Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-08-06
Am Advertising Editorial
Z (From Printers Ink.)
Advertising and the Rights of
the Stakeholder.

A few weeks ago an important decision
was made which influenced about 400 people,
the stockholders OF certain big concern.
They may not know yet that the decision
affected them all vitality, but it did. When,
ana IL they do find out. will they have some
thing to say about it? Perhaps they will, and
perhaps they won't. Anyway, the decision
was made in little back Office 1t was done
something like this:
The advertising manager went up to the
president, who was supposed to represent the
stockholders, with his advertising plans for
the following year pretty we'll laid out Tho
president, who had been talking to two of his
directors and some bankers the day before
looked 1t over, ran blue pencil through
few items. and then said: George we're not
going TO do any advertising this year; at least
not for while Take this list. look it over
again, and bring it back to me in about three
months. Well know then better where we
stand. In the meantime, don't spend
nickel; we've got to draw in our horns n little
bit. Money is tight and there is no telling
what's going to happen. so we'll just cut out
on the advertising"
AnS Mrs. Thomas W. Johnson, of Cedar
Rapids, Iowa, didn't know anything about
this decision. but she was vitality affected just
the same. When Tom Johnson left her all his
money in preferred and common stock OF the
company mentioned above he did so on the
realization that one OF their greatest assets
was the amount of good will on the books
BENG good business man. he realized that
without any tangible assets to speak Of this
hrm could start in again and get money on it's
name. That is, it could 20 out and induce
people to back them to the extent of several
million dollars. because of the good will
which It's product had built up through n
period of years This good will consisted OF
something far more important than a line
OF betting and the four walls OF factory.
More important than merely good name in
the trade" 1t had been built up through n
consistent use of advertising and the register
ing OF a trademark name on the conscious
ness OF the American people. -. The
hrm that adrertises merely to sell n
product is working OH the wrong end of
the line. as n great many of the biggest men
IN advertising have said time and time again
me big thing advertising has to sell Is n
name consciousness and a personality hack
Oh me business to the great American public
which makes up its customer list If this
thlng Is allowed to lapse or to be forgotten
for moment by the great number of mr.
cnasers because they have not seen the name
III PRINT, tremendously valuable asset /,
wiped right OIL the books. In this way then
me minority stakeholder is affected every time
al advertising campaign is stopped for even
moment For what chance do they get to
say anything about it? 1t may sound like a
very radical statement, but the following al
most could be proved in n knock-down-and-
uras-out argument: That the president or
poard OF directors who cut out an ADVERTISING
campaign without taking referendum of
thelr stockholders are doing a thing which
Is almost as unjust to the real owners as tho
man VINO wraps up the tangible assets or
the company and takes q steamer for Some
unknown port in South America.