENCES ON CHAPTER X There is plenty of literature about advertising mediums. Publishers and space-owners are contin- ually putting out books that deal with one or an- other phase of the subject. Much of this material might be classed as special pleading. Too much of it extols one class of mediums and condemns all others. Especially noteworthy is "Selling Forces," 1913, by the Curtis PubHshing Company. It covers a broad field and is a comprehensive and authoritative treat- ise on the whole subject of advertising. For practical suggestions and methods, see "Poster Advertising," 1910, by G. H. E. Hawkins, Chicago; also "Newspaper Advertising," 1914, by the same author. Henry S. Bunting, editor and publisher of the Novelty News, has written several books on new and special phases of advertising. Novelty Adver- tising and personal appeal is covered in his book. i m I 98 ADVERTISING— SELLING THE CONSUMER "Specialty Advertising— The New Way to Build Business" (second edition, 1914) ; premium or profit- sharing advertising in "The Premium System of Forcing Sales: Its Principles, Laws, and Uses "(1913); his latest and best book, " The Elementary Laws of Advertising and How to Use Them" (1914, the Novelty News Press, Chicago), being a clear definition of the principles and laws which underlie all success- ful advertising, applying equally to the use of every kind of media. CHAPTER XI BUILDING AND TESTING AN ADVERTISEMENT COPY is the term by which advertising men designate everything the advertiser puts into the space he buys. The right kind of copy is built rather than written or designed. A copy writer should have accurate, compre- hensive knowledge of the characteristics of the group What the *^ whom the copy is to appeal. He should Copy know what the wares advertised will do, Shm/d and what they cannot be expected to do. Know jjj |.|^g hands of the consumer. He should have before him an analysis of all competitors' ad- vertising, so that he may not reinforce their work by using points which they have preempted. He should know what kind of salesmanship, written and per- sonal, is to be used in connection with the copy. He usually is and should be responsible for the prepara- tion of anticipatory and follow-up literature to be used in connection with advertisements. To do this most eflFectively, he must be thoroughly saturated and in absolute harmony with the sales poKcy of the house for which he is writing. A copy writer should regard himself as an inter- 99 I ■ 100 ADVERTISING— SELLING THE CONSLTMER preter between the man who has something to seD and the people who can use it. Many points which m Copy the manufacturer finds interesting, in pro- WnUsr an dicing his wares, would only confuse the Between buycF and distract his attention. The pur- andBu^' chascF is primarily interested in the satis- ing Group faction he derives from his purchase. The consumer's point of view differs radically from that of the retail clerk, or the dealer, or the salesman who represents the manufacturer in distributing his goods through the established channels of trade. Unless the copy writer and the commercial artist can almost intuitively grasp the group spirit, and emphasize in words and pictures those points of the article being advertised which will appeal lUustrating most strougly to the individuals which com- Advertise- p^gg ^jjg group, their technical ability will a Strong count for Very little. I am convinced that ped—aT the number of persons who can write or Natural lUustratc copy which sells goods is com- paratively small. The successful copy writer must have a natural bent or gift for it, somewhat akin to the reporter's "nose for news." It is certain, however, that expe- rience and the following of generally accepted stand- ards will develop, intensify, and make more practical a natural gift for writing and illustrating copy. The novel and spectacular can generally be found within the advertiser's organization or in the wares produced. The copy writer who gives to the reader the BUILDING AND TESTING 101 impression that he has created the novel or sensational features of the advertisement defeats its purpose. When the size of an advertisement and what is to be said in it have been determined, the best plan is for the copy writer to make a diagram, rr^J^he cuclosiug the cxact amount of space to be Advertue^ used; then indicate that portion which will men* be reserved for illustration; locate with heavy lines, or letter in, the large display words, in order to get the proper emphasis and balance for the principal points; and finally fill in the remaining space with text matter. It is a great mistake to believe that, because people remember very little of what they see, an advertise- ment should consist of very few words. We "'^ remember Dickens' characters because he ^^^only restated their peculiarities again and again until they were unforgettable. A good story writer grips the reader's attention in the first paragraph and carries it through column after column of interesting matter, all the time burning into his consciousness the points which are to be emphasized. Display advertisements serve two purposes: (1) they impress the casual reader, and (2) they put the A^. ^"y^g •°^p'^^^^ ^t*^ t^« "^''^'^ «^ "^^ p^^^*i« ment^ Must customcr. Both kinds must be considered ^^Creluu^ in making a layout. An advertisement Dedr. to needs to be a good one, even if it is to have "^ no more attention than that casually given to a poster. Small type should be saved for clinching I I 102 ADVERTISING— SELLING THE CONSUMER . the buying impulse, for if the reader takes time to read the small type, it means that his curiosity has been aroused by the display features. In the first edition of this book I described the ten tests which I originated and used for many years in judging copy before printing it. These ten tests were: (1) Is it institutional? (2) Is it natural? (3) Is it specific? (4) Is it timely? (5) Is it pertinent? (6) Is it consistent? (7) Is it persistent? (8) Is it authoritative? (9) Is it plausible? and (10) Is it sincere? After mature thought I have come to the conclu- sion that there are but five fundamental tests. The reader will agree with me, I am sure, that Consistency and Naturalness are qualities of In- stitutionalism, that the test of "Is It Forcible?" includes the questions of Persistency and Authority, and that an advertisement cannot be Specific with- out being Pertinent, and cannot be Plausible unless it is Timely. The five tests as they now stand are: (1) Is it in- stitutional? (i) Is it specific? (3) Is it forcible? (4) Is it plausible? (5) Is it sincere? f^\f These tests are not mtended to guide an Adver- creative work. They should be applied ^ before advertisements are given their final approval. They will be of use to the copy writer, to the retailer who has an advertising manager, to the manufacturer, to the sales manager, and to the salesman. . The Watch that made the Dollar Famous \-K '"I 4 Models Thin Model ^Gentlemen's eclipse $150 WatcHes Thirty minion Americans have boug^it and timed their livBS by the Ing:ersoU watch. More than half of all the watches now made in this country are Ingersolls,— 14,000 every day. By sheer force of utility the IngersotI has overcome the incredu- lity that naturally attaches to low price and has been adopted into every nook and comer of American life. Side by side with such men as Thomas Edison and Glenn Curtiss. the street urchin, the business man, the clerk, the school-child and the laborer mark tune with the IngersoU. All find it luiii- cient for practical needs. People now pride themselves on buying satisiiictory watch service at the lowest cost. To wear an IngersoU has become a badge of thrift and enlightened recognition of loday'smechanicalattainments. There is an IngersoU for every one. The four models shown on this page take care of the needs of men and boys who want small, thin watches. The "Midget " at $2.00 is being adopted by our nation of women and is the most satisfactory of all watches for girls and little boys. IngersoU watches are sold m every town and hamlet by over 60.000 dealers. Booklet free. Robt H. IngenoU & Bro.. 21 Asklaml BMg., New York Small Thin Model Junior $200 I The "Midget- the watch for a woman's handbag and a child's pocket li' INTENTIONAL SECOND EXPOSURE 102 ADVERTISING— SELLING THE CONSUMER . the buying impuke, for if the reader takes time to read the small type, it means that his curiosity has been aroused by the display features. In the first edition of this book I described the ten tests which I originated and used for many years in judging copy before printing it. These ten tests were: (1) Is it institutional? (2) Is it natural? (3) Is it specific? (4) Is it timely? (5) Is it pertinent? (6) Is it consistent? (7) Is it persistent? (8) Is it authoritative? (9) Is it plausible? and (10) Is it sincere? After mature thought I have come to the conclu- sion that there are but five fundamental tests. The reader will agree with me, I am sure, that Consistency and Naturalness are qualities of In- stitutionalism, that the test of "Is It Forcible?" includes the questions of Persistency and Authority, and that an advertisement cannot be Specific with- out being Pertinent, and cannot be Plausible unless it is Timely. The five tests as they now stand are: (1) Is it in- stitutional? (2) Is it specific? (3) Is it forcible? (4) Is it plausible? (5) Is it sincere? T^\f These tests are not intended to guide on Adver- creative work. They should be applied before advertisements are given their final approval. They will be of use to the copy writer, to the retailer who has an advertising manager, to the manufacturer, to the sales manager, and to the salesman. II- The Watch that made the Dollar Famous 4 Models Thin Model ^Gentlemen's Cclipse $150 Watclies Thirty million Americans have boug:ht and timed their lives by the Ingenoll watch. More than half of all the watches now made in this countiy are IngersoUs,— 14,000 every day. By sheer force of utUity the IngerroU has overcome the incredu- lity that naturally attaches to low price and has been adopted into every nook and comer of American life. Side by side with such men as Thomas Edison and Glenn Curtiss, the street urchin, the business man, the clerk, the school-child and the laborer mark time with the IngeraolL All find it suffi- cient for practical needs. People now pride themselves on buyii^ satisbctory watch service at the lowest cost. To wesj- an IngersoU has become a badge of thrift and enlightened recogmi ion of loday'smechanical attainments. There is an IngersoU for every one. The four models shown on this page take care of the needs of men and boys who want small, thin watches. The "Midget " at $2.00 is being adopted by our nation of women and is the most satisfactory of all watches for girls and little boys. IngersoU watches are sold in every town and hamlet by over 60,000 dealers. Booklet free. Robt H. IngersoU & Bro, 21 Athkiid BUg, New York Small Thin Model Junior $209 The "Midget -the watch for a woman's handbag and a child's pocket I "f $ '.f: /^F all the gifts that fit the wedding day,— none so timely as the one that provides the means for telling the picture story of that day, — A Kodak //■ /> /rwV aa Easti/hiu, it isn't a Kodak. EASFMAN KODAK C()MPAX^\ Cata!oi'Ui- free at jout il filler's, or ■*r tiijil. ROCHES'! KR, N. Y. '///. KoJak City. Jd \ i i f I , i L 11 LON& WSTAMCE JELEPHOHE The Eneraizer of Business IN a metropolitan power-house there must be generators large enough to furnish millions of lights and provide electrical cur- rent for thousands of cars and factories Elach monster machine with the power of tens of thousands of horses is energized by an unobtrusive little dynamo, which is technically known as an "exciter." This exciter by its electric im- pulse through all the coils of the generatorbringsthewholemech- anism into life and activity. A similar service is performed for the great agencies of business and industry by the telephones of the Bell System. They carry the currents of communication everywhere to energize our intricate social and business mechanism. United for universal service. Bell Telephones give mciximum efficiency to the big generators of production and commerce. American Telephone and Telegraph Company And Associated Companies One PoKcy One System Universal Service It is not necessary to Swift's Premium parboil Ham before broiling or frying-, for it is given a mild ^ sugar cure and smoked over hardwood fires. Swifts iiile Cook titiii ItlCiltLSSRi A, i --^ carried to a point \ that gives exactly the right flavor. Order - "Swift's Prcmiurv" Ham Swifi A- Company U. S, A. ,\. V" L % --¥m^- J s^mm wHi oc 3 ee ^tnir architect now That step insures your greatest satisfaction in the home you build this Spring. Ask him about Hytex BUCK the facing-material which gives the utmost of beautr* permanence, fire-safety and comfort in all extremes of weather. And gives them to you at the greatest econ- omy in the long run. The booklets mentioned below tell you of the superiority of Hy-teX and Its adaptability to all styles and sizes of homes. *^ "^ ' ''Cenmn* Economy in Home BuUding"—i handso.-ne, 64-page book Illustrated in colors explains these savings in detail. Sent for\en centfc "SuggeMtions forSmM Hy-tex Home," is a booWet of helpful plans for homes of moderate cost Sent for four cents. Write for these booklets today ^ HYDRAUUC-PRESS BRICK COMPANY Dept. L-1 St. Louis, Missouri BniKh OfficMt Baliimor*. Md.: Chicijo. 111.: Cleveland O • nav.n».ri la.i nd>a..a;H,li,. Ind., Kan.as Cl.y Mo'l'M/n^eapT.? M.„*;V; New Y^ k Ciiy; Om.to.Neb.; PbU^lelphi.. Pa.; Toledo. O.i WashingionTD. C ^ Unexpected ! **Why, John, you said it was an olJ house!" •*And So it is. But the painter has been at work. That's the difference.** A house is only as old as it looks. A house painted in colon tastefully selected and with paint mixed of Dutch Boy White Lead and Dutch Boy linseed oil looks new, and long retains that look of freshness. Such paint wears long and smoothly, without cracking and scaling. Consult your painter as John did his. Make your house new. No other improvement so satisfactory can be made for the same money. Write for our Paint Adviser Mo. J S3--* a group of helps. Free NATIONAL LmD COMPANY New York Boston nuW.iIa. Chicaco (John T. Lewis & Bros.Co.,Pl)iIadclpbia) ■M Cincinnati Cleveland £an Francisco St. Loui.i (National \^hi 8c Oil Co» filttburfl} mm m MMMMi I ^ -'"'^'" I 10% More for Your Money Quaker O.iu i-i mm- put up also in a 25-rcni >ue. nearly three llmts as large as the lO-ccnt mic By ■4;i\inK in packnig li oflcr* >'ou 10 f>er Cfiit more f.-r >v.ur moncx S<-c hnw Iohk it last> Tliat Qoaker Oats Aroma The verj- aroma of Quaker Oati tells its exquisite flavor. You know before you taste it that there's clioicencss in this dish. Onljr the big grams yield that arom;i. And, without the Quaker process, it could never be kept intact. That's why Quaker Oats Is distinctive. We get that flavor and we preserve it. We discard all the grams wliich lack it, so the flavor is never diluted If you enjoy it. you can always Ret it by simply saying "Quaker." And without any extra price. Quaaker Oats Rolled from the Largest Grains \Vc |ct but ten fnmmii of O^i'lcr Odit from 1 buthel, Ikcauh of thit '•(■kxiion. Bui I hoar «rr 1 hf luntiuuf flakci. TheslhrriaregocKlrnuuehfor hurtc-s, but not f»>r boys and jifTs. VV> ttaned to do thai 2Syrartago. andlbrfdnieof ihiifljvoriprrjd. Now a hundrtd naiiont *rnd heie lo (rt QualirrOais. And millioni ol rhildrtn 1 1 every climt rnjoy il €vrr> morning. Quaker 0»t«. ai an rnergy loot\, CMCli anything rliK ycu knuw. It abound* in th 1 to set 11 is always easy Quaker i. aokl in half a million sioret. Serve Quaker OaU in Urga 4iahaa. Stall ■•nrinfft are it«t Mifftoent te *h«w IB full lU viB-praduoi^ pewcr. lOc and 2Se pw'Paekage Ejceept in far Wm»t and South n« Isra* 15-ctnf parkagt gitmt l*n per tmt man fnr lln mmuy The Quaker QqIs G>mpany liii I "No More Darning for You, Mother— This Holeproof Six Months' Guarantee Settles That" MADAM, why does your famDy wear stock- ings and socks tliat need darning every week ? Here is hosiery that doesn't need darning — socks and stockings for men, women, cMldren and infants. Six pairs of Holeproof win wear hdfayear with- out holes or tears. That is guaranteed. If any ol the six pairs fail in that time wc will replace them with ne-w hose free. Tell your family about them. They don't leant you to dam for them. And aone of them likes the discomfort of darned hose. For 14 Years For 14 years hundreds of thousands of people have worn no other hosiery than Holeproof. More than 1,000,000 people ask for Holeproof Uday in thousands of stores in the United States. Europe is sending for thousands of boxes. And wc arc operating a factory in Canada, Pure Worth We go to extremes to get the finest materialg. We use the world's highest-priced cavtan yams. We could buy yams m this countiy for less than tuilf what we pay. But wc use yam of an extra-long fibn which meaoa pliability, light weight, softness and strength. No other yarn permits better style. And wo produce Holeproofs in all the smanest shades Sold Eveiywhere IHe gemilne Holeproofs are sold in your town. Well send the dealen' mmes on request, or ship direct where there's ho dealer near, chaiges prepaid on receipt ol remitunce. We make Hulepsoafs lor men and women in cotton or silk. We have the heavier weights for winter. You will never have any more darning to do once your peopk: learn the reasons a( HoleprooCa wide- spread popularity. Write for the free book that tcUsaU about Holcpfxiofs. Let tf U< /oiw/y see how they are made. HOLEPROOF HOSIERY COMPANY, lOwe Holeproo/ Hoijcry Co. ol Canati*. Lid.. Ixmdon. Csaads Holcpnioi Uoxiy Co. W Cliurck Alkr. Li>tn«l. F ' ' JfoleppocffffosicrQ M.M. FOR ..^MEN. WOMEN ^MAND CHILDREN.^ •1 JO per boi tnd up lor tii pain o( Brns: |2.l» pet but aae "P ■«» "« P«i" of women* snd children'!; |l.00 per 001 lor toui pain ol wlaou'. Above boxes guanotrad alx ^ O" per boi for ibree pain ol ...„„„^ «.„.. W 00 pef boi for three pain ol women's raU Holcproaf .*«.*; |nfl ' ■oae* ot a>U fuaranteed l^n msmikt m^ m't idt Rolepsml locki; .lfa.^g_ FOR WOMEN For bng wear. &t and style, these are the finest auk gloves peaducid. Made fat all lengths, liies and colors. 'Write (or the Olustrsted book that Idb all b them and write (or the luuiie ol the dEmlcr you who adla Ihem. hi !'><' rri. the little penonal touches about a home that count. The artistic hanging of a drapery, the ^ haramnious grouping of furniture, the sunny freshness of a newly washed curtain, the glowing cleanness of ornaments and bric-a-brac— such things as these help make home homelike and show not merely mdustiy on the part of the housekeeper but a knack of properly caring for line things. Rsduced to it! ■mplm fom, tKi. kuck of kceprng lilver. chin., linens, lacss. upholtteiy. etc.. at their best is oothins more than ■ khowledge of the pombilities of Ivoiy Sosp. ""umia Of courK. •pecial hint., sometime* are helpful such as the direttions below for rehanginv a lace door panel. But the one thing neceuaty i> to realize how many things ordinarily never attempted witt» soap may b« accomplished to entire salisfaciion with the mild, pure Ivoiy. Booklet of Unusual Ivory Soap Recipes Free To «l«esl some of theM unusual uses we kave compiled a booklet of about 100 recipes received from vaiiou. juices. These recipes will be found exceedingly intere«ing and esceptioniJly helpful. You may hare a copy by aUcing for " Unusual Uses of Ivory &«p." Address Ihe Procter It Gamble Co.. Department 1 6, Cincinnati Ohio. ^!i!"!!^''^''^'>r'~'""*'"^'lr *■"■»*• ''~' ti>..w^ u* l.. h !!»»«]«» IVdEY SOAP . '7 — ■•• ■-•"• .•Pmaiw»mi wMvr. run#e w«u ; uifln WBrcii,. aria in rods while bmiwI U •■»« w%im^m « ■loo.. p-ai«. «w«-d ta » d„. n»p™««An,,k.r,.,;dt.i„rhrXrii4'i.fc:! 99S^PURE You are going to see some interesting things in our clothes for spring FOR $25 and upward, you can buy clothes made from imported fabrics which formerly cost you considerably more. We arc combining better fabrics with our fine tailoring at no increase in price. The finest imported weaves which have heretofore been used for the cost- h*iest custom tailoring arc available to us under the new tariff law. Stripes, plaids^ black and whites, and gray and whites are some of the principal effects. Decorations are mostly in silk. Style features of the new season arc simple, yet striking. In young men's clothes, they follow the shape of the figure; no padding; wider lapels and coUarSi shorter coats, smaller sleeves, narrow shoulders, softer draping. Men's styles, while more conservarivc, tend in the same direction. In our Style Book for Spring, you will see all the new styles portrayed in a leries of artistic and interesting pictures; you can asco'tain where, in your city or town, our clothes may be seen and bought. TTic Style Book will be reidy •bout March lit. The aiustr.non .bo.e. . dr.wme by Edw.rd rcnidd. wdl be ikowa b colon os the tovtt of the book. 11 you iam , copy, .end your nime. Hart Schaffner & Marx Chi 31. Lord SiTcci CSgO Good Clothes Makers Foreign Offices New York 47, Btewei Siren. Golden Squuc. W Loitdon, England K 1 il r 1 1 Are You Loafing On Yourself ? BUILDING , AND. TESTING 103 UtTERNATIONAl CORRESPONDENCE SCHOOLS Box 841 8CKANTUN. PA. Explain, without any obligation on my part, 1 _ran_quallfv for the position before which I mark PERHAPS you are ** loafing on yourseir* without realizing it. The man who dreams" about a higher position is a ** self- loafer. " It is an absolute fact that the most difficult problem of the greatest employers m the world is to secure men for big positions. Marshall Field, one of the greatest merchants in the world, publicly claimed that his greatest difficulty was to secure trained men capable of filhng positions paying $25,000 a year. It IS all the matter of training, not dreaming We can give you proved records of thousands of men who have climbed from the dreamer's class to the director's class through the training of the International Correspondence Schools. Wm wiU thow you how to do it. Whether you live in the flood-wrecked dty of Nome. Alaska — in a sim-baked adobe cabin of Arizona — or in the great commercial centers, the I, C. S. will show you how to improve your position and increase your takay. All we ask you to do ia to sign and mail the I. C. S, coupon as directed. This places you under no obligation. It simply brings to you FREE information how to secure the training that has made the success of thousands of men who thought they were "down and out." Mark and maU the coupon totlay SalMiiianalilp Electrical Endneer Elec. LIcbtlnK Supt. ElMtrUCar Raa^lor Electric Wl reman Telephone Expert Architect BalldlncCcnitractor InkitMtanil DrattHiaa StrsManl EariaMr Cutnte C»Mtra«li*a Mechan. Enslneer ■cckaatsal VnSummu K«trif*ratioa Eatlaetr CIvUEnslncier Surreror ■in* Sapcrlatoalaat Metal Mlnlne LM«MUT*riniaiaaABar. Stationary Enr< Deer TcKil* Hannfularlac Gaa Enrloea CtTll Service BailnTHkUCIei. (.eepinc Window Trlmmlnr 8trMrraph{*Tjr|i«wrilb« Window Trimmlnr Show Card Wrilinc Ifticrlar * Sica Falatiaf Advertiatnc - CMBB«r«ial Illutrallac InduatrlalDealKniuc Commercial Law IntMaabll* Baaaiat Teacher Enrliah Branches flood EBrll«h for Erarr Oa« Affficulturo Poultry Farminr Plaablnr* dtraa FitUar 8br«t Metal Worker ir«t>«a SMaUk rnafca Fr«ack •bt Ooraaa I Praaent Employer . Btraet and No City (1) Is your advertisement institutional? An insti- tution is composed of individuals who have many thoughts in common. The circulation of a successful publication is institutional The group which reads a single publication, day after day, will unconsciously be influenced by and then accept its institutional viewpoint. A well-managed business house develops an estabhshed order of doing things. This makes it institutional in character. The best copy reflects the institutional quality of the business which it is promoting, and takes cognizance, in its appeal, of the institutional traits of the readers. Does your advertisement appeal most strongly to the group spirit of the people to whom it is directed? To answer this question one must have complete data as to the tastes, incomes, ideals, purposes, and habits of life of the group which is to be influenced. It also calls for the intelligent scrutiny of the read- ing pages of those publications which have the larg- est circulation in that group. An advertisement should carry over to the reader the individuaUty of the advertiser. Some pubhcity fails because the writer of it is under the strain of being unnatural. His copy is forced, and does not ring true. A good advertisement is a mental photo- graph of the pohcy and principles of the advertiser, presented in a way that makes the reader feel that they safeguard his best interests. The copy writer must be able to interpret the advertiser's personality, io4''advertising-^elling the consumer BUILDING AND TESTING and so to express his ideas in print that they are instantly recognized as a sincere message from him. The copy writer is a success who can make his copy carry over to the reader that intangible something which pervades every successful commercial organiza- tion. Each advertisement must be a perfect link in the chain of the advertiser's selling poHcy. It should not be printed unless it will have intelligent and sympathetic cooperation from the advertiser's sales- people. Methods that bring success to one institu- tion are often ridiculously useless for another. To exploit a bank in the extravagant superlatives of a circus publicity man would be absurd and disas- trous. On the other hand, some advertisers, fearing to appear undignified or sensational, actually say nothing that is interesting in their announcements. (2) Is your advertisement specific? If it lacks individuality, an advertisement helps competitors as much as it does the institution which is paying for it. To find out whether or not an advertisement is specific or merely generic, substitute the name of a competitor. If the advertisement is just as good for a competitor, it lacks individuahty. A specific ad- vertisement meets conditions squarely as they are, not as they ought to be. It gives a definite reason for demanding the prospective customer's immediate attention, and justifies its existence from the view- point of the advertiser. It should so concentrate attention on the article 105 advertised that the reader will be completely ab- sorbed in and unconsciously obtain a clear idea of what the story tells for the reader's benefit, rather than be impressed by the manner in which it has been told. If the cleverness of wording, or a too challeng- ing illustration divert the reader's attention from the article itself, the advertisement is a failure. Many manufacturers have frankly stated that there was nothing in what they made that could not be honestly claimed by a number of their competitors. They believed it impossible to prepare advertise- ments that could be approved under the test of "Is it specific? " The clever copy writer has presented points that might truthfully be claimed for all manufacturers in such a novel, forceful, and convincing way that they impressed the reader as being individual to the ad- vertiser. Thus, if an article of merchandise lacks strikingly individual points, it is often possible for the copy writer to feature minor points so strongly that they are invested with the quality of specific distinction in the consumer's mind. Should others follow the advertiser's lead and em- phasize the same points, they stamp themselves as imitators or followers. The position of the pioneer is often strengthened by eflForts of competitors who endeavor to divide honors with him. The public instinctively turns away from the man who claims the credit due another. i 1 . 106 ADVERTISING— SELLING THE CONSUMER Most people, if asked to name the highest moun- tain in Colorado, would say "Pike's Peak." But the fact really is that there are twenty-six that are higher. No one could estimate how many pages have been written about Pike's Peak, or how many times its name has been mentioned in magazines, newspapers, or by word of mouth; but all agree that in that way, and that way only, has it acquired its distinction — ^a quality that is specific in the sense of this test — in relation to all other Colorado mountains. There are many articles that are really staples and are known only by their trade names. No one knows whether there are twenty-six or more equally good ones. The consumer's preference, which is a mixture of experience, familiarity and friendliness, is the manufacturer's biggest asset. (3) Is it forcible f An advertisement must al- ways appeal to sentiment to be forcible. There can be no impulse to action unless one wants to do what is suggested in the advertisement. Reason, logic, and analysis never have and never will create desires. At most they merely justify action prompted by desire. The buying impulse must be aroused to action through an appeal to senti- ment if an advertisement fulfils its mission. An advertisement should be written with due re- gard to the viewpoint of the purchaser. "How is it made?" does not interest him so much as "What will it do for me?" It is often well to humor pretended motives, and subtly to suggest the real BUILDING AND TESTING 107 ones. Many a piano is bought for another purpose than to develop the musical talent of a family. The purchase actually marks its social advancement from the bread-winning state to the possession of a recognized luxury. Suggestion, the most potent element of personal salesmanship, is utiHzed no less effectively on the printed page. A father who believes that the pos- session of a diamond would foster in his daughter a love of display and extravagance will not buy her one; but he might be won over by the suggestion that in no other way could he make so concrete and permanent an expression of the sentiment he enter- tains for her. It is often a devious mental route which leads to the purse-strings of the public. The leaders of the masses have one distinguishing characteristic in common — they are confident in affirmation. The advertiser must at all times and under all conditions maintain an authoritative tone. No one beheves a man whose advertisements show that he does not believe in himself. Yet too wanton an exhibition of self-confidence is dangerous. The public will side with a man who demonstrates his leadership, but it cannot be bull- dozed. The results of advertising are dependent upon the voluntary action of free people; threats, scares, or pessimistic utterances never make friends or customers. Optimism is a confidence-inspiring tonic. The optimist who is tempered by self-control is the successful advertiser. I I" I 108 ADVERTISING— SELLING THE CONSUMER A trademark indicates that each advertisement containing it is one of a series, and that the use of advertising space is the established policy of the house. In no other way can a merchant win con- fidence or establish so thorough a credit with the public as by advertising prudently and persistently. Confidence is a plant of slow growth, and persistency is its sun, rain, and fertilizer. A persistent advertis- ing campaign covering a period of three years in legitimate publications will seldom fail to produce a "good-will" asset worth at least as much as the amount of money spent for space during that time. Affirmation, optimism, self-reliance, persistence, and suggestion are all characteristic of forcible expression and can produce results not justified by reason, logic, or common-sense, but of course I am not advocating such preparation but merely empha- sizing the necessity of bringing to bear all forces prop- erly co5rdinated. (4)^ Is it plausible? The word "plausible" has been in bad company. Its exact meaning is "to tell a story so that it is most acceptable to the reader." All advertising should serve the reader. Therefore the truth should be plausibly told if in that way the reader can most easily grasp it. It is not enough that an advertisement tell the truth. The reader must believe before it can bring results. Good advertising copy is 100 per cent, salesmanship, not 125 per cent., which the wise buyer discounts at once, nor 75 per cent., the weak BUILDING AND TESTING 109 refuge of negatively honest men who endeavor to conceal their own shortcomings by decrying others. One hundred per cent, salesmanship is the abihty to state in an interesting and convincing (hence plaus- ible) manner all the desirable features of an article. Timely advertising inspires the belief that the advertiser is wide awake. From the general trend of events, successful general advertisers forecast conditions for the various seasons of the year, and make plans months ahead. The retailer should do likewise as far as possible. A patchwork campaign constructed from day to day in a hit-or-miss fashion can never bring satisfactory results. Should the advertiser wish to take advantage of some unusual event, it is very easy to substitute a piece of timely copy which will be in harmony both with what has preceded and with what is to follow. In conducting an editorial or a feature campaign, a newspaper is almost sure to create and crystallize a sentiment upon which an advertiser can "cash in" by adapting his copy to the timehness of the reading pages. Plausibility is offering the pubhc what it wants just when it ought to want it most in a maimer that is most acceptable. Galileo's bold assertion that the world was round has been criticised by some as being untimely, and it certainly was if we judge it from the standpoint of the state of mind of people of his day. There is no doubt that a good advertising man could have shown Galileo how to announce his truth i no ADVERTISING—SELLING THE CONSUMER in a plausible manner so that lie would have won honors by it and not have been compelled to recant to maintain the social status of his family. The Pope might have been approached, convinced, and then given the first opportunity to make a public announcement. Certainly GaUleo would have fared better per- sonally had he followed the well-estabHshed and authoritative channels of dispensing knowledge to the people rather than to have antagonized them. His truth needed plausibility in its presentation, and modern advertising clearly recognizes this and makes the most of it. (5) Is it sincere f The best advertisement is one which unconsciously influences a reader to buy, honestly feeling that he or she has followed his or her own judgment. The advertisement with an earnest and sincere message burning through it— no matter how crudely the idea may be expressed — will command a respect- ful hearing. Sincerity is shown in the use of simple sentences and terse, frank statements. There must be an absence of all obscurity or indirectness. Clearness of expression, fidelity in illustrations, accuracy in descriptions, are all the natural result of a sincere state of mind on-the part of the advertiser. Sincerity is something that cannot be assumed. It must actually exist, and where this is the case the matter of expression can be largely left to itself. I \ BUILDING AND TESTING For immediate doUars-and-cents returns from ad- vertising, plausibiKty may be placed before sincerity. Yet mere plausibility in advertising, no matter how skillfully it ha^ been utiHzed, has not built one genuine success. Plausibility backed by sincerity finds in the field of advertising unhmited possibilities of expression for the creative spirit of this age of industrial activity. It might be safely stated that plausibility and sincerity cover the whole range of advertising ex- pression. Assuming that sincerity covers a comprehensive knowledge of the subject, and a desire to present only the merits of the article to be advertised, it could be claimed that making one's story acceptable to the prospective customer was all that was necessary. Plausibihty in its fullest sense requires a complete appreciation of the needs and desires (both active and latent) of possible buyers, and a mastery of ways and means by which they can be aroused, stimulated, crystallized, and then persistently sus- tained in the form of active demand. The subject of advertising embraces a constant study of human wants, needs, sentiments, aspira- tions, and desires, and the acquiring of skill in cater- ing to them. It gives opportunity for the use of the best abilities with which mankind is endowed or which may be acquired. It is not a pastime for the mediocre, the timid, N» fl * «l* 112 ADVERTISING-SELLING THE CONSUMER the pessimistic, or those who are willing to devote anything less than complete consecration of abilities and powers to the work in hand. REFERENCES ON CHAPTER XI So far as I can remember, the word "advertising" does not appear in Barrett Wendell's fascinating book with the uninviting title of "English Composi- tion." I question if any book has more in it of direct value to advertising men than this work of Harvard University's Professor of EngUsh, pub- lished by Charles Scribner's Sons (New York, 1891). It contains many paragraphs as pertinent as this : "Style, the expression of thought and feeling in written words, must affect readers in three distinct ways— intellectually, emotionally, and aesthetically. To the quahties in style which produce these effects we give the names Clearness, Force, and Elegance. But any piece of style presents to the eye only those arbitrary marks that common consent, good use, has made significant of those arbitrary sounds — words — that good use has made significant of certain more or less definite phases of thought and emotion. The quahties of style, then, can be conveyed from writer to reader only by means of the way in which these black marks are chosen and arranged — in brief, only by our choice and composition of words. In a given piece of writing, then, we may discover why a given quahty is present or absent by analyzing the elements presented to the eye." i!'( it CHAPTER XII APPMCATION OF THE FIVE TESTS IN ORDER that the reader may have at hand definite material to which he can apply the principles outlined in the previous chapters, and particularly the five tests given in Chapter X, characteristic newspaper advertisements of John Wanamaker of Philadelphia, Marshall Field & Com- pany of Chicago, Filene's of Boston, Wilham Taylor & Son of Cleveland, B. Altman & Company, Saks & Company, and the Rogers Peet Company of New York City, and the Tobey Furniture Company, Chicago and New York, are given here. I have purposely chosen firms whose advertising is gener- ally considered to be the best in the retail field. In each case the test of institutionalism is justified by the tone of the advertisement as a whole. By years of patient and continuous alismas advertising each one of these stores has fnNewf- ^^^^* ^P ^ constituency which possesses paper Ad- individual and distinctive characteristics, and responds to a form of announcement that has stood the test of time, and suggests con- fidence because of famiharity. 113 W ^i m Auittsn $c (Eit UK99 pnptfWQ rar (Thursdajr) All Interesting: Sale of Women's Summer Blouses la attracthwitylM and Mck dMiraUt llngtrt* IMbrles a* battot*. orgmditmad voU*^ at tlw •SMpCioiia] pffkw of $L9a S3.2V. $3.75, $4.65 ft ltf.7S la tiM ragular itock off tho Woai«a*i Btona* Otpartoawrt will bo foaml ^porta BtouMo of Importod alik JwMjr. in all tiio dotiraMo shadaa. ThMoBleiiMcafoporclciilarlydMir- ablo for golf, taniiK motor aadgooofal ^pofta S. Alttmm $: Qb* The Corset Department hat ready for aoloction a largo and conpro- bcnilvo aMortmoat of Summer Corteti. mado of tho thin matoriais IndUpeosablo for warm-WMthcr wtar. Among tlwm aro Cortots of openwork material, plain and flgured botieto and all-OTer embroidery; also of extremely llEht-weltlit tricot and tricotlae. Thece CoreeU are shown in tho regular etodc at prices ranging from . $1.00 to 15.00 Summer Brassiere* and Soutien-forgcs, mad* of net (with shields), cambric, all-over •mbroktery. silk tricotine, etc.. are shoWn in tho regular stock of the Corset DefMrtment farlously priced . . at SOc. to S8J0 furs, ruos and draperies Stored in vaults on the premises (TaicplMin* 7000 Murray HIU} Today and Tomorrow the last two days tdt Men*s Hi^h & Low Shoes at these reductions Button, lace and Blucher styles, in'patent colttkin, gun metal calfskin, black and brown vict kid, and tan Russia call. And eveiy pair mad* on a new last, e^MciaUy designed for us, that these Shoes may confonn to current footwear modes and yet be readi^ distinguishable from the average. $8 Hlf h and L»v Shoes at $J.S5' $4 High and Low Shoes at $}.9f Men's Duster Sale In our Motor Apparel Dept.— codaj^ 17.00 Dusters at I4.7S VUkM tad Mtwal liara 4w*(Tt U «wy kM aU* v>*i>*r> i* tint* ■>' doiibb bi«Ml*«l aodck «•«> m n ftt g ., ami fUc«, ,t •• ll^lltf it •• tt«. Tut m^CM. •«»*«. tmrn m» We*feioai«« MmM anvMST aooMS. tim fbw. sW H i m oMor mm»m^' tmmm m§ *• ha*M— ••*•« ■mh «> Mmm Imwo tB«>wdi mmmmmftm* ««■«« w« rmt mrotMAnom ao. MUV. Mm Lmmhv mt Witt, MARSHALLFTELD^CCMPANY CZm m *i «w eSuT I W#M DfWi wMQi Wo dmmm wtry^icair aa4 c*f l*le lr«l all Ike wautMrtt r» ■1*1*1*1 le oar CetoMri a*a Black Drms C— J* S«cUms T* •rmiaflUfe •a*, w* ta*« mmIc lwlb«r and inal i«d«eti*Bi •• •«eir »■•. TUi M ta s i— pre*«afel tt* verf boat a^ fwrimmiff *l Ae «*rlirt •*»• ORIENTAL RUGS— Al Plica Bu4 to Pmllcl tl Aar TiM W, imin u •nMr)T •« *m, to 7n kr ikmac ilia Ri^i ItosMMa •ku Um pKM n 4«ot, H, ucM^aiftr ■•<»—« looknl ■! 11 Ws th, Mkw mwpnml tkal III, Ruf, u,rr <••»•»«< lk« MImag {•mw. lfl«l,t,*K*M^ I 4MMM*. )R • l,.|,«IL» I ««>w Hap > ft WSH.Md Fine China Wedding Gifts At Reduced Prtct*. 91.00 to $25J0a Wh» piwM ti ChMw IrWM Mr rafalv ilMfc Ian bua iWicaOr ntmft tm hm% W«Ma« CiA b«y,tm Altnctmhr 4iifliT<4 li aar •«i4r htlij Cltaa, SoetMM,-' ' ~ rii ~ T ni i m i mw Aii d«iir,bl« IMCM m indadM fc«« rauB OliTt DniiM to • fint tl D ni <«« « Sal, tl htmcm PkiM 71t« Tmhr m ran tAit or aimu tm eat- rifttn* $iMM, tifTi, iijM TO fiMM CUT GLASS-LOW PRICED S9*ciab aa Glfta lor JMt BridM • f mimmm,mdmmn *• jMsr f «#• «•« mm m kf CmHktum ftsMv I 350 JtptD«t« Water Colors IXw Z'" Vwiilii^iyMiM* I* CMcMli «t 4MnHr >Ma »al»H«»aa* H— iS ■ «< ria* *!«» ■«• nesaarfaisJ M ir^ n n ■at *■* fapMii Wmm Cakm HpmMriMal Jmmmm iriMiMai* VMM AMk ruaom^oacmMMAWU Only Seven Days More qfthe Clearance of COWAN FURNITURE The opporhiaity for aecurinc piecc* of tlai Srade FurnituTC at uaprecedented pricca ia n rawiM to ^close. The want* of the futura ^ ahould be anticipated this weak, a* the orp- . ^ portuoitir will probabff portuoitir , , aercr be presented afain Furniture for erery part cf Use home is represented. Women's Summer Dresses, Hundreds, in a Special Sale at $10.00 . Wabash Avenue Salearoem for Women's Street Dresses (frooa $5.00 to $25.00) has been open but one week Yet daring thai tiine thou- sands of the women of Qacafo have ▼isttad it drawn here by the excep- tional merchandise being difplayed. ANNOUNCING m6» CHADS roorvsAH n>#i*aia< MHw Mnqi*M( A> mia Gradaatioa GifU m- Kmkr Crepe 3S& The Newest Idcaa in Smart notuca "■■** aMMtai ana at ■** KiUMHtT* **■ Aaoflier ^ «a*lh*ftfl* 0«e4* «»1m— . mm c«ntii««aat«ta any ttyw. w««!■■■■«■ la frmt ■! bw ■ a^an ■•«■ oa ttM Masala Bans eiMfc ft^g_i laaii. an. VIM* to wtm. Mm liB aa^ g«jaaa fc^^ IHJ» » ML B»« II i^ll. aM- •ni»«i — ■*- - ■ *«aad M kaaaaiM Caaa riaaa. :;a=us.-S3 auaiakniaaaM' Spedal Sale of Bed Spreads la*aii>e Caalarburr Ccalaaaa BW SfrM4> Mk acalbpa4 a^gaa ua BaMat C*» an I* Bcttk A larfa Iiiel al pntfy *■■•■>• >• Bolk Mas wi Talma raitMiliaat •< Mian Fill KM. MOD • iM) MaaaiMtlw •MUSOaaat MtfaanUOOaart aipaa ll i l ila iC aiaiWMat. TMatBal tak Wa lil.aaalMJS US i-^M»a> i ■pi iH ■ ii Btmr tdqtheim Oxford J awrf ham yom Fun pm in Safc Cold ^ongB m one* 5%%«g ALL ABOARD FOR SUMMER ^a«g WBfll SfV 70W tHKDCT pi tgf I ■ P»Bfc» ■M'm* MiHtwamol plana witli a torn oa tkaHakaar 1 11 fai dia aar fartfca a aa l ar W— tf Ikey afa, ibia Mora Maatb'Vcady aa 1 f%b« cioflMt al the riflit |raiea. Jmikbfni^miiytfeaikj ttoic, SoauMr ia ■ aaparita ieaaaa. ■« a "tag-aa* to Spria§. Ow aUMsa BBMf il» Seaa ttoaa aanwun at alota ■cwajaraia for anoi a aaaaliMi af anjlUa^ ikai li not aaliiel; tumacry Savins; Money Is Pleasant, Even on Cb» Oly «.d Cmmencemem Di««e. T o aa wnw ana ean eaaa M» tlw vooiai'i draai ikap aad buy a diai lB|«•*«« MMa TMa triHMMi Dm* a* f IS «• km Htn «iik Ik* WT l°aa i*" >aii>- . ^^^. Satin Hats Are Gleaming ^^ «l«i mhi « llmUaa oak Ite, dMM •!* Mb «iNi « vmai anMad arilk • nil pW kM-tnM. WtAMAB WW aw — fa .li t l M i. »■•«•»% aai Mb ami aMkia m aiapi, iB m coal m tb«r Ink. EndX ••Ihn, hum kak he* tab afMi taft cnM hall ■• Mk* tofaM al taiMr hi lk> Mmimr, Rbof. Tm OB |hk n a * V^^*^ *rfWBBi> The '^eanor Wilson" Cape haaagaHlBdMWaMa'iCMtatfi, It b sail kilhataai l> lthaliata.vHk — ...^--« ^— .- Am^v ^ l^iU ^k I j lliii l i l ia ^i l aaal •■« auria *fct_Thl alTTli .ui. SZTLa twTZ rtZt' iNk. h li«f iavpaHifa|Ai«ltfln^|lli» WHITE HKWiii auiTS mm tmtf at 91* DMMI OMIS vMH an«M.1«. GnesI BroiMi Underwear aal ii cat ID dai ap • Uiiaa adb M Me ad ■ Van an We aad wlb t^km^ mmm ahwMM« •««•■« br Tkto Wnt fllMlIti iIMiihM nMNft five-DoOar Tub SkirU •kMt, toiae •kim, lUrla. U. T«o riMOfin b *a Shht baf Aaa MMk KaiMai lUna ad kahai JoneSaeofAprona §9e /ar f J A^mm SaH TfV/ar'liJtS Draia ^jwana HWWi w^" ^^^** ^^■^■■B W WH^ppR MBMMI aMWi jaai*. immmimmi m*mt mtmttmt ntb^ iM MMM. •— — aw worn «Mk «itfew atfi Ito ftwt. #«^ *n*k M IJ J9 /ar I1.7S Nmi Owm A^tmn %m aijhiiiiiii r>iii'ii|iiipi^ai' Girb' Maalia Draaaaa 4mh adpd sMh fck- a^baateAbaftto I4angal]r& Daiaali • MMi (im ib a ib l i •( U la n laaHlir vhiai aa an labf la aadi faba M p» i%kt *«aL aT_ han^Omaiad laiJkbwia. AM. Ottv-nfcaUrtaaal Oaa 'NjjbaM* J^aihw b a Summer Sole of N^^Uigees Jail tka aaal. aaaloMhbaBHBbtbMaMli nhia w ai aM ii wBa Mi ia a i , wa bn« pnfant lh< 1 b oapt, aaa b vdb, aaa aaa • aapa 4i $lMtm9inmmm^Cn9»\ |I.«S /ar |1.9f f%aratf Vm»» tlt^ttm 15 lar f«^ CrlaMatf Oapa 4t CMaa. ^iW a • «i lata I rtfU >' Wm. Taylor Son & Co. --«= a /aartk Maav ja«•• •*«««. I* > Wi n.4> __Jl ■« 1^ l um i a» nn « l i _a?a««^k. aM>i xtk iiMi> MlaaK iaHw »ha4i«* •Mo«a ■nv aad Hmtm aatlor i«ia, -IM H IT H net m-Mk l»ii^ aaa k««* ar baatf* aitd <^m..il ■aikar Iumm la Uact auia WMa laCMM •■II aCirii4 aau. Iia «arli ^'Hh Ump f>j- •W •* aa»j.H». cr >tli. ud aMUlaaer tawta «* »laliwa CMa* Aata naa atcaiWia* Vatrfkuiad Wida hruamad kali Ikat aa«l bul • kBHtad kaaa ar icarf ta aak* Ihaai •aarblt far waar. (Mta la f«a a«4 raaK waua fawal m* •«» rtla aawa al r>«. anaa. kam^ralaa a> MKt aawi otu IMMW laa. laai la aavT-^iH. »r«»« ar m4 Paaaut kraia la bf««a. laa aa Uaca aua vkMa h<1aaa raw ana MK m UAOI A Micktfal aaOaalbaaf kalkiac-aaiia, kala and attar k»«^ a iM iaaa ri aa ara dia. I>ta;ad la ika tailatfaaili aatbaa. Tka laaa nai w u 'a aarr oottptata bow, tkaafk it voat ka adaiaakla la watt lao( kafaaa aalaetiag wkol ran'n>rajli«loBa«a. rm niMaa aaaa, Wa la a Varlaty af iifan ■viur vMi aavMai Kj'Ob^'laaa aal« ■^V Maar "olara KaMartaaa inn HOT-aamaa -. — 'V •■»" taaaaara ai* vaaaakia aaia. wkHa .M kurllaa .Maaa ^ raMaaaaia aawa., _u Keeping up the variety in boys' suits at $8.50 and $10 "aaruaaat. »n4 iu.ia«l ,a«™, ,„ ,^ ^"* ""■»•" ar airC-t" *• •—- -«»■ '- "-ra., a-^a t ta l|.raar aMb. aaa a AmMw laOWISa Odda-and-andi af tatny alj-laa Quatiiiaa ap ta 3Sc, awlarpricad baffiaalBi Iwlar- Waiai. laaer aMaaai Mam, axaoita aal aavanl rIaMa*. ■aa laa* aaitalr aC aalaaa aad Doesn't hot weather make your boys' needs apparent? ■BMaraaaaatiaUfaflkat -,».ak"k.(,a««aan t« « •ay af jwara— Haaw f««,ad •••»•" "ttaaJwnj^n" far ,«., «ai, .,«««. aaS"l^„ f^^ " • "— an la na I aa.lHi. fW-^aiaTlailVJ Cnaa Maifan aNH, n.» aaak aiaia f la It Mara OaiMv II H la a atak. Mm I u M laaat ' la H ,_. auaa tau 11 a a II to It I Ha la n A ■akcr'a ctaaa^oal af l»a f a a 1 i t i a • af albaw b«ftk wbia itik (Isvaa tsraad a>«r la fvki kafiAiunf today BiaiaaiT ttiaialaat. (IMIai Ir0 C In m om lot ■aaata a irk.aaa-«aiia (tarta. Our alrad af iSt a addad i> tka iainr.a>a la laa m V^ ~ aaa ■ aaoao l« ua JaMaab. r wtiia caaaaa aaa Xaak-aliaa Itlt •• t II a *au WkUa— alaaa lilt la I «« tit la t na a aalr Vacation tinc'a kodak time 0*t ikr aiaal aat of —m- ■ar dijra aad wa.»». LmI up Ika two „, ^^ daka addad ta tka 1 (amilr Jr aiaia caU a> aaaaM t«aa. •I It t (ai<~-«ara IS la 11 H a aalr— «tM« ns'W S ■ IH laa ■ M. M aai n feafiaaiac taday. aalural- ■ Iia "— — Md Ira a I la 1 raar. nua rakMi aaJ Ira a aaaa. in aaallfr la a llfM aaa tart Hnaaa raaar Matt lar <>v>a~ «.«.. >a?r Maaaaa. tl> aua I la •■■>• •*• aama U-ian •■'» M raan riala aKaaa la Uaal ar iat air^M. art. Mr aaek. aa I la » rmn t^HHtm WHiTi WAutot cun """""" Aa additiaa la tka J^w ^*~" aala brciaami twiay SOe a JTadat Am aad pita it. y„i f„ , js, ,,, Cloie-out lots of ready.tO' wear garments for women Baaabdan af tiiriac Mr- , «a>>Maa Maair laina. m ika«ki.ara.»rk.d..radl- 'Z:.T>ntJ!^t!:T::^ «*aat nalak ikaiMl I" •UMaaulim'' «Mn««a>rpr.«I.UaaMMw JIXTmZJSi J^ "" titaitiaa la laanaa aalaetiaa c»«i an Muaa .1 nii aiiiaMa awatat br waMta »ilu-«Mr aaaata aaa mi *"" i.'srrtr""-^-^ «ii - - ran WAM oeooi Btark aaa«ka— auM la St aay kadak ar ranara. •J!!'*" *'* * *»■ ••«*«• •« aai i^iaa la alM Kaa niatlt 11a aarka la taaira aa- I I* 1 :n la III /M■ at a aada. wnamni Ha. .haad aad •ta •■« Iti laaad at Hti* , *«br «*aaaa niir I, a t a i u kaaam -^iitii, arlabM aadia. aaMMdiaaiM*. laaad aa fawaa a aawa' "■ ^^ " " iwmm Aboat new outdoor alca^iaeeola far aaBd aaalatl . iraa aaUaiaMa. fraaaa, tail ayfa«a aad •la «« IM laaMad tt . •ad la.' aaM Mdia a-i iaitak«ia«a«ai% (hir hands have been full these last weeks ! Once again our customar\' business optimism has been justified In spite of foreboding in Some quarters as to the trend of Tsusiness, we believed that more men and boys than ever ^ould want substantial, styl- ish clothing at fair prices.- We provided a. most lib- eral stock, liberal even for us; and that means more va- riety, more ample range of aijses than mOst clothiers ever saw. The month just closed, with, its predecessors, has fully justified our optimism ■r-our business has shown a very healthy and satisfac- tory increase.- So we enter June with new enthusiasm, with renewed confidence that in these days of much Exaggeration, sub* stantial quality, generous va* riety, fair prices and **yo\xt money back if you want it," are more appreciated than ever. Everything men and boys wear. BOGERS PeET CoMFANY, Tlir«e3rMdway Storw •t at al Wan^w SU 13tli St. S«tk St. r 1 it 1 7 ^' I IF ii STORE WAVE DIFFERENT AND BETTER STOCKS ITS GROWTH IS CERTAIN Keakyrockedat nb b JHI ■ iMp, iMfV JKi * Ml gfii «rfM li lAi •• mAm* inM IHI. «nalte' Im ifeiU* mmt*t.ikt HalpirriHMtladi ;^^^ ^ »»..u».fa-oni die Woara'i FathioB Stknt 55j5;1*"— " •-■•■ «^i -• W I ■ I to Vatt oA Vilitt ** * i ~ -r- " ■ iii uif «tw CZaci9-« Soft OoJec hrWtmngGUU U ISA S8ft m&t'SmST This Fine Furnitura Is So Easy to Bay! JtoHMMM>4i«k «M Glove Special Mir**i(1taHiftfWW« ■IMitoll* mi^0»^m«mtkmi% . . » ^ . •*-^md Embroidend Radical Ghanget lir . Silk Sportt CoatB Low-Priced Unm LoKtlu .' of Smnmer Silk» pair M l «t im fcnfcii» IMV Its )«> «• BM RMMI ■■ HW "M la *■ MM* kM auiritoaa^ B • ¥«■• ak __)i Ma mmm MM* !• w flii l w m alM • •<•••■■<«> t» liv «• 1Mb av M. ^«I Hl ll^l««»Mfc—»l»XiT ■»«(«» •OakMtaX M< tMlB iMb haari ■< I 1 IIJ tM«» *» nn m !■■ hM « iMIiia iM— t««Mi •mH ■>■ • SMkit atawilp f*K %Mg af if liiM j i ^ ^^»w»if;^ haa»iaMia^ ^M nfSTniM I I lilt II ilto* KM h aa toiMi *» Thejilankets Our Boy» Are Cains in Mexico _ ■ml I «: ■■ *wit »iii>M ■« lU. fc BM i l lM taH , ».. rmMU »^ Iki IhB ■•■■<'■• ICMl aHfeit '4hW» iliiM tr »• Iw Im* ««MiMto If Ite giMMMk Slk «• igmml, k tlliill|liil> Waodeffnl VttKM» for littla Glrl9 mk-0tKtm Maddnt Limdi Sec^ Ntiw aaiooe Roica etsutffS ♦,«aw— — s? iVaw for Great Savings in Women's and Girls' Summer Ckihing in th^ Siore on the Subway Floor WmiA'm^ im m t ■iipii rt ' i ii i i i i datiaMp «f_,«B | aa^ to ln«i« It All onMotiiatiM L 3* I ■ tfall 'jStSJS I l0* t WMoaabW to th* aiiantiii d.BP^srM^ ifi«rtr.R?ri a3V«M>*>5 liMh t»-iil I SwiT^'* ^51^ ss*rjjr * d'arsjura , M a.n-M Mi >a|M ^ m . M >ttlir K! *»>■• tviWi I, 1^ a M t ■ i inlMi « n if iwr>; U jBMi WM if haM If Misk «M.jM«> ■M Miak TClli% craa piaadi% plaU gliiMfcaaii ■■••fMaalaJMMb k mmmtjftmt fcfcjMfc lM>i»«ry >-i-*S«--Sjw,hM.ifcMti «< iMaB: la ina •»■ ' jU.Mi— iWaM HOa ■ Man aiafc < Sa ■r4 lilil llii i lili TOBEY-MADE FURNITURE —is the achievement of an artistic ideal, rather than of a commercial ambition. It is a product of the fine arts, rather than of a manufacturing process. It is the result of a sincere and deliberate intention to attain perfection, rather than of a strained attempt to outdo business competition. The beauty of Tobey-Made Furniture is not only in the richly ^ned surfaces of the rare woods from whidi it is made, or in the always ^cef ul lines of its desi^, or in the exquisiteness of its carving and decorations. It is an organic beauty — that of perfect structure, of fine workmanship throu^out, of consistent execution of the parts which are not exposed to view. Tobey-Made Furniture is the fruition of two fenerations of experience and sin^e-purposed effort It is neither experimentel nor outre. It represents the faithful and ri^d applica- tion of the hi^est standards of desi^ and craftsmanship. It has lon^ been in service in some of this country's finest residences, and exclusive clubs. With the Tobey Service in interior decora^ tion, it offers an opportunity which we earnestly invite you to investi^te. The Tobey Furniture Company NEW YORK STORE, Fifth Avenue at 53rd Stt«et CHICAGO STORE, VfubUh Avtm. mi Wtdutifon Sum Tob«y.Htd« Pnnutitrt u •old only by til* two stotM ol dik Company. Eacli jnoM bom tku •ark, ia eoppm: ^M\^^ V 120 ADVERTISING— SELLING THE CONSUMER Even a man with only a limited knowledge of human nature can easily perceive, after reading any Cities ^^^ ^^ these advertisements, the general T ^T , characteristics of the typical person who CharacteT- trades at that particular store. Even the ^* institutional characteristics of the cities themselves are reflected in the manner of ap- proach. For example, New England thrift and widespread education is suggested in the Filene advertisement: "Saving Money Is Pleasant, even on Class Day and Commencement Dresses." In William Taylor & Son's advertisement, " 630 Euclid Avenue," is a'subtle reminder of a beautiful street which has made Cleve- land famous the world over. Where else but in Philadelphia would the im- portations of Camille, of Paris, and "Radical Changes in Silk Sports Coats" be followed by "Low Price Dress Lengths?" What is more characteristic of the Chicago spirit than the statement, in the Marshall Field & Company advertisement, that the "New Wabash The DisHncUm Avenue Salesroom for Women's Street Chara^ Dresses has been open but one week. Yet during that time thousands of women of Chicago have visited this addition." The formal, conventional announcement of B. Altman & Company is characteristic of Fifth Avenue. The announcements of Saks & Company and the Rogers Peet Company breathe the spirit of the APPLICATION OF THE FIVE TESTS 121 « Great White Way." The Tobey advertisement reflects what New York and Chicago possess in common. All these advertisements are Store Is institutional in reflecting the spirit of a^Big ii^Q cities in which they are located, the group spirit of the particular classes to which the store appeals, the institutional spirit of the store itself, and its attitude toward that portion of the public which it sells. Most advertisements which represent positive constructive work fail of their complete mission in that they would be equally valuable to a competi- tor, merely by changing the name of the advertiser. But each one of the advertisements exhibited here fully meet Test No. 2, "Is it specific?" All of them give descriptions and prices, except the Rogers Peet Company, which, however, emphasizes partic- ularly the one thing which could not be said of any of its competitors: "Three Broadway Stores." Each one of these announcements is consistent in illustration, typography, and diction. And there can be little doubt that in institutions so well managed, where every detail is care- ^StSkd ^^^^^ planned, so that the best interests of the consumer will be promoted con- stantly, the space given to each department bears a consistent relation to the business as a whole. Test No. 3, "Is it Forcible?" applies with special force to each one of theseannouncements. The student of advertising can well afford to analyze them carefully. Every Detail M II m ADVERTISING-SELLING THE CONSUMER determining to what extent sentiment has been ap- pealed to by these conspicuously successful advertisers. Every one knows that each one of the firms whose advertisements we have reproduced is in business to make money. But in each announce- la Always meut the thought made most prominent ^AcU^n ^ service to the consumer, proving that each advertiser believes that sentiment is the mainspring of action and controls the expenditure of money more often than do reason and logic. Persistency is suggested in each one of our exhibit advertisements by the trademark signature or head- ing, which is individual and characteristic. My readers will agree with me, I am sure, that Test No. 4, "Is it Plausible?" is completely met by each one of these announcements. Test No. 5, "Is it sincere?" also is satisfied. We all know that the merchandising methods of each one of these advertisers are sound, and that they make only claims which are absolutely backed by their merchandise. One of the paradoxes of advertising is the fact that the store of B. Altman & Company, at Thirty- fourth Street and Fifth Avenue, New York, bears ^ ^^^^^ no sign whatever. Yet everybody knows Withput it is Altman's store. tgn rpi^g fundamentally sound merchandis- ing ideas according to which Mr. Altman established this business, during a busy and thoroughly useful life, still dominate its policy. Its advertising de- APPLICATION OF THE FIVE TESTS 123 serves careful study by those who believe, as I do, that the true mission of advertising is the expression of salesmanship which best serves the buyer. Altman's advertising has been criticised as being too dignified and lacking characteristics which are supposed to be essential to successful advertising copy. Yet it may well be questioned whether to the Altman group of purchasers any other form of an- nouncement would be so pleasing. If Y(MI'^>WANT TO KNOW All ABOUT IMt-rAMOUS ^(hl Tr ■01 fllOeisoll ZTntCKtATtJAaat «r nrc Line. 'tankee: HART MiNOlRNOIL&RRO ntPT35-6/ fORfLANlJl SI. NtW YOKK ThA first Ingersoll watch advertisement^ 189$ (Actual size J Mr. WilKam H. Ingersoll, of Robert Ingersoll & Brother, has favored me with a copy of the first advertisement which his house put out, in 1893; also with a full page in the Saturday Evening Post of November 2, 1912, which he believes is the best advertisement they have ever published. The history of the Ingersoll watch is particularly interesting, because it opened up and thoroughly The Five occupied a new field. Tests Ap- No one in position to speak authorita- "DVLed to Magazine tively claims that the Ingersoll watch has Advertunng -^ ^^^ ^^^ interfered with the sale of watches of higher price. ■Ill IBfl 124 ADVERTISING— SELLING THE CONSUMER Many persons own and use an IngersoU watch for hunting, fishing, and other purposes, because they do not care to risk the loss or misuse of a higher- priced article. The first advertisement put out by the IngersoU watch is interesting as a bit of history; the full page meets all the five tests. The universal and constant appeal of the kodak is splendidly expressed in the Eastman Kodak Com- The Secret P^ny announcement; but coupled with it inE^iman ^^ ^^ immediate sales-impeUing suggestion Kodak which must produce definite, positive busi- AdveHising ^^^^^ We are all constantly confronted with the necessity of deciding what to give as a wedding present, and the assistance which the Eastman Kodak Company gives one here is service indeed. By reproducing the package, the Old Dutch Cleanser announcement makes the best possible use of the Keeping sales talk of Specialty men who call on the ^di^^ retail trade, house-to-house canvassers, and Old Dutch store demonstrators. Cleanser j^^ j^j^^ manner the reference to definite specific information on the package means the in- creased use of Old Dutch Cleanser in homes where now it is perhaps bought and used for only one purpose. The American Telephone and Telegraph Com- pany's advertisement is especially commendable for accomplishing what is obviously its purpose. Com- I '^ III I APPLICATION OF THE FIVE TESTS 125 petition between telephone systems is not service to the ultimate buyer if rates are reasonable and . . the scope of service is continually en- to Enhance largcd. As loug as the American Tele- Confidem^e pj^^jj^ g^^^ Telegraph Company indicates, by its announcements, that it desires to give the public service, people generally are much more apt to be- lieve that it is sincere in that purpose than they would be if it maintained a dignified silence on the subject. The general effect of the Swift advertisement is particularly good, although I am generally afraid of Focussing white letters on a black background, except Demand on for a brief heading in large letters. Legi- Pr^ium bility is always sacrificed, to some degree ^""^ at least. This advertisement contains valuable information for housewives. The specific point made is bound to influence the buyer to specify "Swift's Premium Ham," instead of saying merely that she wants "some good ham." The Hydraulic Press Brick advertisement deals with a ticklish subject in a frank, straightforward The Subtle manner. The expression of their confi- Handling of dcucc, in putting it up to the architect, is pZts Brick sure to impress him favorably. The ser- AdveHising ^j^^ offered him, by giving him genuine information in the booklets, is a subtle and com- mendable appeal for the good-will of house builders. ii ' Appeal to the Senti- ment by National - Lead Company 126 ADVERTISING-^SELLING THE CONSUMER The National Lead advertisement makes a most eflFective appeal to sentiment. They are fortunate in that there exists in the minds of painters generally throughout the country a deep- seated prejudice in favor of lead and oil as against mixed paints. Their desire to maintain this sentiment and create the impression of being willing to give valuable advice when requested, is good business judgment. Their sales prove it. The Quaker Oats advertisement deserves special commendation. The economy of the 25-cent size QuaTcerOats ^^ ^^P^asized, without Sacrificing the ap- AdveHise- petiziug Suggestion of good oats well "^Ir^^M ^^«k^d. The fine type in the small para- graph reiterates the strong points of pre- vious advertisements. The cumulative effect se- cured in this way is one of the most valuable assets of an advertising campaign. The Holeproof Hosiery announcement is unusually effective in illustration, two women and one man, thus laying particular stress upon the fact that Holeproof Hosiery is made for men and women, especially "women." The Ivory Soap advertisement is interesting be- cause of the amount of space given to the illustra- tion. In marketing a 5-cent soap the manufacturer must create an atmosphere of quality which will offset the impression made by its low price. But he sometimes finds this diflScult. The Proctor & Gam- APPLICATION OF THE FIVE TESTS 127 ble Company has shown great wisdom in illustra- tion. In this particular advertisement, illustra- tion and text strengthen each other; each adds to the force of the other. The title of the book- let suggests increased service to people who are already using Ivory Soap by teaching them new uses for it. The Hart, Schaffner & Marx advertisement is an interesting departure from the style which they used The Mail- ^^^ many years — the ideal figure, in a order Idea natural posc, his clothes showing creases in General i • -i i i , i -i PuhiicUy and wrinkles wherever tney occur when Advertising actually worn. The mail-order idea, i.e., to give more informa- tion to people who ask for it, is the keynote of this particular advertisement. The effect of a fine style book, sent to all who write for it, is far-reach- ing. Inquiries from high-class prospects handed to the travelling salesmen and properly used by them in talking to local dealers are bound to stimulate the dealers to use the advertising helps which Hart, Schaffner & Marx sell their agents. I use the word "sell" because this firm sensibly takes the stand that advertising material which is given away free is valued accordingly. A price which partially covers the cost of production is the best assurance that the dealer will make the most effective use of it. As examples of effective mail-order advertising I IB ■I 'IIIh I 128 AD^RTISING:;^ELLING_THE CONSUMER have reproduced three Sears, Roebuck & Company announcements (indicating the wide scope of this Comments successful mail-ordcr institution) and one ^derAd- of the advertisements of the National veriuemerus Qloak & Suit Company. The latter makes the most of the word "National "; also of its New York City location, which, to a large group of buyers, stands for that intangible something called "style." The Sears-Roebuck announcements are character- istics in that the successful mail-order house seeks, first of all, to get the catalogue, their real salesman, into the hands of persons who have been induced to express a desire to possess it. I have reproduced only two outdoor advertise- ments. Mr. 0. J. Gude told me that he considers the White Rock electric sign the best thing that has ever been done in that line. It may seem difficult to apply the five tests to an electric sign, a bulletin, or a poster, but I recom- mend making the attempt, for the reasons previously given. Take the White Rock sign, for instance. Is it institutional? It stood on Long Acre Square, the night centre of New York City, the place to which come the largest number of free spenders from all over the United States. White Rock, as a trademark, has been associated with sales talks and educational advertising all over the United States. Its reproduction here reiterates. APPLICATION OF THE FIVE TESTS 129 reaffirms, and reinforces all that has been said about it. The night life of New York City is an institution in itself, and the Wliite Rock sign, with its brilliant light, was in complete harmony with this institutional spirit. It is specific (Test No. 2) because the White Rock trademark, in its peculiar, distinctive form, is ac- curately reproduced. It is forceful in suggesting a high-ball, because White Rock appeals to the men who drink high-balls as well as to those who want a drink which does not seem cheap or puritanical. The suggestions of persistency and authority (both forceful elements) are contained in the size and loca- tion of the sign. Certainly the story is plausibly told. The clock adds much to the acceptability of the broad sugges- tion, "for all time." The sincerity of an institution which spends so much money to tell its story is not open to question. It is certain that the orderly and systematic ap- plication of these five tests to any piece of printed ^^ „. matter, or to any announcement of any Tests Can kind, in newspapers, magazines, or out- toAi^Ki^ door display, will stimulate greater care in of Adver- the preparation of copy and more attention ^"^ to the interests of the final buyer, thereby benefiting the advertiser's business as a whole. If ' '■'i. till I CHAPTER XIII ADVERTISING AND SELLING THROUGH THE ORDINARY CHANNELS OF TRADE BROADLY speaking, there are five recognized routes by which merchandise travels from the man who makes it to the consumer. Perhaps the most important is (1) from manufac- turer to wholesaler or jobber, from the wholesaler to the retailer y and from him to the consumer. The place of the retailer in the distributive chain is universally conceded. Mail-order successes prove that many kinds of goods can be marketed by mail. But the retailer will always Link'intit liandle the bulk of the supply of the Amer- Merchan- lean family. The retailer's stock is complete, if he be progressive and easy of access. Merchandise can be seen before it is purchased. Very often the credit which the retailer can extend is a real service, which brings him a goodly share of the business of his trade territory, i The position of the '^wholesaler may not be so clearly defined. At first glance it might seem that the toll he exacts might better be taken from the sell- The Retail -\ 130 r^ ADVERTISING AND SELLING 131 ing price and his service dispensed with. It would not pay, generally. He has a function, and is in- dispensable in most cases. He keeps a Fusions finger on the pulse of local conditions. The Whd^mier i^anufacturer can afford to sell to him at less than the price to the retailer, for the service the jobber renders could not be duplicated by the manufacturer for the differential he allows him. The wholesaler buys in much larger quantities than the ordinary retailer does. He relieves the manu- facturer of all work and detail in connection with credits, selling small orders, and collecting small accounts. He pays for what he buys and assumes entire responsibihty for his own sales. He is par- ticularly indispensable to the manufacturer of an article of comparatively small consumption. In such cases the volume of sales to each retailer is SQ small that it would be foolish for the manufac- turer to do business with individual retailers, either direct or through salesmen. The wholesaler is of great value to the retailer who does business on a small amount of capital. His stock is large. Retailers in his terri- Wlltsaler tory cau draw upon it and get the goods at as an Aid to oncc; SO that it is not necessary for them to the Retailer , _ . ,, •.! i cumber their small space with large quan- tities of each of the lines they handle. The whole- saler is safe in granting credit, because he is on the groimd and knows the retailer's financial status. M m The Exclusive Jobber Plan 132 ADVERTISING—SELLING THE CONSUMER Some manufacturers selling privately branded goods in staple lines of steady consumption give the exclusive sale of it to one jobber in a territory. This gets more cooperation from the jobber, for if he has the right kind of a contract, he is buOding for himself as well as for the manufacturer. The exclusive jobber plan has been successful, especially when supported by general ad- vertising. Specialties of small consumption have never been marketed advantageously through ex- clusive jobbers; this method is feasible only when it is possible to divert an established demand to an advertised, trademarked brand. It will not create a market for a novelty. It would not do for an un- branded article. Most manufacturers sell to all reputable jobbers. They cannot expect these jobbers to put any special effort into selling their goods, because the jobber specializes on distributing, and is not equipped for creative selling. It is, therefore, the business of the manufacturer to create his own market — by advertising to the consumer, by interesting the dealer with specialty work, and by trade journal publicity. Almost all manufacturers who distribute their products nationally through the wholesaler do some specialty work on retailers at their own expense. The orders taken by the specialty salesmen are filled through the wholesaler, who takes over the accounts. The wholesaler can fill the orders more promptly, he The AdveHiser Must Cre- ate His Market — the Jobber Is a Distributor ADVERTISING AND SELLING 133 is better equipped for looking after repeats, and he assumes the retailer's accounts. These functions make his service worth while to the consumer, re- tailer, and manufacturer. Some manufacturers put up goods under jobber's private brands. But it militates against the manu- facturer who wants to sell his own brands, and against the one who sells bulk goods. It is, nevertheless, legitimate competition. Many manufacturers sell direct to the retailer — the second channel. The manufacturer who sells through an exclusive dealer eliminates the wholesaler. SeUi the '^^^^ method has been so highly devel- oped in connection with national adver- tising in mediums of general circulation that I treated it in a separate chapter. Selling direct to all dealers can scarcely be said to lower the price to the consumer, or to lower the man- ufacturer's selling cost, or even to increase the retail- er's profit. For the manufacturer must take care of more detail in his oflice, must increase his travelling sales expenses in most cases, and must assume re- sponsibility for retailers' accounts, which means more bad debts. He may sell to retailers direct or through sales- men, and pocket the wholesaler's commission. But if he is after volume and big business, I doubt whether he would save money by eliminating the wholesaler. Retailer Direct I III ili 134 ADVERTISING— SELLING THE CONSUMER The advantage of direct selling is that it gives the manufacturer a more intimate knowledge of selling con- JUasons ^^^^^^s, a closer grip on his own business. for Selling It gives him the master's share, and the power to extend substantial cooperation, if his product is good and his organization can maintain a volume of sales which justifies his sales expenditure. Some manufacturers sell to both retailers and wholesalers. But if they sell to a retailer in the logical trade territory of a wholesaler to whom they have also sold, there will surely be friction. To sell the retailer at less than the wholesaler's regular price to him is not in accordance with the ethics of the trade. Large retail stores that go direct to a manufacturer and demand wholesale prices are another problem, if the latter is committed to the general policy of selling to wholesalers. The third channel is through a third middleman, the manufacturer's agent, broker, importer, or exporter. The Third ^^ ^^^ ^^^^ ^^^ ^^' ^^ ^^y^ ^^^^ ^^® Middleman manufacturer and sells to the wholesaler, ~BmkX' ^^*^ ^^^^^ *^ ^^® retailer, and the retailer Importer, scUs to the cousumcr. or Exporter rr\i t • p i • ine functions of the importer and ex- porter are fundamental. They get goods from for- eign countries and ship domestic products to markets where they can be sold. Only the largest and most complete wholesale or retail establishments are able, in their own organization, to take care of the particu- lar service of the specialist importer and exporter. ADVERTISING AND SELLING 135 He sells to the wholesaler. He is seldom equipped for going direct to the retailer or the consumer. His margin of profit is small; volume is vital to his exist- ence. Small sales do not interest him. "Merchandise broker," and "manufacturer's agent," are practically synonymous terms. The merchandise broker differs from the im- Broker and , , • i • xt_ j. i.* i Agent portcr or exporter mainly m that his work ^il^^s^^^ is intra-national instead of inter-national. He is the manufacturer's exclusive repre- sentative for a certain field. In this field he repre- sents from two or three to fifty different non-con- flicting producers. His margin of profit is smaller than that accorded the wholesaler; he is after volume. He makes it possible for the manufacturer to approxi- mate a unit system of distribution. The manufacturer's broker carries on most of the negotiations with wholesalers. All difficulties are referred to him for adjustment. He may have much to do with framing the general policy for his territory. He is (save the representative on salary from head- quarters) the manufacturer's most direct representa- tive. The broker seldom goes straight to the retailer. His commission will not permit it. He must go to The Broker *^^ wholesaler, where each order means big SeUs the busiucss. If he does any work at all on re- Wh^lesaler ^^.j^^.^^ j^ j^ j^^ ^^^ purpose of influencing demand upon the wholesaler. Progressive firms, who employ a broker and want to get the maximum 136 ADVERTISING—SELLING THE CONSUMER volume of sales, allow him to engage specialty men; or they send specialty men to work under his direc- tion. These men call on retailers and stimulate demand upon the wholesalers by whatever arguments of merit, advertising, profit, or special cooperation seem best. House-to-house canvassing of consumers, sam- pling, and store demonstration are means by which the manufacturer cooperates with the broker. The size of the manufacturer's organization, the amount of capital he has, and the universality of the appeal of his product must determine whether or not he will use brokers and the amount of cooperation he shall give them. The fourth route is from the manufacturer to the consumer, with no intermediaries save the manu- Sellin the '^^l^^^^^'s own representatives on salary or Connimer Commission. This classification includes (1) the mail-order house, (la) the manu- facturer selling by mail, and (2) the manufacturer who operates retail stores or sells direct through agents or salesmen. Mail-order businesses are of two sorts. The pri- mary purpose of one is to sell goods of its own manufac- ture, the business of the other is to sell goods by mail. In the first class is the manufacturer who special- izes upon a few articles; in the second, the firm that maintains extensive manufacturing establishments, and also buys from other manufacturers materials to complete its own extensive lines. ADVERTISING AND SELLING 137 In Chapter XXII I have covered the mail-order method of selling in greater detail. Some manufacturers sell the consumer direct through their own representatives who are paid either a salary or commission. The automobile maker who maintains agencies or branches in different cities for the purpose of sell- ing direct to the user is an example. But if he allows his cars to be sold by an independent local sales com- pany, he must be accounted as using the second trade channel — manufacturer to retailer. The sale of advertised specialties has developed a type of manufacturer's representative not at all like the ordinary merchandise broker, who goes to the wholesaler with a sample, quotes him a price, and wires his principal the wholesaler's offer. The manufacturer's representative selling advertised spe- cialties must be a creative salesman in every sense of the word. He must understand how to conserve the value of the trademark. He truly represents the manufacturer in serving the customer and does not compete on a price basis. Small specialties are often established by solicitors sent out from the manufacturer's office. Firms Introducing having only a small capital, and unable at Goods to the outset to advertise and sell in a bifif by way, often use solicitors, for a time only, as a means of making the goods known and as a preliminary to selling through retailers. Specialties which are limited in appeal cannot be Solicitors It' w I' i-t if. 138 ADVERTISING— SELLING THE CONSUMER sold successfully by any other means. If the mar- gin on them is small, the solicitor handles them as one of a number of articles which he is prepared to present to the consumer. The manufacturer who operates retail stores is also a direct-to-the-consumer seller. In his advertising TheManu' ^^ often lays particular stress upon the Jacturer statement that he has eliminated the who Op- eratesRetaU middleman's profit and can, therefore, «'°™ make the consumer a better price. It may be he can, but I doubt it. He has taken upon his own shoulders the burden of maintain- ing a more complex organization and of handling many men on the road. In other words, he cannot eliminate selling expenses by going direct to the con- sumer. He may minimize it by perfection of sales equipment and the institution of economics in the supervision and conduct of his business. Unless he is a wonderful organizer and a handler of men, he may find at the end of the year that his net profits are less, and that the public has fared no better. That does not mean to say that direct- to-consumer selling is not economical. It certainly must be backed by the highest type of business ability if the manufacturer is to make a success of it. Chain stores are not always examples of manu- facturer-to-consumer selling; they are simply or- ganized retaiHng. In the fifth channel, the mail-order house, instead of ADVERTISING AND SELLING 139 going direct to the manufacturer, buys from his sales agent. This means the mail-order departments mj,„ of large businesses whose chief concern Ml:r,er may be either wholesaling or retailing, ^'""^ but which maintain mail-order sections. It also covers the buying of goods by a mail- order house from an importer or exporter or a mer- chandise broker instead of from the manufacturer direct. The conditions which control the production of an article, the amount of capital to be used for pro- motion purposes, the utihty and value of the article itself, the distance which separates it from its mar- ket — all these things must be considered in choosing a selling method. Almost all selling systems call for a middleman. Importer, broker, wholesaler, or retailer, whichever he may be, he is a helpful factor in distribu- Middleman tion and has justified his existence. To in^Mrmst i^^rkct merchandise costs a certain amount AU SeUing of money, varying in accordance with the character of the merchandise and the ability and the amount of work that the selling organization will put into a campaign. A manufacturer who de- cides not to employ middlemen does so because he has developed — or is convinced that he can de- velop — within his own organization the distributing ability which is the primary function of the middle- man. Whether or not he can save money is a matter which he must determine for himself by trial. 140 ADVERTISING-^SELLING THE CONSUMER The manufacturer must be a creative salesman, or surround himself with men who are, or his busi- ness will come to nothing. The middleman must be a producer — serving the consumer — or be elimi- nated. Nothing tliat I have said in this chapter should be construed as endorsing the idea that the five routes I have outlined are the only correct ones for mer- chandise to follow. In many instances I believe radical changes in distribution should be made. There are manufacturers who sell to the jobber, through a sales agent; the jobber then sells to the retailer; the retailer sells to the consunier. There are many articles han- dled in this way which could be shipped in the original package, direct from the manufacturer to the consumer. Even if the sale were handled through two or three middlemen, still each party to the transaction would benefit materially by the change, especially the consumer. The route of distribution should be governed by the character of the merchandise. The middleman should know definitely what his functions are, and should not attempt to handle any work that could be done elsewhere more economically and with greater satisfaction to the consumer. There are too many middlemen in a number of lines. There are lines in which one or two bold spirits could, by making use of modem merchandising and advertising methods, increase the scope of their ADVERTISING AND SELLING 141 The Mid- dleman's Functions Should Be Clearly Defin&i The Con- sumer Is the Final Test business, get an enormous volume, reduce the cost to the consumer, and give themselves financial re- turns many times in excess of any sum they can ever make by trying to maintain a fictitious value for the service they render. There is need for radical readjustment all along the line. The particular point I have endeavored to drive home in this chapter is that even though the manufacturer goes to the con- sumer by means of all the established routes of distribution, his responsibility to the consumer for the quahty of his wares is not lessened. I reaHze that many distributors will oppose any change, just as the hand compositor fought the in- troduction of the hnotype machine. Yet linotype operators make from two to three times as much as they did, under the very best conditions, as hand compositors. Many distributors have been blindly following established custom; they have not analyzed conditions or causes, nor have they realized that there are better ways of doing business. All along the Hne the distributive system is loaded with heavy labor costs — usually the lowest-priced labor is the most expensive. Advertising can reduce the cost of every phase of distribution, at the same time increasing the com- pensation of the personal labor required for the maintenance of the various distributive chan- nels. I ' 142 ADVERTISING— SELLING THE CONSUMER One prominent retailer, who is generally reported to figure his cost of handling merchandise at 30 per cent, on the gross price, told me that more Advertising ,i i if i ■ • i i • i !• Confers a than half his expense is labor, including b'^m ^^^^^ ^^^> management, delivery men, '"^ janitors, etc. His advertising cost was less than one per cent, on his total business. I told hhn it did not seem good business, to me, to tax the consumer with 15 per cent, for labor and only one per cent, for informative advertising which would reduce the cost of salesmanship, if his clerks are tramed to cooperate with the seUing campaign. This same condition exists in the jobbing busi- ness. Men unpack, handle, and repack goods which, if standardized and if the consumer were educated to want it in exactly the form in which it leaves the manufacturer, could be shipped direct from the manufacturer to the consumer, who would select, at the retailer's, from well-displayed samples. There is much opportunity for improvement, and I predict that the next ten years will witness changes that might be characterized as revolutionary. But I beUeve that the estabhshed channels of trade will remain fundamentally as they are now. KEFEKENCES ON CHAPTER Xin There are trade papers which deal with the prob- lems outhned in this chapter, many of them. Some are of unquestioned leadership, with offices in all im- portant trade centres. i ADVERTISING AND SELLING 143 Particularly noteworthy are the Dry Goods Econ- omist and Iron Age (both published in New York), which are edited by men of great power and national influence. There are five (monthly) publications for under- takers and eight for miners. The grocer, the general merchant, and the allied trades are served by sixty- eight publications. And so on down the list, from automobiles to watchmaking. Each one of these trades has its own literature, to say nothing of house organs and catalogues which display the highest type of advertising skill. Ill mi CHAPTER XIV HOW THE MIDDLEMAN SERVES THE CONSUMER THE retailer does 95 per cent, of the business of supplying the wants of the American family. I doubt whether this percentage ever will be much altered. The mail-order business will increase and so will the jobber's and retailer's, just as rapidly as elimination of the present waste in our distributive system is changed into increased comfort and luxury for the consumer. Many people will always find it easier and more satisfactory to order goods by mail after they have read a catalogue; others want to see and examine merchandise before they buy. The question, " What kind of service does the consumer like best?" has as many answers as there are different kinds of people. The mail-order business proves that people scat- tered over a wide area may be organized and held together by group consciousness. Once in the backwoods of Kentucky I met a man who isolated himself. He refused to buy anything from the local stores. His greatest satisfaction seemed to be his abihty to read and supply his wants by means of the catalogue of a Chicago mail-order 144 HOW MIDDLEMAN SERVES CONSUMER 145 firm. He evidently felt a personal superiority and distinction — sometimes encountered among "our very best people" — in being able to do something which his less fortunate neighbors could not do, i. e., read. Many manufacturers have been considering the middleman their customer, because he buys their goods. Goods in the market may be a MimLan menace to the man who has made them. /* Not a They are never sold until they are in the onsumer j^^^^^ ^£ ^^ consumer, the final buyer, the man who does not want or intend to sell them again. Many distributors are recognizing the new order of things, and are limiting their activity to banking and purely distributive functions. They are not attempt- ing.specialty salesmanship, because they can get expert assistance of this kind from the manufacturer's sales- men. And they make more money than they could by having a larger margin of profit and taking the re- sponsibility of educating the trade by specialty work. Any distributive system which does not bear the test of constantly giving the consumer the best ser- The Jobber ^^^^ ^^^^ ^^^^* ^^ ^^^ middleman who andAdver- opposcs the handling of advertised goods tised Goods ^g^j^^gg i^g thinks the consumer, knowing the producer, may go direct to him and thus dispense with the middleman's services, is making a wrong deduction. The consumer is best served when each factor of production and distribution is concentrated upon the one activity for which it is particularly well equipped. When Private Jobber's Brands Are Justified 146 ADVERTISING— SELLING THE CONSUMER No manufacturer should have the preference of the consumer or the retailer unless his merchandise merits it. If the maker of a food product which is intelligently merchandised and nation- ally advertised is able to get only from 2 to 5 per cent, of the total business for it, there is no reason why the jobber should not put in his own private brand-if the con- sumer and the dealer would have confidence in his guarantee of quality and his backing of the prod- uct. In a number of instances the demand for a certain article is a highly developed want which has been created solely by the constructive genius, organizing ability, unwavering purpose, and unceasing devotion of its manufacturer. Any attempt to share in this business is httle short of a willingness to accept something without rendering an equivalent for it. It is not only unethical and unmoral; it is the worst kind of bad business, and cannot be encouraged or countenanced by honest men. In some cases the manufacturer, the jobber, and the retailer put their names on the merchandise, and tell the consumer exactly what each Distributing ^^^ doue and stands willing to do toward SA^ gaining and meriting his or her confidence. Educate In the grocery trade there is much dis- aum^' cussion of the comparative value of manu- facturers' and jobbers' brands. There are forces at work in the distribution of groceries that Better Under- standing WiU Eliminate Waste HOW MIDDLEIVIAN SERVES CONSUMER 147 seem as relentless and as irreconcilable as those now engaged in warfare in Europe. A specialty manufacturer sends his salesman to call on the retail grocery trade. He takes orders to be shipped through the jobber. And then he finds out that the jobbers' salesmen have killed a number of them. Many jobbers control the retailer's trade by granting him credit. Then they can insist that he handle their brands, not the manu- facturer's. Where the consumer is indifferent the conflict is most active. I am convinced that this, wasteful antagonism is unnecessary. It can be largely eliminated by a more perfect understanding of what business really is, and a wiUingness on the part of everybody concerned to give the other man the con- sideration and courtesy to which his service en- titles him. The best interests of the consumer are the best interests of the retailer. But the consumer does ' not always understand what is best for and him. This is the dealer's opportunity for ^^Have^ service. If the retailer personally or his Identical salesmen, who should be governed by ser- interests . • t i 1*11 1 i^ii i» Vice ideals which he has laid down for them, can persuade his customers to accept some- thing which is better for their wants than the par- ticular things for which they ask, he is giving them true service by doing so. 148 ADVERTISING— SELLING THE CONSUMER The retailer who does this will not be misled by an overzealous salesman who talks large profits on unknown articles against a fair margin on well-ad- vertised articles which move rapidly, and give the dealer more profit because of volume. This type of dealer will soon win the confidence of his customers so completely that they will not expect him to meet cut prices on standard articles. They will prefer to trade at a store where scientific methods of distri- bution are appreciated and used. I am sure that most of the difficulties which are now worrying the dealer, the jobber, and the manu- facturer (to the detriment of the consumer) will disappear as soon as the functions, the rights, and the responsibilities of each are more fully comprehended. You may have heard some one say that "the manu- facturer ought to advertise, in order to force the jobber and dealer to handle his goods." Shmdd^ If advertising is strong enough to force the cZce J^^^^^ ^'' *^^ '^^^^^'" ^^ ^"^ something which he does not want to do the man who invokes and uses this power for such a purpose is making a wasteful use of it. He would much better be employed in convincing the jobber and retailer that their interests are con- served in the possibilities of cooperation and absolute assurance of increased sales, because more intense de- velopment of the consumer's wants and a more direct supplying of them would increase the volume of busi- ness. II HOW MIDDLEMAN SERVES CONSUMER 149 The generally accepted definition of the word "gentleman" is "strength tempered with courtesy, justice, and a square deal." No jobber Sh^dtm ^^ retailer should be forced to do anything Merchxin- ^hich docs uot further his best interests. dised A merchandising plan which contemplates ruthless disregard of the wishes of a distributor lacks much. The middleman should be "sold" on the advantages to him of cooperating with the plan of distribution. The best manufacturers, those who distribute through national merchandising and advertising, are considerate of the middleman. Before they under- take a campaign — which represents an enormous investment of capital, time, thought, and energy — they have data gathered which enables them to deter- mine what complete service to the consumer is worth, and what the middleman's share of this service is worth. Then these manufacturers " sell " the middle- man on cooperating with them, because it will serve his own interests and at the same time give the consumer satisfaction, which is the best possible in- trenchment of his business. The jobber and retailer who help the producer get the increased volume of business which is bound to result from the use of a correct merchandising plan will make more money on their capital and energy and will do best by the consumer. This type of middleman is intrenching himself for the future and will not be eliminated; instead he will m 150 ADVERTISING-SELLING THE CONSUMER become a more and more important factor in dis- tribution. REFERENCES ON CHAPTER XIV In "The Economics of Retailing," published by the Ronald Press Company, New York City, 1915, Paul H. Nystrom has covered the whole range of retail distribution in a most interesting and readable manner. "The Wages of Salespeople," "Location and Rent," "How Retail Prices Are Fixed," "The Mail Order House," "Are There too Many Retail Stores?" are titles of exceedingly interesting chapters. He makes an argument for publicity in its broadest sense when he says : "Sooner or later the growing unrest of the pubHc concerning the rising costs of living will be focussed on the costs of distribution. Public investigations will be made and legislation proposed. Much of any ill-will that might be present in that scrutiny, when it comes, can be averted by retailers if they will but take the public into their confidence. Price is the tender spot in nearly all economic discussions where public interest is concerned. It is highly essential that all retailers, who are doing a legitimate business upon a reasonable profit basis, cooperate m letting the public know what are their price-making proc- esses and problems." CHAPTER XV RETAIL ADVERTISING — PREPARATION IN CONSIDERING retail advertising, one must not forget that many dealers have gone into business without having made a comprehensive plan of campaign. Some have inherited a business. Others started in as clerks, and gradually worked up. In agricultural districts, retired farmers, who have moved into town so that their children may have city school advantages, often buy a grocery business or handle farm implements. Many of them fail because they lack expert knowledge of the business itself and especially because they did not know the characteristics of their con- suming group. Other things being equal, the retailer should pre- fer a location in a city whose industries are exten- A OS 11 sively advertised. Manufacturers who use A Stable , , . . . Labor advertising to create a permanent, steady N^sa^ to naarket are least affected by industrial Swxessfui changes. Employees are benefited by this policy, because they are not laid off ii^ times of general depression. 132 ADVERTISING— SELLING THE CONSUMER Having chosen a city or town in which to estab- lish himself (if it is possible for him to do this), the retailer's next move is to select the particu- lar street upon which it seems best to locate his store. Here again we see the value of the group spirit, which accounts for the fact that property at the comer of State and Madison streets, Chicago, is worth many times more rent per year than is the same number of square feet one nule from there. The fact that a large group of people has formed the habit of passing a particular corner, or along a particular block, every day. makes a loca- ilt™ tion at that point worth more to the re- *^^.f^ taller than the same amount of space a short distance away. The retailer should next consider the character- istics of his group, as a whole, and also those of the many smaUer groups of which the community is composed. He should study their tastes, their prejudices, and the influences that are maintaining or changing their mental attitude and their manner of living. He should select his clerks carefully, considering their fitness to sense and work in har- mony with the prejudices and preferences of the majority of his customers. Much might be said about fitting up his store so that his wares will be in plain sight and easy to get at. Allow plenty of space for showcases, counters, and shelves for the RETAIL ADVERTISING— PREPARATION 153 display of desirable merchandise. Mute salesman- ship of this kind costs little and gets substantial results. The retail merchant should buy reliable, depend- able goods. It is wiser to concentrate his buying in Bu From ^ ^^"^ ^^''^''^^ "^^ ^^?P^^' '^ ^^""^^^ ^^ ^^^^ Competent his busiucss attractive to the best houses, ^m^mt- ^^^ ^^ ^^^ ^^y insure getting the greatest ing Reliable amouut of attention. Where the quality ^'"''' of the merchandise and the general policy of the houses from which the dealer can buy is the same, he should, in justice to himself, give prefer- ence to the salesman who studies his needs and is best equipped to counsel and confer with him about how to merchandise the goods he buys. Many dealers owe much of their success to counsel and advice given them by salesmen who believe that the business of selHng is an opportunity for service, and who treat the dealer's confidence as a sacred trust. As soon as the dealer knows the purchasing capac- ity of his possible customers, he should gradually foster in them an appreciation of a little better standard than they have been asking for. In this way he can secure the leadership which is neces- sary if he is to build up a big business, and can get and hold the trade of people who like to feel that they appreciate quality and that goods have been brought to their attention because they know quality. I 154 ADVERTISING-^ELLING THE CONSUMER It pays tx) stock advertised brands instead of un- advertised, when they are of equal merit. If he can buy the latter for less money, then he must Uve^Vdue determine how much the advertising on the Hs^/^ higher-priced Hne is worth to him. If he Unadver- cau be suTc that the advertised merchan- P^ucu ^^^ ^"^ ^^^^ ^^^ ^^^^^ ^^^* ^®^*» ^^^ other expense, then the advertising justifies it- self. As a rule advertised lines are meritorious, and the cost of advertising is not an excess tax upon the consumer. In which case the dealer has no excuse for handling anything but advertised Hues. Careful discrimination is necessary when the re- tailer takes over the exclusive sale of a Hne of goods. Many manufacturers market their goods A^^^ to one dealer only, in each town, because Should Be they know that having something which Considered oue s immediate competitor does not pos- sess appeals to retailers generally. Some- times the retailer makes a mistake in listening to this argument. For there are articles, having a wide national distribution and sold to any dealer who will buy them, that unquestionably give the greatest sat- isfaction to the consumer because of the advertising which has been done both before and after the purchase. Retailers often try to substitute an article of which they have the exclusive local sale for one that has a broad national sale. It is a mistake to do this. The manufacturer who gets control of a market and RETAIL AD VERTISING— PREPARATION 155 reduces the price, in order to entrench himself, unquestionably gives the greatest possible service National to the final buyer. Every manufacturer ^^A^^ with a sound merchandising policy wants Local the retailer to handle goods at a satisfactory ^ *"^ profit. In fact, so far as I know, present agitation for the purpose of getting legislation in Con- gress which will permit manufacturers to insist that retailers maintain the manufacturer's retail selling- price has been instigated by the manufacturer. He wants the retailer to make money; he does not wish to reduce the retailer's profit. He knows that if he can get the largest possible volume of distribution, he can, because of economies possible in production, reduce prices and entrench himself against competi- tion. He knows that price-cutting on the part of the retailer reduces the total volume of sales, and that the retailer cannot give the consumer complete service unless he is sure of a steady and permanent demand. The retailer is wrong who apportions his expense of doing business among all the articles he sells. For instance, it costs him more in rent, labor, and over- head, to serve a glass of soda, at five cents a glass, than it does to hand out a package of chewing-gum, the demand for which has been created and developed by national advertising. He fools himself if he thinks that the washing of glasses, the labor of dispensing the soda, and the amount of time taken up by people who stand at 1= I ' ii 156 ADVERTISING— SELLING THE CONSUMER the soda fountain is anything Uke the same degree of expense to him as the transaction involved in WeU-ad- handing out the chewing-gum. In order verti»ed to prove it, he needs only to find out Lines Cost . i • i 11 Less to how many chewmg-gum sales a clerk Handle qqu^^ make, in a day, to people who came in about as fast and as regularly as the patrons of an elevated railroad go through the gates and drop a ticket. For five cents the elevated railroads give the consumer a good deal of transportation, aTid the labor of the people who sell him tickets and receive him at the gates. The retailer can profitably use every advertising medium that I have described in this book. Many of them he can afford to use directly. He can get the benefit of all of them, indirectly, by cooperating with the manufacturer's advertising of goods of which he has the exclusive sale for his own section; or by cooperating with national advertising cam- paigns on goods that are sold to any dealer who will buy them. By doing this he will get more than his share of the business which the manufacturer creates. He should do no local advertising until his store is in shape to back any promises he may make in his ad- vertising. REFERENCES ON CHAPTER XV Mr. Harlow N. Higinbotham, formerly a partner in Marshall Field & Co., Chicago, and President of the Chicago World's Fair, has written a valuable RETAIL ADVERTISING— PREPARATION 157 book, "The Making of a Merchant," published by Forbes & Company, Chicago. The science of advertising has developed a service phase since Mr. Higinbotham wrote "The Making of a Merchant." He recommends unadvertised lines as giving the dealer a larger profit; and now he would find that the manufacturer's advertising actually saves the dealer clerk hire and rent, and brings him business. Mr. Higinbotham recommends that retailers teach their clerks to be decisive in dealing with customers, and aptly says: "When the decision is put up to the customer, he invariably names the brand most widely advertised, because it is the first that comes to his mind." -Ill # METHODS AND MEDIUMS 159 1 r'TTAPTT?!? xrwT VylxAx X riXt ATI RETAIL ADVERTISING — METHODS AND MEDIUMS THE retailer's first purpose in advertising is to bring people into his store. For appealing to those who pass the store every day the best medium is a display window. Goods should be attractively arranged and show the price. Then the effect of the advertising in the win- dow can be accurately checked. The same clear-cut fundamentals govern the success of a department store and fruit stand. Each exists, primarily, because of a group. M^e Each has been established in a locality to IpoT^ which common interests and needs draw a group of people constantly. In polishing his apples, arranging the grapes and cherries in small packages, and putting in his spare time making up attractive assortments, the fruit- seller shows the same elemental appreciation of the advertising value of display which is revealed in the department store's handsome windows, neat shelves and counters, and carefully trained clerks who im- press all comers with the fact that "it is a pleasure to show goods." 158 The price ticket on a basket of grapes is both an appeal to the bargain-hunting instinct of the su- burbanite and a confidence-compelling aflSrmation by the proprietor that the goods are worth the price asked, and that he is willing for any one to know it. This same fruit vender has found out that he can depend upon a certain class of discriminating trade, if he carries well-advertised goods in the original, unbroken package. Many a small store proprietor would do well to follow his example. A certain Chicago retailer moved his store not long ago. The new location costs him $15,000 a Show y^^^ more for the same amount of space Windows he had before. But now he has six show Sileli windows. He had only two before. Nei- SaUsmen ^^^ ^.j^^ ^jj^^gg ^f people who pass the new store nor the numerical strength of the group seems to have changed much. But the four extra display windows more than justify the $15,000 additional rent. These windows are changed con- stantly. The windows bring people into the store, where materials of especial interest for the moment must be attractively displayed, interesting them and stimulating desire to purchase. Such silent sales- manship, making use of the power of suggestion, often contributes more to a sale than does the clerk's selling talk. The newspaper is the best medium for reaching 160 ADVERTISING— SELLING THE CONSUMER people who do not regularly pass the retailer's store. K he knows how to use local newspapers, and gets prompt responses, he is fortunate indeed. As I have said before, it isn't necessary to advertise bargains all the time. It is wise to remind the readers of the newspapers, every now and then, that he sells] dependable goods, and stands back of them. In only one respect has modem business improved upon the method of the late Mr. A. T. Stewart, ^, ^ . who used to stand at the front door of Newspaper the store, greet his regular customers by j^^aU^'g name, and occasionally slip into a package, Best for good measure, a tapeline, a spool of thread, or some other useful little article. The improvement is the change from a personal to an institutional basis, the result of emphasizing the fact that the business is being conducted according to such sound merchandising principles that the constant personal presence of the owner is not es- sential to perfect service. The one-price system and the custom of returning to the buyer the pur- chase price if goods are returned within a reason- able time have gained the confidence of the public. These thoughts should be emphasized again and again in the retailer's newspaper announcements. The retailer can use local newspapers advantage- ously in another way, described in the chapter con- cerning "National Advertising and Exclusive Deal- ers. »» Treat Your Advertising Appropria- tion as a Trust Fund METHODS AND MEDIUMS 161 The retailer who has the exclusive sale of a na- tionally advertised specialty can double the value of his newspaper advertising by "tying it up" with the manufacturer's national magazine advertis- ing- There are advertising mediums which the retailer should absolutely refuse to use. I refer particularly to those of a semi-benevolent or semi- charitable character. The retailer who feels he must contribute somethmg to a local church or lodge, or some other semi-benevolent enterprise that wants to sell him space in a program, can contrib- ute, instead, an equivalent value in merchandise which, for some good and suflacient reason, must be seen at his store. Very many clever ideas have been worked out along this line. As certain trade papers and specialty advertising organs keep a record of them, I shall not attempt to give further detail here. The store must be kept in such an attractive con- dition at all times that customers will be pleasantly impressed. His advertising appropriation should be from 2 to 4 per cent, of his total sales. He ought to spend it as if it were money held in trust for another, which must be made to earn the maximum profit. Such a viewpoint would not permit him to be "sold'* by various schemes, of doubtful value, that are being brought to his attention continually. •• W,\ Ill '! ,1 162 ADVERTISING— SELLING THE CONSUMER There are men who go around the country per- suading retailers to advertise in local newspapers schemes that make the soKcitors enormous profits. However, this practice is about at an end, because retailers and publishers know more, now, about real advertising and its value. The retailer should not buy calendars, novelties, or advertising devices of any kind until he knows exactly how he is going to distribute them. The best plan is to give them to people who will come into his store and get them. A small news- paper advertisement, a circular, or a letter would tell the reader about them. I have previously pointed out that local news- papers are especially effective for advertising the big department store. Fortunate indeed W^k anS ^s the retailer in a town that has a pro- Wo^ Your gressive local newspaper covering his trade territory fully. An entirely different problem confronts the neighborhood retailer, in a large city, and the suburban dealer who has no local newspapers whose circulation corresponds with his trade terri- tory. These suburban storekeepers, especially grocers and druggists, are just now discovering that by dis- playing wares which are being widely advertised in newspapers and magazines that circulate in their neighborhood they can actually cash in on the manu- facturer's advertising. METHODS AND MEDIUMS 163 A number of newspaper publishers realize how important it is that retailers who cannot afford to „ advertise be taught how to profit by the Suburban manufacturer's general advertising. Can' Before he advertises a special line of Cash in goods every department store proprietor Newspaper teaches his clerks how to cooperate with Advertising ^^^ advertising when the customer comes in to see the goods. All retail stores can use manu- facturers' newspaper and general advertising, with- out cost, merely by cooperating with it. The re- tailer who knows what kinds of newspaper and magazine advertising pay, what the circulation of general mediums is, in his territory, can realize on manufacturers' advertising as completely as if he himself were paying for it. If he is in doubt as to the amount that is spent by the house that sells to him, he can get accurate in- formation by applying direct to the publisher, or to any large advertising organization that cooperates with national advertisers in preparing and placing copy. Some retailers, having been imposed upon by ad- vertising promises that were never fulfilled, assume Dealers *^^* ^^ advertising is alike, and that one Should manufacturer's publicity is no more valu- Discrimi- able than another's. No part of the re- "*^ tailer's equipment is more important than an accurate knowledge of advertising mediums, both national and local. This will enable him to dis- criminate between manufactiu-ers who use adver- f 164 ADVERTISING— SELLING THE CONSUMER tising to serve the' consumer and reduce tte cost of distribution, and those who try to bluff him by mak- ing him tliink that they are advertising on a larger scale than is really the case. Better grade magazines, newspapers, and class publications are censoring carefully the advertising of the manufacturer who does business in a question- able way. Many publishers will not accept copy unless they know that the advertising is sincere, and straightforward, and planned to benefit both consumer and distributor. Just as any banker will express an opinion about any worthy investment, so any advertising house of standing will verify the claims of a reputable advertiser. Dealers certainly should not give their cooperation to manufacturers whose merchandise does not measure up to the claims made by their advertising, or to those whose busi- ness methods can be questioned. In closing let me repeat that at least once a year the dealer should map out for himself a definite, y^ tangible, complete campaign. He must Plan More know exactly the size of his appropriation Important it it i«. •#•. Timnihe and should spend it as if it were money Medium gp^n^ Jn tjugt for another, with which he must buy the maximum profitable result. He can have all of the exhilaration of the chemist who makes discoveries in his laboratories, the satisfaction of the mathematician who solves problems, the zest of the hunter, and the calm sense of power of the man who makes plans and sees them materialize. METHODS AND MEDIUMS 165 li ' IP I'.. REFERENCES ON CHAPTER XVI Very many books have been written about retail advertising. Correspondence school courses are largely concerned with writing advertisements for retailers. Several houses which sell to one dealer only, in each locality, maintain a syndicate service which supplies the dealer with ready-made adver- tisements. In almost every city of 10,000 population or over there are one or more advertising agencies or adver- tising service bureaus which make a specialty of writing copy for retaUers. Practically every paper covering retail trades has a department devoted to retail advertising. The live daily newspapers, in metropolitan and provincial cities, are the best primers for the man who wants to study the best, latest, and broadest aspects of retail advertising. George M. Reynolds, president of the Conti- nental and Commercial National Bank of Chicago, states that when a boy in a small Iowa town, he sub- scribed for the great newspapers of our large cities, in order to keep constantly in touch with the outside world. I. R. Parsons, Advertising Manager of Carson Pirie Scott & Co., of Chicago, in Pnnters' Ink, June 24, 1914, says: "I know of stores that are purported to spend but one and one-half per cent, of their entire gross re- t 166 ADVERTISING-SELLING THE CONSUMER ceipts for advertising, their advertising charges in- cluding many items of more or less general expense, like window decorating and other general promotion costs, and each of the stores in question does a tre- mendous business. I know of several other stores whose yearly advertising cost amounts to 4 per cent, of their gross sales or thereabouts and they seem to get away with it. But I do not know of any retail store of any consequence which spends less than one and one-half per cent, for advertising, nor did I ever hear of any store lasting very long with an advertising burden of more than 4 per cent." Frank Farrington of Delhi, New York, author of "Making a Drug Store Pay" and a number of other very valuable books for retailers, and editor of Prof- itahle Storekeeping (Chicago) says: "My observation is that 2 per cent., in the case of the average store, (which, by the way, is not a very large store) is a satisfactory figure." METHODS AND MEDIUMS 167 Mr. Parsons gives the following figures as being those of a hypothetical store "generaled by a mer- chant in the good old Anglo-Saxon meaning of the term": YABD GOODS AND ACX^ESSORIES Department Silks and Velvets Dress Goods Wash Goods Laces and Embroideries 1 Ribbons 1 Trimmings 1 Notions and Dressmaker's Supplies 1 Advertising Percentage 11% 2% 11% % % % % DRESS ACCESSORIES Veilings Handkerchiefs Women's Neckwear Gloves Hosiery 2 Knit Underwear (cotton) 2 Knit Underwear (silk) 3 Parasols and Umbrellas 2 Jewelry S Hair Goods 4 Leather Goods 3 Toilet Articles 2 ii% if% 1 % n% % % % % % % % % HOUSEHOLD LINES Fumitm* 5 % Linens 1|% Carpets and Rugs 3 % Blankets, Bedding, etc. 3 % Lace Curtains 3 % Art Needlework li% Silverware 3 China and Glassware 3 Tnmks and Bags 4 Housefurnishings 4 -/o Books 3 % % % % EEADT-TO-WEAR APPAREL FOB WOMEN AND CHILDREN Department 1.^™?„'^| Women's and Misses' Suits 3 % Women's Dresses 4 % Girls' Apparel Women's and Misses' Coats Shoes Waists Separate Skirts Millinery (in season) Petticoats Lingerie Negligees Infants' Wear Corsets Furs (in season) 4 3% 3% 8% 3% 3% 3% 2i% 2J% 3% 2i% 3% 3% READY-TO-WEAR APPAREL FOR IfEN AND BOYS Men's Clothing Boys' Clothing Men's Shoes Men's Furnishings Men's Hats % % % 3% 4% 5 4 3 Total Average Advertising Cost .21% Which figure, being reduced by business done by departments not advertising, will undoubtedly come within the 2^% limit. * ' i CHAPTER XVn RETAIL ADVERTISING — MAKING GOOD \T AN exhibit of farm vehicles, once, I heard l\ a barker, in replying to a couple of farmers -^ -^ who were chaffing him about his sales talk for the buggies he was demonstrating, point out clearly the institutionalism of banking and merchandising, and the labor-saving value of trustworthy methods of doing business. They told him he was the most interesting liar they had ever heard. He turned on them quickly and said: "You are honest farmers, but you have a peculiar way of showing your honesty when you do business with each other. You trust your bankers with your money without question. You let your wife and children trade with your local merchants, and it never bothers you at all, because you know they will be given a square deal. But I notice that when one of you wants to buy a horse or a calf or anything else from another farmer, you don't delegate that business to anybody. You always do that work yourself. You are honest, certainly you are, and you show it in the way you trust each other." 168 Retail Dealers Are Expected to Be Square MAKING GOOD 169 The point of this story is the fact that the dealer is expected to be honest and trustworthy as a matter of course. It is certain that his influence, prestige, and permanent position in the field in which he does business are in direct relation to the size of the group which has confidence in him. In Chapters XIV and XV I have said that the retailer must know the relative value of advertising mediums, and how to use them for accomplishing specific results. But when this has been done, he has still a responsibility w^hich, in my judgment, is worthy of a separate chapter — to make good on every advertisement he puts out. The retailer who gets the most out of advertising is one who thinks of it as a promissory note to the ,, . ^ . public. He has invited the public to come Maintain- ^ , « . •. ing to his store. He has put himself m the flncre^es positiou of the host at a dinner-party. If the Dealer 3 there is a hurrying and scurrying about to lay extra places at the table after his guests arrive, they may feel they were not wanted, after all. It is of the utmost importance that the advertiser backs up his advertising with the same sincerity he expresses in his announcement. Clerks must be trained to appreciate that the word of the store has been given, and that any failure to make good, on their part, is a serious offence. A certain most successful manager of a big depart- ment store believes he cannot possibly cash in on his M 170 ADVERTISING— SELLING THE CONSUMER advertising unless he maintains to an extreme degree the confidence of every one who comes into his store. He told me, one day, when I was calling on him, that the man who had just left his office was the manager of his shoe department. Mr. showed me, with evident satisfaction, the report which this manager had just left with him. He explained that three months before he called in this department manager and told him that the percentage of re- turned shoes was too small. The subordinate men- InnHngthe *^^^^^ ^^^ ^^ ^^^ expected commenda- Returnof tion instead of criticism for this, and in- X/" sisted that wherever there had been the ^Ihr^if ^^^^^ reason he had permitted shoes to be returned and the money refunded or other shoes sent out in place of them. "You certainly don't want to let a girl come in here and get a pair of fine dancing shoes, dance in them half the night, and come in the next morning and exchange them for everyday shoes, do you?" the department manager protested. "That is exactly what I do want. That girl has a father and a mother who undoubtedly do not ap- prove of all that she does, but they will feel kindlier toward us when they find that we are indulgent with her. Try it three months and see." The report showed an increased volume of sales in the shoe department, and the manager of the store believed that it was due to the increased liberaHty in the matter of returns. MAKING GOOD 171 On another occasion I went with the salesman of a large paint house to call on a prominent store. The «< faking keen eye of the salesman picked out a small Back" can of paint lying on the floor, and he asked Decder Did the manager if he handled that particular NotSeU i^ranj, Xhe manager laughed and said: "No, but a woman came in this morning, said she had bought this can from us, and didn't want to use it. Of course we took it back without argument." This is an extreme case. The manager did not question the customer's statement that she had bought an article he had never had in the store, and then gave her the amount of money she claimed she had paid for it. It illustrates, however, the fact that the customer's mental bias in favor of the store is of the utmost importance and cannot be trifled with without harming the group spirit which is, after all, the store's most valuable asset. Service to the customer should be the reason for, the expression, and the follow-up of every advertise- ment. o/s^7 Attractive window, counter, and floor displays which remind and inform passers- by are true service factors. They economize the time of both consumer and dealer. Courteous, prompt, and intelligent attention by salesmen who know their stock and have constantly in mind the satisfaction of the customer is the only good-will asset which will bring trade from a long distance and hold it in spite of price competition. i f 172 ADVERTISING—SELLING THE CONSUMER RetaUers who sell service have no mail-order com- petition, and they take pains not to advertise the mail-order business by discussing it. When we can be sure of price maintenance on nationally advertised goods, we shall have rehable merchandise at lower prices than ever be- cutting fore, because of economy in wholesale pro. A^Sy duction and unimpeded movement to the consumer, with minimum salesmanship cost to all distributors. The retailer who advertises bargains is not giving his customer a square deal if he sells an advertised product of merit at a price which does not cover his legitimate distribution cost. He is not giving the consumer, who is his cusiomery the service or the protection to which he or she is entitled if he cuts prices on advertised goods for the purpose of more than offsetting this loss by the in- creased sale of other goods on which his margin of profit is abnormally high. I realize that some persons may take exception to my statement that the retailer should maintain in all cases the price which the manufacturer puts on the goods to be sold to the consumer. Let me make my- self perfectly clear. There are, especially in the drug field, lines of goods which give the retailer an abnor- mally high profit. Knowing that all business should benefit the consumer, we must not exploit him by asking him to pay more than the service is actually worth. Many cut-rate drug prices are legitimate, but they are giving the consumer a wrong impres- MAKING GOOD 178 sion. The fact of the matter is the retail margin scheduled by the manufacturer is sometimes too high in the first place, and he did not expect it to be maintained. It is certain that on nationally advertised goods of genuine merit, the distribution cost of which has been scientifically fixed, the retailer will do Z)ef?fW b^st to cooperate. He is not being square Every with his customcrs if he creates the impres- iheDeaJ^'a sion that he sells all goods on the nairow 2^1^ margin which ' cut prices on advertised goods of real merit allow him. On the other hand, he cannot command the manufacturer's cooperation and support in developing a larger volume of business if he interferes with the manu- facturer's scientifically developed plans for benefiting the consumer. This brings up a question that might as well be discussed here as elsewhere — is it certain that the consumer always receives full value, even though the work of distribution has been ably and conscientiously done? For instance, many people believe that the sale of liquors, tobacco, and luxuries in general is econom- ically wrong, and a burden upon the public. Others think that the selling of patent medicines is detri- mental to the interest of the people. Others main- tain that an investment should not be advertised at all, but that all advertising in connection with in- vestments should deal only with the integrity and the I *i 1 i ! II n 174 ADVERTISING— SELLING THE CONSUMER ability of the banking or investment institution that sells the securities. We must recognize that intrinsic value, real value, and commercial value are three different things. I would define intrinsic value as the sum of those quahties in an article which scientific expert buyers would determine by test to be valuable. Difference Alcohol used in the arts might be intrinsi- Beiween cally moFc Valuable in one brand than in S,"p another. Yet many persons would hold ^"vd^^f^ that alcohol has no real value. The real value of any given article would be the sum total of its qualities which actually benefit mankind. Pure water possesses real value. There might be some discussion as to the distinction between the intrinsic and the real value of pure water. These differences of opinion would be governed by differ- ences in the uses to which it is put. Commercial value is that quality in an article which creates satisfaction. Satisfaction is the test of every purchase. When the consumer is satisfied with his purchase we may safely say that the article he bought possesses commercial value. That is the basis on which we must discuss the question of value in relation to advertising. The point ha^ been made that the department store's attractive advertising has raised the standard of living to a point where people believe they cannot do without many articles which really are luxuries, not necessities. But they justify the purchase of MAKING GOOD 175 them, to themselves, by allowing themselves to be- lieve they are necessities. Some economists main- tain that the work most valuable to the community has been rendered by those who endure privation, rather than by those who are surrounded with lux- uries the enjoyment of which calk for a TIT *If sZ^ heavy expenditure of both time and money. Become too J jjayc uevcr been able to see how adver- tising could be responsible for creating a condition that would be injurious to the consumer in any degree. Perhaps I should qualify that by saying that truthful advertising could not mjure the public in any possible way. Fortunately the movement for truthful adver- tising has been inaugurated and pushed by ad- vertising men themselves, because they realized that absolute and constant dependability would demonstrate and develop the greatest value of adver- tising. Leaders of the advertising business have asked that the law recognize the benefit of truthful adver- tising by disciplining advertisers who do not pro- mote the best interests of the consumer. I am convinced that our great captains of industry get little more, in exchange for their arduous efforts, than shelter, clothing, and a modest amount of food. These men work under self-imposed privations because they believe this method is definitely help- ful in accomplishing the important work they have undertaken. 1 ■ »l 176 ADVERTISING— SELLING THE CONSUMER Booker T. Washington is authority for the state- ment that until the desire to possess things that are Th$ generally conceded to be luxuries is aroused ^flTir ^^ *^ negro, he cannot be stimulated to Stimulates Scientific and fruitful methods of work. ^ Industry j ^^ ^^^^ ^^^ ^^ Cultivation of domestic- ity—beautifying the home and making it a more comfortable place to live in, the possession of works of art and care in preserving and keeping them — ^has a beneficial reflex upon the community. Personally, I am not afraid of the extension of the service idea on the part of our large department Smnce ^^^^^' although it is true that the cost of Competition concerts, lectures, rest rooms, and long- Co^^Zion ^^f ^^ deliveries must be covered by the price the consumer pays for merchandise. The best protection against abuse of this method is the fact that big national advertisers are vieing with each in giving the consumer the greatest possible service for the amount of money he spends. At present this force is apparently working in competition with the big department stores. There are indications that some of the larger and better managed department stores are beginning to realize that it pays to cooperate with the national advertiser. If the department store refuses to stock large national advertisers' products, because they do not allow it sufficient margin to pay for all this service, these goods will be distributed by smaller stores which are located closer to the consumer. Such MAKING GOOD 177 service competition will benefit every one that is en- gaged in it. Advertising can — and I predict will, during the next ten years — accomplish many reforms. It is going to convince the consumer that buy- Advertising • i> in* ■ Will Bring ^g irom pcddlcrs IS an unnecessary tax Needed upon him, and that the time of the can- ^'^ vasser could better be spent upon labor which produces more for the community. It is going to prove that food products handled in a sanitary way will not only eliminate the waste due to sickness which is the result of unsanitary conditions, but that the possibility of merchandising in a broader way will enlarge the market. And the larger the mar- ket, the more the proceeds of a day's labor will buy. Advertising is the most potent force we have to- day for equalizing the ups and downs of labor condi- tions. It is seldom that a national institution which markets tiirough advertising channels is obliged to lay off employees. As a rule the well-managed and competently advertised business is continually adding to its force of operatives, and its current of incoming business is steady and permanent. The man who advertises extensively and nation- ally ought to be, and actually has to be, a student of general conditions. He must know Conditions how to price his goods to the consumer so Insure ^g ^q ^q^^ ^qj^^ qJ fluctuation in the price rrospenty , , * of raw material. Stable commercial con- ditions of course mean money in the pocket of the ■i I 1 1 178 ADVERTISING— SELLING THE CONSUMER worker — ^his consumer. For an unanswerable argu- ment for the value of stable conditions, contrast the continued prosperity of the six million American farmers of to-day with the state of agriculture when the castles along the Rhine and on the shores of the Mediterranean were inhabited by warriors who pro- tected the tillers of the soil from pirates, to be sure, but at a price — continual warfare — which gave the farmer very little chance to make use of his land. There is no force at work in America to-day which is doing more than advertising is toward the estab- lishing and maintenance of stable business condi- tions REFEHENCES ON CHAPTER XVII Particularly recommended is "How to Run a Store at a Profit" (the System Publishing Company, Chicago), from which the following suggestions for the retailer have been culled: 1. Fixed price articles carried as an accommoda- tion ought at least to take care of themselves. 2. Newspaper advertising appropriation should be from 3 to 5 per cent. 3. Carry the right amount of stock and no more. 4. Watch your overhead expense. Overhead is frequently either figured or charged incorrectly. 5. Know at all times what percentage of your profit is actually net. 6. Have your goods so arranged and displayed that MAKING GOOD 179 the minimum amount of time is necessary for laying them before the customer. 7. Keep a record of the percentage of the selling- price lost by mark-downs. 8. Look out for negative expenses. They are: poor displays, dingy stores, insufficient light, heat, or ventilation, ice on sidewalks, discourteous or in- attentive clerks, etc. 9. In buying forget that you own the store and regard yourself as the purchasing agent for your community. I also call attention to the "Retail Merchant's Ten Commandments," which were published in the Monthly Bulletin of the National Association of Credit Men, 41 Park Row, New York City: 1. Confine purchases to as few houses as possible. 2. Do not overbuy. 3. Take all discounts and pay all bills when due. 4. Have some books, especially an accurate ex- pense account, a daily sales record, a book showing purchases, with cost and when due. 5. Carry enough insurance. 6. Make accurate reports to the commercial agen- cies and answer all letters. 7. Keep a clean, well-arranged store. 8. Do as much cash business as possible. 9. Do not make unjust claims. 10. Live within your means. PRICE MAINTENANCE 181 CHAPTER XVIII PKICE MAINTENANCJE WE CAN best approach a consideration of price maintenance by reviewing the fol- lowing points: (1) The one-price system builds business for the retailer. It serves the buyer best, by saving time which he must otherwise spend in bargaining. It conserves the selling energy of salesmen who can then concentrate on demonstrating to the con- sumer the specific value of the goods offered for sale. (2) Mail-order business is possible only because prices can be fixed and vast editions of catalogues printed and extensively circulated. Consider the confusion, loss of time, and congestion which would be inevitable were any time devoted to writing letters to ask for prices or to haggle over charges. (3) The exclusive dealer, or the agent of the manu- facturer, likes the one-price plan because it insures him a profit. In fact, the price argument is thebasis of the abuse of the exclusive dealer idea. Many manu- f acturers put in time selling the dealer which could be spent more profitably upon the consumer. Many re- tailers load up with exclusive lines; whereas a keener 180 appreciation of the value of service in the distribution of staples would have been more valuable to the con- sumer, and, therefore, more profitable to the dealer. Producing a staple and advertising and distrib- uting it through every possible channel are the big- ,,, gest things a manufacturer can do. This Field of effort calls for more kinds of ability than Accomplish- any other kmd of commercial enterprise. "^"^ It is no task for the quitter, the faint- hearted, or the "piker." The results it gets are princely in scope and splendor. Given an article of merit and a fair price (which means a margin of profit to all who assist in getting Getting the maximum distribution for it), an ade- the ''Jump" quate national advertising campaign will so entrench one manufacturer's position that a competi- tor who makes equally worthy merchandise must spend many times as much for advertising in order even to divide the field with him. Price-cutting by retailers must be fought because the manufacturer who creates and controls the mar- ket for his own goods under a scientific plan of dis- tribution serves the consumer best. Retailers who make leaders of advertised goods by cutting the price will eventually substitute to the detriment of both manufacturer and consumer. Unfortunately, the Supreme Court of the United States has been ruling against the manufacturer who wants to put a fixed reselling price on his merchan- dise. Some lawyers believe that the fact that a man H 1* 1 182 ADVERTISING— SELLING THE CONSUMER can control the use of his name and can prevent others from selling goods which purport to be his will even- .tually find legal expression in a decision f jriwrw CouH that will give owners of trademarks the F^!!dPHce "^^* ^ determine the price the consumer shall pay for goods bearing that trade name. Present ruHngs proceed upon the assumption that the man who buys and pays for an article owns it ab- solutely and can give it away or sell it for any price he sees fit to place upon it. There are two ways of handling price-cutting on staple, trademarked products which all manufactur- Two Ways ^^^ agree are reasonable: of Main- (1) MoTol suoswn, I could citc many Price— Both mstances where a salesman has induced a Effective ^jg^ler to give up price-cutting on his prod- uct. Each dealer promises to quit if the others will. Dealers are in business for the money there is in it. If price-cutting does not bring trade which buys other goods at a profit, the dealer soon throws out the article he has been cutting and substitutes a com- petitive article. The manufacturer who created and developed the market loses; and the consumer loses. (2) By refusing to sell to prwe-cutters. It is illegal SelecUng to agree not to sell, but a manufacturer may refuse to sell to a distributor without giving any reason. The advantages of price maintenance are so universally conceded and the evils of price-cutting so generally condemned that sales- PRICE MAINTENANCE 183 the Salesman Able to Stop Price' cutting men should be selected with direct regard to their ability to put a stop to the latter in the territory which is assigned them. When dealers are fully conscious of the power of a trade-building advertising campaign to locate new buyers for advertised staples they will not be so prone to cut on them. A salesman who comes to the dealer with sugges- tions, plans, and methods for increasing his business by cooperating with the manufactiu'er's advertising plans (which means new business for both manufac- turer and dealer) can easily convince the dealer of the folly of diverting an established demand, for a little time, by price-cutting. For each buyer who knows the value of a piece of merchandise and would be tempted by a cut price there are twenty prospectives who have been almost convinced by the advertising, and need only (in order to close the sale at a profit to both dealer and manufacturer) the dealer's invitation to buy and his assurance of quality. Cutting the price to these prospectives may "queer" the sale altogether by suggesting inferior Cut Price ^^^^^Y' What little is gained by enlarging to One the market among those who are already De^?oy convinced of the value of the article is more ^of^mUT *^^^ offset by the loss of confidence among those not yet sold and the certain curtail- ment of distribution by dealers who will put under the counter goods that are sold at cut prices else- i 11 n •hi 1'' 184 ADVERTISING— SELLING THE CONSUMER where, and only supply them upon positive de- mand. ' Retail merchants' associations know what the effects of price-cutting are. Sometimes retail grocers have met department store price-cutting at the instigation of the secretary of their local organiza- tion, who keeps them informed of exactly what is being done. The department store has to make a profit, and will stop cutting when there is nothing to be gained by it. It is commonly believed that the grocery section of a department store is only a bait to get trade into the store. It is noteworthy, m this con- S^ nection. that to reach the grocery section cJprice °^^ ^^^^ "^"^y P^* through other de- partments where profitable goods are at- tractively displayed. Many successful retail grocers meet the situation squarely by seUing customers on the value of their service, and by convincing them that a reasonable profit on dependable merchandise is just. Some years ago there was considerable talk about the manufacturer advertising to the consumer, there- by creating a consumer demand which would force the retailer to handle his goods. In many instances this poUcy has apparently worked. Wherever such is the case, there exists an opportunity for a com- peting product of equal merit to supplant the present leader, if the manufacturer will work out a scientific plan of advertising to the consumer, sell to the logical PRICE MAINTENANCE 185 distributors, and give each link of the distributive chain a reasonable profit. For every dealer who can be coerced by advertising which creates a consumer demand there are twenty „ . who can be convinced that in the "almost Persuasion i • i * vs. persuaded' consumer there is a chance for ^^^^^ manufacturer and dealer to cooperate and build business for each other. The manufacturer's salesman can say truthfully that he is not interested in the sales the dealer is forced to make through advertising. His house is bound ultimately to get the business of the consumer who will seek the store that keeps advertised goods and refuses to trade at the store which does not. This salesman can say that he is not sent out to get the business that is the result of advertising demand, but to get new business by showing the dealer how to make sales which have been started and partially de- veloped by advertising. The dealer who understands the power of adver- tising will not be a price-cutter. He will be a con- servationist, not a pirate, and will push his busi- ness on service lines; for service brings him the good-will and fixed buying habits of satisfied cus- tomers. No advertising and selling campaign of national scope can be considered complete or apt perma- nently to entrench the product advertised as the leading staple of its class unless the price of the ar- tide to the consumer has been fixed justly. M ■* I 186 ADVERTISING— SELLING THE CONSUMER Merchandise of universal distribution should be priced low, for two reasons: (1) Because the patronage of the masses cannot be expected unless they get maximum value for their money. (2) While cost does not measure the value of goods to people who have money enough to gratify their desires, a low price does enlarge the market for any product by bringing it within the reach of the largest number of people. It also fortifies the manufacturer against future competition. Persistent advertising supplemented by shrewd, competent salesmanship will hoU a market once preempted. Why? Because good advertising is the cheapest salesmanship; because the skillful adver- tiser can pay the highest salaries for the best salesmen, and still keep his total sell- ing cost under that of his competitors. Goods marketed through all channels of distribu- tion are advertised in the largest way to benefit . , . . the consumer, the advertiser, and every Advertising • .i i * j* x •!_ j." —the mtermediary m the plan of distribution. ^Ally^of Such merchandise becomes a staple with Price Main- the cost of moviug diminished to the least figure. It actually pays best at a low price. It gets the widest market. It bears a suflSicient mar- gin to pay all those whose services are needed to give adequate distribution. This is the ideal condition. The lower the price to tlie ultimate consumer, the less trouble the manufacturer will have with price- PRICE MAINTENANCE 187 Confidence vs. mttxcb- cutting cutting, the wider will be his market, and the more likely he will be to estabhsh himself permanently in it. He must remember, though, that the laborer is worthy of his hire, that stable conditions must be fostered, and that price maintenance is the mother and father of stability. It cannot be out of place to close this chapter with the statement that a manufacturer who trademarks an article of merit and plans a comprehensive merchandising and selling campaign, the objective point of which is the confidence and convenience of the consumer, creates a staple in every sense of the word. A well-advertised product towers above its com- petitors in the pubHc mind, though it may be no more deserving. It has achieved distinction and acquired the consumer's preference. Its maker can count on a certain known demand. This insures better qual- ity for the consumer. All this because he and she, the consumers, put their trust in the manufacturer's trademark. Price maintenance is the manufacturer's duty to protect the business he has created. REFERENCES ON CHAPTER XVIII "Price Maintenance," 1912 (the Commerce Pub- lishing Company, Philadelphia), by Thomas A. Fernley, is the most complete exposition of the idea tliat has reached me. It contains many specific ideas for trade betterment. But the author betrays a pecuHar lack of appreciation of the power of adver- ts 188 ADVERTISING— SELLING THE CONSUMER tising tx> do away with many of the evils for which he suggests other remedies. Much of the agitation in favor of the Stevens bill seems to be wasted energy. Prof. F. W. Taussig of Harvard University has ably pleaded for leaving conditions as they are, in his address before the Twenty-seventh Annual Meeting of the American Economic Association. Inquiries in regard to mem- bership should be made to Prof. A. A. Young, Cornell University, Ithaca, N. Y. Professor Taussig pertinently says: "It is easy to see how the work of retailing could be systematized, how the selling force could be kept constantly employed, how stocks could be kept to the minimum. As things now stand, we pay heavily for the privilege of freedom in the use of our time, for vacillation and choice, for the maintenance of a stock and a staff adequate for all tastes and all emergencies. It is common to speak of the waste of competition; much of it is in reality the waste neces- sarily involved in liberty." The particular point that Professor Taussig seems to overlook is that we should have a law which enables a manufacturer and retailer to agree on a resale price and make such contracts enforceable. Louis D. Brandeis has stated the position I hold in a manner that has not been successfully assailed in the following terse statements: " The law has been laggard in recognizing the social value of the one-priced article. Stability of price — PRICE MAINTENANCE 189 the knowledge that one citizen may procure an article for the same price that is charged another citizen — is akin to stable currency. "No one has questioned the legal right of an inde- pendent producer to establish exclusive sales agencies. (It is in this manner that automobile manufacturers maintain their prices.) Then why should the maker of a trademarked article be prevented from estab- lishing a marketing system under which his several agencies for distribution will sell at the same price? "If a dealer is seUing unknown goods or goods under his own name, he alone should set the price; but when he has to use somebodys else's name or brand in order to sell goods, then the owner of the name or brand has an interest which should be respected." ! I I » PI 111 M ri CHAPTER XIX COOPEHATION BETWEEN SALESMEN AND ADVERTIS- ING — SALESMAN, THE CLOSER — ^ADVERTISING THE MISSIONARY A DVERTISING becomes a significant element of ZJk salesmanship when the salesman perceives its X A. power to implant the buying impulse in the minds of prospective customers. Then he can devote to closing sales, the time and energy he had been put- ting into stimulating them. A worth-while sales- man's time is valuable, and should not be put to work that could be done by advertising. A salesman should be a closer, not a missionary. Advertising serves the salesman by placing the dealer in the most favorable mental attitude before Crecding ^^ Salesman calls. The dealer soon dis- the Buying covers that advertising serves him, too, Impulse 1 .. n J 1 • • 1 . by contmually developing m his customers the impulse to buy. It follows that advertising cannot be completely productive until it has the salesman's confident cooperation. The most successful salesman uses advertising in selling merchandise, just as the factory superin- 190 SALESMEN AND ADVERTISING 191 tcndent uses modern machinery in manufacturing it. It may seem strange, therefore, that it should ever be difficult to get a salesman to cooperate with the advertising of the institution which he represents. Team Salesmen really sell ideas. The sale Work takes place in the buyer's mind when he lets the salesman's idea supplant his own. Salesmen are human beings and must themselves he sold on new ideas to replace the old ones. So for the past ten years my work has largely been selling to salesmen who were already doing a good business the idea of cooperation with advertising. First, it is necessary to convince the salesman that by cooperating with the advertising he can so greatly increase his sales that his net personal in- ^/^f come will be larger, although computed on for the a smaller percentage of direct return to him SaLegman . ,, , , , i on the individual sales. Advertising is justified only when it serves the con- sumer. Personal salesmanship can be permanent only when it survives the same test. No manufacturing institution or retail store can advertise and pay its salesmen the same rate per dollar of actual sales without in- creasing the burden to the consumer. If a^'Sf the salesman is putting in full time and con- manship centrating on his work, it is comparatively easy to convince him that more competent tools mean larger aggregate sales. It is applying to him- i Service to the Consumer —the Stability Test of Both ii It'll in ADVERTISING— SELLING THE CONSUMER 1 1 self the same principles of frequent turnover which are the foundation on which the best retafling is built. The salesman who scorns the assistance of adver- tising, if he is to be consistent, should refuse to use y/jg the mails, the telegraph, and the telephone. Salesman Becausc the cost of thcsc three agencies, Medieval which multiply so many times the possible ^^^ number of buyers within his territory, must be charged to the selling appropriation. There are 92,919 commercial travellers in the United States, and 611,139 retail salesmen. Most of Reducing ^^^^c 704,058 men and women are dis- the Setting tributing merchandise to the consumer more economically than he could be served by any other means. There are also 317,811 agents and peddlers. It may safely be said that no agent or peddler delivers goods to the consumer at less than double the price he has paid for them. No advertised line that I know of, sold through local dealers, bears anything like such a selling cost. The commercial traveler and the retail the M^ni salesman must decide whether they will be ^f^]?-*^ peddlers and do practically all the work of selling, or whether they will be salesmen in the true sense of the word, cooperating with all those forces which medn volume of business and are most economical and serviceable to the consumer. I have often said that the first manufacturer of a competitive line who advertises can market his SALESMEN AND ADVERTISING 193 product by means of advertising and the best type of salesmanship, pay his salesmen better salaries . . than his competitors can afford to pay aJ'sS theirs, and keep his total appropriation MmeO^n ^^^ advertising and salesmanship within Salesman- the figure which previously had been ship Atom g^^^i^jj^ f^p personal salesmanship only. It is a question of "turnover." This statement has been proved to be true for many lines, notably ready-made clothing. The cloth- ing manufacturer did not advertise to the con- sumer at all twenty years ago. The best houses pay their salesmen 3 to 4 per cent, on their total sales. The advertising appropriation is generally less than this. It would not pay a salesman who handles a well-advertised line at 3 per cent, to exchange it for an unadvertised line at 10 per cent. With advertising, his volume of sales goes up immediately, and the conditions of work are more pleasant. Salesmen for a certain manufacturer who adver- tises nationally to the consumer but distributes j,j^ through the local dealer stop at the best Salesman hotels whercver they go, carry a packer mgg^'J^ "* whose salary and expenses must come out ^''^^ of their sales, and arrange in advance for customers within a radius of eighty miles to call on them on specific days, allotting two hours a day to each customer. They get these customers together in the evening for a conference and general coopera- tive discussion of trade-building plans in which all 3 u I I ^i i I ! « 1 ti I! ill 1 • III! 194 ADVERTISING— SELLING THE CONSUMER are interested. Under the old regime, the salesmen had to pack and unpack their sample trunks, and could not cover nearly so large a territory. Result: their total sales were much less. A commercial traveller who understands thoroughly that his salary and expenses must come out of the goods he sells will take advantage of every force that will help him get the same result at less cost to the dealer and consequently to the consumer. He Mows (at least he can know if he investigates) that in- telligent advertising does work that he must other- wise perform— and does it at less cost. A retail sales- man ought to be glad to push advertised lines, for by so doing he is rendering the consumer the largest amount of service, and making himself more nearly indispensable. There are a number of large mercantile establish- ments which must adopt another method of dealing Advertising ^ith their salesmen, or — ^have no chance insmance ^* ^^' twenty years from now. Unless Against they soou perccivc that scientific adver- the Future |.|gjjjg ^^^^^ moucy, youug merchants who do are going to crowd them out. There are wholesale grocers who permit their sales- men to quote cut prices on staples, and then measure their value Jo the house by the amount of mer- chandise they have sold on which exorbitant profits have been made. This practice fosters a mer- chandising condition which is just about as bad as it could be. The retail grocer ought to respect SALESMEN AND ADVERTISING 195 the wholesaler's salesman; this man can be an im- mense help to him in building a business. The grocer should be sold on cooperation. wtu^ale He should be taught how to explain to ^olsawun j^jg \xfxdQ that his service is worth the ^Siihe difference between the cost and the retail 0/ Bm3 price of his wares. The handling of adver- sta-^ to tised staples by retailers fosters such a strndSirds relation; but the salesman or jobber who ^U^ confuses the retailer and destroys his conception of values is a force that pulls in the opposite direction and is demoralizing. The commercial traveller who represents an adver- tised line and the retail salesman who talks to the consumer across the counter have a chance It Is the Salesman's to study the buyer at close range and to Edi^His a^^P^ ^^i^ merchandise to his desires and Trade to nccds. Of the two the commercial traveller Cooperaie ^^^^^^^ j^^^^ ^^^ broader outlook. He should be able to talk not only to the merchant but to his clerks, from their own standpoint, which is that of the man who purchases goods to sell again. He must also convince them from the standpoint of the consumer. In Chapter IV I have outlined the advantages to the individual of being a member of various groups. There is also this: that the leaders of the various groups to which you belong, by reason of the obliga- tions of their oflfice, relieve you of various duties, and much planning and organizing. t lift i tiP' HN m I 196 ADVERTISING— SELLING THE CONSUMER Just here I want to point out that the man who co- operates is constantly educating within himself the highest t}T3e of individuality. We all know the man who, as a youngster, went into a large business house and did willingly and cheerfully everything he was asked to do; until it became a matter of habit to give him the first opportunity to handle whatever new re- sponsibilities arose as the business grew. This type of man rises to the head of an institution as inevita- bly as cream comes to the top of milk. His ability to assume and make good on the varied tasks en- trusted to him gives him a broad grasp of the business and develops individual competency and the sense of power which is the product of responsibility. The word "responsible" really means "ability to respond," which is about as true a definition of "co- Eespomi- operation" as could be framed. The per- bility—Co' SOU who Cultivates the ability to respond is operation .■! •• ii t.» i«i constantly exercismg those qualities which characterize the best type of manhood. I would qualify this statement only thus far — that such a man must test what he does by this one query: "Does the business I am engaged in and the work I am doing in connection with it give the con- sumer the best service which he or she can possibly obtain?" Advertising flourishes where cooperation is under- stood and practised. A baseball team will have better catchers, pitchers, basemen, and fielders if each member of the team unmistakably and enthusi- SALESMEN AND ADVERTISING 197 astically desires each one of his fellow-players to perform brilliantly and to constantly excel. The reflex upon the man who practises cooperation makes him a better man; it enlarges his individual powers. It instils in the minds of his associates the idea of reciprocity, thus assuring him of their support You Are ^^^^ ^^ needs it. Cooperation reduces Bound the cost of production. By elevating the Than You standard set for all — because that standard ^\^^ constantly embodies the best thought of How Much each individual member of the organiza- ^^" ^ tion— cooperation improves the quality of the joint product of all the members of that organiza- tion. REFEKENCES ON CHAPTER XDC The idea which underHes scientific management is intelligent and confident cooperation. Salesmen will enjoy Frederick Winslow Taylor's "Principles of Scientific Management," 1911 (Harper & Brothers, New York City). Harrington Emerson's books are authoritative and interesting. His "Thirteen Principles of EflS- ciency," are 1. Intelligent Use of Records. 2. Planning. 3. Scheduling. 4. Dispatching. 5. Standardized Conditions. 6. Standardized Operations. < 198 ADVERTISING-SELLING THE CONSUMER 7. Written Standardized Procedure. 8. Ideals. 9. Common Sense. 10. Competent Coimsel. 11. Discipline. 12. The Fair Deal. 13. Efficiency Reward. ADVERTISING OPPORTUNITIES THE advertising business in its various phases offers opportunities for three distinct types of men. First, the personal salesman, who has the faculty of clearly grasping an idea and presenting it in a plausible and sincere manner. He is essentially social and sympathetic by nature and quick to see things from the standpoint of those he approaches. This type has been very highly developed and I question whether the advertising business will see much in the way of improvement for many years to come. Second, the imaginative, creative type of man who takes an idea in the rough and develops and refines Three it and at the same time gives to it the most ^y^ clear, distinctive, forcible, and pleasing oj Men forms of expression. The successful copy writer and illustra- tor must be men of this type, and while there are a number of such in the field to-day, it is my convic- tion that we shall see a higher degree of development during the next ten years, than is possible among men of the first type. 100 I I f 00 ADVERTISING—SELLING THE CONSUMER The third type is the analytical, scientific, admini- strative man who comes into the advertising field most logically as an accountant. He should seek to find facts as they are. He should have, of course, sufficient imagination to know that the sentiments of prospective buyers are facts when selling plans are being considered. But primarily he should hold both the first and second type in line by continually impressing upon them the importance of coordinating their efforts with his figures and facts. There is more opportunity to-day in the adver- tising field for the third type of man than either the first or second. We have probably reached the top in advertising salesmanship; we cannot go much farther in developing writers and illustrators, but we can certainly use more men of the intellectual, scientific, engineering type. By this I do not mean to say he will command the large incomes that come to salesmen, writers, and artists unless he has both an analytical and synthetic mind and is capable of managing a large organiza- tion. He must have both executive and consecutive ability. He must do well every day the many little things that come to his desk that the salesman and the artist are prone to ignore. He must master detail and never be immersed by it. The word "opportunity" suggests a human being. ADVERTISING OPPORTUNITES 201 Imagination is the key to opportunity. To man only is given the power first to project a mental pic- ture of a possibility and then to transform it into an actuality. Progress is thought that has found expression in physical labor. Work without thought will always Thought .^^ menial and have to pay a heavy tribute Must Be to supervision. Thought which does not to Be find concrete form in creation makes man Valuable ^ mere dreamer. The line between success and failure is so thin that every man has to keep two thoughts constantly in mind. One is to know what he can do better than other people; the other is to know how to convince all who can profitably use the kind of ability he possesses that he can and will deliver his service without friction. He must know what he knows and know how to cooperate with every one with whom he comes in contact in rendering service. First, let me emphasize the fact that there is nothing mysterious or strange about the business activities which are covered by the word "advertis- ing. Young men who want to study advertising often come to me for advice. A little questioning makes it ^Advertisin P^^^ ^^^^ ^^^y think advertising is a mar- [a S§riou8 iouctte show sort of thing, operated in Business . i»i*i • iii some strange fashion by wires and hands not seen, and speaking a lingo all its own, a magic formula for making money rapidly — something (^ ■' I •I 202 ADVERTISING— SELLING THE CONSUMER which can be acquired in much the same way that we learn the multiplication table. The big field for advertising lies in its application to ordinary, everyday business. The business of pro- ducing, marketing, and using advertising space does require various kinds of talent and experience. But the big opportunity in advertising lies outside what is commonly known as the advertising business- and will for the next ten years. The key to success for the young man whose sole capital is brains and 'energy t the application of the principles of adver- tising to ordinary, everyday business. There are several distinct types of advertising men. 1. The publisher or plant owner is the man who produces advertising space. It happens that he is rarely the best judge of its value to the advertiser; Tke ^or hie is primarily an organizer and execu- Pvhluher j-jy^ 'j'jjg j^^gi- publisher is the man who knows b~est how to get and hold subscribers. The men who own street railway advertising and bill- posting privileges, painted bulletins and wall space, and electric signs, are concerned largely with leases and with the details of building and maintaining a plant. 2. The advertising solicitor who represents the publisher and plant owner must possess marked sales y^^ ability. The advertising solicitor of twenty Admrtidng years ago did not at all resemble the man who does this work to-day. Business men no longer need to he persuaded to advertise. Adver- ADVERTISING OPPORTUNITIES 203 tising is not on trial now. Each advertising medium has won its own place in economical merchandising. Contract-getters are constantly being replaced by men who know the characteristics of the groups of people reached by the mediums they represent, and who can advise how best to use the space they sell. The ideal representative advises against the use of his medium when he knows that the advertiser's story is best suited to another. He seeks for cus- tomers those whose business can best be advanced by using his medium. He is after permanent busi- ness, and that predicates the possession of satisfied, loyal customer groups. 3. The advertising writer's w^ork is to find out the salient points of the merchandise he is expected to y^ sell, and its points of contact with the peo- Advertidng pie whose confidence in the medium makes ^^^ them accessible to him. The mere writing is simple, once the preliminary study has been com- pleted. The illustrator differs from the writer only that he uses pictures instead of words. Both of them know well that in the interpretation of the advertiser's message to the group which can most be benefited by it lies the highest expression of the art. 4. The buyer of advertising space must be an analyst and a statistician. A goodly - Buy^ of measure of experience and common sense Advertising added to this, and ability to read human nature, soon put him in the foreground of the advertising field. 204 ADVERTISING— SELLING THE CONSUMER 5. Printers, plate-makers, and typesetters advance Printers, beyond the limits of trade lines in direct make^sflnd ^atio to their ability to comprehend and in- Typeseuers terpret the advertiser's message. Broadly speaking, one of the best openings for the young man who wants to take up advertising is ]^ig with the publisher. Each one of the Adveriinng 20,000 daily. Weekly, monthly, and mis- with the cellaneous publications has a permanent Publisher pi^ce for the man who can increase its revenue and eliminate waste in the distribution of the fruits of intelligently directed labor. To do this he must insist that the advertising columns of the paper be as informative and interesting as the news columns. It is not as easy as it appears. Many publishers have added to their personal in- comes and made their publications more useful to the readers, and therefore more valuable to the ad- vertisers, by writing copy for those who buy their ad- vertising space. It would pay each one of the 800,000 retail dealers of America to study advertising, the laws which govern it, and its methods; and then apply them. The manufacturer who advertises serves the con- sumer by keeping in touch with him in gathering data for advertising, and by teaching him how to make the best use of what he buys. Every merchant, every salesman behind the counter, every commercial traveller, every sales manager, should know what is right and what is wrong in advertising. Those who I ADVERTISING OPPORTUNITIES 205 neglect so to equip themselves must not complain when they are supplanted by those who have done so. It is noteworthy that universities are now offering courses in journalism and advertising, and that there Advertising ^^^ Several Correspondence courses in adver- Courses in tisiug that are well worth the time and Universities .-, ^ •, rr\i i money they demand. I he only warnmg I should voice with reference to the study of adver- tising applies with equal force to all theoretical knowledge. A fact is a theory that has been demon- strated. All learning is valuable m so far as it trains one to think and teaches the principles which control the everyday events of life. The spirit, not the letter, is the thing. To imitate is servile. Many an advertising failure is the result of follow- ing precedent blindly, of applying the letter of the law instead of its intent, the slavish imitation of the mannerisms and style of the successful. It is the frank, spontaneous expression, aUowing the style to take care of itseK, which has the appeal. The quiet, unobtrusive service methods of present- day salesmanship, as contrasted with the boister- ousness and occasional sharp practice of its fore- runner of a quarter of a century ago, is paralleled by the differences between the advertising man of that period and the writer of copy, the illustrator, and the solicitor of to-day, who rely upon a simple, straightforward story to the consumer. An expres- I m !i I f ^ ii ! i: ii I i £06 ADVERTISING-SELLING THE CONSUMER sion which diverts attention from the main issue — ^the service the consumer is to receive — is wastefuL The opportunity in advertising is the opportunity which exists in all merchandising and selling — to eliminate waste, and to install and maintain simple, direct methods which conserve the buyer's time by giving him, with the least effort on his part, a com- plete understanding of the usefulness he is to have in his purchase. REFERENCES ON CHAPTER XX "How to Get a Position and How to Keep It," 1908 (Funk & Wagnalls Company, New York), by S. Roland Hall, will help the beginner market his ability. "The Message to Garcia," by Elbert Hubbard, must always remain a classic in revealing the kind of man who grasps and makes the most of the oppor- tunities that are in his path. Mr. Hubbard's brochure, "Get Out or Get in Line," is typical of his sound business philosophy. His style can be profit- ably studied by every writer of advertising copy. CHAPTER XXI THE ADVERTISING MANAGER THE young man who is considering making advertising his life work is apt to think that the position of advertising manager is the most desirable goal. In so many cases he has a notion that the work of an advertising manager consists mainly of sitting at a desk where he interviews men who have all kinds of space to sell, photographers, printers, engravers, artists, and dealers in novelties. True, there are advertising managers whose only duty it is to act as a buffer for the man higher up. And to a certain extent this is worthy Advertising work. Many of them show keen dis- ^SMd crimination and judgment in selecting Direct from the mass of detail which comes to ^°^ their attention each day the ones which deserve to be taken up with the sales manager or the head of the business. The duties of an advertising manager cannot be strictly defined in scope, or standardized. In many cases an advertising manager has absolute author- ity; or he may have authority only to investi- 207 'ir V 208 ADVERTISING-SELLING THE CONSUMER^ gate and make recommendations. Still others are clerks to whom the checking of detail work is delegated. The duties of an advertising manager, strictly construed, should be those of a sales manager — ^he should interpret the sales policy of the business, both to the personal salesmen and to those who are reached through the medium of printers' ink. My twenty years' experience in the advertising business lead me to believe that the advertising manager's job is just about as big as the man who occupies it. Mr. H. M. Swetland, president of the Class Journal Pub- lishing Company, once said to me that he couldn't make a trade paper any bigger than the man who was editing it. Sometimes it has happened that an advertising manager, with his first broad insight into business, y^ has grasped the possibilities of the market. Advertising in its relationship to the group of people Can^C?Zte ^^^ Sustain and make it possible, better Folides ^^^ ^^^ superior oflScers have. And, in consequence, has been advanced to the highest executive positions in other businesses in charge of men who were big enough to appreciate creative ability and grasp of selling opportunities. Instances could be cited, almost indefinitely, of the rise of the advertising manager, in present-day big businesses, to an executive position having a part in the direction and control of the poUcy of the institution. THE ADVERTISING MANAGER 209 In the course of a successful business career every man passes through four distinct epochs. First, The Four ^^ ^^ ^^^^ ^^^^ ^^ ^® earning enough Epochs money to pay for his clothes and board B^Lss and have something besides, without being Care&r dependent in any way upon his parents, comes the consciousness that he can support himself. This is a prime satisfaction, to be remembered fondly. It is the foundation upon which the execu- tive has built his career— the fact that he can say that at a certain age he performed a certain duty for a certain sum, and that he earned what he got, without any pull, preference, or any consideration other than actual value rendered the business upon whose pay roll his name appeared. In the second epoch the young man has measured up to taking care of, without supervision, responsibility Second which is delegated to him. He realizes ^/»— that he is trusted and must act upon his ^^S own initiative and in accordance with his Supervision ^^^ judgment. He has learned that hon- esty, dependability, and the power to accept respon- sibility bring him extra cash dividends, dividends in addition to the sum to wliich the amount of physical and mental labor he can put into his task entitle him. This is the position occupied by many travelling salesmen. Uiiortunately for them and for the firms they represent, sometimes they feel that this stage is the limit of their ability, a mental attitude which handicaps them seriously. I !i| (1 Delegating to Sub- ordinates Is Epoch Number Three 210 ADVERTISING-^SELLING^THE CONSUMER The third epoch might be termed the executive period. It begins when the man first reaKzes that, if given assistants to whom he might dele- gate work to be handled under his super- vision, he could accomplish more for him- self and more for his employers. The man who reaches this stage is on the sure road to advancement, for there is always some one ahead of him doing work he can well afford to delegate, in order that he may have time for bigger things. The organization which makes every member of it feel that there is work to be done which is worth more money than he is now getting, and that in order to handle the higher grade of work he must delegate wherever possible to men getting less than he is, is bound to be a growing, united, progressive, successful business. The man in the fourth epoch of development is able to command the cooperation of men more expert ^ , than he. As the head of a department he Command- . i . . .t ing Co- greatly mcreases his power by wmnmg the oTm^^Mm confidence of other heads who are co- ls Fourth ordinating with him. As chief executive of a big business, the man who can get the most help from his lawyer, his banlcer, and all the experts associated with firms from whom his business buys and to whom it sells, is worth much more even than is one who is prolific of original ideas. True execu- tive ability is shown in getting things done by the men most competent to do them. THE ADVERTISING MANAGER fill The advertising manager should delegate as much work as possible, for the reason that by working with experts he will get the best work done on Ji^tnt ^^^ niost economical basis. His judg- More Im- mcut as to where and how things should be ^han done is worth more to the house than his ^maiU ^^^^ ^^ doing things himself. In this way he is bound to put himself in a position where he can grow with his institution. Fortunate indeed is the young man who is adver- tising manager for a business the executive head of which is dominated by an ambition to be a controlling factor in the market. For such a man is always ready and willing to assume increased responsibihty himself, and when that happens will delegate freely the work he is doing to men who can take it off his hands. It is often necessary for the young subordinate to take work away from the executive, by main force. But if the latter aims to be a dominating factor in his market, he mil approve rather than resent such ac- tion on the part of his advertising manager. Forti- fied with a simple system of accounting which shows at all times that he is taking care of the responsibili- ties entrusted to him, the advertising manager is sure to advance more rapidly, in a large business, than will associates having equal abihty, unless it be the general sales manager. An advertising manager should keep in touch with general literature of all kinds. He should constantly M 1 1 I iiliJii Ait' 212 ADVERTISING— SELLING THE CONSUMER watch the development of new ideas. He should take his work seriously, and develop the broadest possible culture, keeping always in close touch with all the men who have practical experience in the details of the business with which he is connected. It is the same principle that inspires the head of the largest business to use the best banker, the best physician, the best architect, the best engineer, the best lawyer, the best expert in every line. And it is the man who entrenches himself in modern business in this way whose position is practically impregnable. The advertising manager should be the peer of every one of hi^ associate officials. To perform fully his function, as I have said before, he Business should have the supervision of sales. He Should Be should be a part of every conference at Book to the which the policy of the house is discussed. ^MawM&f Advertising is effective in so many different directions that no question arises in any business organization upon which advertising has and can have no bearing. An advertising manager, in order to comprehend his responsibility fully, should have passed through the three preliminary epochs of business experience and be in the fourth. He should deserve and be able to get the complete confidence and intelligent co- peration of the head of the business. He should be able to command the confidence and cooperation of the factory superintendent and of all the salesmen on the road, whether they report THE ADVERTISING MANAGER 213 directly to him or to another who has coordinate authority with him in sales. He should be able to employ (and secure the best results from his personal contact with) expert printers, advertising writers, publishers, and organized advertising institutions equipped for giving service. It has been well said that a bad workman quarrels with his tools. The advertising manager who com- The Strong plains that he cannot get service from those Advertising .., ■, •.•i«i • . ii.i i Manager With wnom it IS his Dusmess to deal thereby Miist Be stamps himself as mediocre. Ability to in- Mature tn . '^ ^ , •' Development spire men with whom he does business to do their best is one of his greatest assets. It is the qual- ity in him that will make his efforts count for most. Advertising in itself is too complex, too broad in scope, too infinite in detail for any one man to master it all. The man who accomplishes most as an adver- tising manager is the man who knows where the best work can be done and how to get it for the institution with which he is connected. But he cannot get it by sitting in his office and waiting for good things to be brought to him. There are men, capable and valuable, who have not yet learned how to sell their ability in a market where _. . it will be most appreciated. No man ought wt^Z to be more conscious of this than the adver- «^ t tising manager, and he should be most alert Secret of to leave his office to find out where the Success , , •••IT 1 • . best service, in the hues he can use, is to be secured and developed. ,1 m «14 ADVERTISINGS-SELLING THE CONSUMER I should advise the young man who accepts the position of advertising manager for a business that has never done any advertising to proceed about as follows: Usually he is expected to write their copy. The best thing for him to do—and he shouldn't undertake Advice to *^^ ^^^ ^* ^^^ uuless he is able to write Advertinng plain, sensible, ordinary, everyday, one- inTcln- syllable English — would be to saturate ATv^iHn ^^^^^^ with the ideas by which the best salesmen of the house produce permanent business. By permanent business I mean sales to customers who show their satisfaction by repeat orders and a constantly increasing volume of business each year. When completely saturated with every phase of the service which his house excels in performing, the advertising manager will embody this knowledge in the copy and letters he writes, intensify the hold the house has on its present group of customers, and intelligently devise ways and means of enlarging the customer group. The next step is to select a printer in whose honesty and integrity he has complete confidence. He should accept no favors of any kind from him. If he goes to lunch with him, he should make it a rule, either to buy his own lunch always, or to alternate with the printer in paying for lunch for both. The temptation to accept little favors from those THE ADVERTISING MANAGER 215 from whom one buys is great. But the advertising manager who can be influenced only by quality Getting ^^^ service and who insists, in the name Saturcded of his firm, upou reciprocity in matters Information of this kind, has gone a long way toward EssenHal insuring his own standards and getting the best service from those with whom he deals. A good printer is a man who knows how to manage his own business successfully, who doesn't estimate on a hit-or-miss basis, who has an organ- ^%d^r*^ ized, systematic scale of prices, and figures fairly and honestly. Such a man will usually have time to confer with the young adver- tising manager, and, because he is a good business man himself, can generally be of assistance in the solution of the advertising manager's problems. I know several young advertising managers who owe much to having given their confidence to self-respect- ing successful printers, having a regular scale of charges, who do business on a sound but profitable basis. Everything said about the printer is true of the engraver, the paper house, and all the others who come in to sell to the advertising manager. The latter should never forget for an instant that he is a trustee of his employers' interests, that he can main- tain his self-respect only by handling every dollar so that it will produce the largest possible return for the house. Many young men do not seem to realize that a high standard of responsibility has a reflex in the I 216 ADVERTISING— SELLING THE CONSUMER development of their character. It also attracts to them a class of men who can afford to be discrimi- nating in the customers they select. The man who buys on a service basis is bound to be cultivated by men who sell on that basis. It is cer- tain that intimate, confident cooperation between men who buy and sell, each giving the best possible service to the business for which the advertising is being developed, is sure to maintain advertising itself on the highest possible plane. Much could be said about the observance of orderly, systematic habits in one's personal life and in relation to one's business associates. It is a mistake for an advertising manager to allow any man holding a responsible position in the organization to remain in an indifferent or an antagonistic attitude toward him. It is the function of advertising to create good-will. An advertising manager can scarcely expect to organize and systema- tize the protection of good-will for his house unless he first has mastered the art of creating good- will for himself inside his own organization. The general manager of a large institution told me once that his advertising manager would more than earn the very large salary he was being paid, even if he never wrote any copy or did anything except promote harmony and good fellowship among heads of departments. The Advertising Manager Must Command Oood'WiU in His Otganizoi' Hon THE ADVERTISING MANAGER 217 I should also advise every young advertising man- ager to shoulder every bit of responsibihty he can make good on. The first thing he wants to do is to create the impression that if there is work to be done, he can do it. Then he should systematize his own work, so that not more than 50 per cent, of his time is occupied with its actual details. A good executive can organize his work so that he can be free at least half his time, free for interviewing those who call to see him, and to go out in search of new ideas. I beheve an advertising manager should accord at least one audience to every man who calls on him. If the salesman does not convince him then that he has something the house needs, he is not entitled to a second interview. The advertising manager who tells callers about his own achievements and what he intends to do is wasting time for everybody concerned; unless he does it deliberately, with the idea of stimulating more valuable suggestions or confidences from his Hsteners. The best way to get the whole story of the man who calls on the advertising manager is to let the How to ^^^^^ ^^ al^ t^e talking. Few men have a ^laf " ^*^^^ ^^* cannot be told within fifteen Callers minutes. A man who has posted himself Can Give sufficiently on the business of the house, and still takes more time than that to tell his story, ought to be Ustened to respectfully and encouraged Olft A"nVT?"DTT€rNJr' Q1?T T TNin TTIl? r'AMClTTlVnrTO 5b lo AJJVJCiltllolINvr — DJiiljJLlINljr lilHi V^UINoUiVLEilt to bring in other ideas on which specific suggestions for usefulness could be based. Nothing proclaims the business ability of an advertising manager more effectively than wilUngness to accept ideas and sug- gestions, and to accord credit freely to all who bring them to him. REFERENCES ON CHAPTER XXI "The Job, the Man, the Boss," by Blackford and Newcomb (published by Doubleday, Page & Co.. New York): is a valuable book for an advertis- ing man to read. It will help him determine the character of the men who call upon him, and it will put him in position to advise and counsel with the executives. "Thoughts on Business," by Waldo Pondray War- ren (pubUshed by Forbes & Company, Chicago). are suggestive and stimulating to guide one's own thinking. It is well to remember that thoughts must be put into action constantly in order to pre- vent the thmker becoming a dreamer. "How to Write a Business Letter," by Chas. R. Wiers (published by the author, 631 W. Delavan Avenue, Buffalo, New York), is the most thoughtful and practical treatise on tiis subject that /have seen. Anybody who writes will be benefited by reading ISlx. Wiers' book. CHAPTER XXII THE ADVERTISINO SOLICITOR THE actual work of selling gives me greater pleasure than anything else I do in business. I have said many times that I do not be- lieve I am by nature a salesman. It was wholly a bread and butter proposition that started me selling space for an Iowa newspaper edited by my father for more than fifty years. It was there that I got what- ever education I received after graduation from high school and one year at a small academy. My first attempt to sell space in our newspaper was laughable. I tried to persuade a man in the , p. tombstone business to have a clearing sale. Attempt ai I was reading the Chicago daily papers SolicUing ^^^ j^ seemed that was about the only thing the retail merchant could advertise. Three months later I called on the tombstone man again, and he told me, with considerable feeling, that I had done him a great injury. Asked if no one had read his advertisement, he answered: "Oh yes, I think everybody must have read it." He had lost ten good jobs, he complained, promised 219 MA Mil > Hi 220 ADVERTISING— SELLING THE CONSUMER him by farmers if their harvest should be good. For his competitor had told them he was going out of business, and the farmers would not have believed it if they hadn't read the clearing-sale advertisement. I have said many times that what I know about advertising has been gained by actual sales experience, from which I deducted fundamental work- Advertising • . . i -r ., .,,. , Can Harm ^g prmciplcs. I am quitc wiUmg to *" ^d ^ coi^cede that advertising can harm the advertiser as much as it can help him. Advertising is a good deal like food. Three meals a day keep one in better condition for work than spas- modically gorging and starving would. Too little and too much are equally harmful. Successful advertis- ing will always call for careful judgment which is based upon positive knowledge of actual conditions. In Chapter XXI, I indicated that an advertising manager who wants to give his customers the largest possible service for their money can well afford to cultivate the cooperation and confidence of printers, engravers, and dealers in advertising supplies who are creative salesmen, "creative" in the true sense of the word. This fact is the advertising solicitor's greatest opportunity. He must know accurately the merits A Solicitor ^^ ^^^ medium he represents. He ought Should to know what the medium he is selling What He will do Under certain definite conditions. ^<^'»«tf This is a part of his equipment. His success depends upon his ability to make sure THE ADVERTISING SOLICITOR 221 that the person or institution buying from him gets the largest possible service in results. No retail merchant ever voluntarily bought space in the daily paper for which I first solicited adver- tising. But the traveling patent medicine man, the advance agent for the circus and the man who came to town every now and then and rented a storeroom where he conducted a fire sale, always called on us and bought space; apparently with the purpose of appearing to be liberal and free-handed spenders. Some of my most valuable lessons in advertising were gained by helping the retail merchant write his copy. When I moved to Chicago, in Writing the iggi yery few busiucss men were willing Advertise- i • i mentOnce to admit that any one could write their PrerogJive advertisements as well as they could. One of the marks of progress in adver- tising is the change which has taken place in the minds of advertisers and advertising managers as to who can best write their copy. Few men are able to put into clear-cut, understand- able English the sales-impelling thoughts of a master- ful, creative salesman. It is a gift, and a power — this knowing how to put words and phrases on paper, or to put ideas into an illustration, so that the adver- tisement will influence thousands, at a time, to do that which the personal salesman can get only one at a time to do, at the cost of a talk lasting from twenty minutes to two hours in each case. The advertising solicitor's opportunity lies in un- Jd. m b^ 222 ADVERTISING--SELLING THE CONSUMER derstanding the service possibilities of the advertising accounts he is soliciting. He must be resourceful. A Solicitor "^^ i^iust be able to convince those whose MtutGiwi business he seeks that his medium, plus ^'^^^ his ideas in connection with the use of it, will give the largest possible service to the advertiser. The service idea is very marked in advertising sales- manship to-day. It will be more so in the future. We have outgrown the old idea of salesmanship-^ that it was clever to catch the buyer unawares and "put something over" on him. Review mentally the names of the men who were prominent in adver- tising salesmanship twenty years ago, and compare them, in personality and method, with the men who are leaders to-day. I have often said I was trained in the school of salesmanship which taught that the best salesman The New ^^^ ^^^ ^^^* tum-downs, because he made Order of the most calls. unhng rpj^^ j^^^ ^^j^ .^ ^j^^ greatest opportunity in advertising to-day. The man who sells adver- tising space or advertising material must master the art of having practically no lost sales. One of the most effective means of winning the Turning Confidence of the buyer and of making sure of getting a hearing, as against competitors, the next time he is in the market, is to de- cline to sell him, even when it is apparent that the sale could be closed, if it is evident that the purchase would not be profitable for him. Down Business a Royal Road to Future Business nrrrn7 A T^TTTrTJT'TCTVrr' CAT TrTTTklJ 223 This is a form of advertising which the advertising solicitor can cultivate most profitably. One of the surest ways of proving your sincerity is to refuse to make money when you have a chance. By convincing the buyer that you want his money only when you can give him the largest possible service for it. the advertising solicitor saves himself many fruitless calls. Then buyers will regard his call upon them as an honor. When they learn that he is in the reception-room, or is telephoning for an appointment, they will feel sure he has something to tell them which they cannot afford to miss. In this way the advertising soKcitor can build permanent personal prestige and a loyal customer following; thereby overcoming, to the largest pos- sible extent, the general handicap of being able to be in only one place at a time and of being Umited to not more than ten eflicient hours' work each day. If asked to advise a young man who wants to become an advertising solicitor, I should urge him to get a position with a well-established, well-managed newspaper or magazine, a printing or an engraving house. Select as employer one who has a reputation for making good on every responsibility. Pay no attention to the size of the salary for the first year. Then I should make a list of prospective Soltcitina jx* 1j.»j.i i 'a* Is a advertisers, selectmg those whose position Serious in the market fits them for delivering a Job - . HI larger service to the group of people which your medium serves better than any other. i l||h 224 ADVERTISING— SELLING THE CONSUMER Enow your own medium absolutely. The best way to find out all about it is to start out selling it. Jot down in a memorandum book every question asked you. When you go back to the office have this answered by the man who knows most about it. The next time that particular question is asked, you will know how to answer it clearly, con- cisely, and completely. Very soon you will have at your tongue's end clear-cut, definite, convincing answers for practically every question the buyer will ask. In presenting the merits of what you have to sell, always visualize the maximum assistance it can give the prospective advertiser in accomplishing his plans for his own market. Avoid discussion of technical detail. Never discuss competitors. This is the safe path for the young solicitor; it is the custom even with the majority of old-timers who are in position to discuss competitors intelligently and accurately. Their time is too valuable to waste upon argu- ment. The best informed salesmen I know (if competitors are discussed at all) name the particular in which they consider the competitor most successful. Then, conceding this, they prove that the house which they are representing is even better equipped for giving just that kind of service. The advertising solicitor ought to take his work seriously. He should be serious in his approach I THE ADVERTISING SOLICITOR 225 A Solicitor Should Be Sociably Serious — Never Clownish and in his discussion of business matters with the buyer. He should never joke about his own busi- ness or speak flippantly of it. He cannot command the respect of other people unless he himself treats his business respectfully. Confidence and respect are so nearly synonymous and so interwoven that it is difficult to separate them. Confidence is the only basis on which permanent business-building sales are made. By this I mean, not that one shouldn't joke or laugh and have a good time, but that one's stories should be clean and all jokes should be about things having nothing to do with business and in no way reflecting on the honor or integrity or the ability of the people associated with him and the house he represents. An advertising solicitor should know more about the use of the medium he represents than the man he 7^^ is soliciting can know. He must make Solicitor the man to whom he is talking believe this. Must Know ,^- 1 . . 1 —Bluffing Ine surest way to do it is to be so strongly Doesn't Go equipped with knowledge, facts and figures about how his medium has been used that he can discuss the subject accurately and intelligently. The advertising solicitor should be definite in his statements. He should not deal in generalities. He shouldn't tell a partial story. If he gives a definite transaction in detail, he should point out both its good and bad features, and endeavor to show how the latter might have been avoided. One of the best rules for an advertising solicitor :■ It' 226 ADVERTISING— SELLING THE CONSUIVIER to follow is the old one: "Plan your work and work your plan/* He must avoid antagonizing the buyer. And for that reason he should discuss with him no subject about which there could be a justifiable dif- ference of opinion. Under no circumstances should an advertising solicitor or a salesman permit criticism of the house o/'iw ^^ represents. This is the most serious House u reflection on his own judgment that can ^y^r^ be made. A good salesman does not have to Success associate^himself with an inferior business. The man who allows a buyer to say that he is all right but that his house is wrong is committing busi- Selling ^^^s suicide. If the house is wrong, he Publishers defend it and absolutely refuse to listen a Big Job to criticism. Minor errors should be conceded and corrected without discussion. The best businesses are constantly on the lookout for and eager to hire more salesmen of the right sort. There is no work which affords a more pleasant opportunity for making use of the best there is in one than in the sale of advertising space for a large institution. It means working with 13-inch guns, it is doing things in a big constructive way. The demand for big men as advertising solicitors greatly exceeds the supply. And the period of training which fits one for holding such a position is longer or fully as long as that which the lawyer, the physician, the architect, and the engineer must have. THE ADVERTISING SOLICITOR 227 Good Men It is the old story it takes longer to lay the founda- tion for a twenty-story building than for a two-story The Bunt cottage. for Young men must be ready to work and eager to learn while they are developing. Training the judgment is an essential part of prep- aration for filling big positions in the advertising business. Fortunately, judgment can be trained, for judgment is experience, intensified by clear, analytical thought. Judgment gives men courage to try the task they know to be fundamentally sound, over and over again; convinced that ultimately all obstacles will be overcome. The two largest publishing interests in the United States are conducted by men who are conspicuous for periodically going out on what they call a "man hunt . ' ' The officials of these organizations have been recruited from all over the United States. Men in small places (who have swung responsi- bility in a well-rounded way) are sought for, to fill the larger positions. A well-balanced character, ability to see below the surface, courage to continue, no matter how many the rebuffs, confidence that sound business principles will ultimately win, and a rigid adherence to what one is convinced is sound basically, all tempered by cour- tesy, kindness, and forbearance, are bound to win in the long run. The advertising solicitor's hazards are many, more numerous than in any other line of The Solici- tor's Fate Lies Largely in His Own Hands m III ' 828 ADVERTISING— SELLING THE CONSUMER business with which I am familiar. But the master- ing of all these diflSculties gives him the satisfaction of achievement and accompKshment which main- tarns his own self-respect. This, after aU, is the goal most worth striving for. REFERENCES ON CHAPTER XXH The editorials of Arthur Brisbane in the Hearst papers are well worth careful reading by every soUci- tor for three reasons: (1) Mr. Brisbane understands the group spirit and knows how to hold attention of a very large portion of the reading public; (2) he keeps in very close touch with the development of scientific and philosophic thought, and (3) because of his masterly interpretion of technical subjects in plain, simple language that anyone can under- stand. It is my conviction that an advertising solicitor ought to be reading continually the works of men who have given much thought to specialized subjects such as Ruskin's "Unto This Last"; George Horace Lorimer's "Old Gorgon Graham: More Letters from a Self-made Merchant to His Son" (Doubleday, Page & Co., Garden City, N. Y., 1904); Otto Weini- ger's "Sex and Character" (G. P. Putnam & Sons, N. Y., 1906); Crewson's "Tales of the Road" (Gros- sett & Dunlap, New York), and H. G. Wells' "Wai of the Worlds" (Harper Bros. & Company, New York, 1909). AU these books stimulate thought and suggest new THE ADVERTISING SOLICITOR 229 ways of approaching the solution of fundamental problems. "Getting the Most Out of Business," by E. St. Elmo Lewis (The Ronald Press, New York), is a very readable presentation of modern "eflficiency" thought from the standpoint of a successful adver- tising manager. (Note: I intended in writing "Advertising-Selling the Consumer" to refrain from using the words "efficiency" or "psychology" but I really need the word "efficiency" to describe the contents of Mr. Lewis' book.) The Ronald Press publishes a number of other books of special interest to advertising men. Speci- ally noteworthy are: "Selling Newspaper Space" by Joseph H. Chas- noff, late Manager of Advertising Promotion, St. Louis Republic, 1913, 133 pages, 5j x 8. Cloth, $1.50. "Advertising — ^Its Principles and Practice," Tip- per, Hotchkiss, Hollingworth, and Parsons, 1915. 575 pages, 162 illustrations, Cloth $4. "Effective Business Letters" by Edward H. Gardner of the Faculty of the University of Wiscon- sin. Second edition, 1915, 376 pages, 5$ x 7J, Cloth, $2. h CHAPTER XXm MAIL-ORDER ADVERTISING MAIL-ORDER AD\TRTISING ^1 ADVERTISING is most competent when it /\ serves the consumer in the distribution of X JL worthy merchandise through the natural channels of trade. Some people think that the mail-order business is an illogical and unnatural business, because it elimi- nates the jobber, the traveling salesman, and the retailer. It is not. It is the direct result of intel- ligent and adequate advertising. No one can fully grasp the power of national advertising and mer- chandising through the ordinary channels of trade until he clearly comprehends the possibilities and the Kmitations of the mail-order business. The total business of mail-order houses cannot be accurately determined. The business for 1914 of the two largest aggregated less than $200,000,000. , It IS not possible for me to beheve that PlBTltv OT Room f or all othcrs brought the grand total up to tl^l $1,000,000,000. DeaUr There are 20,689,000 families in the United States. Their income is about $27,000,000,000. With twenty-seven billions coming ^ ftso in and not over one billion going out in mail-order business, our 790,886 retailers and 42,293 whole- salers have a chance to do an excellent business. There are in the United States 2,164 towns having a population of 2,500 people or more or a total of 41,140,847. More than 42,000,000 people hve on our 6,361,502 farms. This leaves about 8,000,000 in villages of less than 2,500. Our 42,517 rural mail routes serve 16,199,000 people. These fig- Mail-order ures provc that there is a natural and strict- Ned^dand ^^ legitimate place for mail-order business, Legiiimate and it is bouud to increase in volume each year. A large wholesale jobbing house has recently been estimating the cost of doing business with three classes of merchants, i. e., those located in towns of (1) less than 2,500 population, (2) between 2,500 and 25,000, and (3) 25,000 and up. The figures prove it does not pay to send a traveling salesman with a full line of samples to a town the population of which is less than 2,500; and that unless the merchant him- self goes to the market often, he cannot meet mail- order competition, for his merchandise will not satisfy the wants which the newspapers and maga- zines have aroused by the story of what is newest and best in the large cities. For many years I have been asking my dealer friends this question, "Does a live, wide-awake local merchant who comes to market at least twice a year fear mail-order competition?" I have still 232 ADVERTISING^SELLING THE CONSUMER to find an instance in which a good merchant was unable to meet and overcome it. Mail-order busi- The Lim ness depends on the inadequate stocks or fVide-awake incompetency of local merchants or serves Merchant t- */ Has No a class of people so widely scattered and MaU'order having wauts and desires so occasional Competition that it would not pay the local merchant to consider them. This, it seems to me, is the logical field of mail- order business, and retailers and mail-order houses ^y are recognizing it. It includes courses of Field Thai instruction by correspondence, awarding Mail-order . # .1 i i» t AdveHisers premiums for the sale of soaps, perfumes, sJ^THan t^^' ^"^ ^^^^'^ *« °-^'« ^'^ShhoTS, buying Any One diamonds and household furniture on the installment plan, and all kinds of farm utensfls. bunding materials, bicycles, buggies, pianos, piano players, and the like. Dealers in poultry and poultry supplies, and subscription agents have been especially successful with mail-order'methods. The purchasers are so widely scattered and the lines so sea- sonable that it does not pay the retailer to stock them. Quite a number of nationally advertised lines of merchandise were started in a mail-order way. When Many a group of influential consumers had been ^Aftr^d developed, the agency for the line was given Zin«' to a local retaDer. who cooperated with the Started in a . • 1 1 ■ ■ * mi * 1 1 1 Mail-order national advertising. This plan has been Way most economical and successful in introduc- ing such articles as card-index cabinets, sectional MAIL-ORDER ADVERTISING 233 bookcases, guaranteed hosiery, tailors-to-the-trade supplies, washingmachines, safety razors, typewriters, and cameras. Each mail-order house builds its own consumer group. The sum total of these small groups con- stitutes one great group which buys by mail. There are a number of publications of national circulation whose subscription lists are the result of sending circulars through the mails. There are some which are called "mail-order papers." Those who subscribe by mail are most likely to buy by mail. In Augusta, Me., a city of 13,000, two Ckoosin, publishing houses send out, each day of the the Medium year, an average of more than a carload of Matrder mail-order matter. To look through the Advertising advertising columns of these publications, to answer the advertisements, and to study the fol- low-up material would be a liberal education in mail- order methods. No mail-order business that I know of has been successful in attempting to sell direct from its adver- tisements. Mail-order advertising aims to locate possible buyers. Whether or not a mail-order business will Folhw- P^^ depends upon the contents of the cata- up Systems logucs, printed literature, and sales letters in Every which are sent out to follow an inquiry. MaU-order Many of the mail-order businesses which Business have accumulated money during the last twenty years have been based on plausible but in- £34 ADVERTISING--SELLING THE CONSUMER sincere appeals. But the government has put most of these fakes out of business. Mail-order houses which make good on their pro- mises merit the confidence their customers have in Sales *h^™' Their catalogues are informative, M^teflf ^^^^^^ ^^ logical and emotional appeal, and H^h "^ could profitably be studied by every mer- Us^Z ^^^^^ ^^^ clerk who handles similar Hues. 3lml-order Houses which put out large catalogues reckon each page as worth several thousand dollars in sales power. Each department is charged with the cost of the space it occupies in the cata- logue. Therefore a high premium is placed upon ability to write accurate, informative, sales-com- pelling descriptions of the items illustrated there. Catalogues are not sent out indiscriminately. Great care is taken to prepare the mind of the recip- ient for the catalogue and to invest it with value in his or her eyes. Customers who have not ordered for some time are cut off the mailing-list. Each letter or inquiry is completely and cheerfully answered. Each complaint is given courteous and careful attention. The confidence of the buyer is Creaiin ^^^^^^^^^ ^^^ courted in every possible Confidence Way, eveu to Sending goods on approval. '^^tMm ^^'^ ^^^"y ^s ^^t t^^ r^sk it appears, be- Maiurder ^^^^^ ^^^ ^^^^^^ ^^^^ ^^ ^^^ United States ItouI/'^ are strictly enforced. Our Government deals promptly with the man who buys merchandise by mail and does not pay for it. Express MAIL-ORDER ADVERTISING 235 companies allow buyers to inspect goods sent them on approval by a mail-order house and return them to the shippers if they are unsatisfactory. It is interesting to note (as proof that the mail- order business does not encroach upon the territory covered through the ordinary channels of trade) that large retail stores have found it impossible to build successful mail-order departments with the talent which is useful and valuable in serving the consumer over the counter. There is something fascinating about being able to write a piece of copy that will produce direct mail- MaU-order ^^^^^ rcpHes within a certain cost. The Copy Must preparation of mail-order hterature, the Offset Z answering of letters, and the handling of Vresiige, the goods themsclvcs must be delegated to persons who reahze that they must more than offset the prestige-producing and confidence-building effect of a well-located store, attractive counter and window dis- plays, and capable salesmen. The copy-writer must understand the value of these factors, and replace them in his advertisements, catalogues and in the letters and other "follow-ups" he sends to each in- quirer. • The building of an advertisement which shall at- tract new customers for a mail-order house is as severe a test as a copy writer can be put to. Unless he gets enough direct responses from the right class of people to make the merchandising effort as a whole Displays, and Per- sonal Sales- manship of the Store II t'A 236. ADVERTISINGS-SELLING THE CONSUMER profitable, his work is wasted. He must know how to tell an interesting and plausible story; he must also have the faculty of putting into that story an appeal to the buying impulse which will bring a re- sponse large enough to prove constantly that his work is being well done. He must keep in mind the cost as well as the stimulating character all the follow-up material which is to be used upon these inquiries, so that he will not attract the merely curious. The trained writer of mail-order advertisements knows that a single word may affect seriously the Every Word ^^iinber of inquiries received. The head- CaTejuZ ^'''?' "Increase Your Salary," brought n^gkedin twice as many inquiries, in the same M^Z^d^ publication, as "Increase Your Income," "^ w*" *^^ ^^^^ ^^ ^^^ advertisement being exactly the same. A considerable portion of the want columns of daily newspapers and of the advertising space of mail-order papers is devoted to "Agents Wanted" advertisements. The consumer undoubtedly pays more for an article that is peddled from house to house than for an equivalent value to be had at any reputable retailers. It is safe to assume, however, that as long as human nature is as it is, the satisfaction of having one's trade sought after and the pleasure of listening to a forceful sales talk will make it profitable to peddle sewing machines, subscription books, enlarged por- MAIL-ORDER ADVERTISING 237 traits, and many household articles. Almost all such agents are secured by mail. Manufacturers whose product is to be sold by can- vassers put out ingenious advertising and follow-up The Change matter. The word " Rider," in front of the wirdMade ^^^^^^^^^^ ^^^ ^one the less dependable a J^nrf^r/J words "Agents Wanted," brought the ifj^or'a ^^^^ ^^^^^ Company 630 answers from a Medwcre single insertion of an inch advertisement in the Youth's Companion. Something about the headline, "Rider Agents Wanted," gave the old story a new significance, and many people wrote in who decided, when the agency plan was explained to them, to buy the bicycle but not to canvass for sales. Six pieces of copy, with different headlines, but all telling the same story, published on different pages ^ Good of the same publication, brought answers MaU-^d^ costing from 8 cents to $1.54 per inquiry. Should Be A good piece of mail-order copy can carry Reveated ^^ expenditure of from $50,000 to $200,000 before it wears out. A business which sells a course of instruction pays as high as $1.00 per inquiry, and makes good money on each of seven follow- up letters which are sent out within the next eighteen months. The best foundation for a mail-order business is the list of names resulting from dragnet advertise- ments in mediums of general circulation. Businesses have also been built up by circularizing 11 I •il 238 ADVERTISING-SELLING THE CONSUIVIER lists of names. Several houses make a specialty of listing dealers according to sections, ratings, and OetHngthe ^^ ^^^ ^^ merchandise handled, and Names of guarantee the names to be live and that ^Buy^^ the addresses are correct. There is also a business in selling names that are taken from answers to mail-order advertisements. At clip- ping bureaus one can buy lists of the names of persons who are accustomed to travel, those who are reported ill of certain diseases, those who contemplate building, and other information which is gathered from the newspapers. Seldom are mail-order advertisements used for any other purpose than to get new names of possible customers. Some houses have used large space in order to get a certain prestige. But in mail-order work the custom is to use no more space than is necessary to locate a possible buyer. Prestige-build- Mau^der ^^^ ^^^ coufideuce-developing work must Advertinng be douc by the catalogue and follow-up lit- Attention ^^ature. c2^ue ^^^ ^^y y^^^^ ^ certain large seed house that sends out more than 500,000 catalogues during December and January has used large space in pubKcations which have big circulations in March. Apparently the aim was to get new in- quiries for the catalogues. But in reahty it is to centre attention upon the catalogues already placed in these 500,000 homes, and to stimulate immediate purchases. MAIL-ORDER ADVERTISING 289 Mi Much of the "Agents Wanted" misleading mail- order advertising has been barred out by the better Writing <^^^ss of national publications. It will be ^Coly'^T ^^^"^^^ ^y ^^^S^ dai^y newspapers as soon True as their pubhshers realize that the confi- Training ^^^^^ ^f ^.j^^ reader is an asset which should not be trifled with by advertisers who do not make good in every way. Many men who have been successful in planning and writmg mail-order copy have found a larger and more profitable market for their abihty in connection with the established channels of trade. For many lines of business, then, mail-order methods of locating and selling the customer are most economical, and for the introduction of a prod- uct often afford a quicker, more satisfactory, and more profitable national distribution than could be secured in any other way. REFERENCES ON CHAPTER XXHI A live and readable monthly, the Mail Order Journal (Chicago), contains all the news about mail- order advertising and much valuable information about general advertising. In 1900 the Sawyer Publishing Company, Water- ville. Me., issued an interesting book, "Secrets of the Mail Order Trade." Though much of its data is now obsolete, it is well worth reading as an historical document. A complete series of the catalogues of any great It - m I i 1 M ^^^^^H' ^^^^H ^^^^^1 t ^^^^R ! ' '■ dl 240 ADVERTISING— SELLING THE CONSUMER mail-order house would give one the most graphic history of the development of mail-order method? and ideas. By answering the advertisements and reading the follow-up matter sent out by a successful mail-order house one can make sure that one's information is up to date. n 1 CHAPTER XXIV NATIONAL ADVERTISING AND EXCLUSIVE DEALERS ONE of the fallacies which an advertising man must combat constantly is the statement that if a Httle advertising is good, more of it should be a great deal better. Advertising is hke food— it should be taken, not as an end in itself, but as a means to an end. Three meals a day three hundred and sixty-five days in the year is more economical and more valuable than alternate fasting and feasting. Too little starves and weakens; too much is a burden and does not allow the system to function properly. In the preceding chapter I indicated that adver- tising will start a business. It will also maintain a business. The weakness or strength of mail-order advertising is at once evident in the business itself, for advertising is its foundation. We see quite a different use of advertising when we consider the manufacturer selling to the exclusive dealer. Here advertising is the factor which amal- gamates the work of two distinct and strongly en- trenched forms of business. On the one hand is the retail merchant who values his personal reputation 241 >if^ 111 "1 Willi I i 242 ADVERTISING— SELLING THE CONSUMER and standing in the community in which he lives; on the other is the manufacturer proud of the quality of the merchandise he makes and appreciating keenly his responsibihty to the consumer. The manufacturer does not care to have the identity of his goods lost in the average jobber's stock; the retailer does not want to put his rtnetZit ^^^^*^^^ ability back of merchandise which Between cau be Supplied to his trade territory by any wt::^" of his competitors. RetaUer The manufacturer approaches the mer- Ben^toS chant and explains that he is looking for ^«^ the same high quality of service in placing goods in the consumer's hands that he himself puts into their design and making. He knows that the retailer can take care of certain ele- ments of a complete service to the consumer better and more economically than he can. He must con- vince the retailer that he can maintain a high quality and make it possible for him (the retailer) to serve his community with the best at the least cost to the The Manu- <^onsumer. Mustc" Cooperation of such sort cannot be tribute AM effected unless the manufacturer brings to SeJ/^ *^^ merchant all the selling helps which are Help— the produced in a national way most econom- AMy Really, and unless the retailer puts forth ^ sL'*** the best effort of which he and his organi- zation are capable and takes advantage of the national selling helps that are given him. EXCLUSIVE DEALERS US The manufacturer can afford space in national mediums which, in so far as they circulate in the retailer's territory, are most valuable local advertis- ing for him. The manufacturer's national adver- tising doubles the value of the dealer's local publicity if the dealer mentions in his local advertising the nationally advertised lines he carries exclusively. The manufacturer can afford to employ expert illustrators and the best copy writers, and supply the dealer with a complete retail advertising service, plates, or matrices ready for use in local newspapers, at a cost which would be prohibitive to the dealer. Booklets, window displays, and sales ideas are fur- nished him at the minimum expense. Unfortunately the exclusive dealer plan has been abused. Therefore many retailers hesitate to back an exclusive line with their own prestige Manufac- and hard work. They are often right in faUteG^ *^^ stand, for some manufacturers have Pr^ used national advertising as a bluff, pure Assistance and simple, to load dealers with their goods, to Retailers ^nd then have failed to give them the right kind of advertising help. This condition is particularly to be regretted, because it takes so little money to cover the United States in national mediums and so much can be done if the manufac- turer acts in good faith and advertises to arouse the interest of the consumer. There are a number of national appropriations of less than $100,000 a year each which include 'I'^ 244 ADVERTISING-SELLING THE CONSUMER the use of national mediums and collateral adver- tising helps for the dealer. One hundred thousand dollars is only one J^cal dollar per thousand population, but it makes by'^D^JS^s ^ wonderful showing in carefully selected ^u^^ publications of general circulation. Dealers National whose trade territory comprises 25,000 Advertising p^^^j^ ^^^ -^ profitable to spend from $25 to $50 annually with local newspapers, to tie up with national advertising, and it is the most influential kind of local advertising they do in their trade territory. If the national advertiser furnishes definite sales suggestions, the dealer will buy the necessary addi- tional local advertising to work them out. Most dealers are committed to a certain amount of local newspaper space in any case, and since the exclusive sale of a high-class product is a trade-builder, and is profitable, it can be said truthfully that local ad- vertising which cooperates with national advertising more than doubles its own value. It is possible (it is being done every day) for national manufacturers to word advertisements in Drawing ^ediums of general circulation so that they 'nrougt ^^^^ ^"^^ ^^^^^^ ^^^^ replies. These letters National are the dealer's best weapon of defense '^tolt^t"*' against mail-order competition. They also %e^n ^^^^^^ people who may be trading with his competitors, and give him an excuse for paying them particular attention, in order to get '^: EXCLUSIVE DEALERS 245 them into his store and demonstrate the superiority of his service. Luckily there are scattered throughout the United States dealers who are as good judges of national advertising campaigns as they are of merchandise. And the manufacturer who makes a superior product and supplements it with a national advertising campaign which reflects the sincerity and honesty that goes into his merchandise will get the coopera- tion of intelligent dealers the minute his salesmen show them his national and local advertising plans. Selling goods to one dealer in a community appeals particularly to the manufacturer of high-grade mer- SeUingto ^^^^^^f' There are 559,000 families in One Dealer the United States having incomes of $6,000 PaA^riy ^ ^^^^ ^^ ^^^re. Their trade is worth while. sLurT^lf ^^^ progressive dealer makes a bid for it HigCgrcde ^Y having the exclusive sale of high-grade, ch^ndise ^ft^onaUy advertised goods. They give him prestige and hold the trade of the wealthier families whose community pride makes them buy goods at home if the local dealer can give them the best quahty. The exclusive dealer plan has been tried out by manufacturers of automobiles, pianos, fine silverware, paints, furniture, kitchen cabinets, stoves, candies, and shoes. Even in a small town one can pick out, by noting window displays and the contents of the shelves, the dealer who caters to the high-class maga- zme-reading group of the community. I f 246 ADVERTISING--SELLING THE CONSUMER The better magazines now refuse to carry the advertising of a manufacturer who seeks the coopera- tion of the local dealers, unless his national campaign is adequate and accurate, safe and conservative. How the ^^^^ censorship is winning the confidence Maga^nes of better class dealers throughout fhe coun- iecHng the try, and givcs manufacturers who have not clmZi^g y^* *^^^ "P national advertismg assurance the of success whcu they do. of^^^ The only basis for successful exclusive ^^ur^ dealer distribution is cooperation between a high-class manufacturer and a high-class retailer, each doing to the best of his ability that which he is best fitted to perform. Advertising, which is the cementing factor of this relationship, often gets results much greater than the financial outlay would seem to warrant. It appears to develop power as a lever does. It brings out the latent force of both manufacturer and retailer as nothing else can. Certainly the retailer who has a choice between a fine line of goods made by a firm which does no The general advertising and a line equally good "^Man^f backed by a broad and skillfully executed turer Gets plan of general advertising will not hesitate. ence^v^k But the man who makes a superior product Live Dealers and Supplements his service to the consumer by national advertising and sales-building coopera- tion with dealers cannot afford to identify himself with a second-rate dealer, or to allow his line to be EXCLUSIVE DEALERS 247 Failure to Handle Advertised Goods a Reflection on the Dealer sold by one who will not cooperate with him earnestly, vigorously, and honestly. It is noteworthy that people who read general mag- azines and do not find the goods advertised at any local dealer's are inclined to consider it a re- flection upon the dealer rather than upon the manufacturer. Producers who advertise nationally should remain unrepresented in a com- munity rather than allow an incompetent or unsympathetic local representative to weaken their prestige and lower the standard of service which they have estabKshed. A cooperative arrangement is impossible if either manufacturer or retailer is doing business on a price basis. Unless service to the consumer, which is nothing less than permanent satisfaction, is the goal of both manufacturer and dealer, this form of mer- chandising must fail. It is not altogether necessary that the manufac- turer use national mediums. For certain territories ^ , . . he may use publications which cover them Advertising • i i i --^ , in Re- in a broad general way. For several years r'r^SS^a a certain manufacturer selling almost ex- clusively to dealers located within the State of Iowa has used three agricultural papers which cover Iowa. Daily papers published at wholesale markets are as competent as national magazines to reach influential consumers and get the cooperation of local dealers within the territory which they cover. PI III I h 1l «48 ADVERTISING-SELLING THE CONSUMER There are manufacturers who do no general adver- tising, but furnish the dealer with electrotypes, book- lets, mailing cards, form letters, posters, hangers, window displays, motion-picture slides, premiums, and novelties. A tailor-to-the-trade establishment Advertising ^^^ ^^d built up a large business in this F^^'^hed ^^^ spent about $100,000 for devices of Dealers this kind and put on a campaign in five a'v^ety ^^^ioual magazines, including a double- 0/ Diferent spread in the Saturday Evening Post, with- out increasing its total annual advertising expenditure. Mailing cards and form letters were largely replaced by national magazine publicity, because it sells both consumer and dealer. The net result was more consumer effect for the same money, and therefore more dealer cooperation. REFERENCES ON CHAPTER XXIV The campaigns of national advertisers who dis- tribute through exclusive dealers are the best mate- rial for the student. Manufacturers who use this method of distribution and dealers who cooperate with them will undoubtedly furnish information in detail to any persons entitled to it. Each campaign is individual and distinct, and has solved its various problems in its own way. To copy the campaign of another would defeat your purpose. The creators of new ideas and new ways of dressing up the old story make very good money. ! CHAPTER XXV TRADEMARKS WE WANT to consider, first, what the trade- mark is worth to the consumer. I can think of no real reason why the con- sumer should prefer goods which do not bear a trade- mark. He sometimes has a notion that they cost less than goods of equal merit which are sold under a trademark. But that wrong notion has been bred by a certain wasteful kind of advertising effort which aimed to develop a bargain-seeking class of buyers. Merchandise without a trademark lacks backing. People who buy things because they are cheap or because they are so-called bargains are wasting their substance. The purchaser of a bargain assumes all responsibility for the quality of the merchandise. So many of us are willing to do this because we do not realize how little our judgment of value is worth. Most of us are qualified to judge the value of only the few lines of merchandise with which we have What Is had much experience. The.highest-salaried Our men in large mercantile establishments are Amateur ^ i -kT Judgment the buyers. Not until they have had years ^ of selHng experience are they entrusted with the responsibility of selecting from the mass 249 250 ADVERTISING— SELLING THE CONSUMER of mixed qualities that which is worthy. Much of the tallc about the high cost of living is fathered by the flimsy, useless bargain which pleases for the moment but does not contribute at all to the comfort and satisfaction of the home. But the present-day consumer is beginning to demand utiUty in mer- chandise. Some retailers who will not handle goods bearing the manufacturer's trademark are sincere in this stand. They feel the responsibihty of giv- ^^w^ ing to the merchandise they sell the author- Manufac- ity of their owu endorsement. This seems and Dealer to me one of the most encouraging features Co^^'i^ of modem business. It means that with the best retailers and the best manufac- turers, both animated by a high sense of responsibility to the consumer, a degree of intimate cooperation will be possible which the merchandising world has not yet known. And the consumer will benefit thereby. It has not yet occurred to most of us that a trade- mark adds to the value of merchandise. Persons who have declared that such was not the case have in the next breath admitted that the piano which they own would not be so valuable, even if they knew it to be the very same instrument, were the gold leaf which reproduces the trademark removed from it. The trademark fixes responsibihty. The manu- facturer knows he must make good on the standard which he has established for his product, and the consumer actually enjoys more and derives a greater TRADEMARKS 251 satisfaction from an article the fine points of which he has been educated to appreciate, an article from which he has been taught to extract the largest amount of usefuhiess. Trademarked goods, intelligently advertised, yield the manufacturer a larger return for his labor, and cost the consumer less money. Profit to The maker of a competitive line of mer- ''l^^' chandise must base his selling price on the Cost to cost of manufacture and distribution. This price is unstable. Its fluctuations de- pend upon the aggressiveness or lack of intelhgence of his competitors. Under such circumstances, he can- not institute or maintain the economies which are possible when he can count on a stable price, no matter what his competitors may or may not do. Given a profit of 25 per cent, on the selling price, grocers are glad to push goods sold under a well- advertised trademark. On unadvertised lines they demand from 33| to 100 per cent. The difference represents the manufacturer's cost of advertising. Yet the article costs the consumer no more. Advertising, properly done, serves consumer, dealer, and manufacturer. It saves the consumer's time and adds to his satisfaction; it multipHes the dealer's "turnover" and increases his profits, and gives the manufacturer a stable market with all the economies incident thereto which I have covered in Chapter II. The advantages to the manufacturer of putting a trademark on his goods are so obvious that I can I 252 AD\TRTISING— SELLING THE CONSUMER think of no reason for his failing to do so except that he wishes to escape responsibility for them. By put- ting them out under a trade name he recognizes the principle that his individuality is the basis upon which he must build the largest possible influence with his fellowmen. Advertising a trademark and marketing goods un- der it give them stability. Stability means economy. It is not a physical or material quality, but Tradeinark » state of mind which is the result of satis- I have said that a trademark on mer- chandise invests it with added value in the purchas- er's mind, because we associate trademarks with the creation and maintenance of quahty standards. But the worth of the trademark to the manufac- turer Hes in the fact that it serves as an anchor for all creative sales work which he has done in behalf of that product. A trademark is the tangible thing that enables the manufacturer to tie to each piece of merchandise that he makes or handles the prestige and confidence which his ability and integrity have won for him in the buyer's mind. Mr. Edward S. Rogers, a prominent trademark lawyer of Chicago, states that the right to a trade- Dq ^^i mark does not depend upon invention, dis- T^ ^ **"[ covery, or registration, but upon priority of Under a adoption and use upon goods, and upon Bushel continuous occupation of the market with goods bearing this mark. TRADEMARKS 253 This statement is interesting in that it implies an obligation on the part of the owner of a trademark to he aggressive in salesmanship^ to dominate the market. He dare not assume that, his trademark once es- tablished, he can rest on his oars. If he pushes his product constantly, he may be able, later on, to reduce the price to the consumer. He should do so if the resultant increase in volume would maintain the same net returns, even if it did not actually increase his profits. Henry Ford is a notable instance of a manufacturer serving his own best interests by giving to the con- sumer the benefit of all price reductions that dom- inance in his market enables him to make. The manufacturer who does not advertise cannot take business from the one who does. Baching ^^ ^^^ ^^^ some business, temporarily. Up the by price-cutting to distributors who will. Trademark . , . , , . • -i i • ■ with for a larger margin, attempt to deliver to Adverhnng j^jjj^ business that has been created by the producer who advertises. But manufacturers and dealers who do this can never succeed unhss the manufacturer who advertises is making his advertising support a higher price than the consumer ought to pay. Temporarily an advertising manufacturer may lose business through price-cutting of dealers as I have explained in Chapter XVHI. Fortunately proof is abundant that the merchant or manufacturer who possesses a franchise in the form of the good-will i A I * 254 ADVERTISING—SELLING THE CONSUMER of the general public is stronger than any of the powers of pillage or thievery. Dealers and consumers have been educated to be- lieve that a lower price is a confession of inferiority, and that the cost of the trademark (apparently paid by the consumer) is so little that its elimination by the non-advertising manufacturer gives him no prac- tical advantage in the market. The consumer is not benefited by the extra sales cost or the inferior quality of unadvertised lines. If, however, a man takes up a line of business which has been established by a manufacturer using a trade- mark, and competes with him intelligently. Stronger the by advertising and straightforward sales ^ma^fat^ work, the competition is a distinct benefit the Bm^t to the Original manufacturer, the dealer, and the consumer. The manufacturer who lets his competi- tors make his prices loses his sense of re- sponsibility to his customers, and puts a premium on mediocrity, slovenliness, and carelessness. Legally the trademark must indicate with cer- tainty the commercial origin of the article to which it is aflSxed. The device or symbol has no value '^As^!^ apart from the business itself. The courts have ruled that a trademark cannot be sep- arated, for a price, from the business of which it is the visible sign. It is not necessary to register a trademark, but it is always advisable. to the Trade- marked Product TRADEMARKS *»?i? In many foreign countries registration of the trade name gives the right of ownership to the one making the first registry. In the United States it is merely presumptive evidence. Title to the business and the right to use the trademark depend entirely upon pri- ority of use. The law of unfair competition has been the most valuable protection that users of trade names have had. It says that no one has the right to represent his goods to be the goods of another. The best trademark is an arbitrary or coined word which has no descriptive quality in connection with the goods to be sold under it. It should be of such character that it can mean one thing and nothing else, both legally and practically. It is quite easy to in- vent a word which is easily pronounced, but does not appear in the dictionary, with a meaning which be- longs altogether to the goods on which it is placed. It is wiser not to advertise anything like "Michigan" celery, or "Minnesota" flour, as these are generic, descriptive terms and could be adopted by any one who wants to enter the same field. Before deciding upon a trademark it is best to get expert legal assistance. There are many names in which no exclusive right can be secured because they are descriptive, or are otherwise legally objectionable, or cannot be protected because they have been pre- empted. Several large advertising campaigns have been held up, after they were launched, because it was dis- 1( I a 256 ADVERTISING-rSELLING THE CONSUMER covered that some obscure manufacturer doing a small local business had prior right to the use of the name which had been selected for a trademark. One of the most valuable elements of the service of a national advertising organization is its ability to devise effective trademarks. Years of experience with trademarks have taught them where the shoals are which threaten the manufacturer who contem- plates adopting a trade name and marketing his wares under it. ' REFERENCES ON CHAPTER XXV "Good Will, Trade Marks, and Unfair Trading," by Edward S. Rogers (A. W. Shaw Company, 1914, Chicago), is a most interesting and exhaustive pres- entation of the whole subject. "Trademarks and Their Advertising," 1913, by Charles G. Phillips, president of the Dry Goods Econ- omist, 231 West Thirty-ninth Street, New York City, is a two-thousand word monograph crystalliz- ing the experience and convictions of one of our fore- most trade-paper publishers. Mr. Phillips will send a copy to any reader of this book who requests it. For additional reading on trademarks, I refer the student to the following treatises: "Sebastian on Trade Marks," "Paul on Trade Marks," "Hopkins on Trade Marks," and "Nins* Unfair Business Competition." 111 CHAPTER XXVI PRESTIGE-BUILDING ADVERTISING EXPERT salesmen agree that their work must be authoritative, i. e., it must lead the buyer to accept their judgment as to what he had better buy, instead of following his own bent. A The capable salesman knows more about the Salesman's goods he scUs than any buyer can possibly Establish- know. Of coursc he iJ^Mst also be able to ing Prestige pfQ^uce in the buyer that mental attitude which will afford him the greatest possible utility and satisfaction in his purchase. I have said before that the salesman who wishes to establish his position as an authority on his par- ticular line must not let his aim be too apparent, lest the buyer resent it. His prestige must be an out- growth of the buyer's satisfaction with the goods which he is accustomed to purchase on his recommendation. The most satisfactory customers are those who think they buy, not those who know they have been sold. Prestige is that quality which causes others to accept one's statements without question. It is the crystallization of earnest, faithful work on the part of the producer of the goods, in realizing the best quality «57 m < Prestige — the Impression of Quality Without Question 258 ADVERTISING— SELLING THE CONSUMER for a given purpose and then impressing upon the mind of the purchaser all the possibilities of usefulness which the merchandise will possess for him when it passes into his hands. Advertising builds prestige for the manu- facturer and good-will for all his products. Prestige is not inherent in an article, but is what people believe about it, what 'peojple say about ity and to whom they say it. The prestige of the political leader is gained by confidently affirming and by continually emphasizing to the group which looks to him as its leader Reiteration that he posscsscs ccrtam qualities. He may PrT^ge ^^^^ *^^™ ^^ commou with many other per- sons, but the group does not realize that, be- cause he is advertised, and the others are not. Politicians know very well that what is said about them and the manner of saying it measurably affect the amount of influence they have with their camp followers. Both praise and condenmation may add to prestige; but no man can be laughed at and hold a loyal following. We are respected as much for the enemies we make as for our friends. No one who needs the support of Prestige the pubHc dare neglect the manner in which ^Str *^^ ^^^^y ^^ ^^s achievements, his move- the Manner meuts, his Opinions, and his ideas on certain MatZr of subjects is to be told to those whose appro- Your Story bation he would win. In many instances public service corporations I PRESTIGE-BUILDING ADVERTISING 259 that are giving real service are unpopular because their officials have overlooked the fact that prestige can be gained by telling a story scientifically, i. e., an interesting and informative story which will, at the same time, create that apparently intangible but none the less real factor which is called "favorable public opinion." So often we have misunderstood the motives of pub- lic men who were discharging their duties faithfully. We have regarded their refusal to talk about Price of their work as proof that they were dishonest. Silence g^^j^ ^ situation has usually been due to their misconception of what is true publicity. Many who were severely criticised while they lived have a high place in history, because the publicity given them by the historian has accomplished after death what a well-trained advertising man could have done when it would have been worth while. Those who knew intimately and came into per- sonal contact with Mr. Taft while he was President A Pointed of the United States were sure of his sin- inHance cerity and his keen appreciation of his responsibilities. Mr. Taft is not our President now because he did not understand that it is not so much what one does as it is what is said about what one does that adds to or takes from prestige. Some day some writer of history will find, perhaps in Mr. Taft's personal correspondence, or in the private papers of men who were close to him, proof a 260 ADVERTISING— SELLING THE CONSUMER that he possessed qualities that would have gained abundant prestige for him during his term of office had we all been told about them in a simple, straight- forward, understandable way. Such a prestige might have been produced, I believe, that Mr. Roosevelt would not have risked opposing him. By neglecting to control the manner in which the story of his work was told, Mr. Taft deprived himself of the prestige to which his work judged alone gave him clear title. Much of the present-day prestige of the dis- tinguished men of the past they owe to the men who recounted the tale of their deeds. Masters Many of the master artists of all time have ^t%hr ^^^^ ^^^ ^^^^ poverty-stricken, because Master uo Contemporaneous historian interpreted PuUi£y *^^^r ^^^^ so that their fellowmen could understand and appreciate it. Nor would most of us value these masterpieces to-day did not art dealers and collectors, by one means or another, constantly keep up our interest in them and direct our attention to points of excellence which must oth- erwise have escaped us altogether. The man who is to profit by whatever prestige may legitimately attach to his achievements needs some Thf one to tell his story for him. Unless in- huUding deed he chance to be one of those few for- itfreUing ^unatc men who are able both to do and to of It get the rest of us to appreciate what they do. It might be remarked in passing that PRESTIGE-BUILDING ADVERTISING 261 the man or woman who knows how to teach the many to value his or her talent often gets a larger share of honor and glory than the public thinks is due. It is just at this point that most of us fail to reason ac- curately. Doctor Cook had ample publicity, but it won no prestige for him, because he gave us something which 5/-^ ^^U f^r short of what his publicity had led Without us to expect of him. Each year new names Prestige ^^ j j^^^^ appear above the horizon which separates the "unheard of" from those who have "arrived" — and disappear; because they could not "make good" on their publicity, or sustain the pres- tige which it would have created for them. There can be no permanent prestige unless the story fits the facts. Many will contend that there are more far-seeing statesmen than Theodore Roosevelt, that there are Masters of ^ctresses whose work is truer than Sarah Prestige- Bemhardt's has been, that Mary Garden " *"^ cannot sing; but the fact is that large groups of people believe in each of them, and evidence that belief by continuing to give them their support. That is proof absolute that they "make good" on their publicity. It is only when the publicity has overstated or has been more liberally interpreted than it should have been that a sense of disappointment has resulted in connection with any one of those geniuses who possess so bountifully the knack of telling the story i ' ' ■» £62 ADVERTISINGS-SELLING THE CONSUMER of what they do in just the way which insures them maximum pubKc appreciation. The reflex of using a trademark is to create a sense of responsibility which forces the manufacturer to The ^^^^^^^^ ^ ^igt quality standard. The Penalty— Same thing is true of publicity. Themanu- G^" facturer who advertises that his goods :, represent a certain well-defined standard has practically discounted his note of hand with the pubhc. He has to make good. Sometimes a manufacturer takes up general ad- vertising because he thinks he will make more money Advaiising ^^^^ ^^^^ ^^^ ^^^ ^^^^ ^casou Only. As Makes the soou as he realizes that the advertising has Uptotk^ committed him to maintaining a certain Alined ^^^^^^^ w^^^ the pubhc, he bestirs himself to improve his inside organization. Better merchandise is the result. The consumer gets the benefit. Other manufacturers have decided, after investi- gating the power of general pubHcity, to improve the quahty of their merchandise before undertaking a gen- eral campaign. I know a man who considered the pros and cons a long whOe before he made up his mind to advertise. He knew that if he started it he would have to keep up the quality, no matter what the raw materials cost. And he was afraid he might not be able to increase the price to cover such a rise. That man is a national advertiser now. He foimd out that the PRESTIGE-BUILDING ADVERTISING 263 confidence of the public (which advertising gets for him) is the best means of adjusting prices to the market conditions of raw materials. Some years ago another manufacturer had to face a decided rise in the price of his raw material. His salesmen gave him to understand they Rise in could not sell goods at the price necessary to ^Prestigf^ cover this advance if the quaUty was not to be changed. He was tempted to use an inferior raw material, or to cancel his advertising for the year. Instead, he went to the consumer and the dealer and explained that in order to keep up his quality he was obliged to increase the price. By inference he created the impression that competitors who did not do likewise must be using a poorer quahty of raw material. This pubHcity strengthened the bonds of confidence between his brand and dealers and con- sumers; he increased his advertising appropriation, and the net result was the best year he ever had. In planning a campaign the advertiser should re- . . member that it can build for him, if he co- Advertinng . . , . . i . i mi . Bnngs the Operates With it, a prestige which will give ^^te^ him the balance of power when buyers hesitate. Certainly an advertiser who shows by his man- ner of conducting his business that he values the quality of its prestige more readily gets the co- operation of publishers who believe that admis- sion to their columns bestows upon the advertiser a iM 264 ADVERTISING-CELLING THE CONSUMER the prestige which the pubKcation has with its readers. An advertiser who wins first the confidence and support of the leaders of the group to which he wishes to sell is wise. He is realizing on their prestige, which, it will readily be admitted, is a force quite separate Building ^^^^ ^^^ inherent value of the merchandise Prestige on he offers or the salesmanship he uses in ore- ^ sentmg it. Advertising mediums confer prestige upon the ad- vertiser who uses them in exact proportion to the reader's confidence in its advertising pages. The advertising of one firm has more prestige than that of another for exactly the same reason. Prestige rests upon confidence, and confidence is won by plausible publicity, the foundation of which is the sincere desire to always give satisfaction. The creation of prestige should be the aim of every advertiser. It means conservation of power and elimination of waste. There is a certain kind of salesmanship which finds a market among those who positively enjoy possess- ing things which their less fortunate neigh- SnllZlal ^""^ ^^^^ "^^^ *^^ "^^^^^ *^ buy. Dealers —Not BuiU in antiques, small exclusive shops that are sZmsh^ supposed to be patronized only by the ne*» socially elect, freak restaurants and sum- mer and winter resorts often get business by an appeal to snobbishness. This might be mistaken for prestige-building. It PRESTIGE-BUILDING ADVERTISING 265 is not. Fashions, fads, and fancies come and go con- stantly. The man who elects to make a living by catering to them leads a precarious existence. Of course there are many people who need not con- sider the cost of gratifying a desire. They are willing to pay for the pleasure of dealing with per- Pnce of sons of refinement and culture. They are Confidence ^jj^g ^q pay for knovdng they are not going to be thrown in contact with objectionable persons. They are willing to pay for their confidence in the merchandise they buy, although they may not be conscious that they are paying so much for mer- chandise and so much for confidence. The practice of institutions which have been es- tablished by the use of prestige-building salesman- ship and advertising is to reduce their prices to a point where no customer need pay more than he would elsewhere for the same service. Then the prestige of the business, which undoubtedly is an element of the purchaser's satisfaction, is service plus. No business is safe which charges more, simply be- cause its customers will pay more. Prestige is busi- ness life insurance. of^al^da '^^^ patrons of certain dealers in musical instruments, jewelry, and art objects, and of certain tailoring and dressmaking establishments, insist they get full value for every dollar they spend, quite apart from the question of the prestige of the house from which they are buying. Competitors ■4' «66 ADVERTISING-SELLING THE CONSUMER have their groups of customers who are equally sure that they get full value in the merchandise of stores which sell lower-priced lines. When does a customer pay for prestige and when does he get it as an additional satisfaction? It is the old story, "How can you tell the difference between a mushroom and a toadstool? " When the consumer beUeves a lower price com- mands equal quahty and satisfaction, prestige no longer exists and the manufacturer or retailer who counts on it is in a dangerous position. A waiting-list would seem to be the only positive insurance which a business that depends altogether upon prestige alone may have. The dividing line between the house which charges for prestige and the house which gives full value in service cannot be determined by consulting the customers of either or both houses, for there will be radical differences of opinion. When a lawyer has more possible clients than he can take care of, when a physician's reception-room is crowded with people waiting their turn, when motor cars have to be ordered several months in advance, it may be assumed that the high price is justified by the service. But that business is doomed whose customers, having ample means to pay the highest prices, go else- where believing they are getting the same value for less money. And the management usually wakes up As Omar "A Hair Perhaps Divides the False and True" PRESTIGE-BUILDING ADVERTISING 267 too late to reestablish the business on a sound service basis. REFERENCES ON CHAPTER XXVI Lord Rosebery's "Napoleon, the Last Phase," 1900 (Harper & Brothers, New York), detailing Napoleon's life after he reached St. Helena. "The Greatness and Decline of Rome," 1907-1909 (W. Heinemann, London), by Guglielmo Ferrero. William Hickling Prescott's "The Conquest of Mexico," 1909 (E. P. Dutton & Company, New York). These books are as fascinating as modern fiction: they tell of men who believed in and attempted to create prestige for themselves. They trace clearly the effect of ideas dominating the group consciousness in the history of nations. They show how real leaders of men have always striven to sway the minds and especially the emotions of the people whose confidence gave them their power. They show how prestige passes and with it the power of leadership though all its inherent qualities may remain in the man who formerly was a popular idol. They show clearly the difficulty of the historian in separating fiction and fact, because leaders of people have always been more concerned as to how the story of what they were doing was told the people than in the story itself. if Il *' CHAPTER XX\1I CAN THE COMMERCIAL VALUE OF GOOD-WILL BE AC- CURATELY APPRAISED? WALTER M. ANTHONY, ComptroUer of the Maxwell Company, once remarked to me, "Anything for which cash has been should be immediately converted into cash or given at least the same care and attention as cash. This thought will yield wonderfully profitable results if appHed to printed matter, office and manu- facturing equipment, or anything else which appears on an inventory. Whether printed matter should be sold as waste paper or whether the second-hand man should have Constant f ^^iquated pieces of office furniture or the Appraisal juuk dealer should own obsolete machinerv Necessary • • . . , *^ to Value requires constant appraisal. Money in the ^Pw^ly ^^""^ ^^^ ^^^^ ^^ *^^ drawer receive such attention. Manufacturers and retailers rightfully class "good- will" as an asset. My readers will agree with me that unless "good-will" is conserved it will dis- appear. There are forces in every business which build VALUE OF GOOD-Wn.L BE APPRAISED? 269 "good-will." Dependable methods of appraising it should be devised. There should be frequent inventories to determine the enhancement or the depreciation of "good- will." My first conception of what is termed "good-will," as attached to a business, came to me in considering the story of two young men who were partners in a lumber yard in a Western city. They were successful. In the course of a few years they made enough money to build and pay for a modern, completely equipped fac- The New tory where they made sash, doors, and other mill work. Not long after the new factory was finished differences arose and the partner- ship was dissolved. In dividing the property one took as his share the up-to-date fac- tory — and thought that he had outwitted his former partner, who was content to take as his portion the old lumber yard, which was equipped with only a few old sheds and a little frame office. A few dollars would replace them. Time proved that the man who kept the lumber yard was also in possession of their market. Farmers Customers ^ho had been buying lumber there, now Do Not and then, kept coming back occasionally Things Are with their wagous, made purchases, and ^"^ took them away. Intervals of seven years elapsed between purchases. Factory Did Not Possess the Good- vyill of the Old Lumber Yard 270 ADVERTISINGS-SELLING THE CONSUMER These customers knew nothing about the new factory — they really did not know nor care where the doors, window sash, porch columns, fencing, and railings were made. The man who kept the factory had to find a new market. Even his former partner found it did not pay to look to him for a supply of mill work, as the very same things could often be bought in Oshkosh and delivered in Kansas City for less money. By this story I wish to make it plain that good-will is primarily the result of giving customers satisfac- tory service, and that advertising cannot be a factor in creating good-will unless the service given cus- tomers measures up to the expectation which the advertising has created. So far as I know these two young men had done no advertising worthy of the name, but they had given Good-imil ^}^^^^ customers real service, and as a tang- l^Attadied ible result of doing that, the market was Which attached to the place where the service ikeT^m^ had been rendered. Had they advertised they^would have developed a larger good- will value. There can be no doubt that long before the first sale is consummated, advertising develops in the mind of the prospective purchaser a preference which is in every respect equivalent to the good-will which is the result of satisfaction in a purchase. The advertising of automobiles makes people IP Two Clearly Defined Objects for AU Advertisers VALUE OF GOOD-WILL BE APPRAISED? 271 want to own one. It is astonishing how often a definite preference for a particular automobile exists in the mind of a man who has never owned any kind of a car. Conceding this you will agree with me I am sure that all advertising should be planned with two clearly defined purposes in mind: 1. To influence the largest possible num- ber of immediate sales, always remember- ing that the sale takes place in the buyer's mind, and that very often merchandise is practically sold many months before the buyer comes to the dealer, ready to pay for and take away the merchandise. 2. To create in possible purchasers' minds and in the minds of those whose opinion might affect the mental attitude of a possible purchaser the most favorable impression of the intrinsic merit of the article being advertised. Many rich people buy things which they believe people of culture and re- finement would buy if they had the means to gratify all their wishes. Therefore it is often advisable, in advertising luxuries which can be afforded only by the few, also to impress favorably those who would buy them if they could, because their esteem of the merchandise is an important factor in the satisfaction which the possessor of the luxury takes in it. In Chapter VI, I said that by having a merchan- dising audit made of the state of mind of possible II £72 ADVERTISING-~SELLING THE CONSmiER consumers and those distributors who influence the consumers' opinions, a manufacturer can de- AMer- termine in advance his marketing possi- Audit wm «^"^"es. M^kefing ^^ ^""^^^^^ ^^^ ^^^^ ^^^ ^^^ mauufac- PosnbUu turer can from time to time accurately ^''' appraise the value of the good-will which attaches to his merchandise. Neither the salesman nor the writer and illustrator is the best type of mind to undertake the task of ap- praisal. The salesman is too apt to look The '^^ ^^^*s which will fit in with his own pre- ofXa'L- ^^^^^^^^ ^^t^o^ <^^ what the facts are; the aru Prefer- Writer and the artist are too prone to give slklman ^"^ ^^^ ^^^^ ^ ^^^ tum which alters their or Copy commercial significance. MaHnf ^^ ^s the man who has been trained as an ^in^AudUa' ^^^^^^^^t or as an engineer who can most accurately determine the present value of good-will. Granting that good-will is the result of advertising, there must be a method of determining just what Bow a portion of the good-will which attaches to dM:fZdit^''^''^ successful business has been pro- ^^£d^^ Quced by its advertising. I recommend the following procedure: 1. Base your calculations upon the amount spent for advertising within the last three years. 2. Measure the space which has been given to the promotion of each selling point or service idea. VALUE OF GOOD-WILL BE APPRAISED? «73 3. If 5 per cent, of the total amount of space bought has been devoted to one point, and one-tenth of one per cent, to another, the first point should be fifty times as well grounded in the minds of consumers and those who influence them, if the advertising has been as effective as it must be before it can create the maximum good-will. We often find, in canvassing groups of consumers and distributors, that the point on which only one- tenth of one per. cent of an advertising appropriation has been spent has been the determining factor in a large percentage of the sales. Sometimes, too, we find that neither the consumer nor the distributor ever mentions a point on which as much as 5 per cent, of the appropriation has been spent. In the first case, our one-tenth of one per cent, is still a tangible asset, an investment in every sense of the word, because of its good- will value; in the second case we are safe in assuming that this money has produced no sales and created no good-will. The groups of distributors and consumers which are canvassed must be large enough to be representa- tive of the entire group but small enough tive to permit of most thorough appraisal. of^Feaple Insurance actuaries constantly prove Musi Be that what will happen to a thousand men Canvassed . . , . i i • i of the same age and m normal physical condition will happen to the entire group of all such men, and in the same degree. An appraisal of good-will can be made safely on the 274 ADVERTISING--SELLING THE CONSUMER same basis. When the effects of magazine advertis- ing are studied, it is astonishing how similar are the results in the minds of consumers and dealers in California, Texas, and New England. There are other factors which must be considered in appraising the results of advertising. It is very good CkaH l>usiness to ignore your competitor in your Your own advertising, but it is very unwise to tors* fail to take into account the effect of his "sT^^nH advertising in making your own plans. Adv&rtise When you are auditing your own adver- ^™ tising, that of your competitors should also be charted, as well as its effect on the minds of con- sumers and distributors. In making an appraisal we are often very greatly surprised to find that what had seemed only a minor point has had a far-reaching influence. The average human mind seems distinctly averse to making its own decisions. When competitive The advertisers all make the same claims, ^fffdif thereby convincing the consumer of the Minor equality of the value of the competing Points in t_ i • . • i . . Adveriis' merchandise, a comparatively minor point tng often swings the decision, because it is the onlif apparent difference between them. I should like to see bankers, comptrollers, auditors, and, in general, all men who deal constantly with statistics so interested in advertising that they would apply to the furtherance of its development their experience and technical skill. VALUE OF GOOD-WILL BE APPRAISED? 275 Several organizations could specialize, profitably, in the preparation of merchandise audits. I am sure that bankers, who are frequently asked to loan money on good-will, would welcome an opportunity to review an appraisal which had been made in the manner suggested here. It may be objected that in the foregoing I am only emphasizing the value of accurate accounting methods in everyday business. That is precisely what I wish to do. No element of successful advertising is more im- portant than a system of accounting which records all transactions accurately, so that the totals show unmistakably the trend of the business. Advertising is creative and constructive, and largely a matter of spontaneous expression — the best reason in the world for determining exactly the strength and competency of it as a productive force, and the positive value of each separate factor of it. Accounting is not a matter of books, cards, blanks, and specific forms. It is keeping track of the details of advertising all the time, so that they "^^^^^"^ may be considered in the aggregate fre- Provides quently and intelligent deduction made. Bans/or There is a good deal of red tape about niducHans ^^^^^^ accounting. Some of it is value- less, but much can be accomplished if a proper system is used. The cumulative figures will be full of meaning. I have often said that my most valuable business ! 276 ADVERTISING—SELLING THE CONSUMER experience was that gained by the installation of an accounting system in our business some years ago, coupled with the process of emancipating ourselves from the system by putting into practice the prin- ciples which supported it. We all got a thorough grounding in the essentials of accounting. Frequently I have been appalled at the inadequate knowledge upon which a prospective advertiser was Proper hasing his conclusions. So often overhead Distribu' expense is not properiy distributed in figur- Overkead iug costs. In the oue case a particulariy Expense profitable transaction may be made to bear far more than its share of general expense; in another case a positively unprofitable item, which appears to be making money, is continued — ^because it has been charged with its rightful portion of over- head. It is my conviction that each department of a re- tail establishment should be charged directly with every line of publicity for which it has been respon- sible and from which it is to profit, and that "general publicity" or "cumulative results" should be "vel- vet" or a plus commodity. Advertising that has for its purpose general public- ity is usually purposeless publicity. Even if it does accomplish what it is expected to do, it is only half as valuable as it should be; for the same results would have been had, at no cost whatever, had this publicity been charged to and paid for by the proper department. VALUE OF GOOD-WILL BE APPRAISED? 277 A simple, accurate system of accounting, to check up results, is necessary to "make advertising pay." If a salesman is able to reduce his per- Up^ReJSts centage of unproductive calls by talking Should Be j^j^g advertising of his house in addition Made Easy ^ Z j , -ji i • i i . to the worth of the goods, or if he is able to increase the amount of his average sale, his reports should show it. All salesmen's reports should be tabulated, so that the sales manager can plan intel- ligently for the future. Such a method does not mean harder work for the salesman, mentally or physically; but he accomplishes more, is worth more. He is entitled to know of his increased value and to receive a fair share of the profits of his cooperative work. Every accounting system should be able to give the executive head of the business all he wants to know, whenever he wants to know it, and Executim ^^ ^^^^ condensed form that a comparison Shovld Be or an analysis will be simple. "^ll^ Nothing impresses a banker more than H^^^IS^ ^^ exact system of accounting. To most to Know ai bankers advertising is more or less of a °^Xf * mystery. The manufacturer must estab- Ush in his banker's mind something be- sides the fact that he is advertising; he must convince him that he knows how to use advertising so that it will get results. When you call on your banker for a loan, there is just one kind of advertising that he will look favor- ^ 278 ADVERTISING—SELLING THE CONSUMER ably upon — the kind that has been so accurately recorded by a comprehensive accounting system that you can prove to him that it has accomplished what it set out to do. Successful advertising is the active employment of many factors properly balanced with relation to each Successful ^^^^^' inter-related, one to another, so that Advertising their movements Coordinate without waste Defined j'a** • .1 11 or friction in carrying out plans capable of varying to meet an emergency situation but bear- ing directly toward a fixed goal. If I have made this point clear, the importance of careful, comprehensive accounting, up to the minute at all times, is obvious. Advertising is many sided— it builds and conserves business, it reduces expense, it strengthens credit, it eliminates waste, it puts a business on a rock foundation as immune as is possible from competi- tion. Facts and figures with reference to it cannot be too carefully gathered and recorded. There are no hard and fast rules for determining how much should be spent for advertising, or how much for salesmanship. I can only repeat that price is never a measure of value. It only measures the pocketbook's relation to the intensity of desires which have been created by personal salesmanship and advertising. Practi- cally every one has more wants than he can supply with his "free dollars." Lowering the price broadens the market; raising it, contracts the market. Many people who have unlimited means gladly pay for VALUE OF GOOD-WILL BE APPRAISED? 279 exclusiveness and distinction. Price never can deter- mine or measure intrinsic value. A five-dollar safety razor leads the market against a competitor which sells as low as twenty-five cents. How is it done? The manufacturer put his price high enough, at the start, to provide him with a margin of safety. Then he has had to determine, by accounting such as I have outlined in this chapter, whether the market shall be widened and competition discouraged by reducing the price and making on volume, or if he shall keep up the price and give his goods the added value of exclusiveness. REFERENCES ON CHAPTER XXVII There is a lack of good elementary works on the subject of accounting. There are plenty of texts used in the high schools and in the business colleges. "Modern Illustrative Bookkeeping," published by the American Book Co., is among the best of these. Twenty-five years ago I read * 'Goodwin's Im- proved Bookkeeping and Business Manual," pub- lished by J. H. Goodwin, 1215 Broadway, New York City. It seemed to me then to expound the funda- mental principles of accounting better than anything I have been able to get hold of. Recently I asked George F. Watt, president of the Elliot-Fisher Com- pany, Harrisburg, Pa., maker of the Bookkeeping Machine, about this book, which has been rewritten and brought up to date. Mr. Watt told me that 11^ 280 ADVERTISING— SELLING THE CONSUMER when he was vice-president of the Baker- Vawter Company he inaugurated the policy of giving a copy of this book to each new salesman, to make sure that he thoroughly comprehended the basic principles of accounting. The Baker- Vawter Company, Benton Harbor, Mich., and the Burroughs Adding Machine Co., of Detroit, Mich., issue booklets emphasizing the broad scope and value in creative work of modern account- ing methods. Successful Banking — one of the Baker- Vawter house organs — will enable the thinking, pro- gressive accountant to keep strictly up to date. "Works Administration," a twenty-eight page booklet of Gunn, Richards & Company, New York City, is a model piece of advertising matter for a professional house, as well as an exposition of ac- counting principles. "Accounts — Their Construction and Interpreta- tion — for Business Men and Students of Affairs," by William Morse Cole, A.M., Assistant Professor of Accounting in Harvard University (Houghton Mif- flin Company, Boston), is an authoritative presenta- tion of modern accounting in its scientific aspects. The Ronald Press, New York, publishes "Applied Theory of Accounts," by P. J. Esquerre, C. P. A., which connects theory and practice for the man who wants to understand thoroughly the principles of accounting and how to apply them to practical problems. It first explains the features of partner- ship and corporate organization the accountant VALUE OF GOOD-WILL BE APPRAISED? 281 should understand; the general theory of accounting; the single, double, triple, and quadruple entry sys- tems; the form and anatomy of each of the financial books; the theory of controlling accounts, and the classification of accounts. The handling of each individual asset account and liabiHty account is then taken up in detail, giving the "why" of each step, and finaUy the preparation of the different forms of balance sheets, the profit and loss account, statement of affairs, statement of realization and liquidation, etc., are explained in full. Ill] 111 i THE ADVERTISING AGENCY CHAPTER XXVIII THE ADVERTISING AGENCY BENJAMIN FRANKLIN'S mother-in-law objected to him before he married her daughter because the business in which he was engaged was overdone — ^he was publishing a newspaper, and there were ah-eady six in America! Now there are 2,600 dailies, 15,097 weeklies, 2,491 monthlies, and 1,953 publications of various other kinds. Practically all of them sell advertising space. The business of planning, preparing, placing, and checking copy, and buying and paying for adver- tising space involves an infinite amount of detail and a wide range of talent. Nearly all retail stores buy space direct from the publisher, who may be represented by one or more advertising solicitors. It all depends upon the size of the field. In large establishments the advertising manager may write the copy. The owner of the store may attempt it. He may use copy writers proffered him by the publisher, or he may employ a "free lance" copy writer, who will, of course, have a number of other customers. 28S A mail-order house generally buys space through an agency. It either has its own copy men, or uses those assigned to it by the agency. Foreign advertising is the local publisher's term for out-of-the-city advertising. The national or "foreign" advertiser usually places his business through an agency. These agencies furnish a service which varies greatly in scope and character. The successful advertiser must supplement in his own organization the service he needs but does not get from the agency. To fully appreciate the progress the advertising agency has made read George P. Rowell's "Forty The Early ^^^^^ ^^ Advertising Agent," which tells Days of the of the early days when an agency was Agency jjjgj.gjy ^^ ^£g^g having a file of publishers' rate cards, files for papers, and a shipping depart- ment. The agent sold space at publishers' rates, forwarded the copy to the publisher, collected from the advertiser, and remitted to the publisher the proceeds less his commission. It was a valuable service then. Newspaper circulation and values were hard to get at. It was a service for publisher and advertiser. In time, however, competition arrived. Publishers increased their commissions, and their rates had to go up accordingly. As publishers did not limit the number of representatives they might have, the num- ber of agents increased rapidly, and their competition gave rise to many bad practices. 1 I 284 ADVERTISINGS-SELLING THE CONSUMER Commissions were split. The agent, sometimes honestly and sometimes not, adjusted his service to The Era ^^ Compensation, accepting a lump sum of Split for a list of publications, but making as sil'^Tlnd i^uch as possible out of the publisher by mmfs" ^^^^ payments, refusing to allow for al- leged incorrect insertions and short meas- urements, and by payment in type, printers' rollers, and other kinds of merchandise instead of cash. This was "playing the game." Then came the era of the agent who took business at a certain percentage over net, and "agents' net rates" were commonly interpreted as the pub- lisher's rate card less his regular agent's commission. The customer was billed at this rate plus 10 to 15 per cent, previously agreed upon. And the agent felt he was justified in keeping anything else he could get from the publisher. ^ This system irritated the publisher, who still had his troubles with short measurements, incorrect in- sertions not allowed for, and various other expensive deductions which so harassed him that he had no time to consider how he could best serve the adver- tiser. It kept him quite busy making sure he would get the money his orders indicated was due him. Then came the epoch of agents who, realizing the The LoweH value of the publisher's good- will and S(JirJ]he cooperation, specialized on some certain Bunnest class of advertising, and got inside special rates from the publication most logically suited to carry THE ADVERTISING AGENCY 285 it. This made it possible for him to underbid competitors when they were called in against him, and to make a very long profit when he had no com- petition. This practice further demoralized the ad- vertising business. There was so much juggling of rates that strong publications employed special rep- resentatives, who saw to it that advertisers were informed of their circulation, prestige, and other good points, and made sure that their papers ap- peared on competitive lists. The special agency idea was abused by a number of men who bought outright all the space in a group of papers, and then increased the rates. Or, because they had a few strong papers on their Ust, would in- duce the advertiser or his agent to take on the whole list by making apparent but not actual price con- cessions. The fact that the advertising agency has survived all these schemes and questionable practices is a sin- cere tribute to the inherent power of advertising to make good, even when the odds are against it. It is also a tribute to the integrity and constructive ability of the men engaged in the business to-day. In spite of the fact that at times both agent and pub- lisher have been doing business with the advertiser on a basis which almost invited an unfair deal, they have established their position — because they have made good with their customers. Much might be said about the history and de- velopment of the advertising agency, but we can £86 ADVERTISING— SELLING THE CONSUMER take time only to consider the four definite types which are now in existence. In this count I am not including a variation now practically ^-- extinct-the man who merely clears busi- Agencies ness at a small advance on the net cost. Four%pes ^^ Cannot make good any more, for most publishers either refuse to recognize him, or else give the service agent a so much lower flat rate that the "clearing agent" cannot deliver. There is the agency which sells copy service but does no placing. It may be one man. or a group of men. The charge is usually a fixed amount That Sells Weekly or monthly. They handle none of S^we ^^® details of buying or contracting for space. Their methods are open and straightforward, and the copy is usually satisfactory and well worth what it costs. Their customers knoAr exactly what they pay for and what they get. Type 2 is the agency which solicits and places busi- ness at jmblishers* rates, writes copy, and gives a certain amount of merchandising counsel. Whwh^ Most of the men who are doing business on this basis are honest, capable, and success- ful. But I think this system does not pay them, neither does it pay the pub- Ushers nor their customers. The customer does not always know how much he is paying for agency service and how much for space. A weak publisher may secretly increase his commission to the agent, and the advertiser, because he is doing busi- THE ADVERTISING AGENCY 287 Places Btuiness at Publishers* Rates ness at publishers' rates, would not be informed of the change. The agent himself often has a wrong conception of his proper relation to the customer and the pub- lisher. He is apt to think it is the publisher's com- mission that gives him his status. He should know that it is the advertiser's money that pays for both the publisher's space and service. Type 3 is the agency which sells its service to the customer on the basis of a charge of from 10 to 15 per cent, above net and then asks the publisher /or a commission for getting business for him and for pro- tection against the advertiser securing the same net price if he places his business direct. The agent who charges publisher's rates is clearly and admittedly the publisher's representative, and naturally looks to him for protection. Such a man must cast his vote with the pubUshers in case of conflict. Most publishers recog- nize that the advertiser is entitled to a square deal, and they implant this thought in the minds of the agents who do business at publishers' rates. This is the only as- surance the advertiser has of being well served by such an agency. On the other hand, the agent who offers to charge a certain percentage above net, as guarantee that he will not allow himself to be influenced by any in- •reased commissions offered him by the publisher, and then asks the publisher for larger commissions Agents of Types 2 and 3 Cannot Fully Represent the Advertiser : ( 288 ADVERTISING— SELLING THE CONSUMER (not lower rates) for *^ protection'* dgainst his own customer is carrying water on both shoulders and cannot represent anybody — ^not even himself — for any length of time. This type of agent is in hot water continually. If an agent is doing business at publishers' rates, he is clearly entitled to keep for himself any rebates, discounts, or free space (publishers do not generally offer these things to advertisers direct). If he is charging 10 to 15 per cent, above net, and at the same time asking the publisher for favors for himself. The Evils ^^® publisher does not know whether the of the advertiser or the agent is entitled to favors System an appreciative publisher can consistently ^^R^prli grant. Such an agent cannot have a »entthe sound poHcy in relation to free space. Advertiser • i j» . i i i special discounts, cash advances, bonuses on volume of space used within a certain time, and short-time rates which the customer may have paid to the agent but the agent has not paid to the pub- lisher. The type 3 agent must go as surely as the "placer" has gone. I believe the publishers* rate agent is to be with us for many years, perhaps permanently, because he is apt to specialize on a certain class of mediums, and to be a truly important business- getter for the publisher. If he is an honest and able man, and he usually is, his service is well worth what the advertiser pays for it. A number of successful organizations have realized THE ADVERTISING AGENCY 289 the main features of type 4 in everyday practice so that I can safely say the type is well defined. It mi rr- L ^^ au outgrowth of the organization idea. The Highest — -, . •»,-., Type of It proves that cooperation and speciahza- S^'ser- *^*'° develop a higher standard of service tiice to Ita than can be attained by an individual, and Customers ., . ., , .. -n . , ,• that the advertiser will get more for his money if he takes advantage of its methods and adjusts his own organization to it. Such an agency sells service, and nothing else. It should have no ownership interest in space or supplies it buys for its customers. Its compensation should be a retainer fee, for ad- vice and counsel and the relinquishment of any con- flicting interests, plus a percentage on the System of amount of detail work handled or a specified Comfensa- amount per day for the actual work of its , various members. By far the most satis- factory system is a minimum yearly fee which is credited against a minimum 15 per cent, service charge to be added to the net amount of all purchases. This organization has four definite functions. It can, if properly equipped and intelligently managed, take care of each of these better and more economicaUy than the advertiser can. They are: (1) Counsel concerning mediums. The organization which undertakes to advise Fourth Type ^^^ or against any advertising medium should have had constant successful experience in the The Four Definite Functions of the AdveHising . Agency of the ■I It 290 ADVERTISING— SELLING THE CONSUMER use of all kinds of mediums. A fully equipped agency organization should maJke money for small advertisers who use only one medium as well as for larger businesses which use several in combination. Its experience should cover newspapers, magazines, trade papers, mail-order papers, all class publica- tions, street cars, electric signs, painted bulletins and walls, and all kinds of printed and lithographed mat- ter, follow-up material, and novelties. (2) The buying power of the type 4 agency is main- tained at the highest point by refusing to accept for it- self anything from publishers or space producers. I believe that the ideal organization must refuse to sell its service, under any circumstances, to publishers or space producers, or to any one else from whom it may buy for its customers. The number of advertising mediums which have a fixed rate is small, though all the best ones do. A complicated rate card is a challenge to the trained space-buyer. Many mediums offer a net flat rate to large agency organizations, for the reason that they are wholesalers. Their customers are rebated the difference, of course. Where there is an opportunity for trading or dickering it is certainly advisable to employ a man who knows how to do it. It is quite generally conceded that the space-buyer for a large agency organization holds a very responsible position. The type 4 agency buys outright, and pays for space in cash, which is important because it com- mands the best the space-seller has to give. The buy- THE ADVERTISING AGENCY 291 ing department of such an organization has nothing to consider save the actual value of the service available. It is, therefore, more apt to get a low price and col- lateral cooperation than the agency which ajsks the publisher for a commission and protection. (3) Copy service. No matter how carefully mediums have been selected, or how economically space has been bought, the space is without value to the adver- tiser imtil it is filled with copy which will get the desired result. The copy staff of a successful organi- zation must represent the picked men of a nation, working together harmoniously in confident coopera- tion with the advertiser's organization. Sometimes, after the analysis has been finished and the selling points agreed upon in conference with the advertiser, one man writes all the copy. Sometimes several men work on a national campaign if there are several consumer groups as well as trade literature and selling helps to be taken care of. (4) Sales cooperation, the most recent development of agency service, has been misunderstood in many places. It is nothing more nor less than the mer- chandising of advertising itself. It does not mean sales direction, nor the displacement of salesmen. Sales cooperation means getting more service from the publisher or space-producer, by convincing him that he can best entrench his own business by giving the advertiser more for his money. It makes the advertiser's salesman (who cooperates) more valuable to himself and to his principal. m 292 ADVERTISINGS-SELLING THE CONSUMER The very best salesmen make many calls which are non-productive. Anything which increases their sales as compared with the number of calls made enhances the value of their services without add- ing to their labor. Sales cooperation is the result of applying to selling methods the principles of scientific management. It is sharing with salesmen the responsibility of planning their work. Adver- tising does the missionary work and the salesman becomes an expert "closer" and business-builder. Nowadays a banking corporation regards itself as the trustee of its depositors' money, and does not The loan money to any business in which its A^rTr officials are interested. The same general T^Hee principles should govern the conduct of an Customers' advertising organization. Money ^he highest type of advertising service is offered by the organization which attracts as customers only those businesses which are acknowledged leaders in their respective lines, and then at all times regards The Agency ^^^ ^ ^ ^^^^ ^f non-conflictiug interests 0/ the cooperating for their common good. ^ Highest C2 i, • . • .,i , . Type Wiu ^^cli an organization will advise against Ag^nlt ^^vertising if conditions are unfavorable. Adv^inng It knows, how, when, and where, advertis- ^erUNot "ig should be done. It should be consulted Ready Jong before the advertiser starts to plan about prices, distribution, the package, sell- ing methods, and the instruction of salesmen about ways and means for cashing in on the advertising. I CHAPTER XXIX HOW MUCH MORE CAN BE GIVEN THE CONSUMER? IT WILL be time and money well spent if we can succeed in educating the public to an apprecia- tion of the economies good advertising establishes and maintains in the products and distribution of things worth buying. The more the consumer learns about what adver- tising means for him the more advertising itself will give him. The sooner the mind of the Makes th£ cousumcr accepts as an established fact DoUar ^jj^t whenever he sees a thing advertised IjlTQBT the advertising itself insures him a better value, in quality or quantity, or both, the sooner he will receive a greater share of the actual benefits of advertising. When a man or woman appreciates that an adver- tisement is reducing the cost of distributing goods that are in every way desirable, there naturally will follow the realization that this reduction of the selling cost enlarges the purchasing power of the dollar. The best way to illustrate the truth of the above assertions is to cite everyday things. 4 ^ IIIP i 294 ADVERTISING—SELLING THE CONSUMER The Iowa hen produces more wealth each year than do the gold mines of California. Iowa's egg crop The Iowa ^^ ^^^th more annually than all the oranges Hen h raised in the United States. But there is no money m raismg chickens — as a busi- ness. An apparent paradox! As a "side line" poultry makes $40,000,000 a year for the people of Iowa. Labor-saving machinery, the tests of the chemical laboratory, and the stop-watch of the business en- gineer have enormously increased the quantity of production without adding to its cost. But on every hand we discover appalling waste in our distributive system. There can be no question that the time and energy now expended upon the distribution of mer- chandise can be made to yield the consumer much more than he now gets. Our A recent merchandising audit revealed Dt^ht ^^ *^^* ^^^^ one-half of our garden truck Hve goes to waste. System ^ method of changing this waste into saving for the consumer is suggested by consideration of the canning industry. The canner buys fruit and vegetables during the season of surplus at a profitable price to producer for a period during which supply is greatly in excess of the demand. He cans them, pre- serves them, makes jellies and jams of them. The con- sumer buys these fruits and vegetables in the winter, when the uncanned article is either almost prohibitive in cost or else not to be had at all, but he buys them at HOW MUCH GIVEN CONSUMER? 295 Luxuries at the Price of Necessi- ties a price based on the cost of the raw material during times of plenty. It has also been found that it often costs more to distribute fresh fruits and vegetables than to get the same quality of them, canned, to the Through consumer. And the consumer has to re- ^7h^^^ member always that he is the man who Consumer pays for distribution. Scientific merchandising methods have developed a soap which is so good that it cannot be made better, yet it is delivered to the consumer for only five cents per cake. All our big manufacturing plants are equipped for turning out many more of the comforts and luxuries of life than they are now making. The added operat- ing expense would disappear in the newly created volume of business. Many manufacturers would be glad to reduce their prices if they could be sure of getting larger volume by doing so. Many have attempted it. Scientific Unless they had first developed scientific ^dT«t"" merchandising plans the price reduction often simply gave their merchandise the reputation of being less worthy of the con- sumer's confidence. The most successful manufacturers are those who have had care- ful merchandising audits of their market possibilities made, and from them have evolved plans of distribution, based upon definite knowledge of actual conditions. The manufacturer who can re- Benefits Greatly Both Producer and Consumer 296 AD\^RTISING— SELLmG THE CONSUMER duce his price to the consumer and still have the consumer know that the quality of his product cannot have been changed is in the strongest possible position. He will greatly enlarge his market, be- cause he brings what he has to sell within the pur- chasing power of a large number of people. But if he reduces his price to meet competition, neither he nor the consumer will benefit. Either the quality of the merchandise or of the service which gets it to the consumer must be impaired — if the original price was right. Fortunately for the consumer, the heads of big business are realizing that the surest way to intrench the business which they have labored to When Big ^^1^ up and develop is to reduce the retail Business price of their product and the cost of the Men Com- * . , . i . , « , , pete service which gets it to the final buyer. InAdl^i!^ Profits often depend upon the possible sav- ing the ing in the cost of reaching the consuming Consumer ^ Will Be Best gTOUp. Served f]^ waste in OUT present system of dis- tribution is the measure of how much more he is now getting can be given the consumer by means of scientific advertising and distribution. My father tells me that as a boy he read every book he could borrow in the Iowa county in which he lived. To-day newspapers, general magazines, technical and class periodicals and public libraries make it possible for all of us to have all the reading matter we want of every kind. What publishers have done and are HOW MUCH GIVEN CONSUMER? 297 doing for us other manufacturers will do, and we shall have the benefit. Misapplied energy is the biggest single waste item in our present industrial system. W^e see it all about us — in our stores especially, and in the time so many young men waste in getting started upon business careers. The cost of all the wastes in our productive and distributive system is borne by the consumer. If the greatest waste is misdirected energy on the part of the everyday worker then the men who create a market for regular, steady, well-paid labor are in- creasing the number of satisfactions for the great mass of consumers. The manufacturers who develop demand for their products by advertising are doing more than any others to raise the standards in the labor market. Through advertising our big manufacturers are creating their own groups of consumers. These manufacturers hold their supremacy by fZ^)i giving to their consumers the advantages the Greatest of the better quality or lower prices which Economic -r i _i •.•i i j j Waste ^^^ possible Only with an enlarged and a stable market. Hence in buying the goods offered by the advertising manufacturer the con- sumer is always acting in line with his own best in- terests. He is adding his own influence to the mighty forces which are creating for him a greater number of satisfactions than his daily earning power could otherwise command. To say that in ten years the masses will have twice «»8 ADVERTISING— SELLING THE CONSUMER as many bathtubs, books, musical instruments, com- fortable sanitary heating systems, sleeping porches, telephones, electric lights, and labor-saving kitchen devices as they now possess is to speak conservatively. Modern advertising is certainly increasing the num- ber of luxuries and comforts that the day laborer is y^ to command. By reason of the further Comumer's progress that is sure to be made in scientific WUl DoMe^^^^^^^ ^^ production and distribution ^Tm^Zn ^^^ ^^borer's dollar will buy twice as much ten years from now as it does to-day. He will be able to Hve 100 per cent, better than he is living now, because scientific advertising will educate the laborer to appreciate better things. Scientific advertising will also enable the manufacturer to deliver his products to the laboring man at prices he can afford to pay for them. We can well believe this when we consider what has been done in the past decade in eliminating waste in production and distribution. Advertising cannot benefit the advertiser if it does not serve the consumer. The more the consumer realizes this the more his dollar will buy for him and his family. The growth of this conviction is so widespread that I am safe in afl5rming that the consumer's increasing confidence in and intelligent appreciation of good advertising gives to the progressive manufacturer his greatest present opportunity. THE END COUNTKY UrS FKSSS, GAUDXN CITY, MXW YOKJE COLUMBIA UNIVERSITY LIBRARIES This book is due on the date indicated below, or at the expiraUon of a definite period after the date of borrowing, as provided by the library rules or by special arrangement with the Librarian in charge. C28( IO-S3) 100M m m jUN i 6 193ft