9. Creates new modern development of advertising is shown in the systematic creation of demand. Products are no longer considered isolated units, but units which are closely interrelated with other products. The automobile, for instance, not only creates a number of closely related wants, but also affects remote trade lines. Moving pictures, to take another example, have, by their competition, decreased the demand for certain higher-priced amusements. If the advertiser means to hold his place amid this shifting of wants on the part of the purchasers, he must, in many cases, create new uses for displaced products or recreate the old ideas in the minds of former purchasers.
10. Reduces price to discussion of the social and economic functions of advertising is complete without mention of its effect on production methods and unit costs of production. Advertising assures and enlarges the market for the manufactur er's goods. It thereby makes possible large-scale production fiorn single patterns or designs which, thru reduction of the "overhead" or indirect costs per unit, brings about the low prices of most articles of standard design today. The dollar watch, the auto mobile under $1,000, the man's cigarette, the man's collar—all these standard products and hundreds more, are a tribute to the economic power of advertis ing. Without the assurance of widespread demand and easy sale which good advertising alone can give, no manufacturer could dare to produce the quantities which justify these low prices.
The ultimate consumer, who, of course, pays the cost of the advertising, pays it with but a small por tion of what it has saved him.
11. Service to distributor.—The distributor has been well served by advertising. He is, as a matter
of fact, almost entirely dependent on advertising to keep his products before the public and to survive competition. The retail distributor, who is notori ously lacking in sales ability, should give credit for the consumer-demand created largely by the manu facturers of the products he sells to the latter.
12. The manufacturer's advantage.—By means of advertising, the manufacturer has been able to fight his way from obscurity to prominence in the field of business. In the lists of the early advertisements, there were few if any of the present well-known products. Consumers depended largely on their local dealer's judgment. The dealer; in turn, selected his stock from the wholesaler's samples or on his recommendation. The manufacturer's connection with the consuming public was, therefore, indirect. He was seldom known, and frequently was at the mercy of the distributor, when the latter wished to push a competing product.
The manufacturer took the first step in winning public recognition when lie adopted a specific brand or trade-mark; the second step, when he advertised his product thru his brand or trade-mark. Not many years passed before the trade-marks were well known and millions of consumers were asking for them by name. This recognition forced the dealers to handle the goods, for unless they did, the customer would either send to the manufacturer for his supplies or encourage a competitive dealer to take up the trade marked line. The third step was taken by the man . ufacturer when he put his guarantee back of his trademark; and a fourth step when he shifted his methods of competition from a basis of price to a basis of quality and service. •