Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1915-11-13
CHAPTER j


-6
DOES ADVERTIsING BENEFIT THE PUBLIC?
Advertising has the center of the commercial stage today
Why Why does this phase of business fascnae Is it
because of its magtude 1t represents yearly expenditure
over $40000000 In fact experts estimate 100000
600 However there must be other appeal than
bgness What is it Maybe it mystery for the art
of advertising is elusive That is what impel interest
What is advertising? a4f ass5a ss s. sass8
What does it matter? We do not whether advers
ing best be defined The of creating want "
authority would have it whether Its definition is
both specific and extensive than that instances
thing that is keenly wanted such bread neverthe
less be advertised Yet there creation new want
with such with flour Therefore, to define
advertising have than the creation OF
wants And too although gou may call it modern adve
Using business from start finish It printed salesman
ship and the business of disposng of goods
at a profit sss 81 s. u RES IS gitssS
Advertising costs money Its only that
it makes Advertising for most advertisers profit
able For Others it runous Therefore, the big search is
to find why method will wins while another will lose
Always the test in the Sales with net mar
gin ii Of the advertiser Ehat is the alpha and omega
Of ADVERTISING sfg 10 - sfstS
Yet even though advertising aWH bngtbe advertiser
profit likewise lower prices and thus benefit
the people That result viii than justify advertising
from the standpoint of economic desirability.
Advertising is the child of modern conditions Compe
tton the muchsought panacea for economic ills itself the
cause adyertsng's magnitude today Formerly, few
drummers would dispose of the manufacturers output For
merchant all the business he could take of without h
ing extra cerks But the maorder business for instance
along and the giant cataog houses begin to under
sell the local dealer He finds ard to compete simply
because he has known competition He has not been
doing enough business proportion to his rent and other
fixed expenses For his business to about
the degree whether he sold 500 $1,000 worth amonth
So the local merchant begins to advertise in his home
paper And his competitor advertises Competition makes
them both buy closely Competition makes them both
fight for business And getting business they
better able to compete only with each other but with
these outside businesses which aggesve seek to take the
trade away from home And So the local merchant
compete because through advertising he sell enough
merchandise his doing business goes down
from so per or tereabou where today he averages
the country over, less than 30 per cent.
Likewise the manufacturer grasps the golden opportunity
that udcions advertising offers For instance the plant that
has been doing business of 100000 per year used to have
20 drummer running about the county to sell that output
These 20 statesmen cost approximately $4,000 per year. and
they have merely scratched the surface of potential market
AT last the manufacturer decides take chance He lets
10 statesmen CO. and spends newspaper adyer
Using His volume of business is even bigger Thus instead
of $4,000 it costs him only 900 to dispose of his product
and the public benefits. @fFs
When the Kellogg Toasted Corn Flake people out
the newspapers with their that in the future
every package was to be covered with WAXTITE envelope
cost of their goods and the prce9 The answer
eayso big has their volume of business become result
of advertising according to their statement that they
have been able only lower the price from 5c to 10 but
also they have been able to give larger package and top
of that furnish WAXTITE envelopes all boxes That is
how advertising sometimes increases the purchasing power of
the average consumers dollar.
The public benefits for two reasons: first the retail
chant who handles this manufacturers output is willing sell
with less margin it for him than he would require of
unadvertsed article The he is willing sacrifice part
of his gross profit this way that he has spend less eff
fort in order to sell the kind for which demand has been