Broadcasting Telecasting (Apr - Jun 1952)

MERCHANDISING Results Count, Say Experts MERCHANDISING as a vital step in the selling cycle, profitable to both station and sponsor, was urged upon broadcasters by four experts in the field during a special session at the NARTB Convention in Chicago last week. "Every radio station which does a good merchandising job is a profitable station — profitable to the owners — and used with profit by Jhe advertiser," G. Richard Shafto of WIS Columbia and WSPA V Spartanburg, S. C, and WIST Charlotte, N. C, told the group. Speakers in addition to Mr. Shafto, who presided, were Lester W. Lindow, WFDF Flint, Mich.; F. C. Sowell, WLAC Nashville; and Jack Zinselmeier, WLW and WLWT (TV) Cincinnati. Robert K. Richards, director of NARTB's public affairs department, presented Mr. Shafto. "This is the era of selective network buying — selective spot buying— selective station profits, and selective station bankruptcy," Mr. Shafto asserted. "Your local advertiser and your regional advertiser want results — and they are going to evaluate your good station on what advertising results you produce, not on what advertising offers you make. "The trend of station income is non-network. To bolster this income you should consider doing for local and regional advertisers the same merchandising practices that have made radio economical and profitable in the sale of soap, soup, and Wheaties." 'Must Stretch Efforts' Asserting that "the product hasn't been sold until the consumer walks out of the store with, it," he told the broadcasters that radio "must stretch its efforts farther to bridge the gap between the advertiser and the consumer — and in doing so, radio will profit more." Mr. Lindow said WFDF regards merchandising, advertising and promotion as a necessary extension of sales activity. He displayed examples of the station's work in this field, noting that they encompass direct mail, "regular bulletins to the drug and grocery trades, window displays, display advertisements in trade and general papers, bus and car cards, courtesy announcements, surveys and market studies, and the checking of product sales and distribution for the advertiser. Most of these, he noted, "cost very little in dollars." He advised station men to acquaint themselves especially with the product categories which supply the majority of their revenues ; to develop market data, and to make sure that their customers are aware of radio's values and know how to use it to the best advantage. Mr. Sowell held that "it is the obligation of the medium which accepts [a sponsor's] advertising appropriation to do everything within reason to fulfill his expectation" that the advertising will produce sales. WLAC, he said, spends approximately 3% (not counting manpower) of the billings figure in merchandising and promoting the advertiser's products. WLAC concentrates its promotion work primarily on (1) direct mail, mostly open-faced cards, with one or more mailings to 450 druggists and 650 grocers each week, and (2) use of radio itself, with plugs calling attention to specific programs, and on-the-scene broadcasts when clients open new stores, etc. Keep Advertisers Informed "It occurs to us," he observed, "that any event that will attract great crowds of people to a given location may rightly be considered of general public interest." Mr. Sowell stressed the importance of keeping advertisers acquainted with merchandising and promotion activities in their behalf: "There's no profit in hiding your light under a bushel." "The secret," he declared, "lies not in how many listen, but how well you sell those who are listening." Cites WLW, WLWT (TV) Mr. Zinselmeier reviewed the merchandising and promotion activities of WLW and WLWT, which have a staff of 26 assigned to this work. "The management of the Crosley Broadcasting Corp. believes that radio and television should offer to a client, in addition to the best in facilities and talent, assistance in bringing the consumer and product together at the point of sale," he said. WLW WLWT merchandising field work, he explained, is handled by "trained personnel [who] make regular calls on the retail grocery, retail drug, wholesale grocer, wholesale drug, drug chains, and grocery chains in the major marketing centers in the four-state area NBC POSTS McFadden Is Successor To James McConnell APPOINTMENT of Thomas McFadden, general manager of NBC's KNBH (TV) Hollywood, to succeed James V. McConnell as director of NBC National Spot Sales was announced last Wednesday by James M. Gaines, vice president in charge of owned and operated stations. Donald A. Norman, commercial * Mr. McFadden manager of KNBH, is slated to succeed Mr. McFadden as general manager, it was understood. At the same time, NBC named James Cornell, formerly manager of research and sales promotion of CBS Radio Network Sales in Chicago, as manager of NBC radio network research. He succeeds Howard Gardner, transferred to NBC radio network sales as assistant manager of sales planning. Carl Nielsen, West Coast radioTV representative, NBC National Spot Sales, was named TV representative, and Heber Smith of the sales staff of KNBC San Francisco, was appointed to handle radio spot sales in that area. Maurice E. McMurray, CBS-TV network salesman, and Thomas A. Wright Jr., vice president and radio-TV director of Dundes & Frank Inc., New York, join NBCTV as salesmen. Mr. McFadden, with NBC since 1934 when he joined the guide staff in New Yoxk, has been general manager of KNBH since April 1950. Before that time he was successively assistant manager and manager of WNBC and WNBT (TV) New York. His first service with the network after leaving the guide staff was as a writer in the news room. By 1938 Mr. McFadden had become a newscaster. He joined the Navy on Pearl Harbor Day, 1941, as an ensign in military intelligence, resigned upon completion of his assignment and then enlisted in the Army as a private, taking pilot training. Released in 1945 with rank of captain after flight service in the African and CBI theatres, Mr. McFadden returned to the NBC news staff. In April 1946 he was named director of news and special events for WNBC. His appointment as National Spot Sales director is effective immediately. Mr. McConnell, identified with NBC spot sales activities for approximately 20 years, resigned two weeks ago to accept a vice presidency with John Blair & Co., station representation firm, effective May 1 [B*T, March 31, 24]. Mr. McFadden's new role was announced in Chicago, where he, Mr. Gaines and other NBC executives were attending the NARTB convention. Mr. Cornell, before joining CBS, served four years as manager of radio and TV research for Foote, Cone & Belding, Chicago, and a total of 11 years with WGN and WBBM in that city. BROADCASTING • Telecasting HIX GREEN (seated I) of Hix Green Buick Co., Atlanta, signs year's contract for weekly sports show, Bobby Dodd Reports, on WGST Atlanta. Onlookers are Bobby Dodd (seated), Georgia Tech's head coach; John Fulton (standing I), station manager, and Don Vance, sales manager of Hix Green Buick. covered by WLW [and] WLWTelevision. These field men build displays in retail stores, counter, floor, shelf and window displays, featuring the products of the month as featured by the merchandising department of WLW and WLWTelevision." Other services among the 25 evolved in the 12 years since WLW's merchandising operations were started, he said, include: Checks on in-stock position of products as found at the time of field representatives' calls; surveys of dealers with respect to their attitudes toward the products involved; mailings announcing special offers, promotions, or media tieins; publication of two merchandising newspapers a month (one to the drug trade, one to grocers); preparation of display material used by some 2,500 grocery and 1,000 drug stores each month; special promotions, as in "WLW Advertised Brands Week" (which brought a 26.5% gain in sales of the products involved) ; trade and general newspaper advertising; window displays; cab covers and car cards, and maintenance of a complete research department. Additionally, clients and their agencies are given detailed reports on each merchandising or promotional project in their behalf. 'Radio . . . More Secure' In opening the panel discussion, Mr. Shafto reported that the subject originally had been "Rates — ■ Is There a Formula?", an apparent reference to NBC's attempt to adjust the rates of its radio affiliates according to formula. But, he added: "The leading advocate of applying the slide rule to radio rates declined to participate and excused himself by stating that discussion on rate formulas would only open up old wounds. "Thereby died the last embers of that conflagration. Radio's house is much more secure. . . ." April 7, 1952 • Page 29