Broadcasting Telecasting (Apr-Jun 1961)

covering up a true motivation," Dr. Dichter noted. "Although most women use Jello because it is a lazy dessert, does not necessitate much preparation and cannot easily be ruined, it would obviously be unwise to address oneself to all lazy women. Instead, the commercials talked about busy women who had no time to prepare a complex dessert." Dr. Morris J. Gottlieb, Arthur D. Little Inc., commented that the "important advances in marketing will not be so much in learning more about consumer motivations as in learning how to apply this kind of knowledge usefully to marketing management decisions." Dr. Joseph Weitz, New York U., noting that motivation research is aimed at finding out motives for buying or not buying certain products, asked if the findings bear any resemblance to reality and commented: "The validity of certain psychological methods is highly suspect . . . Don't accept a technique," he warned, "just because it is more psychologically sophisticated." Consumer research techniques originated years ago in academic laboratory experiments, Dr. Peter Rossi, U. of Chicago, said. He urged that commercial market researchers put back some money into the colleges and universities to enable them to go on developing new techniques for them to use. Other sessions of the 44th AMA conference dealt with public utility marketing, pharmaceutical marketing, marketing for finance and banking, forecasting techniques, attitude research, operations research and computers, management problems, new government data and its applications, marketing aspects of packaging, long range planning, marketing to the defense department, adjusting to changing conditions, meeting global competition and coordinating marketing research within the marketing function. The conference program also included several marketing management game sessions, utilizing the electronic computing machines at local universities. SEC stops sales of Hazel Bishop stock Hazel Bishop, New York cosmetic merchandising and distributing company, once a leading tv-spot advertiser, received no quarter from the Securities and Exchange Commission last week. The SEC issued a stop order which renders illegal sale of any of 1,274,823 shares (about 60% of total outstanding) that the company sought to register in June 1960. Among grounds for the SEC action were charges that much of the stock was illegally sold, that the registration statement was false and misleading and that amendments offered by the company did not clear up the difficulties (Broadcasting, Oct. 31, 1960). The company agreed portions of its original registration statement were faulty when the SEC leveled charges in October 1960. The case was presented by stipulation — agreements by lawyers representing both parties — and in essence HB threw itself upon the mercy of the commission. In March 1961 it offered amendments to the statement designed to rectify the errors. But the decision written by Commissioner Byron D. Woodside said "the potentialities for violations of the law, witting or unwitting, on the part of those who are about to offer their stock on the basis stated are so grave that . . . they should be called to the attention of the selling stockholders, the issuer, the Exchange, the existing stockholders of Hazel Bishop and the general public." Two of the reasons for the stop order stem from HB's television advertising. The prospectus showed a profit of $102,258 for the fiscal year ended Oct. 31, 1959. This profit, resulted in part from a failure to reflect certain adjustments, referred to only in a footnote, and in part from treating as a reduction of advertising costs the release of a claim by Television Industries Inc., totaling $1,110,619 for spot-tv time purchased by HB during 1958 and 1959. The spot time was given in a Et tu Buster. That's Gene Daniels talking. Says you must hear the brand new BIG SOUND open end commercials. Use 'em as they come or we'll customize for any advertiser, from a used chariot dealer to a coliseum cleaner. Pax vobiscum sponsorius. RICHARD H. ULLMAN, INC. 1271 Ave. of the Americas I N .Y.I PL 7-2197 a Division of MB JT THE PETER FRANK ORGANIZATION, INC. Hollvwood / New York stock barter deal by Matthew M. Fox. president of Tv Industries, which specialized bartering tv films for spot time to be later resold. When the deal did not materialize. Tv Industries released HB from it in return for 150,000 shares of HB stock from Raymond Spector. who was then board chairman of HB. The SEC ruled, as under stipulation by HB, that under proper accounting practice, only the difference between the value of the 150.000 shares and the amount of the claim could be treated as a reduction of advertising costs. On this basis HB suffered a loss of $707,996 for 1959 instead of the $102,258 profit shown. The earnings summary for 10 months ended Aug 31, 1960 showed a net profit of $136,535 but the March amendment disclosed a loss of $354,538 for the year ended Oct. 31, 1960. In the prospectus, HB claimed that tv was its principal advertising medium and that it spent about $30 million for network-television advertising during the past 10 years. The SEC deemed this inadequate disclosure because since 1957 there had been "a decided downward trend in expenditures for advertising" and that planned advertising expenses were at a further reduced level. Also in advertising... AAAA booklet ■ The fourth edition of "The Advertising Business and Its Career opportunities." has been issued by AAAA, for the use of high school and college students interested in advertising careers. The text was written by Otto Kleppner. president of The Kleppner Co., N. Y., and author of the textbook, Advertising Procedure. More information ■ The N. C. Rorabaugh Co. announced last week that 1 8 additional stations have agreed to supply information on their spot television business for publication in the quarterly Rorabaugh Report. This raises the number of cooperating stations to 368. The Rorabaugh service produces competitive advertising reports for national advertisers and their agencies and all spot tv expenditure data released by the Television Bureau of Advertising. Rep appointments... ■ WEOK Poughkeepsie, N. Y.: Adam Young Inc., N. Y. ■ WKST-TV Youngstown, Ohio: Youna -TV, N. Y. ■ WTTG (TV) Washington. D. C: Blair Television Assoc., N. Y., as national representative, effective July 1. ■ KULA Honolulu: Spot Time Sales Inc.. N. Y., as national rep. 50 (BROADCAST ADVERTISING) BROADCASTING, June 26. 1961