Broadcasting (Oct 1931-Dec 1932)

A Station Proves That Merchandising Pays By J. LESLIE FOX General Manager of KFH, Wichita KFH Arranges Window Displays and Reports on Sales; Good Will, Advertising and More Business Result Fox IN THESE days of conservative spending of advertising dollars, when advertisers are rightfully demanding a full value in returns from their appropriations and when cool, levelheaded counseled, the advertising agencies, are seeing to it that they receive them, it seems to me that broadcasting is given a magnificent opportunity to prove itself. Now is the time to make the most of our chances and to add to our efforts the Quod Erant Demonstratum which is the hall mark of final proof. We in radio are so sure of results, we see so many of them, that we sometimes are at a loss to understand why we must prove the medium to others. However, on second thought we realize that our clients are not so close to broadcasting as we are and it is only natural that they should have some misgivings in making appropriations for what is to them an experiment. During the past eighteen months, we, here at KFH, have developed a system of merchandising cooperation and a method of proving results as the campaign progresses that apparently has met with approval from the comments we receive from advertisers and agencies. The editors of Broadcasting have been kind enough to ask for a story and in writing it, I am doing so with the hope that some other station manager may find a thought that will be of value. Reasons for Merchandising BROADCAST merchandising, as I see it, is made necessary because of two conditions: First, the advertiser buys time on our station because he wants to sell more of his product in our territory; he wants new dealers and jobbers and he wants to more firmly cement his relations with his old outlets. Second, we, as his publicity representatives, owe him our very best cooperation in making his campaign an outstanding success along the above lines. Every good station manager has this same feeling and, I am sure, delights in showing results for himself and his station. Merchandising in itself is not new. Newspapers have offered it for years and have been able to make themselves of far greater value to their clients. It seems that in adapting the plan to radio we have gone a little beyond other stations and in doing so have been able to increase our value to our clients with surprisingly beneficial results to every one concerned including ourselves. More about our I own benefit later. GENERAL adoption of the methods of this station by broadcasters would in the opinion of this general manager "add the Q. E. D. to radio as a medium". It would unquestionably add considerably to the effectiveness of radio advertising as well as increase its volume. By contacting jobbers and dealers and keeping check on sales of the product advertised, KFH has taken the doubt out of its sales argument. Instead of being just an expensive service which a broadcaster provides a sponsor, merchandising more than pays for itself, this writer t asserts, in publicity for the station and in actual new accounts. Now to get to the meat of this merchandising thing as we practise it. First, let me say that obviously our merchandising department can cooperate only in a direct ratio with the size and type of the order. The First Steps OUR FIRST MOVE on receiving an order for a series of spot programs is to make a market and distribution survey. We contact a representative group of dealers and jobbers and learn all we can about the product, its distribution, what the trade thinks of it, how it is moving and what its competitors are doing. When this is done, we know just about what effort will be required to bring desired results. We also have a starting point from which we may compute future reports and results. Next we prepare a letter to the trade which goes out, usually about ten d*ays in advance of the opening program. These letters go to each dealer in Wichita and to all jobbers. We have found that such letters perform wonders in securing dealer and jobber cooperation for a product. Window displays are arranged for, to be placed during the opening week of the campaign. It is our policy to place one window for each 15-minute program purchased on a spot contract. These windows contain, in addition to a display of the product, a card calling attention to the radio program starting over our station. Regular Reports AFTER the campaign is under way, we make a monthly report to the advertiser and agency showing just what the product is doing in sales. Arrangements have been made with a representative group of dealers in all lines, located in different sections of the city so Dealer's Window Display Tie-in With Account on KFH that we may have an accurate cross-section and from the information gained from these dealers we are enabled to present a true picture of results. These reports are always sent just as we receive them. If results are not what they should be, our report says so; and many times upon suggestions from dealers or ourselves it is possible to make a slight change in a program that will make it more productive in our territory. From our jobbers we get figures concerning sales in the outside territory. It is our intention always to take advantage of every opportunity to stimulate a feeling of good will on the part of dealers and jobbers toward the products we are carrying and also to keep the advertiser informed each month as to results. I expect that those of you who are broadcasters and have read this far are wondering how we can afford all of this extra service. At the expense of disillusioning some of my friends in the agencies, who think I am just a big hearted Kansas boy, I will turn up my whole card. Benefits to Station FIRST: I have found that the letters we send to the various dealers and jobbers are a constant reminder of KFH. They give the impression that we are a live organization which is working with them in order that they may increase their sales. If KFH is a good medium for all of these manufacturers, it is also a good medium for them. Second: The attractive KFH card which we place in each of our windows is institutional advertising of the finest sort. No amount of money could buy a billboard in the location of these windows and the expense of putting in a window is only a trifle as compared to the expense of renting billboards in any location. Third: Through the acquaintanceship gained in our monthly contacts with merchants and jobbers, we have built up a friendly relationship that has produced a most excellent local business. We have developed these contacts into sales that far more than pay the expense of our merchandising department. Add to the above the fact that we have done a good job for our client and that he appreciates our assistance to the extent that we will, in all probability, get a renewal order. Add also the fact that the advertising agency is keenly appreciative of such efforts and will use the station employing them whenever possible and you have a still further reason for merchandising. Dealers Cooperate NOW FOR a little summarizing. We find that dealers are more than anxious to tie up with a radio campaign. It is a common occurence for dealers to call us to ask for a window of some advertised product. They will keep radio advertised products out in front where they can be seen. If by any chance June 1, 1932 • BROADCASTING Page 9