Sponsor (Jan-June 1950)

FACTS THAT TALK (Continued from page 11 i duction of customers is one of tin greatest of all American inventions! America's markel place has nevei before been so nimli oi a challenge — a market really worth competing for. Basic figures (in billions! look I ik<this: 1929 1948 U.S. National Income 87 226 U.S. Spendable Income 82 194.f Personal Consumption Expenditures 79 1 78. 1 This is the most significant part of the story to business men. to advertisers: In 1935 five-sixths of I .S. families had incomes under $2,000 a year — 84// . Ten years later more than half of U.S. families had incomes over 52.000 — 57%. In the same period families with incomes of $5,000 and over increased 455' '.■'<. Families with incomes between $3,000 and $5,000 increased 455%. In the $2,000-$3,000 bracket the number of families increased 150' « . In L936 the percent of U.S. families with incomes above "subsistence levels'" was onl\ 26.7' < . Their total nonsubsistence spending was $21.1 billions in that prewar year. By 1950 the 26.7% of families with incomes above subsistence levels had jumped to 62' , . and their total nonsubsistence spending was $54.0 billions— a big pie to cut. The people who make these figures have not only raised their standard of living enormously since the people of Ben Franklin's day. Their choice of kinds and brands of goods, even since 1920, has increased amazingly. All ibis means that American business is geared to making its profits on volume not on price. I he key sales problem is to reach as man\ different families as possible, as cheaply as possible. In the late 30's, 509? °f all new automobiles were bought by families with incomes under $2,000 a year — as was most of the soap and foods and watches and all other advertised goods. That was because 80', of American families had incomes under $2,000 a year; there weren't enough "rich" families to produce volume sales! This is the widening oj the markel place that keeps our mills and factories and transportation systems busy, <au rctml system spreading widei and deeper into the coun'r". The Voice 0/ The Markot Placi \\ bat is advertising, anyway? It is selling at a distance . . . selling people 1 efore the) gel to the store . . . bringing them into the store. Advertising reache out to people and turn them into customers wherever the people are. \\u\ a> the market get bigger, advertising becomes more and more profitable to business. As markets get more competitive, advertising becomes more and more essentitd to business. Competition is the prime mover. Of this fact top management is quite aware, even when it does not have a strong sense of advertising I this often happens because top management so frequent!) has its roots in production and finance rather than in sales I . Where does the primary power of advertising come from? Win. from the people themselves. Our greatest characteristic, stemming right out of our democracy, is to want something better. Better jobs, better food, better home furnishings, better services. Everybody wants them, not just a chosen few. And advertising sells to everybody! People set the objective. Advertising tells them how they can achieve it: what to get. where to get it. It is sometimes objected that advertising makes people buy goods they don't uant or need. But when the product is sampled, the product takes over, largely. The second sale depends mainly on the product, and it is the second sale that males the profits! Advertising appeals most to people who are most prone to tr\ something new and better. It sells them. Then the\. to an important degree, help to sell their neighbors. Advertising pick out the "class market" of America in even income le\el. These most resDonsive people listen most to radio! Radio, more than any other medium, covers advertisings "'class market" up and down the income-scale. The three (halt aC< "in paining this feature illustrate this in To SELL the PEOPLE Who Buy The MOST in the ^ ) I U B $# POPULATION Over 4 Million RETAIL SALES Over 2 Billion «s« o*«-^g* °°° WATTS 0MAHft!*!liii FREE and PETERS Representatives HARRY BURKE Gen'l Manager Another FIRST ForKDYL-TV Afternoon programming aimed at women l naturally) marks another important "first" for Salt Lake's first TV station. Availabilities during this 3 to 5 p.m. period are unusually attractive. ,^r^> Salt Lake City. Utoh National Repreientotive John Bloir & Co. 30 JANUARY 1950 121