A short course in advertising

Front matter

—and you meet 'his eyes proudly

?JS

Pears

Contents

Introduction by Mac Martin

CHAPTER PAGE

I. How Advertising Aids Civilization . . i

Introduction

Benjamin Franklin was a man with great vision. I wonder, on that memorable night when he and his son were flying their little silk kite out in the storm, whether he could see the thing which he was collecting in his Leyden jar as we use it to-day.

It is less than one hundred and seventy years since Franklin's experiments, yet to-day we use this power to assist in almost every field of human endeavor. It heats our houses. It drives our locomotives. It lights our cities. It makes the deaf hear and the blind see. It even resuscitates the drowning. As soon as this power was captured, controlled, and directed, it became so much a part of the daily life of man that now we can hardly imagine a world without it.

Advertising, like electricity, is indefinable. It is a power which moves minds as electricity moves elements. It runs in a current; it has momentum; it is founded on the magnetism of character just as electricity is founded on the magnetism of matter.

The other day I saw a great crane lift some enormous steel girders to the top of a tall building. Nothing held them to the crane but this fluid power we call electricity. In a moment some one pressed a button somewhere and the girders fell. The power had been released. The big steel surface of the crane was, in itself, helpless to retain them.

The other day I was looking through the pages of an old magazine and I came across an advertisement long forgotten. I recalled the day when the name of the thing there advertised was a household word throughout the length and breadth of the land. A few years ago some one had pressed a button somewhere. The true power of advertising had been shut off. The maker tried everything he could to lift the name again, but his advertising was gone as completely and permanently as the power of the magnetic crane.

xii INTRODUCTION

Concentrating a message into an advertisement is much like charging a Leyden jar. A man never fully realizes what his undertaking is until he begins to put his mind on paper. When one begins to picture a thing as he wishes the world to see it, he has taken the first step toward making the thing as he would have the world know it.

Advertising is that electrifying power which takes these vague notions we have and changes them into policies we are willing to fight for.

Advertising is the power which electrifies the salesman, the wholesaler, and the dealer into a spirit of service beyond the mere sale.

Just as in electricity Franklin proved the power of points to conduct, Volta demonstrated the ability of the current to travel, Faraday discovered the power of currents to rotate, and Edison turned the spark into a steady light — so to-day energetic advertising men are giving their lives in an effort to add little by little and step by step to the world's knowledge of this great omnipresent power which we call advertising.

The book which you are about to read analyzes and explains the secrets of this great force. It is not filled with theories of what might be done. It shows what is being done. It takes up the things we now know one by one and explains the whys so that the same things may be done again. It tells how this power may be captured, controlled, and directed. Read it carefully not only for the words but for the thoughts it makes you see between the lines. It is for you to direct the power you thus master. It is for you to find new uses perhaps heretofore undreamed.

Mr. Osborn, the author, has been one of the most active participants in this new development. His advertising has helped to turn an unknown brand into a world-leader. In several instances he has helped to nationalize local industries and make possible in five years the progress that would have required twenty years without the electrification of advertising.

As an instructor in Sales and Advertising in Hutchinson

INTRODUCTION

Xlll

High School and the Association Institute of Buffalo, he has given his time and his ideas freely that others might profit by his work. A close student of business conditions, he has developed some of the most successful advertising plans of the last decade. He is Vice-President of Barton, Durstine & Osborn, an advertising agency which handles some thirty of the notable advertising campaigns of to-day.

If you obtain from this book the pleasure and profit which I have, I think you will agree with me that the world is starting to control, direct, and use the force of advertising fully as effectively as it has used that other great indefinable force, electricity.

Mac Martin.

February 28, 1921.

QUESTIONS THAT ARE ANSWERED IN THIS BOOK

Chapter I

1 . What is advertising ?

2. How is advertising justified?

3. How did advertising start ?

4. Explain why advertising does not increase the cost to the

consumer.

5. How does advertising protect the consumer?

6. Name four additional benefits that advertising has given

the world.

Chapter II

1. What is the purpose of name-advertising?

2. What is the purpose of persuasive advertising?

3. How does persuasive advertising accomplish its purpose ?

4. Which kind of advertising usually brings the best results ?

Chapter III

1 . Why should a national advertiser have a trade mark ?

2. What is a trade mark?

3. What restrictions are made in reference to trade mark

registration ?

4. How can permanent protection for a trade mark be in-

sured?

5. Does registering of a trade mark give full protection?

Explain.

6. Should more than one brand be advertised at a time ?

Why?

7. Is it ever desirable to abandon trade marks? Why?

8. What is the difference between "registration" and

"copyright" ?

Chapter IV

1. What basic elements determine how a product should be

presented ?

2. What are the three main channels through which desires

may be influenced ?

XVI QUESTIONS THAT ARE ANSWERED IN THIS BOOK

3. What are the three main classes of products?

4. How would you advertise a product that is "Unknown —

Unwanted"?

5. How would you advertise a product that is "Half-Known

— Half-Wanted"?

6. What is the main difference between these two types of

products, from an advertising view-point?

7. What is the object of advertising " Unknown-by-Brand "

products ?

8. What is the main task in advertising "Unknown-by-

Brand" products?

9. In which class of products can "Name Publicity" best be

used?

Chapter V

1 . What does psychology mean when applied to advertising ?

2. What is the "Psychology of Copy" ?

3. What part do illustrations play in convincing the pros-

pect?

4. Why should long words be avoided in advertising ?

5. Why is it better to use verbs than adjectives?

6. When should longer words be used in advertising copy?

7. What is the first essential in getting interest?

8. What are two disadvantages to over-emphasis of the

manufacturer's name?

Chapter VI

1. Which is the stronger factor in advertising —

(a) Appeal to reason ?

(b) Appeal to emotions ?

2. What is the difference between the logical mind and the

feeling mind ? .

-*■ 3. By what three ways is suggestion in advertising brought about ?

4. Which is the most important ?

5. Which kind of words succeed best in advertising-

fa) Abstract ? or (b) Concrete ?

6. Name three ways of making a thought specific and con-

crete.

7. Name four general methods of writing an advertisement.

8. Which is the most effective?

QUESTIONS THAT ARE ANSWERED IN THIS BOOK XYll

Chapter VII

1 . What two kinds of display are used to attract attention ?

2. Name six different ways in which Eye-Display may be

accomplished.

3. What precaution should be used in obtaining Eye-

Display ?

4. By what process is Mind-Display accomplished ?

5. Should Mind-Display ever suggest unpleasantness?

When ?

6. How does repetition help in advertising?

Chapter VIII

1 . How does color aid display ?

2. What are three qualities that colors possess?

3. Have colors any other value to advertising beyond

attracting attention ?

4. How does size aid display?

5. Does size have any other value to advertising beyond

attracting attention?

6. What is "Voluntary Interest"?

7. How does it influence the size of advertisements?

8. How can voluntary interest be obtained in an advertise-

ment of a product that does not possess this quality ?

Chapter IX

1. What are the three main printing processes used in adver-

tising ?

2. Explain each process.

3. What process is used by big newspapers?

4. When should lithography be used ?

5. What three kinds of presses are used in lithography?

6. What is the Rotogravure process ?

7. Name the three kinds of printing plates.

8. How is a half-tone made?

9. Name three kinds of half-tones.

10. What is "Screen"?

1 1 . What kind of screen is used for —

(a) Smooth-surfaced paper?

(b) Newspapers ?

xviii QUESTIONS THAT ARE ANSWERED IN THIS BOOK

12. How is a "zinc" made?

13. Can photographs be reproduced by the zinc etchin;

process ?

14. How is a "Wood-cut" made?

15. What is an electrotype?

16. How can you tell an electrotype from —

(a) An original zinc ?

(b) An original half-tone ?

17. What is a "matrix"?

18. What is a "stereotype"?

19. What does "sizing" mean when applied to paper?

20. Explain the meaning of —

Chapter X

1. Why is it better to use "upper and lower" case letters

than capital letters?

2. Why is a short caption better than a long one?

3. Are italics better than capitals for emphasis ? Why ?

4. What is the first essential in the selection of type ?

5. Name the four classes into which type may be divided.

6. Explain the meaning of the following in reference to

type—

(a) "Font."

(b) "Face."

(c) "Condensed."

(d) "Extended."

7. Name three methods of composition of type.

8. Explain each one and tell its advantages.

9. Explain the meaning of —

(a) "Dummy."

(b) "Layout."

10. What are the three main factors that insure attractive-

ness and proper presentation ?

11. Explain each one.

QUESTIONS THAT ARE ANSWERED IN THIS BOOK xix

Chapter XI

r*I. What part should the illustration play in visualizing the advertising message ? 2. Should a "line" cut ever be used on smooth paper? When ?

P3. Name three examples of poor illustrations.

4. What direction should an illustration be made to follow? ^5. How can one get appeal into an illustration ?

6. Name three kinds of photographs used in advertising.

7. What is a wash drawing and how is it made ?

8. What is a line drawing and how is it made ?

9. What is meant by "Ben Day" ?

- 10. W T hat factors determine the kind of illustration to be used ?

Chapter XII

r 1 . What is the first step in analyzing by the retail advertiser ? 2. How should the retailer appeal to people with incomes of

less than $50 a week ? h 3. After finding out who possible customers are and what

goods should be offered them, what is the next step in

analysis of the retail advertiser ? f 4. How should a retailer decide on how much to spend for

advertising ?

5. Should a retailer ever use "Want Ads" to sell mer-

chandise ? ~6. What should advertising accomplish aside from creating orders ?

Chapter XIII

f 1. What should be the dominant feature of most retail

advertising ? j 2. What is the main difference between the appeal used

successfully by department stores and that used by

specialty shops?

"^ 3. What happens when a store continually exaggerates in

its advertising?

-^4. Name two ways of increasing the effectiveness of a retail

advertisement.

Chapter XIV

1. What class of retailer can best use "direct mail" circular matter?

-> 2. What medium is the surest for —

XX QUESTIONS THAT ARE ANSWERED IN THIS BOOK

(a) The retailer who serves a community — wide

trade ?

(b) The local retailer who serves a particular

neighborhood ?

Why?

3. Which kind of newspaper is usually the best for adver-

tising articles that appeal to women —

(a) Morning ?

(b) Evening ?

4. What is the soundest rule for making a selection between

these two kinds of newspapers.

5. What part do the sales-people in a retail store play in

making advertising productive ?

6. What advertising helps can the retailer get for nothing?

Chapter XV

J> 1. How can advertising help to build the personality of a

department store? ^ 2. Should a department store feature nationally advertised

products ? Why ?

3. What does the "buyer" in most department stores have

to do with advertising?

- 4. Who selects the articles to be advertised in each department ?

^5. What do most department stores use as the main attraction to get people to come to their stores ?

Chapter XVI

^ 1. How should a product be analyzed to find out who are

able and likely to buy ? r^2. How can lowered prices mean increased profits? -3. How can the nature of a product help decide the question

"Who is my best prospect"?

4. How do government census statistics help in the analysis

of the market for a product ?

Chapter XVII

I. How can trade conditions be analyzed?

0.2. What methods will be effective in analyzing consumer attitude ?

_> 3. What points should be covered in an analysis of the consumer's attitude?

QUESTIONS THAT ARE ANSWERED IN THIS BOOK XXI

Chapter XVIII

1. Name four methods of distribution.

2. Can two firms in the same business operate different

methods of distribution successfully?

3. What is the usual cost of getting one inquiry from a mail-

order advertisement?

4. When can a 50-cent article be successfully sold by mail-

order advertising?

5. What part do repeat orders play in making the mail-order

business successful ?

6. If you are selling a staple article by mail, what must be

the main appeal ?

7. What is the premium appeal used by some mail-order

houses ?

Chapter XIX

1. Why is it dangerous for a concern that sells through

dealers to try to sell direct to the consumer too ?

2. How can you deal with the consumer direct and yet not

sell by mail ?

3. What types of merchandise are best sold in this way?

4. What objections are there to the giving of " exclusive

agencies" ?

5. What kind of products lend themselves best to this

method ?

Chapter XX

1. How does the jobber save the retailer money?

2. What is the usual discount to jobbers?

3. With goods moving through jobber and dealer channels,

on what does the selling usually depend ? Why ?

4. What is " putting goods in on consignment" ?

5. How can you tempt a dealer to push your goods if you

do not give him an exclusive agency or make sales by advertising ?

6. What are the disadvantages of doing this ?

Chapter XXI

1. Why is it necessary to "sell" the dealer if the advertising

will make people want your goods ?

2. How can the manufacturer "sell" the dealer?

XX11 QUESTIONS THAT ARE ANSWERED IN THIS BOOK

3. Does a manufacturer ever pay for part of the dealer's

advertising ? When ?

4. Name four ways of accomplishing consumer-advertising-

that-enlists-the-dealer.

Chapter XXII

1 . Why is. distribution necessary before advertising starts ?

2. Is it better to sell the dealer a large or a small stock before

the advertising starts ? Why ?

3. Why is local advertising sometimes used in addition to

national advertising?

s 4. What are the three principal methods of using local advertising to enlist the dealer and secure distribution ?

I 5. How can manufacturers rely solely on local advertising to get distribution?

Chapter XXIII

1 . Why should salesmen understand advertising ?

2. Why does selling the advertising help to the dealer help

him?

3. What are the reasons why a salesman will gain by selling

the advertising?

Chapter XXIV

I . What are some of the things a manufacturer should know before he plans an advertising campaign ?

~2. Does it cost more to buy advertising space through an advertising agency than if you bought it direct from the publisher?

^3. From what source does an agency get its income ?

4. What are the duties of an advertising manager ?

5. Why is it possible to tell the dealer the profit on your

goods in advertising in trade journals?

6. What part do trade journals play in an advertising campaign ?

CHAPTER XXV v i. What is meant by the " central thought" of an advertising

campaign ?

->2. Why should a "central thought" be back of a campaign ? .3. What are the three qualities which a central thought should have?

QUESTIONS THAT ARE ANSWERED IN THIS BOOK XXI 11

4. Can a central thought become a slogan ? How ? ,> 5. Name three mechanical methods by which continuity in a campaign may be obtained. 6. What other ways are there of obtaining this continuity ?

Chapter XXVI

1 . How does analysis of the product, prospect, and distribu-

tion plans help decide the question of "what media"?

2. How can the copy influence the choice of a medium?

3. How does "method of distribution" help decide on tne

media and copy to be used ?

4. For what class of product are novelties best adapted as

an advertising medium ?

5. How does the character of your message help determine

the media to be used ?

6. How does the size of the appropriation help determine

the media to be used ?

7. What are some of the other factors that enter into the

choice of media ?

Chapter XXVII

1 . About how many daily newspapers are there in the U. S. ?

2. What two kinds of weekly newspapers are there?

3. What is the usual cost of newspaper space per line per

thousand circulation ?

4. Why is the system of newspaper rates called —

(a) "Fixed-space?"

(b) "Open-space?"

5. What is meant by —

(a) " Run-of-paper position ? "

(b) "Preferred position ?"

6. How does newspaper advertising lend itself to checking

up results of the campaign ?

7. What are some of the disadvantages of newspaper adver-

tising ?

Chapter XXVIII

I. How is the objection to the crowded condition of Sunday newspapers offset ? \ 2. Is the Sunday newspaper a good medium to reach women ? Why ?

XXIV QUESTIONS THAT ARE ANSWERED IN THIS BOOK

3. How do some newspapers help the advertiser sell the

advertising to the trade?

4. How do they help in analysing the local market ?

5. How do they help the manufacturers' salesmen?

6. In what other ways do newspapers co-operate with adver-

tisers ?

Chapter XXIX

1. How much money is spent in advertising in magazines in

the U. S. each year?

2. Name five classes of magazines and tell what each class

includes.

3. In general, which class has the most responsive circu-

lation ?

4. About how much more does it cost for advertising in.

magazines than in newspapers per line per thousand circulation ?

5. Why are advertisements in magazines more apt to interest

the reader than those in other media ?

6. What are " class publications" ?

Chapter XXX

1. What are the arguments in favor of street-car adver-

tisements ?

2. When should this kind of advertising be used?

3. What are some of the disadvantages of car cards adver-

tising ?

4. What is the size of the standard street-car card ?

5. What are the arguments for and against advertising by

stereopticon slides ?

6. Name three other kinds of theatre advertising.

7. Name the three general classes of outdoor media.

Chapter XXXI

1 . Is it better to charge for samples than to give them away ?

Why?

2. How can sampling be used to test the effectiveness of

advertising media?

3. What does it mean to "key an advertisement"?

4. Why does a coupon help to bring more inquiries from an

advertisement ?

QUESTIONS THAT ARE ANSWERED IN THIS BOOK XX v

5. Show how house-to-house sampling can be used to sell

goods to the dealer.

6. Why should advertising be carried on at the same time as

demonstrating ?

Chapter XXXII

1 . Why are dealer displays valuable ?

2. What are the four main kinds of dealer displays?

3. What is the average cost of installing a complete window

display ? 4- Define the following: 5. Of what do outside-of-store displays usually consist?

(a) Cut-out.

(b) Decalcomania.

(c) Sign-put.

Chapter XXXIII

1. What are the two classes of direct-mail advertising?

2. How can direct-mail advertising help the salesman?

3. Which will bring most returns —

(a) Direct-mail with return card unstamped ?

(b) Direct-mail with stamped return card ?

4. Name five kinds of direct-mail matter.

5. Where expensive material is to be mailed, how should

the prospect be prepared for it?

Chapter XXXIV

1. When a company has been successful without advertis-

ing, is there any reason why they should advertise ? Explain.

2. How would you decide upon which of the general classes

of publications to use in a national campaign ?

3. Is it better to use a large schedule in one publication, or

small schedules in several publications ? Why ?

4. What material should a Sales Advertising Manual contain ?

Chapter XXXV

I. When a company has distribution in cities that have 25 per cent of the total population of the country, would magazine advertising be effective?

XXVI QUESTIONS THAT ARE ANSWERED IN THIS BOOK

2. After advertising has made a brand the leader, should

there be a reduction in the amount of advertising?

3. When advertising has been omitted for a year, does it

cost more or less than the amount saved to bring sales back to normal ? Why ?

CHAPTER I How Advertising Aids Civilization

Why does advertising hold the centre of the business stage to-day ? Why is it so fascinating ? Is it because of its magnitude — the fact that it represents a yearly expenditure of a billion or more ? No. Its appeal is greater than that of mere volume. Its lure lies in its unfathomable mystery, in its Aladdin-like power. For advertising never can be cut-anddried. So long as human nature remains infinitely variable, there can be no rule-of- thumb methods of advertising; for human nature is the raw material upon which it must work. Advertising is therefore not a science but an art, based upon a set of principles originating in theories, and crystallized by experience.

To define it more specifically would be difficult, but is it not also unnecessary for our purpose? We do not care whether it can best be termed "the art of creating a new want," as one authority would have it, or whether its true definition is both more specific and more extensive than that. For instance, a thing that is keenly wanted, such as bread, can nevertheless be advertised, yet, there is no "creation of a new want" for such a commodity. To define advertising, therefore, you must employ some more inclusive phrase. But broadly and practically speaking, it is printed salesmanship — and salesmanship is the business of disposing of goods at a profit.

Advertising is costly. Its only justification is that it makes money. For most advertisers it is profitable, for others it is ruinous. The aim is to find why one method will win, while another will lose. Always, the test is the profit — that is resulting sales that yield an increased net margin in favor of the advertiser — whether that profit be judged by immediate results or by the gradual results that come with the building of good-will. Profit, direct or indirect, that is the alpha and omega of advertising.

Although advertising is designed solely to bring greater profit to the advertiser, it may likewise result in increased value to the consumer; and this result justifies advertising from the standpoint of economic desirability. But that point is difficult to grasp. I remember that when a boy of seventeen, I had to write an oration on "Economic Waste in America," and I then thought that advertising belonged in that rogue's gallery. Since then I have seen it result to the consumer's advantage with more than ioo different kinds of products in the exploitation of which I have worked.

Advertising is the child of modern conditions. Modern competition is the cause of its present great volume. Formerly, favorable word-of-mouth comment and discussion gave the local merchant all the business he could handle "without hiring extra clerks." Then the mail-order business developed, and the giant "catalogue" houses began to undersell the local dealer. He found it hard to "compete," simply because he had never known aggressive competition. He had not been doing enough business in proportion to his rent and other fixed expenses — charges that taxed his business to about the same degree, whether he sold $100 or $1,000 worth a month.

So the local merchant began to advertise. And his competitor advertised. Competition made them both buy more closely. Competition made them both fight for more business. And, getting more business, they were better able to compete — not only with each other, but with those outside businesses which so aggressively sought to take the trade away from home. The upshot was such that the alert local merchant can now compete, because, through advertising, he can now sell so much more merchandise, that his cost of doing business has gone down from 50%, or thereabouts, to where today it averages, the country over, less than 30%, inclusive of a considerable advertising "expense."

Shining examples may be given which shed a clear light

HOW ADVERTISING AIDS CIVILIZATION 3

on this truth: A shoe store, spending $10,000 a year on advertising, has been able to double its business. Buying twice as many shoes, it can now buy closer. But that is not all. On its former volume of $100,000 the fixed expenses were about $30,000 or 30%. On double the volume, its fixed expenses are the same, plus $10,000 for advertising, or about $40,000 all told. Thus the cost of doing business is now 20% instead of 30%. And the merchant can now sell a pair of shoes, which cost him $4.00, at a retail price of $5.50, and make more money than he formerly could by selling the same pair at $6.20. This means a 70 cents saving for the consumer, and 6 cents greater profit to the seller !

Likewise, most manufacturers are grasping the golden opportunity that judicious advertising offers. For instance, a plant that has been doing a business of $350,000 per year used to have twenty drummers running about the country to sell that output. These twenty salesmen cost approximately $50,000 per year, and they merely scratched the surface of the potential market. At last the manufacturer decided to take a chance. He let ten of the salesmen go and appropriated $15,000 for advertising. Now his volume of business is even bigger. Instead of $50,000 his selling now costs him only $40,000, and accordingly the public benefits.

But the greatest saving to the consumer comes when the manufacturer becomes a benevolent giant. In advertising one such business — the biggest of its kind in the world — $300,000 a year is spent. The product is one that everybody needs. Many a woman who sees the large advertisements, says: "My — if they would only cut the price of their goods, instead of wasting so much money on advertising."

That is the fallacy. This is the fact: In each $1.00 worth of goods about one cent goes to advertising. This mounts up to $300,000 on a $30,000,000 business. An increase of $10,000,000 in one year has resulted. The manufacturer has been able to put 10% more into raw materials and to pay 25% higher wages. In other words, a 1% expenditure on advertising has resulted in more than 25% greater income to the employees and considerably more than 10% better value to the consumer. And, in addition, the manufacturer made a profit which, without that expenditure on advertising, would have been well-nigh impossible.

When a large cereal manufacturer came out with an announcement that in the future every package was to be covered with a wax cover some would-be economists said: "Phew — how can they so increase the cost of their goods and not raise the price ? " The answer is simple. So big has their volume of business become as a result of advertising (according to their own statement) that they are able not only to lower the price but also to give a larger package, and on top of that, a better box. That is how advertising increases the purchasing power of the average consumer's dollar.

Additional public benefits come from two other sources:

First, the retail merchant who handles this manufacturer's output is willing to sell it at a smaller margin than he would require of an unadvertised article. He is willing to "sacrifice" part of his gross profit in this way, because he needs to expend less effort in selling the kind for which a demand has been created through advertising.

Second, advertising benefits the public because the manufacturer who advertises has to be more careful. He has to be surer that his goods are up to a high standard. He knows that advertised products are subject to much more severe scrutiny from the ultimate purchaser than are those for which no claims are published.

Decreased selling expense enables a manufacturer to lower his price, cost of labor and materials permitting; and, as a rule, he wants to lower his price so as to lift his volume of business to the highest possible point and thus secure the maximum net revenue from the sale of his output.