Chapter VII: Introduction (1)
The purpose of this book is to teach neither the art of advertising nor the science of salesmanship, but rather to set forth some of the principles that must be applied in the organization of the advertising and sales department; in particular, to discuss the machinery of the department--its record-keeping systems.
Opinions differ as to the proper place in a business organization of advertising and sales--whether they should be handled by, and considered as, two separate and distinct departmental organizations, or one. Both plans have their champions.
Whether we call it an _advertising_ or a _sales_ department, the results sought--the reasons for the existence of the department--are the same. To _sell goods_ is the aim of the organization, be its head an advertising manager or a sales manager.
Advertising has been defined to be _printed salesmanship_; yet there is a well-defined dividing line between the work of the advertising man and the salesman. The advertising man seeks to impress the name of the house and the name and quality of its product, on the public mind; to create interest; to arouse curiosity; to stimulate desire; to attract people to the store--in a mercantile business. The salesman seeks to turn that interest, curiosity, desire, into action--the action of purchase.
The advertising man introduces the possible customer; the salesman makes the sale. But in some businesses, the advertising man goes one step farther and actually makes the sale--as in advertising intended to secure direct orders, by mail. Also, the salesman, when the customer has been introduced, makes use of other forms of advertising, to further stimulate desire and assist in making the sale.
No matter at what angle the subject is viewed, it is seen that the advertising man and the salesman are very dependent on each other. We prefer, therefore, to consider the sales and advertising departments as of equal importance; both subordinate parts of the sales division but working in perfect harmony.
The salesman knows his goods, their strong and weak points, the classes of people to whom they will appeal. He should know, also, all about his competitor's goods, and in what respects they are excelled by his own. In short, he is the one who can give the best selling points to the advertising man.
The advertising man is expected to be a master of expression. The unpolished selling points of the salesman are worked over by the advertising man into clear, pointed, convincing English--printed salesmanship. His experience tells him how best to reach a given class; what methods of advertising are best suited for a particular class of goods.
When a selling campaign is contemplated, the plans should be worked out by the salesman and the advertising man. The two must work together and neither should undertake a new campaign, without first consulting the other.
The claim is sometimes made that the function of advertising is fulfilled when the inquiry has been received; that it is then a question of salesmanship--but where does advertising end and salesmanship begin? If sales are made by mail, the salesman supplements his salesmanship with catalogs, booklets, circulars, letters--all as surely advertising as salesmanship; in the store, he displays his goods attractively, which is a most effective form of advertising. And so, in the battle for business, victories are won by supplementing advertising with salesmanship, and salesmanship with advertising--combining the two for results.
Occasionally, a man is found who combines the creative ability of the advertising man with the executive ability of the sales manager. When such a man is found, it is safe to place him in charge of the sales division, giving him full control of both advertising and sales. He probably will require the services of a man to attend to the details of the advertising department, but such an arrangement makes the sales manager alone responsible.
Most large enterprises, however, require the services of one man to handle the advertising. For this reason the head of this department is referred to as the advertising manager, and the department as an advertising department.
SYSTEMS AND RECORDS
In addition to the technical knowledge of the printing art--type, engraving, and paper--and of advertising media, which the successful advertising manager requires, he should have the faculty of applying common-sense system in the handling of his work. An elaborate system, which oversteps legitimate bounds and enters the realm of red tape, is to be deplored, but the advertising man must have a system of records which will show at all times what he is doing, what results he is getting, exactly where he stands.
Any discussion of systems must be more or less theoretical, even when written by an experienced advertising man. The system that works perfectly in one office may fit in no other, therefore the systems described in this book are to be taken as examples of what other advertising men have adopted. From them the student will be able to devise a practical system for a particular enterprise. At the start, the system probably will be too complicated; experience alone will tell the advertising manager where to eliminate, where to simplify, where to add to make it fit.
=Advertising Information.= The advertising manager collects a vast amount of information for future use. Every time he picks up a newspaper or magazine his eye scans the pages for ideas, while mingling with the crowds or walking alone, he notes what would be to the unobserving but trifling incidents, all of which can be worked into copy. If he is systematic he clips and makes memoranda of all this information, preserving it for use when needed.
How to preserve it in such shape that it can be located quickly is something of a problem. Probably the oldest methods of preserving clippings and memoranda is to use a scrapbook, and paste in all clippings. The scrapbook, however, is never satisfactory for this purpose; it is not a flexible system.
Clippings should be so filed that any single clipping can be removed without disturbing the others. The vertical file is largely used as a receptacle for clippings, but is not entirely satisfactory unless envelopes take the place of folders. With folders, clippings are liable to be lost through the open ends.
An old and satisfactory method is to file clippings in envelopes. Unless the clippings are of large size--like entire pages from trade papers--it is not necessary to use envelopes of a size to fit a vertical file, A size that will fit one of the smaller files--about 7"×9"--will be found more satisfactory.
The most satisfactory method of indexing is by subject. An envelope is used for each subject about which clippings are to be made, all clippings and memoranda being filed in the proper subject envelope. The envelopes are indexed alphabetically, according to subjects, and a list of contents should be recorded on the outside of each envelope. A form of record is shown in Fig. 1, while Fig. 2 shows the manner of filing and indexing.
Clippings are made use of by the advertising man chiefly in the preparation of copy, and are much more convenient to handle if filed in envelopes than when pasted in scrapbooks. Instead of an unwieldy book to handle, an envelope is taken from the file and the desired clipping selected.
Sometimes the work of the advertising man is of a nature which requires the preservation of catalogs, booklets, and all sorts of printed matter issued by competitors. When the accumulation of such matter is sufficient, it is best to install a complete catalog filing system, such as is used in the purchasing department.
=Designs and Cuts.= A class of valuable property which accumulates rapidly in an advertising department, consists of advertising designs and cuts. This property is not given the care deserved when its value is considered.
Artists are paid for designs but too often after the engravings are made, they are stored in drawers, on shelves, or in any convenient place to get them out of the way. Little attempt is made to so file and index them that each can be quickly located.
An old design may be available for use at any time--an engraving of different size than the original, may be needed, or a slight alteration may produce a complete change in the design at much less cost than making a new one. Engravings are expensive and accumulate with amazing rapidity. Suppose a retailer does daily advertising and uses a new cut each day; at the end of one year he owns three hundred and sixty-five original engravings, and probably an equal number of electrotypes. Any of these may be available for use another time, either in newspapers, catalogs, or circulars.
The national advertiser, using magazines and trade papers, may accumulate a less number of engravings than the retailer, but owing to the class of engraving required and the number of duplicates needed, his investment is even greater.
The natural supposition would be that advertisers would give this property proper care, filing under correct classifications, indexed for ready reference. But experience proves the contrary. Every printing and publishing office that has been running five years has an accumulation of cuts belonging to advertisers, which represent an investment of thousands of dollars.
Occasionally an advertiser is found who knows exactly where each cut has been sent and calls for it when needed, but a big majority of these cuts are never called for and finally are sold by the printer for what they will bring, as old metal.
Now the property used by the advertising department should receive the same care as any other; a dollar invested in designs and engravings should be regarded as a dollar's worth. And if common sense be applied in devising a system, they can be cared for with as little trouble as any other property carried in stock.
A very satisfactory method of filing designs is to use a file constructed on the principle of the vertical file. Stock sizes of files are too small. Designs cannot be folded and the file should be large enough to take in the largest designs used. An elaborate file is not necessary; a box constructed along the lines of the one shown in Fig. 3, will answer the purpose. The chief requirements are to have the designs filed in one place, where they can be found, and to keep them clean. Any carpenter can build such a file, while any cabinet man will construct one of more elaborate design to match the furniture of the office.
Designs may be filed alphabetically by subjects, or numbered and filed numerically. As a rule, the alphabetical method will be found more satisfactory.
Engravings are best filed in a cut cabinet of the usual style. This is a cabinet of shallow drawers, just deep enough to hold type-high cuts. All engravings should be numbered and electrotypes stamped with the same numbers as the originals. The cuts can then be filed by numbers, and each drawer labeled to show the numbers of the cuts it contains.
Cuts should be numbered consecutively, and when an engraving is made in a new size it will take the next number, regardless of the fact that an engraving of the same design has already been made. For instance, if five sizes of engravings are made from one design, there will be five cut numbers. When the cut is numbered, it is a good plan to stamp the number on the back of the design; then reference to the design will show how many times it has been engraved and the numbers of the cuts.
Proofs of all engravings should be kept. These may be pasted in scrapbooks, but the books should be loose leaf. This makes it possible to eliminate all dead matter; when designs are of no further use, the sheets containing the proofs can be destroyed.
A sheet may contain proofs of one or of several cuts, depending on the size, but all proofs should be arranged in numerical sequence. The sheet should also show the cut number, the subject, and the date of ordering electrotypes, as shown in Fig. 4. Since the space required for proofs cannot be told in advance, it is more practical to substitute a rubber stamp impression for printing. By using a small stamp, this information can be stamped opposite each proof.
=Cut Indexes and Tracers.= To complete the filing system for cuts and designs, an index is needed. Fig. 5 shows a convenient form of index and record card. This card is headed with the name or subject of the design, and is indexed under this subject. The data relative to the design includes the class--as photograph, wash drawing, or line drawing--the name of the artist, the size of the design, and the date made. Below this is a complete record of all original engravings and electrotypes made from the design, including their numbers.
On the back of the card is a record of the publications, catalogs, or circulars in which the design is used, with dates, as shown in Fig. 6.
If the name of the artist who made a certain design, or the names of publications in which it has been used, is wanted, reference to this card gives the desired information. This one card provides all information that is likely to be needed in reference to both designs and engravings.
The methods described provide for a complete record of designs and engravings, except in respect to cuts which have been sent out. A record of the cuts that are out, and where each has been sent, is of the utmost importance.
When a cut is sent out--to the printer, the publisher, or a customer--a receipt should be obtained. This may be on a post card printed as shown in Fig. 7. At the same time a record to be used as a tracer should be made. This should be on a form similar to the one shown in Fig. 8. These forms may be filed in a tickler under the date on which the cut should be returned, or alphabetically; but in either case a desk file should be used so that they can be referred to very readily. This file should be looked through frequently for it is very necessary to follow-up the cuts closely. If the cut is not expected to be returned, it is of course unnecessary to make this tracer record.
=Copy Proofs.= A complete file of proofs of all copy is a necessity in every advertising department. If requested to do so, any publisher will furnish several proofs of the ad, and at least three proofs should be kept on file. Every piece of copy and every circular or other printed matter should bear an identifying mark of some kind. This usually is a number.
These numbers should be registered consecutively either in a book or on cards, and opposite each number should be the title of the copy, booklet, or catalog. It is well to run different series of numbers for advertising copy and other literature. Numbers 1 to 5,000 might be used for copy, and 5,001 to 10,000 for printed matter. The same scheme can be used to good advantage for office blanks of all kinds, giving each a form number but using a third series of numbers.
Proofs of ads and copies of all printed matter and blanks should be filed alphabetically by subject or title. For proofs, the envelope scheme, as described for clippings, can be used. Envelopes of this size--7"×9"--will also accommodate copies of most circulars, blanks, and booklets, but if the sizes average larger a vertical file drawer, with large envelopes, can be used. The vertical file will also accommodate catalogs. These files being permanent, the expense of elaborate cabinets can be dispensed with by substituting the cheaper transfer files supplied by all manufacturers of such equipment.
Each time a piece of advertising copy is re-set in a different size, it should be given a new number. New numbers should also be given each circular, booklet, or blank when it is re-printed, provided there is the slightest change in the copy.
On each envelope, the copy number should be entered, and if the copy takes several numbers, all should be entered. Copy bearing the title "Your Chance" may be set in three sizes--full page, No. 640; half page, No. 641; and quarter page, No. 645; all proofs will be filed in one envelope and the three numbers will be entered on the outside.
The register of numbers and the file of proofs provide for the identification of any copy; if the title of any piece of copy is wanted, the number being known, reference to the register gives it; or if the title is known, reference to the file gives the number.
PRINTING ORDERS AND TRACERS
Great care is necessary in issuing and following up orders for printing; every detail must be watched closely if satisfactory results are to be secured. In the majority of offices the advertising manager, or a man under him, attends to all details of ordering printing. Large concerns find that it pays to employ an experienced man for this work alone. To a concern whose printing bills amount to several hundred dollars a month, a man who will give close attention to every detail of the work, from seeing that he gets the stock specified to checking bills for overcharges, can make his services worth a good salary.
In printing, as in everything else, the personality of the house should stand out--a typographical style should be established. This is accomplished much more quickly if every detail of the printing is in the hands of one man.
There are concerns in which publicity and sales work must be subdivided to such an extent that the sales manager has all printed matter prepared under his direct supervision; while the advertising manager is responsible for the preparation and placing of the copy. In one such concern, which has come under the writer's observation, copy for printing is turned over to a man entirely outside of the sales division. The theory is that the outside man will watch the interest of the house, in the matter of price, more closely than the man who prepares, and perhaps is to use, the copy.
This theory may have some foundation in certain quarters; probably there are some otherwise competent advertising men who are occasionally outwitted by the printer; but it is also true that the buyer of printing, who places his orders on the basis of price alone, frequently loses more in quality than he saves in cost. The man who is to use a booklet or folder is really the best judge of its worth--what he can _afford_ to pay for the kind of work he wants; he knows best its possible value as a revenue producer. He should be competent to supervise the placing of the orders, but without exception _all_ printing orders should be placed by the same man.
No matter by whom placed, the printing order should specify every detail; or if it is not on the order blank, there should be a specification sheet. The specifications would be something like those shown in the order form, Fig. 9.
This order should be made in triplicate. The original and duplicate will go to the printer, the duplicate to be signed and returned as an acknowledgment of the order, while the triplicate is filed in a tickler under the date when the acknowledgment should be received--usually the following day.
When the duplicate comes back from the printer it is placed in the tickler, under the date when proofs may be expected. At the same time the triplicate is removed from the tickler and placed in a loose-leaf binder, all copies being filed in numerical sequence. It will be noted that, at the bottom of the triplicate, the department or account to be charged is entered, this record being made when the order is placed.
When proofs are returned, the duplicate is moved ahead to the promised date of delivery. In this way the follow-up for orders is made practically automatic, all orders filed under any date being removed for attention on that day.
Little difficulty is experienced in getting printers to put the order number on the invoice, when requested to do so. The return of two or three invoices to a printer who neglects this will have the desired effect. With the numbers on the invoices it is a very simple matter to find the copy of the order, which will show just what was ordered and for what department.
=Records of Printing.= A record of all printed matter received and its disposition is quite as important as for any other class of property. Unless properly stored and correctly recorded, there is likely to be a great waste of stock. Many large concerns lose much more through waste in this direction than the salary of a competent stock clerk. Not all concerns will require a stock clerk for this purpose alone, but in every office the stock of printed matter should be placed in charge of one person--a clerk, perhaps, who has other duties. That person should be made responsible for the stock, just as the stores clerk is made responsible for the property in the factory storeroom.
When printing is received, it should be first checked against the order copy on file, and then put in the storeroom, or sent to the department where it is to be used if not to go into stock. In the storage of printing, a very necessary requirement is that it be kept clean, otherwise, in the case of matter carried in stock for a long period, there may be as much as a ten per cent loss through spoilage.
It is best to have all printing put up in packages of specified sizes, depending on the quantities used. The printer will usually make the size of his packages fit the needs of the customer, if requested to do so. On the outside of each package, the name and quantity of the contents should be recorded. When possible a sample should be attached.
An extensive advertiser will require a good-sized room for the storage of printing, while for some concerns a small cabinet will answer the purpose. In storing, the packages should be arranged according to name, maintaining the alphabetical order so far as possible. A numerical arrangement, by form numbers, is sometimes recommended, but any filing scheme which makes it necessary to refer to a supplementary index to find a number before the article itself can be located is not favored.
A low stock limit should be set for every piece of printing that is used regularly and likely to be re-ordered. One of the most simple methods of handling this is to make one package of the quantity set, so arranging the stock that it will be the last package reached. On the outside a label is pasted--or a rubber stamp can be used--printed as follows:
This package must not be opened without first notifying the office. Failure to observe this rule will be considered sufficient cause for instant dismissal.
After the storage plan has been arranged then comes the question of stock records. A simple record which will show quantities received, issued, and on hand is needed. The form shown in Fig. 10 is used by a manufacturer who supplies dealers, who are his customers, with catalogs, booklets, and other forms of printing. The same form is adapted for use by a concern selling through branches or agencies, while for another business, the form would be modified, eliminating records of shipments.
This form is printed on a sheet punched for a loose-leaf binder. A sheet is used for each catalog, folder, booklet, circular, mailing card, or other piece of printing, the name being written at the top of the sheet. The sheets are filed in alphabetical order, indexed with suitably tabbed index sheets.
When printing is received and the order checked, the name and description is entered at the head of one of these sheets--except in the case of a re-order, when a sheet will be found in the binder. The date, quantity, from whom received, and the cost are next recorded in the proper columns. If it is a new piece of printed matter, the quantity received is also entered in the _on hand_ column; if a reprint, the quantity is added to the stock on hand and the total extended.
For printing that is to be sent to a dealer, an order is entered on the form shown in Fig. 11. This gives detailed instructions for shipping, with the quantity and description of the matter to be sent. The order is made in duplicate. The original goes to the shipping clerk, while the duplicate, on a blank sheet, is kept in the office as a follow-up on the shipping clerk.
As shipments are made, the shipping clerk enters in the columns provided for that purpose, the quantity sent and the date. When the entire order is filled, it is returned to the office. Every day the duplicates are examined and inquiry is made of the shipping clerk regarding any orders for which the originals have not been returned. When the original is received, the duplicate is destroyed.
Shipments are next entered on the stock sheets, while the original orders are filed in a binder, alphabetically by dealers names. Reference to this file shows exactly what advertising matter has been sent each dealer.
PERIODICAL ADVERTISING
When the question of periodical advertising is taken up, the most important of all publicity fields is entered. From the country weekly, through the entire list of city dailies, scientific and literary weeklies and monthlies, popular magazines, class magazines, and trade papers for every vocation, religious papers, and reviews, periodicals can be selected which will reach any class or cover any territory. With the thousands of publications to select from, the advertising manager needs to know which ones will best reach the people he wants to reach; what papers have the largest circulations; which are most popular among a given class or in a certain territory. He must be posted on rates and discounts, that he may cover his territory economically. And added to this, he must have a perfect checking system, that he may know to a certainty what returns each and every publication is bringing him. Such a system may show him, for example, that the magazine with a circulation of a million and an advertising rate of $5.00 a line, brings orders at a less cost than another in which he is paying but $2.00 a line--or _vice versâ_. Perhaps the cost in both is within the amount he is prepared to pay, but he must _know_ what it costs, that he may know where to increase and where to curtail the appropriations.
=Rate Cards.= Supposing the business to have been just started, or one that has done no advertising--and this is the most satisfactory premise from which to work, in laying out a general system for the department--among the first duties of the advertising manager will be to secure information about mediums, and the chief source of information will be the publications themselves, as they will respond promptly to requests for rate cards.
If the advertising manager gets rate cards from a hundred publications, he will find probably forty or fifty different shapes, sizes, and styles. Several spasmodic attempts have been made to induce publishers to adopt a uniform size for rate cards, with but little success. In the effort to produce something striking, the convenience of the advertiser is very likely to be overlooked. One publisher will use a 3"×5" card--the most convenient size; another, in order to better display the artistic ideas of his own copy department, uses a card 6"×9"; a book of rules is issued by another; the result is a miscellaneous collection that does not fit any size of file made.
To insure uniformity in their files, advertising agencies have been obliged to design rate sheets or cards which they send to the publisher to be filled in. Some large advertisers now follow the same plan, requesting publishers to enter rates on special forms.
But whether or not he uses a special form, every advertiser should have his own file of rate cards--even if the information is written on a blank card. The special information needed is shown in Fig. 12. This can be on a card, or if preferred, a sheet to be filed in a loose-leaf binder can be used. The cards or sheets should be indexed alphabetically, under the names of the publications.
If full and satisfactory information is not obtained from the publishers, it is well to supplement it with information from an advertising agency. The successful agency, through observation on behalf of a number of clients, usually has more dependable information about a given publication than can be obtained by any one advertiser.
All sources of information should be made use of; if the article advertised is sold to the trade, much valuable information can be secured from local dealers. In planning a daily paper campaign for a certain commodity, a letter was sent to each dealer contiguous to each city asking what morning and evening papers had the largest sale in his town; at what hour each was received; and the general trend of local political sentiment. This brought a gratifying response, and helped in the selection of papers which covered, not only the cities, but the small towns. Another advertiser secured some very satisfactory reports from his traveling salesmen, relative to the value of local papers in which he contemplated advertising.
=Advertising Contracts.= Contracts for advertising are usually made once a year, in advance. Most publishers of magazines and newspapers grant certain space discounts, based on the space used within one year, and in many cases, to secure these discounts, contracts must be made in advance. Some trade paper publishers allow space discounts, others maintain flat rates, all of which must be considered in making contracts.
Practically all magazines, most newspapers, and some trade papers, allow special discounts or commissions to advertising agencies--though in the case of newspapers, in many cities, this discount applies only to _foreign_ advertising, or that originating outside of the city of publication.
An increasing number of advertisers are placing contracts for space through the agencies, and relying largely on the advice of the agency in the selection of mediums. Since the business of the largest and most successful advertisers is placed through the agencies, it would seem to be a safe rule to follow. But because an agency handles the orders, the shrewd advertising manager will not relax in his watchfulness of his employer's interests. He will maintain just as complete a rate file, and watch the bills as closely as though dealing direct with publishers.
The experienced advertiser plans his campaigns well in advance, making annual appropriations for all advertising. This enables the advertising manager to select mediums, determine the amount to be used in each class, and prepare suitable copy for the different publications.
This question of the preparation of copy for series of ads applies especially to national campaigns and local advertising of a general publicity nature. The advertising manager of a department store is obliged to prepare newspaper copy daily, and at best can plan his copy not more than two or three days in advance. In a national campaign in which advertising is for direct returns, copy must be _tried out_ and its character changed frequently. This does not mean that, in any case, the same copy should be run indefinitely; it should be changed in practically every issue. While following the general style adopted for the house, there should be something new in every issue--something that will attract and cause the reader to look for the ad each month.
When the amount of the appropriation has been decided, a schedule of the mediums to be used should be made. This schedule should include the space to be used in each publication. Indeed, the schedule of mediums and space that it is desired to use, often determines the appropriation. For a general publicity campaign, this schedule can be made absolute, but when the advertising is for direct returns, it should be elastic. Mediums which do not pay after a fair trial, should be dropped, and there should be room in the schedule for mediums not at first included. Changed conditions may make it advisable to add a medium which previously has been unprofitable.
The advertiser who advertises for direct inquiries or orders, usually finds it necessary to revise his schedule monthly, basing each schedule on previous results. That he may act intelligently, he must have an exact record of past results. A convenient form for the monthly schedule is shown in Fig. 13, which is printed on a sheet punched for filing in a loose-leaf binder.
Previous results from each publication on each class of goods is shown in respect to inquires, amount of sales, and cost of the advertising. In the three columns at the right of the space for each ad, cost of each, and total cost are shown.
Separate sheets are used for popular magazines, trade papers, and newspapers. When copy has been sent, the sheets are placed in a loose-leaf binder, the full schedule for each month being in one place where it can be readily referred to.
=Orders for Insertion.= When an agency is employed, the agency usually sends copy and orders for insertion to the publisher; though some advertisers prefer to send copy direct, leaving the agency to send orders for insertion. It usually happens, too, that some orders are sent direct instead of through the agency. One large advertiser follows the practice of sending orders direct to those publishers who do not allow agency commissions, all others going through the agency.
If orders are to be sent direct, a special advertising order blank should be provided. This order should specify to the last detail the conditions of the order. A blank, which is self-explanatory, is shown in Fig. 14. The order is made in duplicate and the copy is filed under the name of the publication.
=Checking Returns.= A necessity to the advertising department is an efficient system of checking and recording returns from advertising. Without a checking system on which he can depend, the advertising manager is spending his employer's money blindly--he does not know what he is getting for it.
The first requirement in devising a system is a method of _keying_ ads, that inquiries or orders may be identified and credited to the proper mediums. Keying systems there are without number--to describe all of them would require a book the size of this one--but those most commonly used are adaptations in one form or another, of the idea of changing the address.
One of the oldest methods is to use a department number or letter in the address, changing the number in each publication in which the ad appears--the address in one would be _Dept. A_; in another, _Dept. B_. This method is used successfully by some advertisers, but it has its objections. Most people realize that no concern is so large that an inquiry will not reach the proper department. If, for example, an inquiry in response to a beef extract ad, addressed to Swift & Co., failed to reach the beef extract department, it would indicate a very lax system of handling correspondence.
Changing street numbers, room numbers, or postoffice box numbers, is another common method of keying. This can be operated successfully by notifying the local postal authorities that all mail is to be delivered at one number, regardless of the address.
An adaptation of the number key, which can be used to advantage for a small number of publications, is a combination of numbers representing publications and dates. First, the publications are numbered, these numbers being used as the first part of the address. To the publication number is added the number of the month or week of publication. To illustrate:
Suppose that the Technical World is No. 5 on the list and the ad is run in October. The key number would be 510--5 standing for the publication and 10 for the month. All replies with that address would be credited to the Technical World for October.
In using this system it is necessary to use some figure--usually 0--for a repeater to avoid confusion; No. 112 might mean publication No. 1, month No. 12, or publication No. 11, month No. 2. By adding a naught after the publication No., confusion is avoided--1102 would mean No. 11, 2nd month, 10012 would indicate No. 10, 12th month. The system can be further varied by using N., S., E., and W., or by substituting Ave. for St. or _vice versâ_.
When readers are requested to ask for catalogs or other printed matter, the numbers by which these are known to the reader can be used for the key--as bulletin _A_, bulletin _B_, etc.
For either direct inquiries or orders one of the most popular and satisfactory keying systems is to use a coupon, indicating the publication and month in the coupon--_T W 11_ printed in small type in the coupon would mean Technical World for November.
A coupon to be filled in offers the reader a convenient means of answering the ad, and this has a tendency to induce a larger number of replies. Few people will fail to use the coupon or the address given. A certain very large advertiser, who uses the coupon, states that less than one per cent of his replies are without means of identification; either the coupon is used or the name of the magazine is mentioned.
To make their checking systems as nearly perfect as possible, some advertisers write to all readers who fail to use the key, requesting them to state where the ad was seen. Some enclose a postal for the reply, others enclose a printed slip, on which the magazines used are listed, to be checked and returned.
A reasonable expense is justified to find out where replies do come from, for it is as much to the advertiser's interest to continue the use of all profitable mediums as to drop the unprofitable ones. Many of the most successful advertisers, however, consider it safe to distribute unidentified replies pro rata, basing the distribution on the number of keyed replies--that is, if 30 per cent of all keyed replies can be traced to the Technical World, that magazine will be credited with 30 per cent of all unidentified replies.
When the mail is opened all replies should be sorted by key numbers, inquiries and orders separated. Then the total number of inquiries, and number and amount of orders from each publication should be ascertained and credited.
For recording credits a form, similar to the one shown in Fig. 15, should be used. This may be on a card or in loose leaf. A card is used for each ad, in each publication--that is, if there are seven insertions in the Technical World in one year, seven record cards will be used--one for each insertion. These cards or sheets are to be filed under the names of the publications.
On the back of the card the form shown in Fig. 16, is printed. This provides for a daily record of sales resulting from the inquiries recorded on the face, or from the ad if it calls for direct orders. These forms supply all necessary data for a complete statistical record for each publication. Too much time would be required to look through all of these cards every time information is desired about a given publication; a more condensed record of total results should be provided.
All of the information of practical value can be combined with a record of insertions on the form shown in Fig. 17, using a sheet for each publication. The record includes the date of order, space, subject, copy No., cut No., dates of insertion, checking, and proofreading, the date and amount of bill, and the number, amount, and average cost of sales. The record of sales should be entered monthly from the detail record.
These sheets are filed in a loose-leaf binder, indexed alphabetically under the names of the publications. One sheet will accommodate the full yearly schedule for a monthly or weekly publication.
_Retail Advertising Returns._ To check returns from retail advertising is quite a different problem from checking returns from keyed ads in monthly magazines. There are no keys, and no mail inquiries to be traced. But a record of general results is very desirable, and it is possible to obtain records which will, at least, indicate the increase in sales due to advertising.
Results of retail advertising must be measured by comparison; if a department store advertises handkerchiefs as a leader for Tuesday, _all_ handkerchief sales for that day would not be due to the advertising, but it is legitimate to credit advertising with any increase over normal sales. If correct sales records are kept, it will be possible to tell the exact amount of handkerchief sales for that and every other day in the year.
A close check on returns can also be obtained by requiring each sales person to put a distinguishing mark of some kind on sales for advertised articles. Proofs of the day's ads, showing the articles advertised in the department, should be mounted on cards and hung in each department, that the sales person may know when advertised goods are sold. If made large enough, the card can be ruled for a tally of sales, and each sale of advertised goods tallied.
There should be an office record showing the results of advertising for each department. In comparing these records sales alone cannot be used, for the weather, and unusual events calculated to increase the crowds in town, must be considered. To-day's sales of an advertised article, with unfavorable weather conditions, probably will not equal the sales of the same article one year ago, which was circus day. If daily records, similar to that provided in the form shown in Fig. 18, are kept, they will soon become very valuable to the advertising department of any retail store.
STREET CAR ADVERTISING
Street car advertising is of a general publicity nature. It is intended, not to secure direct orders, but to influence sales by keeping the name of a commodity before the public. It is local in its effects, influencing sales only in the cities in which the cards are used.
Street car advertising is now controlled by a small number of agencies, who own the space in the cars in the different cities throughout the country. Through one of these agencies, contracts can be made for space in street cars in any city in the country.
The rate for street car advertising is based primarily on population, the _circulation_ consisting of the number of passengers carried. When the advertiser buys space, he pays for having his card appear in a specified number of cars, for a stated period. As a rule, the rate is for monthly periods, with special discounts on yearly contracts, and cards are changed each month. On certain contracts the agency will include extra service, without additional cost, by running cards in a number of extra cars, which are put on during the rush hours.
If desired, the agency will design the copy and print the cards, making an additional charge for the service. Many street car advertisers prefer, however, to furnish their own cards. This is probably the better plan for advertisers who maintain efficient copy departments.
Although this book is not intended to teach the technical details of the art of preparing copy, it may not be out of place to suggest that copy for street car cards is in a class by itself. Experienced advertisers have found that to use wordy arguments on a street car card is a mistake. The card must catch the eye, for it is expected to arrest the attention but a moment at best. A picture that tells the story at a glance, large type, and plenty of color seem to meet with most favor.
The special records required for street car advertising are simple, consisting of records of contracts. A form for such a record is shown in Fig. 19. This can be on a card or loose leaf. The form is headed with the name of the city and instructions for shipping. Below the heading, is a monthly record of the copy No., subject of the ad, size of cards, and other necessary data including the gross and net cost. On the reverse, Fig. 20, is a detailed record of the contract, and a record of total costs. These sheets are filed in a binder or in a card tray, indexed by cities.
OUTDOOR ADVERTISING
Outdoor advertising is the term used to describe all such forms of publicity as bill boards, signs, painted or printed posters, etc. This is strictly general publicity advertising.
Like street car advertising, outdoor advertising is thoroughly organized, and the sale of space is practically controlled by a few companies. Local bill posters, who control the boards, or _stands_, as they are technically known, have their own national organization which standardizes the practices of the business, regulates rates, and insures the advertiser against paying for service that he does not receive.
Rates for this class of advertising are based on population and the relative desirability of the location. In a city of 500,000 population, a stand which 150,000 people pass daily is worth more than one in another section of the city, which is seen but by 50,000 people.
The advertiser pays for his space on the basis of the number of stands used, size of posters or signs, relative number of _down town or preferred position_ stands, and length of service. Rates are figured for periods of one week, two weeks, one month, and longer.
The records of outdoor advertising are very similar to those of street car advertising. By changing the column headings of Fig. 19 from cars to _stands_, the form shown answers every requirement.
No outdoor or street car advertising campaign of national scope should be undertaken until provision has been made to take care of the business. The _trade_ must be covered first; when the ad appears on the boards the goods must be on the dealers' shelves.
Indeed, this is a most important factor in any publicity campaign intended to create a demand for goods sold through the retailer. Every possible preparation must be made in advance to secure a wide distribution so that the consumer attracted by the ad will find it easy to buy the goods. Making known the name of an article in a locality where it is not carried in stock, or without telling the consumer where it can be bought, can result in little advantage to the manufacturer.
WHERE ADVERTISING AND SALESMANSHIP MEET
A very effective method of producing sales--most largely used in campaigns intended to secure direct orders, by mail--is the use of circulars, booklets, and form letters. This literature is advertising, but to use it to secure the best results requires the application of a certain amount of salesmanship. The advertising man may prepare an attractive piece of printed matter, well-written and containing convincing arguments, but unless judiciously used, the time and study put into its preparation is wasted.
A large quantity of such literature, distributed indiscriminately, would probably bring some business, but the best results are obtainable only when its use is concentrated; when it is confined to a particular class and followed up in a systematic manner. Knowing his goods and the class of people who use them, the salesman is naturally the best judge of where and when to use those forms of advertising which he turns into salesmanship by mail. The discussion of systems of record and methods of use of this form of literature is taken up under the head of the _sales department_.
SALES DEPARTMENT
The sales department proper is in charge of a sales manager, who has immediate authority over his subordinates and is responsible for the results secured by his department. No position in the business organization carries with it greater responsibilities, for on the sales manager rests the burden of marketing the goods at a profit.
Without entering into a discussion of the science of salesmanship, the writer takes the liberty of suggesting some necessary qualifications of a sales manager.
He must be thoroughly imbued with the importance of his work and have an abiding faith in his ability to get the very best results out of his department. He must be enthusiastic and capable of imparting his enthusiasm to others.
He must _know_ the goods, be they pianos or investment bonds. He must believe in his goods and his house. Unless he feels that his house is the best on earth and offers goods second to none, he cannot produce the full measure of results of which he is capable.
He must know the goods of his competitor and what methods his competitors are using. He must be willing to abandon his own pet schemes when they fail to produce, or to adopt a new plan, even though originated by another.
He must be a close student of human nature with the capacity for judging men. He must be a salesman in every sense else he is in no position to judge the qualifications of those in his employ.
On the other hand, the sales manager should be given full control of his department, until he proves to be incompetent. While other members of the organization will be consulted before a new campaign is launched, when the plans have been approved he should be permitted to _try them out_ without interference. Assuming that he is a competent man in the first place, he will be the first to detect the weak points and set about to find a way to strengthen them.
Many a sales manager has had his usefulness impaired by the interference of others before he has had an opportunity to give a selling plan a fair trial. Selling campaigns have been discontinued before the turning point was reached, because someone higher in authority lacked faith; when they would have proved successful, if carried out as originally planned.
This is not an argument for a stubborn adherence to plans, regardless of consequence--any sales committee is liable to make errors--but before the campaign is launched the extent to which it shall be tried out should be decided. If the sales manager is given an appropriation of $500.00, or $5,000.00, for a trial, he can work intelligently, but if told to go ahead, and then ordered to stop before his campaign is well under way, he should not be charged with a failure.
Another thing that the sales manager should control is the question of salaries paid to the salesmen. We maintain that the amount of salary paid to a salesman is of no moment provided he is a profitable man. A $10,000.00 man who sells goods at a cost of 10% is more profitable than the $5,000.00 man who sells at 10%, or even 9%, because of the greater volumes of his business. The management should gauge the sales department by net costs, not by the amount of individual salaries.
BRANCHES OF SALES DEPARTMENT
The sales department is logically divided into two branches--mail order and personal salesmanship. The mail order branch is that part of the organization which has to do with the promotion of sales by mail. The personal salesmanship branch is the division which makes sales by personal contact with the customer.
The work of the mail order branch is conducted by correspondents--letter salesmen--assisted by clerks to look after the routine of the department.
The personal salesmanship branch is conducted, primarily, by salesmen who visit the customers and personally sell goods. In many lines, the personal salesmanship branch is supplemented by agencies, who come in direct contact with the customer.
There are businesses in which the dealers, who carry the goods in stock, are assisted by both the mail order and personal salesmanship branches in making the sale to the customer. An example is the piano business in which inquiries are referred to dealers, the dealer and prospective customer followed up by mail, and the traveling salesman sent to assist the dealer to close the sale.
THE MAIL ORDER BRANCH
When the mail order branch is spoken of it does not refer necessarily to an exclusive mail order business, but the term is used to identify the department in any concern which uses the mails to promote sales. While there are many exclusive mail order houses, employing no personal salesmen, there are practically no exclusively personal salesmanship houses. There may be no effort to secure direct orders in this manner, but the mails are used to influence sales. Extensive circularizing campaigns are conducted for the purpose of making known to the consumer the merits of certain commodities, which are sold only through dealers. In the sense here used, such campaigns are within the province of the mail order branch.
=Form Letters.= An important factor in the conduct of the mail order branch, is the use of form letters. In a campaign intended to secure direct orders, the form letter takes the place of the personal salesman.
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Cyclopedia of Commerce, Accountancy, Business Administration, v. 01 (of 10)Chapter VII: Introduction (1)
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