The Retailer and National Advertising 1

manufacturer, demand and market

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Perhaps the general conclusion regarding the proper attitude of the retailer toward this questir might be formulated as follows : If goods are effec tively advertised by the manufacturer, if there is a real demand for them, and if the profit is such on each sale that the total business will yield a satisfac tory return considering the amount of capital invested and the time required to turn it over, then by all means handle advertised goods. If the advertising, on the other hand, is not effective enough to create a real demand, or if the profit is impossibly small, the dealer cannot be blamed for not being enthusiastic about the manufacturer and his goods. The retailer must solve the problem on the basis of, first, service to his customers; second, profit and other forms of immediate returns to himself ; and third, the general effect on his business now and in the future.

16. Trend of trade toward national advertising.— Many manufacturers who do not brand and advertise their products find a ready market. There is no doubt that the non-advertising manufacturer can sell large quantities of goods in channels that are eager for un branded or privately branded lines. Nevertheless,

there are injications that these channels are shrink ing. A conttantly increasing proportion of manufac turers are branding their goods and pushing them by advertising campaigns, and this seems to be the trend of trade. The opportunity of building a permanent good-will for himself arid his goods among consumers is drawing many a manufacturer into the ranks of advertisers. The chief reasons are, perhaps, the fol lowing: (1) the desire to "control" the market— to be sure of sales, thru consumer demand, regard less of antagonism or indifference of dealers; (2) the desire to build a large volume of sales thru adver tising, which often could not be built if the unbranded goods were left solely to the mercies of dealers; (3) the growing favor of consumer and dealer to ward goods that the manufacturer believes in, prov ing his belief by putting his name and brand upon them and by pushing them in the market by all means at his disposal.

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