Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-11-27
ADVERTISING HELD
CHIEF TRADE HELP
U. S. Business Men Report
Advantages Gained by Pro-
motion Campaigns.

Business firms throughout the United
States have cited to the Department of
Commerce the Importance Of advertis-
ing as a medium of overcoming unsatis-
factory business conditions
Increased or maintained advertising
volume was responsible, more than any
other factor, for the success of the re-
porting firms, which during the
economic depression have held or in
creased their sales or profits, according
to the departments conclusion in q
study made public today.
The department said the study sets
forth "the policies or reasons for such
progress in the belief that the focusing
of attention on sound and successful
policies will help direct business into
constructive lines"
Extent of Inquiry.
The study was undertaken in the late
Summer, it was explained, in response
to many demands for such information.
Three hundred and fifty-eight examples
were gathered from the various district
offices and commodity divisions Of the
departments Bureau of Foreign and
Domestic Commerce and from business
publications.
Information was obtained from 202
manufacturing industries, 40 retail dis
tributors and 10 wholesalers located in
IA cities in 80 States. The department
said it excluded from the study ex-
amples of business progress not result
ing from individual efforts, but from a
favorable demand caused by outside
agencies"
Among the latter was an increase in
sales by a manufacturer of iron pipes
due to governmental Stimulation OF
public Improvements.
I'm many cases." the department
said, present success Is attributed net
so much to the present or change in
policy as to past policies the soundness
of which is accumulated by current
business conditions. Such instances
are included, as it is believed worth
while to recognize policies which have
laid a foundation of consumer cent?
dence in the product and in the firm
and which have builded strong finan-
cial structure, enabling the concerns to
withstand the effects of depression
and to make the now less expensive
additions and renewals to plant and
machinery"
Marketing Practices.
Marketing practices were cited by 254
firms as being responsible for success;
81 stressed attention to products SO to
production policies, while 5 traced their
success to financial policies. Seven in
stances of success were held due to adj
ministrative policies.
Increased sales effort and advertising
policies are the most important reasons
given by firms for their success" the
department declared Market research,
reduced prices cooperation with deal
ers, improvement of service and man
agement of statesmen occupy a proni-
nent position in the marketing program
of the companies.
"Of scarcely less Importance are the
| policies dealing with new products and
| quality, research diversification and
modification. In their production pol
attention on reduction of operating ex-
penseS and the installation OF modern
| equipment"
After surveying the various reasons
cited for increased sales or prof1tS, the
department concludes
More firms, 80 in number, made
| statements concerning their advertising
policies than any other single topic,
which indicates the Importance attached
/ to- the value of advertising by these sue
cessful companies. Thirty three indus
trials are represented by these firms,
and the most heavily represented are
candy, clothing, food, heating equip
ment, machinery and refrigerator"
Twenty-nine firms of the eighty re-
porting stated that they naQ increased
| advertising: 10 maintained their exist
| ing schedules described their adver-
| Using as extensive and 5 as aggressive.
Careful Policies.
| Eight concerns described their pol
| icies in terms which may be grouped
| together as careful" Great attention
was paid to purchase of space to secure
proper and profitable return on eX-
penditures. other adjectiveS used were
| judicious, better directed, intelligent and
efficient.
Two firms enjoyed good sales because
their past advertising had aided In
building up stronger consumer belief In
| the quality of their products. Three
| firms accented their direct mail and
trade paper advertising and other three
found radio publicity of value.
Eight firms whose advertising poll
icies have been given as an important
reason for success are included in mis-
cellaneouS group. A manufacturer OF
dresses, by continuing to advertise when
others curtailed, profted by the in
creased publicity value. A producer OF
! industrial products increased his 'rea-