•NRLF xt:- :^.^^:^:^xl;.':U -':/>M^-^'' iHi GIFT OF Mrs. William L.Oook BIGGER, BETTER BUSINESS Editorials on Constructive Selling By JOSEPH H. FINN 'I President NICHOLS-FINN ADVERTISING COMPANY CHICAGO — NEW YORK * Reprinted from CHICAGO HERALD FOREWORD REPRINTED FROM THE CHICAGO HERALD Joseph H. Finn, President of the Nichols -Finn Advertising Company, who contributes these business editorials in the Chicago Herald, is one of the national authorities on merchandising, advertising and selling. His experience in promoting sales covers almost the entire range of modern business and his editorials will repay every attention given them. Among the important American corporations counseled by his organization are: Great Northern Railway, C. B. & Q. R. R., Wizard Products Co., Mutual Film Corporation, John M. Smyth Co., Schulze Baking Co., Addressograph Co., Goodrich Transit Co., Northern Steamship Co., T. A. Snider Pre- serve Co., Morris & Company, American Film Co. Inc., John Lucas & Co. Inc., Union Passenger Station Co., A. M. Ramer Co., Delta Electric Co., Middle West Soil Improvement Comm., Philipsborn, the outer gar- ment house, Sidway Mercantile Co., American Linseed Co., Kalamazoo Corset Co. The readers of the Chicago Herald may feel fortunate to receive the benefit of his opinions. THE BIG IDEA IN MERCHANDISING EVERY year those who are concerned in securing America's home trade spend more than $1,000,- 000,000 in various forms of promotional activity. They spend that amount in merchandising — to sell goods. In view of this enormous investment there is small wonder that in leading business enterprises all over the country they are organizing for the highest efficiency, for economic results, not only in the manufacturing departments — the actual production of the merchandise — but in merchandising methods. They are organizing for the production of sales with least resistance, at a right profit; the maintenance of permanent distribution and consumption. Scientific management has scope for its farthest- reaching application in modern merchandising. Today, the word merchandising has a meaning not only in the field of trade but to the consumer. He appreciates that merchandising as a means of co-operation between the buying and selling public has arrived at the stage of an actual business science. The consumer relies upon the merchandising effort of manufacturers and distributors for convenience in buying, for "making the price right," and for actual information regarding buying opportunities. And all of this, which represents service to the consumer, is a natural, legitimate part of merchandising in its broadest sense; H( H: H: 4: 4: Formerly in merchandising, mere bigness — the great- ness of the institution merchandised — was supposed to sweep away resistance solely because of overwhelming size. In those days the smaller concern felt at an immense disadvantage in competing with the tremendous multi- millionaire institutions, whose sales organizations were Copyright, 1915, by J. Keeley. supposed • fo ^bp;, unbeatable. Mere brute expenditure dominated th^ii— ^but not today. Now it is generally realized that a merchandising campaign does not succeed solely because of the size of the appropriation, but rather because of the big idea upon which it is based. This new order of things means a greater necessity for careful analysis than ever before. It means that before merchandising is begun, before advertising pro- cedure is undertaken, before a definite policy of sales promotion is established, the head of a business should give serious attention to the vital, underlying elements which differentiate that business from competition. Every business has its individualities, its specific traits, and if it is a good business it possesses special, favorable talking points. It is in connection with these basic features that the merchandiser has to do his hardest thinking and here, if he is wise, he will call in the best constructive "thinking help" he can secure. Anyone who has ever attended a factory convention, where the ginger spirit is rife, knows that the number of talking points, the quantity of inspirational salesmanship material, which generates in the heat of business enthu- siasm — based on a really good commodity — is remarkable. Yet to attempt to "bunch'* all of these selling arguments, all of these merchandising appeals, all of this advertising material, would be to confuse the entire promotional effort hopelessly. Therefore, in merchandising plans, in summing up selling material, in arranging advertising effort, elimination is the essential thing. Tell as your story the one biggest, most humanly appealing thing about your product. This is true in selling to the jobbers, in selling to the dealer, in going direct to the consumer. Human nature at best assimilates slowly. Selling arguments are quickly forgotten, advertisements are hurriedly read. The thought uppermost in the mind of the prospective buyer is: "What is the one reason I should prefer this article to all the others of the same class — not a confusing flood of reasons, b ut the big, upstanding fact which mighty enough to con vmce me P^ " " — ' "" And^so 1 say — and commercial history bears out my words — that it is the big idea that makes the merchan- dising campaign. It is the master .selliDg point , in com- parison with which all others dwindle, that carries home. ***** This big idea may be in the product itself, it may be in the method of selling, it may be even in the package or container. For example, a famous brand of biscuit probably owes its biggest success not to a quality that is unlike other biscuit, but to the way freshness and purity are preserved because of the protecting selling-package. Sets of books have been sold in this day when it is lamentably true that the library is losing its popularity, not by "starring" entirely the worth of the books, the greatness of the authors, the wonderful mental stimulus and improvement to be obtained by the study of literary masterpieces, so much as by the method of sale. The books are sent on approval, without advance payment, and a trifling amount accepted each month. In this case the big merchandising idea is free inspection, price and terms. In other cases the big idea in merchandising is demon- stration, which works out exceptionally well in connection with a chain of business houses at preferred locations. Take as examples. United Cigar Stores products and Rexall remedies and toilet goods. Both of these concerns are organized to "put over" successfully the best kind of personal demonstrations in their stores and they do it continually with splendid merchandising effect. Here, the big thought is putting it up to the customer in person. And, as a vital part of merchandising, advertising has as its object to impress upon the public mind one big thought. If it has done that it has done its work well. No doubt there are many worth-while facts in connec- tion with Prudential insurance. Undoubtedly this pro- position bristles with important selling facts. Yet because this company years ago adopted as its big selling point "strength" and typified this thought by a repro- duction of the Rock of Gibraltar, every schoolboy today associates this with Prudential insurance — a fact that has had not a little to do with the progress of this enterprise. The Great Northern Railway, in hundreds of direct and indirect ways, has given publicity to the slogan *'See America First." People have said that this slogan is too wide in application to be of tangible benefit to the Great Northern Railway. True, "See America First" tends to create a desire for American travel which will bring good to other transportation lines as well as the Great Northern. But this company builded wisely. The Great Northern people knew that anything which tends to stimulate transcontinental travel in America will naturally benefit this road. ^ 'I* •!* 'i* -I* When you compare the division of interest of a many- topic advertisement with the smashing single force of a big idea that stands out and impresses, you will realize why so many businesses hold fast to the one master selling-point that has proved itself right. I have said that every good business has within itself this one greatest talking point, in comparison with which all other arguments seem inconsequential. In many businesses this big idea exists but has never been dis- covered or it has never been disentangled from minor talking points as it should have been. In many cases the big idea is entirely concealed and is only brought to light after the most careful analysis and painstaking research. The big idea may be in the product itself, or it may be in the sales promotion of the product. In either case it represents the fulcrum of the lever of sales. Every good business is susceptible to good merchan- dising — good publicity. Every good business which will endure has, some- where in its make-up, a big idea on which all selling activities should be centered. And fortunate is the business which early discovers and uses in all its promotional efforts this single-barreled, bull's-eye-hitting. Big Idea. THE GOLDEN VALUE OF COURTESY THESE are days of intense business effort. Efficiency engineers are in demand. Business is organized along scientific lines. Waste is elimin- ated — production increased — economy is rigidly enforced. But sometimes it strikes one that while the heads-of- affairs are perfecting to the finest point the mechanics of business, the human element is sadly overlooked. It is not a business millennium to arrive at the point where everything is done with machinelike exactness, where mistakes are checked and rechecked against, until there is no possibility for error, and people go through a set of regulated motions daily and yearly like so many automatons. Human nature is a great, big essential in business. •f* "I* •K T» ^ Far more important than business details — upon which stress is wisely laid, but which still remain details — is the ability to meet people on a common human ground, to waken in them responsive interest and friendly feeling. A retail store may be conducted upon lines absolutely beyond criticism so far as correct merchandising methods are concerned; employes, from general manager to stock- boy may be so carefully rehearsed in the minutiae of daily transactions that things will run with clockwork precision, yet the whole business may be as bloodless as a mummy. Another thing which clogs the wheels of real progress is superdignity. In many offices the reception is so austere and chilling that a prospective customer who may have called in a warmly responsive mood has his ardor dampened, his enthusiasm congealed, before he is fairly across the threshold. Copyright, 1915, by J. Keeley. Such businesses may be in the present, but they are not of the present. They belong back in the kerosene age. Even in modern banking institutions conducted on live, twentieth-century lines, the tip-toeing of side-whiskered dignitaries, the servile obeisance of pussy-footed clerks, the solemn silence over all, has given way to normal, wholesome business activity. Assuredly, pomp and merchandising do not go to- gether. If you create around your business a wall of resistance — built of an exaggerated idea of your own importance — customers will not climb over it. He H« He * H: Democracy is the order of the day. I have visited small offices where the clerk at the information desk must be approached like a royal poten- tate, with a salaam and shoes in hand. I have visited big, worth-while businesses where the "old man" was instantly seeable and a good-natured freedom from pretense and pose permeated the entire establishment. More business than many people suppose is built on the solid basis of good nature — contagious friendliness — real courtesy. Heaven knows it is an inexpensive virtue, but it is by no means common. If I were launching, we'll say, a retail business, I believe that, first of all, I'd get all my salesfolk together and talk to them somewhat like this: "We are all human and mistakes are human, too. Not one of us is going through this business routine day after day without a slip. "If there were not an error once in a while I would think that there was too much perfection, and I'd know that you had so transformed yourself into selling machines that you had extinguished the vital spark of human intelligence and human sympathy. "But there is one mistake that there is no earthly reason for you to make — for which there is no palliating excuse. "It is the crime unforgivable in this business, "And it is lack of courtesy." Indifference and offensive mannerisms on the part of subordinates have lost sales and made business enemies which have represented a deficit of millions of dollars in the history of modern business. Just ordinary politeness frequently makes a bigger showing on the sales slips than thirty-third degree, scientific salesmanship. The trouble with a great many salesmen and sales- women who have been schooled in the psychology of selling is that, having mastered the problem, they are so overwhelmed with their own importance that they forget that psychology means plain human nature, and they are entirely too convinced of their own cleverness and their gift of analysis, to make a sale in a plain, human, friendly way. Usually the head of the business really stands for genuine, human service to customers — the fine art of courtesy. Frequently the general manager of an institu- tion does much to pass the spirit along. The merchandis- ing manager is thoroughly in harmony with this idea. The advertising man, in his copy, breathes the message of welcome and square, courteous dealing. But some one shies a monkey-wrench in the machinery before it goes much further. It is the result of a lack of harmony — of failure to carry out all along the line the esprit de corps of the institution. :(: :{: Hi H^ H( It is disheartening — it is certainly discouraging to sales — to enter an institution sort of bubbling with friendliness — the result of the firm's cordial message and sincere appreciation of your trade — and then to be met by an individual who sizes you up disdainfully and waits on you at his or her own sweet time. It is "riling" to pause while Kittie and Minnie discuss the new floorwalker and their latest gifts in wrist watches and lavallieres. It is infuriating to have a dapper "Bunker Bean" style of youth insist that your own taste is bourgeois, and that you should purchase this or that article for the final, indisputable reason that he wears one himself. There should be no forgiveness — no punishment short of boiling in oil — ^for the party who fails to cover a sneer when you ask for an article at a certain price, assuring you patronizingly that no one who is anyone thinks of paying less than 49 cents more. ***** In modern living the opportunity for rubbing the ''subject" the wrong way is a million-fold. Over telephones, on street cars, in elevators, theatre box oflSces — ^yes, even in churches — this "public be squelched'* policy is in great vogue. Somehow it is regarded as the proper professional attitude to be aloof, ungracious, condescending or stolidly indifferent. It isn't professional. It is simply proof of abysmal ignorance. I honestly believe that if an amount of time equal to that devoted to the perfection of human beings as mer- chandising machines were spent on making merchandising machines human beings, it would mean a tremendous impetus in sales. If in every business institution as much appreciation, as full credit, were given the employe who radiates sun- shine, who has unfailing patience and intelligent sympathy, as to the one who masters severe technical difficulties, I am mighty sure that business would go ahead faster. Intelligence, initiative and courtesy are three big requirements in selling. And the greatest of these is courtesy. STORMING THE MARKET BY MASTER MERCHANDISING THESE are the days of brave business victories — the times when small, timid craft hug the shore. The faint-hearted business man goes out at dawn, scans the horizon, and if even the shadow of a cloud is visible, plans further retrenchment. Just because of this condition, courage — supreme con- fidence — accomplishes more today, I believe, than ever before. And the man's-size business man is reaping his just rewards. True, there is war in Europe. The Mexican turmoil continues. There are abundant loopholes and excuses, all of which merely clear the field for the real giants of action. Now, don't misunderstand me. It is not simply the business of enormous size that is going into the fight today to win. As a recent writer in the Saturday Evening Post clearly proved, "little business is cleaving its way to the fore with the sharp sword of service." Size has little or nothing to do with it. This is the success-time of the business with big aspirations and determinations, which, no matter what its size or where it stands, is willing to face the front and fight. No matter from where you look at it, the opportunity is here for the manufacturer or seller who possesses the gameness to meet present conditions and overwhelm them. Now, if ever, is the time to storm the market. In certain quarters there has been a lull. It is common to hear business men of the class which thrives on doubt and magnifies disaster declare that business is "so many points off." Then they sit down resignedly to compute their losses. This is very human — also it is worse than Copyright, 1915, by J. Keeley. futile. It is an illustration of the spirit which needs eternal encouragement, continual bolstering, to make success possible, even under the most favorable conditions. There is a different type of business man, however, representative of the finest stuff of which American commerce is built. These are men who have the power to rebound, men with just the right mixture of shrewdness and optimism, men to whom no day is all sunshine or all shadow. They recognize unfavorable conditions, but only to take them wisely into account in formulating ways and means to surmount them. These men, you will note, are not carried away in the mad rush when all signs are favor- able. They know that the law of compensation exists, that in some way, somehow, things will balance up with surprising regularity. There is under all business conditions a way to greater sales and profits, if it is only searched out and taken advantage of. This point is sure: it is not along the most heavily traveled road, not in following the other fellow. Just at this time, when others are complaining that business is off, when others are planning to defer their efforts just a little longer, wise men, who have the bigness of courage, plan to storm the market. This has already been done by certain wise ones in different lines. They found competition asleep, stole a march and won the bat- tle. Others are planning the same course. They are not many — these cashers-in on present opportunity — and their success is consequently greater. There are a dozen different lines of business which I could name where opportunity is ripe and the field is waiting to be conquered by a broadside of concerted, concentrated effort. When there is no war cloud on the horizon, when all money is freely in circulation, when confidence is in every- body's heart, the campaign spirit, the vim and deter- mination to achieve the highest success is universal. 11 Then there is no lethargy, no sleeping at the switch. The game is harder, the results accordingly more divided. But now the race is to the fleet and to the few. 4c :ic H< H^ ^ If you are a manufacturer or distributor of high-grade merchandise, if you are in a position to meet demand at a profit, your opportunity is here and now. Storm the market, generate greater selling energy, right at this time. The race of buyers has not ceased to exist. Another year of good crops makes this the most favored of all lands beneath the sun. Buyers are taking courage. Not merely are they spending money for necessities — they are looking with appreciative eyes toward the finer luxuries. A bountiful harvest awaits those who are organized to cash in on this profitable demand. Real merchandising activity not only bridges business depression; it builds the way to future sales; it revivifies and stimulates. It injects new life and impetus into wholesale and retail trade; it impresses the product upon the consumer at the moment when such an impression will be most clearly recorded. It commands the center of the stage, the glare of the spotlight when there are few other performances to distract. One thing to bear in mind is that it is easy to misjudge the mental attitude of the consumer. A little pilgrimage down the main shopping street of any of the leading cities will convince the most cynical that folks are not staying at home guarding the meager hoard concealed in a woolen stocking. This year's shopping season is showing a healthy activity. Stores are comfortably filled with actual buyers. Purchases are not hand-to-mouth; neither are they extravagant. They are just normal — made as though the buyer anticipated neither a millennium nor a crash. This winter opened with industrial conditions in far better shape. There are few really energetic and willing 12 people out of a job. Mills and factories are running. The country people are equally prosperous. They are close to the crops and have been quick to feel the returns. Mail order enterprises report an appreciable increase in business over this time last year. All in all, the people themselves show greater con- fidence, a truer grasp on optimism and are better boosters than the manufacturers. The latter — many of them — are still waiting for some mystic sign, some bow of promise flung across the heavens pointing to a pot of golden sales. Meanwhile, a little bit of courage, a willingness to go ahead decisively, a real determination to storm the market by aggressive merchandising effort, by more efficient salesmanship, more powerful and productive advertising, will win unusual results. Mr. Manufacturer or Distributor, move your mer- chandise, get the new impulse — NOW. Perhaps never again will there be offered such an opportunity to dominate your field, such a chance to fill the public mind with the quality of your product and do it so economically. Advertising is either good for all the time or good for no time. Red-blooded salesmanship is essential twelve months in the year of every year of your business lifetime. If you regard a carefully completed, perfectly organ- ized merchandising-advertising campaign as a luxury which you can afford only in the brightest prosperity times, you have a total misconception of the meaning of — the reason for — promotional effort. Keen merchandising plus live advertising is a means of best meeting every business condition, of filling business gaps, of bridging business crises. These twin forces offer you, if you are at the head of a legitimate business, an opportunity to storm the market and win success while competition nods. And, I honestly believe, "never so much so as now." 13 HARMONIZE THE SELLING EFFORT EVERY year the game of selling grows more difficult because competition assumes more serious pro- portions. Time was when the manufacturer of a quality article could go out and sell on merit alone. There was so much inferior merchandise, so much trickery and subterfuge were resorted to, so common was the tendency to "put something over" the buyer, that goods which really possessed worth and which were offered honestly on a fair deal basis were rare enough to command hearty support. If distribution was right, the goods largely sold themselves. It was in that former day that the fallacious philosophy was framed, *Tf you are making mouse traps and making them good enough, even in the heart of a wilderness, the world will wear a path to your door." The buying world is not wearing paths anywhere, so that you could notice it. The only paths that are being worn are leveled by the modern mouse-trap maker — and his counterpart in other lines of production — who smooth the way and pave it with good, hard labor to the doorstep of the distant consumer. Salesmanship has become more and more a man's game — a big man's game — calling for unfailing initiative, ceaseless vigilance and actual productive work. The old-time "substitutes" for genuine salesmanship have vanished in Time's discard. "Good-fellowship" — in the sporting acceptance of the term — moist evenings and sea-going cabs — no longer plays a stellar part in the closing of large contracts. Today, to be a real salesman, a clear brain, steady nerves and bounding health are vital requisites. Today, buying is done by comparison, investigation and analysis, and the salesman must be able, every minute of the time, to prove 14 his proposition — to do the sum without recourse to the answers in the back of the book. In the "old days" every salesman was a free-lance as to method. Men went "upon the road,*'journeyed more or less at their own sweet will, talked what came into their minds, and succeeded or failed according to the amount of business they could annex on a friendship basis. But there are fewer "friendship links'* in modern business. In the olden times, the selling and merchandising plans were so loosely made that it was not uncommon for one salesman to cross another's trail, for two men from the same house to be working on the same "prospect," each in blissful ignorance of the fact that the other man was calling. And it was most likely that these two salesmen were presenting lines of talk which absolutely conflicted. Then scientific merchandising came — and organized salesmanship. It took a long time to uproot some of the old traditions. There was strenuous opposition, especially from "star" salesmen who refused to be harmonized with the new, concerted plan of action. In many businesses today there is still need for better selling organization. But the new generation of sales- men — not necessarily the younger generation, mind you, but representatives of the new-thinking type of business boosters — are strong for the organization policy. They have not lost their individuality or submerged their per- sonality. They march under the harmony flag. They are the go-getters of today. As I emphasized in a previous article, there is almost invariably one big idea, one master merchandising thought in every business. When this one big idea is located it should become the basis of all salesmanship on the proposi- tion. It should become the dominating argument of every salesman. It should saturate his every solicitation. And all additions made by a firm to its selling staff should multiply by so many man-power the spread of this integral sales idea. IS One need know nothing of the laws of physics to realize that friction means lost motion. The only value of selling-force lies in delivered power. And it is the wise man-of-business who makes sure that every member of his promotional organization — be he merchandise mana- ger, sales chief, advertising manager or individual in any of these departments — is a smooth-working unit, lubri- cated with loyalty. The whole sales organization should be "built like a full jeweled watch," each part working with perfect "compensation" into the other. Especially is it essential that the sales department and the advertising department should work with absolute oneness of purpose. Formerly this was a serious friction point. Often the sales manager believed that every penny of promotional money expended in channels other than his own department was a dead loss to the concern. He was prone to bristle at the very word "advertising" as the new-fangled means of separating "the old man" from his capital. On the other hand, the advertising manager frequently was more jealous than zealous. He overestimated the importance of his position, overestimated the importance of advertising. With a pleasing little case of animosity such as this brewing in about 50 per cent of all large businesses, harmonizing the advertising and selling departments in those days resembled an effort to fraternal- ize a pair of strange bulldogs. But time has mended matters. Now the sales nlanager knows that the business of the present and future is, to a large extent, the advertised business. He knows what advertising does in creating consumer-sales, what its co-operation means in the work of his men upon dealers. Furthermore, he has found that a good advertising manager is the best working partner he ever had, or could have. The advertising manager, too, has experienced a change of heart. He has come to realize that his is a 16 part — a most important part — but nevertheless only one division of the whole. He realizes that advertising needs the co-operation of live, human salesmanship. He has discovered that the best advertising of the day is not the kind that is prepared in the solitudes, but in the actual field, in contact and co-operation with the selling depart- ment. Modern merchandising campaigns are often the result of months of preliminary work. The heads of the busi- ness, the sales manager, the advertising manager and the advertising agent give to these conferences the best that each has. The entire merchandising procedure is carefully laid out, the market is studied, the demand is analyzed. Accurate information is secured on per capita consump- tion; competition is weighed with full allowance for its strength; inquiry is made into the relative prosperity of different territories. Thus the entire advertising campaign is shaped in advance. And from the beginning all sales-effort ham- mers away at one spot, literally shattering resistance. In the most advanced type of modern enterprises there is no longer lost motion in seeking to align the different promotional departments of a business. They are aligned to start with. And — in perfect co-operation — they win. 17 A MERCHANDISING TALK TO THE CONSUMER WHAT interest have you, as a consumer, in the merchadising of what you buy? This may strike you as a somewhat unusual question. Your natural impulse probably will be to reply, "None at all." And on this subject of merchandising methods your position logically is a passive one. You assume, and rightly, that it is the business of a manufacturer or distributor of a product to make it easy for you to buy, to make the price one that will represent true economy to you, to bring his product to your atten- tion through dealers and through publicity. It is plainly to the advantage of the man who sells to plan his merchandising so aggressively that you will be inspired to buy — will find it to your advantage to keep on buying. But merchandising considered from the consumer's point of view as a genuine asset to the buyer — well, that's a different proposition. Let us determine whether, after all, you don't share with the manufacturer in the benefits of his merchandising message, which you receive in many different forms. Your grocer or druggist may pass the tidings to you. You may read it in public print. In any case, it is buying news, and it is interesting to you. There is no disputing the fact that nothing is so appeal- ing to those of us who are wholesomely, normally selfish as that which conveys a suggestion of personal benefit. We are affected by merchandising, whether consciously Copyright 1915, by J. Keeley. 18 or unconsciously, with this idea of personal benefit in mind. We welcome business tidings. In a few isolated cases in the past, newspapers and other publications have tried the experiment of filling their columns with "pure" reading matter, to the exclusion of business announcements, with the mistaken theory in mind that the reader pays only for such "pure" reading matter and should not be compelled to have business facts forced down his or her throat. But that this was a mistake was proved by the fact that the experiment was quickly discontinued. The readers objected, showing that they placed a proper value on the importance of buying news, as well as of the world's more distant and impersonal happenings. An eastern publication had a misunderstanding with a leading department store in its city. This merchant withdrew all advertising patronage from the paper in question. The result was an enormous falling off in the circulation of the paper, showing that a large number of people actually bought the paper to keep in touch with this store's offerings. :{c :ic 4: 4^ H< It is an old but true story — that of the brilliant commentary on American business literature made by Rudyard Kipling. An American friend mailed him a package of magazines, and in order to economize in carriage charges, tore off everything except the text pages. Kiphng wrote: "Next time send the advertising pages and keep the rest. I can write the stories myself." Modern business literature is literature. It is the product of some of the ablest writers in the country. It has human appeal — the cardinal virtues of brevity, force and conviction. Commercial art today is on a remarkably high plane. Thus, the merchandising message is of interest to the consumer because of its intimate personal import, because of its interesting, seasonable news, its literary and artistic worth. 19 But, most of all, you should be interested in modern merchandising methods, in promotional publicity, because it represents a definite service to the consumer. It is the modern means of connecting the demand with the supply, of guiding the purchaser to the best and most reliable merchandise, of saving him money. In this advanced day, selling campaigns must be legitimate, truthful in statement; the goods must back up verbal and printed promises. And manufacturers more than ever have come to realize that square dealing is good business, that only quality goods mean "repeat" sales. And a repeat sale, dear reader, in merchandising vernacular, means a voluntary purchase for a second or subsequent time because you find the article absolutely as represented. Aggressive merchandising and vigorous advertising are the best proofs that a manufacturer believes in his goods. They are the best guarantee a customer can have that the manufacturer will keep the quality up. Linked with the history of successful merchandising and advertising campaigns, is the history of improved merchandise. Most of us do not need to strain our memories to recall the time when men's ready-to-wear clothes were mostly of the comic valentine variety; when to wear "hand-me-downs" was a mark not only of depleted purse but of willingness to bear the slings and arrows of all men who wore normal garments. Ready-to-wear clothes were then on a par with imita- tion diamonds. They were apparel that proclaimed the man to his utter disparagement. Then came a revolutionary campaign of clothes merchandising and publicity, and, in the same step, came quality clothes. Today bankers — high-salaried men — professional men — do not blush to wear one of the well- known brands of ready-tailored clothes. Take food products. When food publicity was in its infancy, adulteration ran riot. Then the housewife was 20 not to be blamed for making her own bread, putting up her own preserves, for cooking on Saturday the family supply of baked beans. Pure food advertising came, and along with it came pure food manufacture. Canners and preservers adopted the most rigorous standards. They insisted on materials that were above suspicion. Their processes were right, their product clean made. And American women responded right willingly. Food advertising, advertising that invited inspection, that proved purity, made all this possible. Go through the whole list of everyday household, personal and business requirements. You will find that in every hour of your daily life, in almost every human action, you make use in some way of advertised things. You quickly prove that your life is guided by merchan- dising and advertising, whether or not you have ever realized it before. You buy crackers in package form, you wear rubber heels, you shave with a safety or use certain advertised toilet accessories. You probably eat an advertised cereal for breakfast, drop advertised sugar in your advertised coffee, spread toast made of advertised bread with advertised butter. Your home is decorated with adver- tised paint products. Advertised books are in your advertised bookcases. You hunt with advertised guns and shoot advertised shells; fish with advertised rods and reels. From cellar to garret your house is supplied with advertised, labor- saving, comfort-bringing appliances. You ride in adver- tised trains over advertised roads and tour in advertised automobiles. You smoke advertised tobacco, chew advertised gum. You witness advertised amusements in advertised theaters. So, advertising permeates and flavors your whole life. Your children are cradled in advertised bassinets, they ride in advertised go-carts; and, finally, you are tucked 21 away in an advertised casket, and your family lives prosperously on the payments of advertised life insurance policies. Advertising is with you always. And here's another thought for the consumer to bear in mind in thinking of advertising: There is no other modern force that has proved such an economic factor in reducing the cost of buying and selling. Because of advertising, and consequently increased markets, manufacturing costs are lower, distribution channels are wider, sales flow in stronger streams. And all of this — the direct result of the enormous demand created by and through advertising — means lower selling cost, the more economical purchase of necessities and luxuries by the consumer. Advertising pays. Aggressive merchandising pays. That's a big, indisputable fact in modern business. And to this I want to add, as emphatically as I can say it, that — Advertising and merchandising j)ay the consumer. 22 TERRITORIAL MERCHANDISING HUMAN nature, I have become convinced, is pretty- much the same, regardless of latitude and longi- tude. The Icelander and the Patagonian have much in common. And anything that is really worth selling has sales opportunities almost everywhere. True, the pink sporting sheets at Gus the Barber's have been declared poor media for the sale of religious literature and Palm Beach suits will merchandise slowly in Alaska. On the other hand, the most enthusiastic patrons of the wildest Metropolitan gaieties are ruralites from the hinterland, while the city folk ecstatically admire Nature's solitudes. Which is all by way of saying that Reggie Van Alstyne of Broadway and Timothy Tassel of Winnamac, Ind., are brothers beneath the skin, and that Palmyra Prim of Boston and Gertie Orangeblossom of Southern California have tastes and ambitions more similar than you might surmise. So the merchandiser of a new product, at the inception of a new selling campaign, can secure pretty convincing evidence as to how a proposition is going to take hold in other places when he tries it out in one. Of course, there are exceptions. There are instances where the verdict of one section of the country reverses the judgment of another section. But they are rare. Given a fair measure of average national prosperity, a staple that sells in one part of the country can be made to sell with equal success in the extreme opposite corner. The new merchandising, the modern way of minimizing all risk of heavy loss, of providing in advance for every variety of difficulty, is in accordance with correct mer- chandising science. It is Territorial Merchandising. Copyrisrht, 1915, by J. Keeley. 23 Territorial merchandising, by which is meant covering the country from a comparatively small beginning — increasing the expenditure and dimensions as methods are determined right and experience guides the way, is the wisest way to build success. Many a potential captain of industry, the head of a concern which has in it every true success-quality, hesi- tates because he is not in a position to go aggressively after the National market. He stands still, feeling incompetent and inefficient, simply because he has not the financial seven-league boots of his longer-established and more heavily financed competitors. Perhaps he attempts to spread merchandising effort thinly over all the country, when he might make a worth while showing in Illinois, Indiana, Iowa and Wisconsin. This centralization of effort in one part of the country at a time permits mobilizing your sales force, concentrating the best fighting men, centering the advertising fire in a single spot where you can accurately gauge results. It means dominating the situation — establishing a permanent dent where it will do the most good. It means gaining a wonderfully valuable first-hand idea of the market — an intimate study of distribution channels. It means an opportunity to correct mistakes before they have become costly. It means normal growth — sym- metrical development. It means going fast by going with reasonable slowness — in the right direction. It does not require a fortune to launch a territorial advertising-merchandising campaign. In large part, a campaign of this kind can be made to finance itself. It is the best way I know of to start the conquest of the American market. Modern merchandising is business building. This being true, there is a valuable lesson in studying the way houses, bridges, walls and skyscrapers are built — stone upon stone — piece upon piece — beam upon beam. No sane builder would try to cast the framework of the 24 Woolworth Building in a single mold. It would make for neither economy in production nor efficiency in structure. In just the same way, the most scientific — the safest method of covering America with a merchandising propa- ganda, is to take it section by section, broadening as distribution broadens — focusing the efforts of your business on the restricted area you are working, getting there on the firing line yourself, advertising with sufficient force and concentration to dominate the local situa- tion — to raise the product to a place of prominence — to hold it there in the public eye for a sufficient length of time to create a lasting impression — in brief, to sell a territory and sell it right — to intrench your name and your brand unforgettably with the trade as well as the consumer. This is the kind of merchandising that means lasting, profitable trade — the kind of merchandising that any healthy business can do. If the methods are correct — the work thoroughly done — you can build up a system of profitable trade units that in time will cover the country. I am strong for National merchandising and publicity when they are the result of logical, complete territorial development. This is frequently not as spectacular a campaign as a vivid advertising flash across all the heavens. But territorial merchandising, properly carried out, means a fixed star of demand. And Haley's comet — though a seven nights' wonder — was soon forgotten. 25 APPLIED MERCHANDISING The Nichols-Finn Way Mr. Finn's observations on merchandising, re- printed in this book, throw a helpful sidelight on the basic beliefs and every-day activities of the Nichols-Finn Advertising Company. We are Merchandisers first. We have not a great deal of time to indulge in high-brow pro- fessionalism applied to advertising. We presume it is all right. We are more concerned with the interesting phenomena of sales in the making. We are organ- ized to co-operate with Big concerns, and con- cerns which possess the elements of Bigness, in the production of result-winning campaigns. Here are some of the outstanding reasons why Nichols-Finn should work to best advantage in connection with the sales and advertising depart- ments of your business : Our present connection with representative sales and advertising successes ; keen analyses of marketing conditions; reliable knowledge of dis- tributing avenues; correct understanding of the relations of cost and price; demonstrated results in ^^Merchandising Advertising'' — effective deal- er work; ability to chart a course that will avoid the rocks of trade-resistance; firing-line-sales- experience ; close-hand knowledge of media, meth- ods and men. The Nichols-Finn Idea represents the new spirit in Advertising and Merchandising — the intensive production of real profits. 26 EXPERIENCE IS ESSENTIAL Modern business is too far advanced — compe- tition is too active — for you to accept as a business guide one who has never trod the road himself. Nichols-Finn experience insures safe, sane methods. We render a personal service in the full mean- ing of that term. This organization will never be allowed to grow beyond the point where the prin- cipals of the business are personally concerned in deciding every vital problem in connection with every campaign produced. Yet the scope and variety of our business give us breadth of vision, depth of understanding — enable us to keep a con- stant finger on the pulse of Business Today. In no other way can you gain such a complete and intimate knowledge of Nichols-Finn service as by a visit to our Chicago office. The latchstring is out — no matter how remote may be your idea of doing business. Advertising agency claims necessarily sound alike on paper and in **road'^ solicitation. The place to judge an agency — what it has done — what it is doing — what it is organized to do — is at the agency itself. We cordially invite you to call — or we will call on you, if you prefer. The proof awaits you. NiCHOLS-FiNN Advertising Company 222 S. State St. /^M^ 200 Fifth Ave. Chicago (TJSnwQ New York 27 isss ,^'-¥- UNIVERSITY OF CALIFORNIA LIBRARY This book is DUE on the last date stamped below. Fine schedule: 25 cents on first day overdue 50 cents on fourth day overdue One dollar on seventh day overdue. hPh 16 1947 D£AO RECD LD DECB-BBl LD 21-100m-12,'46(A2012sl6)4120 586427 UNIVERSITY OF CALIFORNIA UBRARY