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366 HARVARD BUSINESS REPORTS
comedies, and newsreels in certain territories. Of the 15,000 or so theaters considered as potential accounts, satisfactory distribution commonly constituted from 6,000 to 8,000 contracts on an individual picture. In presenting the company's product, the salesmen placed short subjects first, because Pathe Exchange, Incorporated, was recognized as the leader in this field and because the widely diversified output of these pictures made them adaptable for sale to nearly every theater in the country. After an agreement was reached on the short subject product, other groups were presented in turn. It was the policy of the company to sell an entire program of available product wherever possible. Sales of the several classes of product during the 192 81929 season, in relation to total sales were as follows.2
Superspecials 16 . 3 % of total sales
Programs and Specials 34 . o
Westerns 1.5
Total Features 51 .8%
Serials 3.0%
Comedies 10.2
Newsreels 20.4
Other Short Subjects 14. 6
Total Short Subjects 48.2%
Total Sales 100.0%
The company's advertising activities included the advertising and exploitation of individual pictures and the general advertising and publicity of the company. The work was divided into such departments as: Advertising — paid space, outdoor advertising, exhibitor helps, and advertising on theater screens; Publicity — news stories and other forms of free publicity; and Exploitation — stunts, contests, cooperation of merchants, and tieups with music distributors. It was the policy of the company to popularize the individual pictures and stars rather than the trade-mark of the company. The company employed an advertising agency.
Physical distribution was largely centered in the branch exchanges, which obtained positive prints from the company's laboratories in New Jersey. The activities of an exchange, in addition to the sale of pictures, included the booking of pictures for exhibition, the inspection and repair of film prints, shipping and receiving, and billing and collection. Each exchange manager, although in direct charge of all the activities of his exchange,
Actual figures have been altered.