THE DEPRESSION

Hokitika Guardian, 8 October 1931, Page 2

THE DEPRESSION

ADVERTISING OPENS THE DOOR TO REVIVAL. GREAT TRADE FORCE. Industrial depression is affecting every part of the civilised world. It is not limited to any one industry, but affects all commercial activities. Notwithstanding this blanket- of depression it is certain that advertising cap p]ay a large part in lifting it. Thus spoke Lord Camrose editor-in-chief of the “Sunday Times,’ in an a<L dress at a Convention of Advertising. He then stated simply the principles and purposes of advertising. To advertise is to inform, he said. The main purpose --, Hie inio'-mation is to sell goods and . 1 bat is our concern to-day. Even our great political parties advertise to soil their services. They sell those, just as the merchant does his goods, by making promises and assertions; they are criticised just as the merchant is, if they fail to perform those promises and substantiate their claims or justify their assertion. Unlike the merchant politicians are usually prepared for a comparatively short term of the enjoyment of public favour. The sound merchant must base his policy, expenditure and programme 011 a long continuance of public favour. He recognises that advertising can not carry the whole of the responsibility of. commercial success. J emphasise this point- because I fear that-to-day it is a common thing to expect too much of advertising. Sometimes it is -necessary to strike this note of warning to all those concerned in the use of the great driving force of industry.

MUST JUSTIFY CLAIMS. I Advertising is the greatest individual force in trade development when used! to convey informa ton and to persuaae the public to buy. commodities of real value and service; commodities which ( justfy all the claims and assertions I made on their behalf; commodities for which there is a real or potential demand ; commodities which are so dis- , tributed that they are easily obtainable by those who have been asked to buy. j Ido not tliink too much emphasis can he laid upon consideration of the articles to be advertised. It must be justified on the score of utility, desirability, value and service. No commodity should be launched without a thorough examination of the particular market it is intended to supply, and a close examination of all similar articles being offered in that market. It is equally obvious, although it does not need restating, that the wholesale and retail trade should have the necessary supply to meet the demand to be created. If I reiterate these facts it is because lack of proper consideration and faulty judgment as to the probable public- demand for a particular article, and inefficient distribution, are still the greatest enemies of advertising. Every advertising failure is a deterrent to the progress of busines. The problem we who are engaged in the advertiing business are faced with to day is to prove the essential need of maintaining advertising during this [ time of world depression, and in urging this necessity I only do so in connection with articles the manufacturer has every justification for marketing. To repeat, these are articles of value and service to the public- which meet the public's economic 11 and purchasing power. , May we consider 10. . .-.-nt- the < economic advantage to the pul.J'c -jf ad- ( vertised articles. The hulk of them c can he proved to he cheaper when 1 quality is taken .into consideration than t unadvertised goods competing with s them.

Advertising is a. selling method which should it - increase the cost of a par-

ticular commodity would make that commodity unsaleable against non-ad-vertised competitive articles. LOWERS DISTRIBUTION COSTS. Advertising is a method of reducing cost of distribution. The force of competition makes it- impossible to maintain the sale of an article unless at a competitive price. As an example, take a modern product, the motor-car. Who can question that advertisng, by increasing demand, has reduced cost? That same principle is applicable over the whole range of industry. Mr Amery, when Secretary of State for the Colonies, said that “under modern conditions of industry, advertising is absolutely an essential element in effieenev and cheapness of production.”

There* has been too great a tendency on the part of merchants and manufacturers to curtail for the time being their expenditure because of a- temporary tailing off iut demand and smaller balances of profit on trading. To put your pencil through certain items amounts in an appropriation is a comparatively simple thing, hut is no simple tiling to deal afterward with the inevitable result which will he, although perhaps not immediately, a lessening of tire demand and a fall in sales. AS ESSENTIAL AS MATERIALS. 1 btl eve myself that there are times when expenditure has to he maintained even at- the risk of lower dividends. At the present moment it is urged by some that advertising is costing more, a.s the return from a depressed community is not as good as it would he in times of national prosperity. But advertising is just as essential as the raw material of a product, increased cost of which has to be paid for if you are to continue to manufacture. The difference is that you can not do without your raw material, but you can stop your advertising expenditure, though unwisely. I have said that advertising is to inform. If von expect to continue to make sales it must- be necessaiy to continue to inform the public of your articles.

J venture to suggest that the opinion of our leading experts to-day would be that the .special atepi to take to meet the prevent depression is the production of articles at a price to meet depression purses. This can be accomplished by mass production and advertising,