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ADVERTISING.

A MODERN MAGIC CRYSTAL. BUSINESSES AND THE PUBLIC. Advertising to-day has become on.e of the marvels of the twentieth century, writes George B. Hotchkiss, chairman of the Department of Marketing in New York University. It is evident in.the increased volume of advertising of all sorts that greets oun eyes; .at every turn. It is evident in the list of the- Stock Exchange, where we And dozens of companies whose most valuable assets are the- goodwill of their names aitd trademarks, built largely by advertising. Indeed, if their -tangible assets were destroyed they could still dispose of their businesses f°r huge-! sums.- A branded aTticl.c that the public knows and likes is strongly entrenched- against financial adversity.

The true story of some of these advertising successes is fascinating as a romance. A mild antiseptic liquid had been doing, a modest business for, years prion to 1921, with annual net profits, somewhere around £20.000. And then the owners began to advertise more extensively apd! effectively. The' volume of business doubled and quadrupled, until last year the net profits were forty times greater than seve;n years ago. Then theYe is the vegetable shortening that has grown from the, infant of a great corporation to its most valuable product. And the safety razor that has built ,a mammoth business. And the canned soup and the mint candies the lisj; of great imlustriejs;- that advertising has helped to build could be extended idefinite-ly.

Among retailers ;a,lso great institutions, have been built up with the a’d! of advertising—department stores, mail-order houses, and chains of stores. Inspired by these successes, more and more retailers are; using advertising in constantly increasing volume; .As a result the. total cost of advertising in the United; States annually is estimated to be' well above £200,000,000. The business man no longer questions whethen or not to advertise, but whereand how to advertise most effectively. The general conclusion reached by those who are best competent-to judge is that the most effective meajiis is to use newspapers which reach the home and whose audited circulations are proof that their, message reaches the bulk- of the? community served by the advertiser. Advertising is the ■magic crystal of knowledge. Although less spectacular, than the magic carpet of transportation, it 4,s equally essential in the process of bringing together demands ami supppl-ies. Producers need to knnw where their goods -are wanted; consumers need to know where their wants can be supplied. Someone, somehow,, must transit the. information. If the selfer does not it it—as ordinarily he does —the buyer must. Columns in our daily newspapers filled with" the want ads. of wouid-be buyers testify toi the fact that advertising is a double-end-ed service.

Business men would 1 gladly find a cheaper-substitute for advertising if they could. The only reason why they continue to use advertising nn ever-increasing volume is the fact that they have been unablei to find a less costly and wasteful method of distributing information about themselves and their products. Many a company ea.n show in actual figures that the sell'fig cost on a tin of their soup or baked beans is less when advertising is used than it was when ey depended on personal salesmanship alone. In such cases advertising pays its own way I it costs the consumer, nothing. Advertising sometimes saves -a. part of its cost; by permitting, mass production of a standardised ' product in enormous quantities, and lienee at a lower production cost than would otherwise be possible. The consumer reaps the benefit of these savings, directly on indirectly. Thu it is evident that although the consumer pays the cost of advertising it is not altogether a tax. without advertising he might have to pay more for less quality. Moreover, lie deceives added services which aie worth something. Probably they are worth all' they cost, for he continues to pay for them in preference to a different expenditure for the Same money.

Permanent link to this item
Hononga pūmau ki tēnei tūemi

https://paperspast.natlib.govt.nz/newspapers/HPGAZ19280727.2.16

Bibliographic details
Ngā taipitopito pukapuka

Hauraki Plains Gazette, Volume XXXIX, Issue 5305, 27 July 1928, Page 3

Word count
Tapeke kupu
652

ADVERTISING. Hauraki Plains Gazette, Volume XXXIX, Issue 5305, 27 July 1928, Page 3

ADVERTISING. Hauraki Plains Gazette, Volume XXXIX, Issue 5305, 27 July 1928, Page 3

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