Evening star. [volume] (Washington, D.C.) 1854-1972, 1925-12-13
ADVERTISERS PLAN
CURB ON WASTE
Economy in Market DIstribu-
lion Will Be Stressed at
Sessions Here.

Advertising is given prominent
blaze in the economy of marketing IN
D survey of Market Analysis, Adver-
Sising and Advertising Mediums which
will be used as q basis of discussion
ut the general meeting of the National
Distribution Conference to be held IN
Washington next week under the
auspices of the Chamber of commerce
OF the United States.
The special committee which maze
the survey, consisting OF business
men. economists and advertising eN-
perts, finds that national advertising
is a contributing factor in the reduc-
ton of marketing costs ana, lhuirecIiS
In the reduction OF prices.
This conclusion is based on first
hand testimony from a large NUMBER
of distributors as TO the economic
effects of advertising. The committee
lists the advantageo eHectS Oh
proper advertising as:
[. Decreasing the cost OF SelilnS.
2. Lowering the cost of production
on account Of increased volume.
8. Lowering prices to consumers
and thereby raising the standard OF
living.
1. AS a by-product, aiding IN the
Wastes in Advertising.
The committee finds, however, as a
result Of its Investigations, that there
are large wastes in advertising que
10 the inadequate or uniformed STUDY
of markets and TO the Imperfect CO.
ordination of advertising with other
activities" Various steps, among
them the establishment of market
research planning body, designed 10
place advertising upon more sCieH'
titic basis are proposed IN its report.
The special committee will submit
to the distribution conference these
recommendations:
"A market research planning BODY
should be established co-ordlnating
certain lines of fundamental market
ing research, to be supported by organ
izations interested in the results OF
such w,rk. This body should lay out
and possibly underwrite market re-
search projects with the purpose OF
reducing duplication of effort TO Its
lowest terms and of establishing and
maintaining high standards.
advertisers, both present and
prospective in order to avoid unneces-
sary marketing waste. should base all
advertising expenditures upon the re-
suits Of careful studies of their mer-
all other phases of their advertising.
There should be careful co coordination
among their advertising, f4anutactur-
ing and selling policies"
The committee also urges that a
census OF distribution be taken as
soon as possible and that prices and
quantities of merchandise produced
and in suspense be published peri
odically.
Broadly speaking" the committee
says in its report, ut would seem
that where the advertising creates an
Increased demand for products of a
certain class, a wider distribution of
such produCtS-in other words,
makes new business. bringing
about lessened distribution costs and
lessened production costs owing to
increased demands-there can be no
doubt as to the value of such adver-
Using, not merely to the concerns
that pay for 1t but also to the public
that consumes the goods.
Not An Exact Science.
''As a result Of its Studies" the re-
port concludes. your committee re-
ports that there is a decided value to
advertising in economic distribution.
Careful research reveals, however,
that there is no greater faIlacy than
that brought out in the Broadway
Skit, 1t Pays TO ADVERTISE Such a
statement needs a great deal of quail
fcation. 1t does pay to advertise the
right goods in the right media and in
the right way. Advertising. unfortu-
nately. is not an exact science. A mer-
chant who is about to sign a lease
for $4,000 a year for store viii not
sign such lease until he is sure that
the store is on a street which will
bring by it's doors the very class Of
people who are likely customers for
the goods he has to sell. Yet the same
man is oftentimes careless il the Sc
lection of his advertising media in
which he is spending an amount of
money in excess of his total rent. He
does not make sure that the papers
he uses or the other advertising
methods that he employs reach the
people who belong TO his particular
clientele.
THE superficial talk to the effect
that advertising pays has made ad-
vertising too haphazard. while the
lack OF exact data has been a mat
ter of distinct disadvantage to those
who desired to study the problem be
fore making their advertising appro-
prtations or deciding upon how those
appropriations should be spent
The advertising successes are such
as to encourage greatly its further
use. There are large wastes in ad-
VertSlng, but at present 1t seems
beyond the power OF this commit
tee to get any exact data regarding
such waste. Such information as Is
available. however, would indicate
that properly planned and placed ad-
rertising has genuine economic value
rot only for the user of such adver-
Using by reason of it's aid to him in
distribution. but it is of genuine
value to the public itself, because the
public, to a large extent, shares in
the economies which it brings about"