6. Sales by growth of gross sales of a product is usually directly proportional to the extent or persistence of the advertising, increasing when these increase, and falling off with the cessation of advertising effort. This is especially the case with products which are classified as luxuries and conven iences rather than necessities of life.
Intelligent advertising does more, however, than merely extend the sales of articles for accustomed uses in the established market. The intelligent ad vertiser finds in advertising a means of exploitation of new uses and new markets for his product.
7. Determining advertising the growth and recognition of advertising as a ma jor factor both in getting and in keeping business, the old question, "Why should we advertise?" has been replaced by, "How shall we advertise?" And this new question is the more in order as the manu facturer realizes that the exact amount and nature of his advertising must be based on intelligent calcula tion of the work to be done—the load the advertising is to carry.
The progressive executive now recognizes in his ad vertising a definite sales force which he must measure, budget and scientifically determine in each detail in advance of his advertising campaign. He further recognizes that advertising costs should be figured scientifically, and based on a definite relation to some measurable quantity in the business. For example, a definite amount per unit of estimated production, a definite percentage of current gross sales, a definite percentage of current profits, a definite amount per unit of population to be educated, a definite itisurance premium on the current value of the business, or a combination of all may be the basis of the appropria tion.
8. Advantages of correct budgeting recognition of the principle of correct budgeting has taken the advertising appropriation out of the field of sporadic or uncertain expenditures. The ad vertiser knows accurately from clear and scientific analysis, just what he is investing in advertising and why; what he will invest and why; and that the total amount so invested in any period is absolutely based on production estimates and analysis of the returns from the advertising done in the preceding period.
Past experience thus furnishes the basis for scien tific determination of the advertising appropriation as an integral part of the operating budget.
9. Detailed methods details of method whereby the correct apportionment is to be fixed, will, of course, vary with every industry And with the phase of commercial development thru which the business is passing. In 'many cases two or more bases of ap propriation must enter into the calculation. The problem is a complex one in every case, requiring an expert knowledge that is not to be expected in any but a specialist.
10. Need of careful planning.—In most effective advertising campaigns, the real cause of effectiveness is the care with which the campaigns have been planned, the thoroness with which every bit of detailed knowledge available has been reviewed and correlated before the first piece of advertising copy has been written, or before a single advertising illustration has been made.
To any person of even elementary education, the idea of outlining a composition before starting to write it, is an old one. To professional men engaged in research work—the preparation of legal cases, the writing of books or articles—the brief or outline is the all-important consideration. The preparation of the brief requires more time, pains and effort than the writing of the book, or the presentation of the case to the court. Yet many advertisers will enter into an advertising campaign with little or no plan, no defi nite idea as to how the campaign is to be carried thru, no clear outline of what points are to be brought for ward nor in what sequence. They think, perhaps, that "We can afford about thousand dollars this year"; that "The first two or three advertisements must look good, and by the time they have run we can order more." When such advertising campaigns prove expensive in' proportion to the returns secured, these men are apt to conclude that advertising is "not all that it's cracked up to be," and that personal effort of sales men in the field is, after all, what sells the goods. It is therefore necessary at this time to discuss briefly the things that an advertiser should not do, before dis cussing how he should plan his campaign, and bring out some of the reasons why advertising campaigns need to be thought out carefully in advance. • 11. Approaching the plan from proper angle.— Under the old idea of advertising as mere paid pub licity, it was entirely natural that advertising should be regarded as something which could be carried on intermittently, in which careful planning had little ef fect. The repetition of a trade-mark and a few trade slogans with a pretty girl's head or a picture of a mischievous child to attract the reader's attention was considered an adequate advertisement. The main considerations were to get a first-class trade slogan, and to make each girl's head or small child's picture as pretty and amusing as possible. Even now some buy space and attractive designs when good solicitation catches their fancy, purchasing the illustration and possibly the idea for an individual advertisement here and another one there. Such sporadic efforts constitute their entire advertising.