NAB reports (Jan-Dec 1937)

ciation of Broadcasters, explained in detail the method developed to handle this problem in Southern California. It was generally felt that this problem deserves considerable study and action on the part of sales managers groups throughout the country. On the question of standardized frequency or quantity discounts it was decided that the industry had not yet advanced to the point where such standardization was possible. Seventeen sales man¬ agers or other station executives were present. The Southeastern Section meeting was held at the Tutwiler Hotel in Birmingham, Alabama, on Tuesday, November 24, 1936. Mallory Chamberlin of WMC and WNBR, Memphis, Tennessee, presided. Here, general opinion favored two rates as an economic necessity. Those present were hopeful that the Sales Managers Division might develop some simple, satisfactory and universally accepted definition of national and local business. This will be mentioned in more detail later. This meeting, like many of the others, emphasized the wide variation in methods and rates of compensation for local salesmen. The perennial merchandising problem came in for a wide discussion, with the general feeling that merchandising should be definitely in line with the amount of service purchased by the advertiser and never allowed to grow out-of-hand. This meeting, too, urged an effort to develop standardized frequency or quantity discounts. Eighteen sales managers were present at this meeting. Let me summarize these section meetings very briefly. A total of ISO sales managers or other station executives attended these meetings. This represents 60% of the 250 sales managers who have voluntarily asked to become members of the Sales Managers Division. Remember, there are no dues in connection with the Sales Managers Division. The sales executive of every NAB member station is eligible to join. With a single exception, all of the section meetings voted unanimously for an effort to standardize frequency or quantity discounts. The wide difference of opinion on sales control and compensation for salesmen clearly indicates that further dis¬ cussion of these subjects will be profitable for all concerned. The subject of dual versus single rate is another topic that is certain to receive increasing attention from sales executives everywhere. How far should we go in merchandising? The wide variation in this phase of business-getting and holding offers a real opportunity for constructive thinking and discussion. Creative selling, both as it applies to local retail business and national non-network bookings, is one mighty important subject that’s going to receive continued attention. So, too, is provision for an exchange of successful commercial program ideas. The activities of the Sales Managers Division were culminated in an inspiring two-day meeting called the First Annual Conven¬ tion. This was engineered and guided by J. Buryi Lottridge here at Hotel Sherman on January 18 and 19, 1937. Every one of the eighty-two sales executives who were present had ample opportunity to speak. And, everyone to whom I talked felt that he had gained definite and valuable knowledge and inspira¬ tion from the talks, opinions and practices that were freely re¬ viewed at that meeting. But let me start the review of those four meetings at the begin¬ ning. Following the opening address of Prexy Charles W. Myers of NAB, R. J. Barrett, Jr., then of Blackett-Sample-Hummert, Inc., explained “how the radio station sales manager can help me sell his time and keep it sold.” There was plenty of food for thought in what Mr. Barrett said — food for thought on the part of station owners and managers as well as sales managers. What Mr. Barrett said deserves repetition but time is short and his remarks were reported in the trade press. Then came T. F. Flanagan, President of the Penn Tobacco Company and one of the staunchest advocates of national non¬ network advertising. He, too, had a message of real value. He drew on an experience rich in the good points and the bad points of station policies and sales methods. Here, again, much that he said deserves repetition and if you failed to read the reviews of his talk, you’d better make a note right now to do that very thing when you get back home. And don’t be afraid to put the shoe on if it fits. The Monday afternoon session was opened by H. K. Carpenter, Chairman of the Commercial Section, of which the Sales Managers Division is a part. Then came a real knock-down and drag-out battle over national sales problems. “One rate for all buyers,” said one speaker — “Dual rates are a necessity under certain conditions,” declared another. And the fight was on. When the battle died down, J. Leslie Fox, of KMBC, Kan¬ sas City, who was in charge of the afternoon session, called for a show of hands on this subject and the count was exactly even. But, it would have warmed the heart of even a Methodist evangelist to hear the voluntary testimony from the floor on the part of three or four sales managers who proclaimed their conversion to the single rate idea at previous sectional meetings. This subject deserves discussion wherever sales managers meet. A majority of the sales managers present agreed that the single rate is an ideal towards which we should all strive — an ideal that we believe can be very nearly achieved in time. Kenneth Church of KMOX, St. Louis, led an exceedingly search¬ ing discussion of national sales problems. To quote from his talk: “Half the problem is getting it; the other half is holding this business.” He also emphasized the importance of local sales efforts on dealers, distributors and branch offices to obtain this business. In the discussion that followed, it was generally agreed that there is room for creative selling; that such selling invariably begins at home, that is, with the station itself ; and that the exist¬ ing system of station representation is able to further such creative selling. The discussion of “contingent business and other trick offers we get from some buyers” was led by William R. Cline of WLS, Chicago. Mr. Cline read several recent letters received by various stations proposing cost-per-inquiry and contingent contracts. This type of business was unanimously condemned in no uncertain terms by the sales managers present. This led to a discussion of direct selling — where the listener sends money to the radio station for merchandise not otherwise available. A majority of the sales managers present condemned this practice as not in the best interests of this medium. During the Monday afternoon session, the sales managers adopted a motion requesting The Chair to appoint a committee to investigate the standardization of units of sale and frequency or quantity discounts. The com¬ mittee appointed consisted of: Hale Bondurant, WHO, Des Moines, Chairman; William R. Cline, WLS, Chicago; Mallory Chamberlin, WMC and WNBR, Memphis, Tennessee; and Jack Gross, KWKH, Shreveport, Louisiana. The Tuesday morning session was opened by NAB Managing Director James W. Baldwin, who briefly reviewed developments in broadcasting since the 1936 convention. He was followed by Walter Schwimmer of Schwimmer & Scott of Chicago. Mr. Schwimmer discussed “Servicing the Radio Advertiser and the Station.” By his own admission, his talk was devoted almost exclusively to the A-B-C’s of broadcast advertising. And the sales managers agreed that the A-B-C’s Mr. Schwimmer out¬ lined are the most important fundamentals of commercial broad¬ casting. One statement from his talk is the sort of thing we all like to hear. I quote: “Advertisers have told us innumerable times that radio, for a given period, has out-pulled any other form of advertising, and these statements were based on actual comparative tests.” Mr. Schwimmer was subjected to a severe cross-examination that brought out many other valuable facts. Preserving the high pitch of interest in retail broadcast adver¬ tising, Mr. Lottridge then presented Edward Warner of the FerryHanly Advertising Company. Mr. Warner covered every phase of one case history in question-and-answer form. His minute analysis of the problem raised many interesting questions. It was a pretty sleepy sales manager who didn’t mentally tabulate for future reference the many important points that were covered. Every sales manager was back in his seat promptly on Tues¬ day afternoon for the all-engrossing panel discussion of local sales methods and servicing, conducted by Mort C. Watters of WCHS, Charleston, West Virginia. Rather than review the various talks that comprised this panel discussion, I am going to list the subjects: 1 — “Changing accounts from a small announcement schedule into a larger program plan.” 2. “Using the telephone for local sales.” 3. “What about street cars?” 4. “Appealing to a department store by playing up a tradition.” 5. “Keeping a 100-watter sold out.” 6. “Showmanship in local sales.” The subjects of these talks clearly indicate the ingenuity that sells local broadcast advertising today. While the NAB REPORTS show that local broadcast advertising is rising rapidly in dollar volume, nevertheless, we sales managers feel that we have only scratched this major field. That is why Mr. Lottridge set aside the entire second day of the First Annual Convention for a discus¬ sion of this source of business. Local broadcast advertising has been discussed, is being debated and will be promoted whenever sales managers meet. Until we have doubled, tripled and quad¬ rupled the percentage of the retailer’s advertising dollar that goes into broadcast advertising, we cannot feel that we have really carved a place for our medium in this field. 2460