Broadcasting (Jan - June 1943)

NAB Retail Promotion Starts in Fall Solves Both Store and Station's Problems THE INDUSTRY-WIDE retail promotion plan will be put into operation early next fall, it was announced by Paul W. Morency, WTIC, Hartford, chairman of the plan committee, at the Wednesday afternoon session of the NAB War Conference. The financial commitment was made by the NAB board last Monday, which agreed to make up any deficit of the $125,000 goal set for putting the plan into operation. To date close to 300 stations have pledged almost $83,000. The potential for radio in the retail field was comprehensively presented by Sheldon R. Coons, who has been retained as special consultant for the promotional plan. Mr. Coons, in paying tribute to the members of the committee, recalled the thoroughness with which the problem was studied before agreeing to undertake the job. Experts Consulted "We were in touch with authorities and experts supplementing our own knowledge of distribution, economics, government, research, and finance. We talked to retailers and analyzed surveys on the use of radio by retailers. We prepared budgets of varying size to fit plans, and finally emerged with a basic plan which your Committee approved and endorsed," he said. "The committee questioned us as to every detail, went over the plans with a fine tooth comb, and then presented its own plans for the financing of the undertaking, which in turn were discussed and debated with every segment of the industry represented in the debate, and finally approved." Mr. Coons read a news story on the record breaking increase of retail sales and revealed that March and April retail sales will be substantially ahead of a year ago. In a review of wartime merchandising problems, Mr. Coons predicted that the 1943 retail volume will be maintained at its present high level. The Retail Promotion Committee plan will be put into effect at a time when these conditions prevail: 1 — the shortage of goods is apparently being surmounted by the nation's retailers, 2 — the retailers' margin of profit on normal volume, even without the excess profit taxes, continues low and indicates a further rise in the cost of distribution, and 8 — that the only cure of unprofitable distribution is in greater volume, or in lower sales costs, or both. "Never was a classification of advertisers so harried," Mr. Coons continued, "so in need of communi cation with its customers, so uncertain of the future trends affecting it. If you believe as I do, and as I hope the study will prove, that broadcasting is a magnificent and effective sales force, I say to you that the retailers will welcome our study of their business and the light we expect to throw upon our medium now, and that once they know and understand broadcasting, you will get together." As an answer to those stations still unpledged to the plan who say that they are sold out or that local business is undesirable, Mr. Coons drew an analogy between broadcasting and retailing. Twenty years ago department stores, at the zenith of sales and profit, scoffed at subui'ban stores, neighborhood stores, chain stores, with the result that their sales and profits have slipped. Issuing a warning signal that the present prospect of radio is full of pitfalls, Mr. Coons remarked that too much of radio revenue is concentrated in too few fields; to few classifications of advertisers buy the medium. Many people believe that radio is in in its patent medicine era, he said, which the press once experienced and from which it has long since emerged. New Dignity More department store advertising would give new dignity to many new radio stations, and would provide a volume which would make unnecessary present accounts which the broadcasters themselves wish they could afford to do without. If the leading retailers embrace radio, the whole tone of the local radio business will improve, and further, if the retailers come to believe in radio as a medium, radio will develop many classifications of ac counts whose distribution is throug store outlets. Lewis H. Avery, NAB directo of broadcast advertising, outline the actual mechanics of the plan t the assembled broadcasters. A dri matic four-hour presentation c problems of retail selling, reta: distribution, and the part radii advertising can play in their soli tion are packaged in a master show ing including: (1) sound motio pictures, (2) motion slide film, (3) transcriptions, (4) animatioi (5) charts, (6) supplementary ex hibits, (7) printed material fc distribution. The master showings will b routed around the country. In ad dition, all of the facts contained ii the last showing will be availabl in jumbo easel form, and 500 des presentations will also be mad available to each participating sta tion. Harvard Studies Air Use by Retailers Report Will Be of Aid To Buyer, Seller Of Radio Time By C. H. SANDAGE Visiting Professor of Business Research Harvard University THE HARVARD Business School is starting a study of radio advertising as employed by retailers, service operators, wholesalers and manufacturers with limited territorial distribution. The support and help of radio station management is necessary to make the study a complete success. The school feels that such help will be given because of the outstanding contributions which the industry has already made to advertising and market research. It is probable that no other advertising medium has Prof. Sandage devoted as much time and effort to this type of work. Most research of the past, however, has been devoted to a study of radio as a medium for the national advertiser. Results of past research have been most helpful to both the radio industry and the national advertiser. Equally beneficial results can stem from research into radio as a medium for the local businessman. It is therefore the purpose of the Harvard study to find out what makes radio click for the retailer and other local businessmen. Facts uncovered from such a study will serve as guiding principles to both the buyer and seller of radio time. They should also be of value to local merchants in their postwar responsibility to distribute the vast quantities of goods made available by peacetime industry. Procedures to Be Followed A considerable amount of time will be devoted to making personal calls on advertisers and station management to discuss at first hand the experiences of successful MIDWESTERNERS ALL (1 to r) : Les Johnson, WHBF, Rock Island; Clair Heyer, Armour & Co., Chicago; F. A. Higgins, WDAN, Danville, 111.; Herbert Denny, Standard Radio, Chicago; Alex Sherwood, Standard Radio, Chicago; Mrs. Higgins; John J. Laux, WSTV, Steubenville, O.; Mrs. Denny. and unsuccessful users of this pow erful advertising tool. In these per sonal interviews all aspects of ra dio use will be analyzed. The fol lowing factors will be included fo specific study : programming length of time on the air, method used to measure success, actual sales results from use of radio types of products and services es pecially adapted to radio advertis ing, how commercials are utilized importance of personalities, build ing participation features, degre« to which radio promotion is merl chandized by station or agency per sonnel and the coordination of ra dio with other advertising effort In addition to using the persona interview method some inf ormatio will be sought by mail from adver tisers and radio stations. Shor* questionnaires will be used to sa cure data concerning the exteni I and character of local radio adverjij tising. Advertisers will be asked II submit such data as the relativij, importance of radio in their total! advertising budget, results frortj their use of radio, types of pro]! grams used and their estimate oi1 the success of radio. Stations will be asked to supply data on the relative importance oJ| local business, the extent to whiclj1 advertising agencies supply loca'j ?] business and a detailed breakdowrj, of local business by spot announce!; ments and sponsored programs. Need Help of Stations A study such as this cannot bfj successful without the help of radicj ' station management. We have al| ready asked radio stations to fuffl nish us with the names and adj: dresses of their local accounts. Th*|i (Continued on page 69) Page 18 • May 3, 1943 BROADCASTING • Broadcast Advertising