NAB reports (Mar-Dec 1933)

perhaps I viewed this subject somewhat differently from the way some of you seem to view it, I made it my business to questionnaire many of the country’s leading newspapers as to just how they handle this matter of merchandising. I have here a questionnaire that is used by one of the country’s leading papers. That is the basis for the operation of three of the newspapers in that citjr. I would like, with your per¬ mission, to read this to you. It is headed, “Merchandising Cooperation.” “Will you send out letters to the wholesale and retail trade in your city? Yes. “Is there a charge for this service? Yes. “If so, how much or on what basis? This work is done at actual cost. “Do you j>refer to have us prepare such letter for you? Yes. “Do you make personal calls on the trade telling them about a campaign? We do make personal calls on a reasonable number of outlets. “Do you place window stickers? No. “Do you place counter cards or store displays? No. “If not, will you take orders for window displays and de¬ liver them to retailers? No. “After they have been distributed will you make a survey to cheek up on the number of stores using them? Yes. “Do you have a display window?” (Or we might interpret that a reception room display.) “No. “Will you place radio counter cards for our clients who are on the air? No.” (This is a newspaper questionnaire.) “Do you publish a trade paper? No. “Are there any other forms of cooperation not mentioned above which you are in the habit of rendering? If so, will you please indicate them below? We supply routed lists of dealers, effectively and economically routed, for use by the manufacturer’s salesmen. We will supply portfolios for the manufacturer’s salesmen to show dealers.” (That is portfolios of press proofs of advertising and so forth. We can do the same thing with a very well written presentation of the radio program, of its presumed and hoped for effects.) “We have also made a most comprehensive analysis of con¬ ditions as they actually exist in this market, and the informa¬ tion we have compiled is available to you at all times. Sales¬ men, sales managers and advertising managers, alike, will find this information of interest to them, as it tells in its en¬ tirety the selling potentialities of this market. There are a number of ways in which this paper can assist a manufacturer that may not be considered as major cooperation, yet never¬ theless, producing the desired results. At any time that we can be of service to you, please let us know of your require¬ ments and we will gladly render all the assistance we properly can to help your efforts in this territory to success.” Which will mean another do-we-do-so-and-so? No or yes, as the ease may be. Personally, I think that very well covers the list. In per¬ sonal conversation with the promotional manager of one of these newspapers, lie tells me that this matter of the surveys and researches they go into is not only of value to their pros¬ pective clients for whom they are making them, but it is of ultimate value to the newspaper itself in fostering more busi¬ ness from directions that at that time are not placing the business in their territory. We can very well do such work as that; that, I believe, belongs in our corner just as much as it belongs in the newspaper corner. I think this balance between the things they can properly do and the things that are improper to expect is very nicely drawn here and might be a guide if anyone desires to have this copy as a basis at least upon which to consider this sub¬ ject of merchandising that most certainly should receive ulti¬ mate consideration of every man in the industry at this present time. Now, your questions. MR. JOHN HENRY : Is there any city or state who has an association in which there is an agreement upon mer¬ chandising practices? Is there any such city association or agreement among competitors in that city? MR. HOWLETT: An agreement? MR. JOHN HENRY : Between competitors in a city, for instance, in Cleveland between broadcasters that they will or will not do certain merchandising. MR. HOWLETT: I know of no such city where such an . Page agreement is in effect. This does not mean there is no such city. Does anyone here know of any city where there is such an agreement in effect? MR. JOHN HENRY : I inquire because tentative plans are under way for something like the Nebraska Broadcasters’ Association. It has been suggested, and I presume that is one of the things we will discuss, and if we do discuss it, we would like to know what is being done elsewhere. MR. HOWLETT : I would think, in answer to that, the matter of merchandising support will in the final analysis be left to the individual station. Geographical location will de¬ cide some factors involved, and the radio station’s affiliations will decide other factors. I think each one will have to find their own role for themselves, using such mediums as this particular meeting for exchange of opinion as a guide both to just what we might correctly and properly do. CHAIRMAN CARPENTER: May I ask you on that ques¬ tionnaire there if there is a definite line of differentiation between what they do and what they don’t do? Is there any particular basis for the question or the yes or the no? Is there any particular class of things they will do and any par¬ ticular class of things they will not do ? MR. IIOWLETT: Apparently not. The classification or the merchandising entitled advertising, whether it is display or not, does not seem to be on this particular questionnaire. I am sure this questionnaire is the one that is used generally and always. I am also certain in my own mind that these “yesses” and “noes” have behind them many years of bitter experience, careful consideration, before this form was made out as a guide for leading newspapers. “Commercial Scripts,” by John Henry, of KOIL, Council Bluffs, Iowa. * * * Mr. Henry presented his prepared paper. (Applause) COMMERCIAL SCRIPTS By JOHN HENRY If I were to search for ideas for the operation of a radio station, I’d not go to a library, or to the files of a newspaper. Instead, I’d set about trying to learn why station So-and-So down south or some other direction was able to make money this year. I’d write me some letters to the managers of other stations that rumor or Broadcasting Magazine said were able to keep the wolf out of the kilocycles the past year. And the tenor of my queries would be : “How the heck did you do it?” I’d send my letters to all the successful managers. And they, being successful managers, would reply, giving an outline of what they did. * * * And, everyone of them would write, “We worked out some program ideas that were sale¬ able and then went out and sold them.” Then, what would I do? * * * If those managers liadn’t already sent it to me, I’d ask for a description of those programs, with the idea of adapting them to my radio station. And, one big emphasis in my letter would be: “How about furnishing me a script of the program?’ New programs! New ideas! If the programs of yesterday won’t sell, work out some others. Sure, I know there’s a depression. That’s why every business man is waiting at the front door for the radio salesman who will bring him an idea for increasing Ids sales. The station of which I am manager, KOIL, of Omaha, Nebr., and Council Bluffs, Iowa, netted more money in March and April than ever in its history, and next month, July, the mid¬ dle summer month of the great depression year, our local advertising business will run 50 percent more than any other July, and more than any other month in our eight years of history. Our increase has been almost entirely on new pro¬ grams and new ideas, adapted to the depression, if you please, and dedicated to the proposition that getting new business is not free and easy. I do not know how many other radio stations have been making money, but I daresay there are quite a number. Wherever they are, I’ll wager they are using different pro¬ grams than in the past. Probably, they have better sales¬ men — all of us have had to have them. But, the salesmen have to have something to sell. They couldn’t sell what we were trying to sell last year. That means new programs, new ideas this year. 143 .