Broadcasting Telecasting (Jan-Mar 1962)

from R. D. EDWARDS, Glendale Federal Savings & Loan Assn. MONDAY MEMO Making the advertising fit the prospect— without gimmicks The savings and loan business has become one of the most competitive fields in the country and Glendale (Calif.) Federal Savings is operating in a region where high demand for mortgage loans to house the exploding population requires that we snare every saved dollar we can. In attempting to woo these savings into one of our 1 1 branches, we face competition not only from the 109 savings and loan associations doing business in this area, but from the commercial banks, the securities investment industry and the vast array of consumer products. The forces of competition tempt nearly every businessman to use "gimmicks." The gasoline retailers have had their price wars. Loss-leaders have become almost traditional in the grocery business. In the financial arena, premiums of many kinds have been offered as inducements to depositors. Fortunately for all business, a goodly number of these "gimmicks" have gone by the boards as sounder heads have prevailed or, in some cases, government regulations have restricted their use. The competitive aspect is still with us, however, and must now be met within the confines of those wiser decisions and government restrictions. This brings us back to the sound business methods of promotion — advertising and good public relations. Which Way Best? ■ To get the greatest value from our expenditure, we are forced to make many decisions. Should our approach be metropolis-wide or concentrated in our local areas? Should we establish our budgets according to the assets we now have or according to the goals we have set for ourselves? Should we let as many people as possible know about the benefits we offer or should we attempt to reach only those with substantial savings? During its history, Glendale Federal Savings has run the gamut of possible choices. We were organized in 1934 as a one-man, one-shop operation with assets of $6,000. The advertising "budget" was measured in hundred dollar amounts and local newspapers were selected as the first media. As the association's assets grew, so did its choice of media. Direct mail was used, the number of newspaper ads was increased and an occasional billboard was utilized. With growth came the need for additional offices. And with additional offices came the necessity to supplement our local advertising program with a metropolitan approach. The use of radio, television and metropolitan newspapers was designed to have a mass appeal and to make everybody in the region aware of our presence and our services. It was strictly a "shotgun" approach to give identification and to make pertinent points about our high rates of interest, insurance of accounts, convenience and other benefits. Our technique during this period is typified by our use of the Dodgers just after they made their big move from Brooklyn to Los Angeles. Individual players were used in radio spots, newspaper ads and direct mail pieces. Our objective was simple. As sports enthusiasts ourselves, we hoped to stimulate interest in the community's first big league ball club. As businessmen, we hoped that identification between the Dodgers and Glendale Federal would lead many baseball-starved former easterners and midwesterners to bring their savings to our offices. We used this campaign during the team's first two years here, while interest was at its peak, and it proved very successful. Shotguns and Rifles ■ We are now aiming our shots at particular groups. To supplement our local campaigns and our "shotgun" blasts, we are now trying to get our message to "thinking" people — those whose intellectual and financial resources are such that we consider them prime targets. Our sponsorship of the Dr. Albert E. Burke television series on KCOP (TV) is an example of our attempts to reach this select group. Generally, companies do not sponsor highly provocative programs because they feel their business will be affected. We at Glendale Federal feel that everything that can be done should be done to stimulate the thinking of the American people. Although Dr. Burke's audience is a small one, it is vital. It is also conversant, as illustrated by the fact that this is currently one of the most talkedabout shows on local tv. Important to us, too, is the fact that this audience represents a much larger proportion of potential savings customers than does the mass market. Another example of this specialized approach is our sponsorship of a onehour special during prime time on New Year's Day. This show, called "Tune Up for America" and produced locally by KNXT (TV), featured the Glendale Symphony Orchestra, a dance band, chorus and soloists and a collection of film clips, all tied together into a brief history of the past 20 years. This program was designed to appeal primarily to the older person who likes a bit of nostalgia. The older group obviously has a higher than average income, has gone through the problems of family raising and now has a few extra dollars which it can salt away at Glendale Federal. For Everybody ■ So now we have reached a point in our advertising where we try to have a little something for everybody. The Dr. Burke series has worked so well that we will be looking around for other "think" shows to sponsor. "Tune Up for America" is probably not the last show of its type we'll back. We are sure that these programs were viewed by the audiences at which they were aimed. We will certainly continue our radio spots and news broadcast sponsorship, our newspaper advertising and direct mail. Intelligent advertising has worked for us and will for any legitimate business. The passing of the "gimmick" doesn't sadden us at all. Now we can get down to business. Raymond D. Edwards, who joined Glendale Federal in 1945 as a teller, became senior vice president in 1959. As head of the administrative division he has primary responsibility for the association's advertising and public relations program, working through Davis, Johnson, Mogul & Colombatto of Los Angeles. Mr. Edwards is chairman of the California Savings and Loan League Public Relations Committee. Born in Los Angeles, he holds a BA degree from the U. of California. 24 BROADCASTING, January 22, 1962