ADVERTISING STRATEGY.

Auckland Star, Volume LXI, Issue 103, 3 May 1930, Page 17

ADVERTISING STRATEGY.

STUDY OF ITS FACTORS. TES NEED FOB ORGANISATION. INVESTIGATION OF THE MARKETS An interesting address on advertising problems was given in Christchurch bj Mr. Vincent H. Freeth, of the CuttsPatterson Agency. Discussing the affinity between strategy on the battlefield and in the fight for business life Mr. Freeth pointed out that the period oJ investigation prior to launching a selling and advertising campaign was nc less essential to business success thai to military success. This should be undertaken with the utmost care. Careful and, as far as possible,, dispassionate inquiry should be made into the qualitj of competitive products, of prices, anc methods of selling, both to wholesalei and retailer, of packing of the goods and the hundred and one other attributes of opposing sales and advertising campaigns. Any manufacturer would then recognise that, to meet the opposition with any hope of success, he must be able to present a product which is al least of competitive value and preferably with some definite advantage ii price and service. In the case of manufacturing and selling organisation, the executives, of the company filled the positions equivalent to the staff officer; of an army. Advertising was the heavy artillery Its responsibility was to prepare ant shoot the broadsides to the distributor; and dealers which would represent the quality and service of the manufacture: in the most adequate fashion and sc ensure co-operation. To this end the advertising organisation was closely as sociated with the sales manager, and i 1 finally produced the advertising to the consumer. The responsibility of the Advertising Agency, therefore, shoulc be primarily that of educating the out side selling organisation to the advan tages and quality of the product to be sold, to prepare the consumer advertising which was to be sent out through newspapers, and to so plan this campaign that it would break down pre judices, apathy or ignorance. This was as far' as most advertising campaigns could go, although in addition to his job in the routine productioi of advertising the head of the advertis ing department or agency has a turthei responsibility in advising the genera manager or principal on the kind ol advertising to use, the choice of media advertising intensity and the hundrec and one other technical aspects of advertising. He must have the complete confidence of the manufacturer as to finance the objective to be reached, competition, and the strength of competitors, which in most cases, he usually checks up on himself. It was the job, then, of the retailers and their salesmen to follow up this advantage created by the advertising and introduce the goods, to the public so that those who did not immediately surrender to the logical appeal oi the advertising would do so when they are followed up by retail selling organisation. Advertising broke down ignorance and apathy and made it> easier for salesmen to go Sut and make sales. Giving an actual illustration of fixing the responsibility for manufacture, advertising and the sale of a specific commodity, Mr. Freeth took a sample from that "most interesting business —the motor industry. In America a manufacturer planned to build a car to capture a certain, market. He surveyed his competitors' cars and determined to build one which would outsell them because of its superiority in value and performance. Having produced plans and carried out his experimental work, he determined that to build the car at a price he would have to sell, say, 100,000 units the first year to cover his investment and show a reasonable profit. Every car he sold over that quota represented so much additional profit, because by the time he reached his objective of 100.000 cars he had paid for his plant and equipment, and so met his greatest basic charges. The responsibility of the manufacturer having been fixed at producing a car at competitive price and of greater value than existing cars in its price field, the responsibility of the selling organisation was with the assistance of advertising, to sell the car to the distributors, dealers, and finally to the motoring public. The advertising matter could do no more than represent the advantages of the car in the most attractive way. It must be followed up by the selling force. To rely upon advertising to do the whole job was simply to invite failure. A plan for advertising and selling should be reached after the closest investigation, and once determined upon should be maintained with absolute rigidity and despite disappointments. No two persons reached the same objective by the same route, but two diverse plans might be equally effective if carried through with determination. The" advertiser still existed who released his advertising campaign and sat back waiting for people to storm their way in to buy his goods, and he was very disappointed when they did not, but "all that most advertising would do was to break down barriers of prejudice, apathy, ignorance or indifference. The job it did was educational. It helped to make it easier for salesmen to sell. If the advertiser failed to follow up his advertising aj; the point of sale, or he failed to educate his dealers and enthuse their salesmen, he would not get sales. . "In passing," concluded Mr. Freeth, "I would like to say a word to you about curing depression by advertising. It is a sound maxim that 'advertising properly applied makes bad times good and good times -better.' It may cost more money to make a sale in times of depression, but meantime you are doing better than the other fellow who cuts down his advertising and his sales force. The people with courage win out and are in much better shape to reap the harvest when the temporary depression lifts. "In closing I cannot do better than refer to a common-sense exposition of advertising contained in that memorable announcement of the famous advertising agency, H. W. Ayer a,nd Son, of America. Power, magic, wizardry, enchantment —to the amateur no word seems strong enough to describe the undeniable accomplishments of advertising. But from a professional viewpoint, advertising merits somewhat more sober terms. As a matter of fact, the making of successful advertising is a difficult business, requiring both skill and experience. It is true that advertising will speed up sales and secure a larger volume in a shorter time for the manufacturer with foresight, courage an£ financial resources to- carry definite business policies to completion. But no amount of advertising will sell a product that cannot be sold without advertising. 11, is certain that advertising can, and does, create valuable good will for a brand or a trade-mark. Witness the actual money value of any well-advertised name. But it is equally certain that back of that name, there" must be honesty, fair dealing and full value for the price asked.

Advertising an unworthy product simply means that a larger number of people will presently discover its disadvantages. "Advertising pays its way. often many times over. It will permit lower prices through increased volume. It can reduce selling costs. It can lessen the time in which a product moves from factory to consumer. But advertising that does not consider the problems of the jobber, the retailer and the salesman often loses more than it gains. Advertising must contain the principles of sound merchandising to be successful. '"Advertising points out the merits of a product and impresses the buyer with its desirability. But advertising cannot create a single point of superiority in a product, or add a single virtue to its manufacturer. Advertising is accepted as a necessary part of modern business promotion. It has won a place for itself in virtually every industry. _ Rightly directed and prepared, advertising has proved that it can return a profit to the advertiser. But advertising should always be considered as a business enterprise", and not as a magic formula for unearned success."