EVENING PUBLIC LEDGER PHILADELPHIA, TUESDAY, APRIL 29, 1919 . Hit 4' Advertising by News rtf i 'V erchandising Zones Logica V 4 Daoer ar Is rf I E "5. 1. ir is: If -.i Ik IrA l2 10 lf I m nn,. ta B r sf 4 IJfJ 1$ IS awtt 7 JSP f fev v IIP lb I3 t? z K. ' t" h 'Cold Facts for the Man Who Pays the Freight" This nation of 100,000,000 people cannot be handled efficiently from a sales standpoint until it is broken up into sections Every large organization purpo ing to cover the entire United States finds branch houses, district managers, sales territories, etc., absolutely imperative With population equal to that of a dozen European kingdoms and vast distances, it becomes elementary common sense to break the United States up into a number of logical merchandising units such as are shown, on the map opposite No jobber can sell the Chicago grocer but the Chicago jobber. No jobber can sell the San Francisco grocer but a San Francisco jobber. The grocers of Vinton, Iowa, are sold by Jobbers from Chicago and from Iowa cities, but seldom by New York jobbers. The grocers of White Pigeon, Michigan, are sold by jobbers from Michigan and from Chicago, but nover by jobbers from Philadelphia These are obvious merchandising axioms. One would think that his everyday knowledge of their truth would inspire every advertiser to adopt the corollary of localized advertis ing effort Nevertheless, John Sullivan, Secretary-Treasurer of the Association of National Advertisers, recently made the following statement to correct certain misapprehensions concerning his organization' " There is another mistake often made, and that it at ta what conttitutet a " national advertiter." It it as tonithing how many men thtnh that a national adver titer it an advertiser who utet the general ptnodicali. IF ONLY ADVER USING MEN WOULD THINK OF ADVERTISING IN TERMS OF DISTRIBUTION, SUCH A MISTAKE WOULD NEVER BE MADE A national advertiter it a firm which hat obtained more or lett thorough diltributton of itt produt.lt throughout the United Stales and which adiertitet to tupport or extend that dittribution." " Advertiting per te doet not pay. Finding the mar ket and hnowm the market and then co-ordinating ealet and advertiting doet." As a matter of fact, the most efficient form of national public ity is 'that which utilizes metropolitan newspaper advertising to " o-ordinate sales and advertising" The following are a few of the advantages inherent in this policy of merchandisinj and advertising by zones. Make Each Zone Self-Supporting manufacturer may have a thriving national business. He ma be selling his goods in every corner of the United States and his net profits each year may be quite satisfactory. He is a success and he, therefore, argues that his methods of ad v .using are correct. Nevertheless, this same man may find on analyzing his sales and his costs (including advertising) by zones that some zones Me exceedingly profitable; others merely break even, and in still others his profits are not sufficient to pay for their share of his advertising In other words, if he could cut off all tales and advertising in the thirty states which lose him money and concentrate his efforts on the ten states which make him money and the eight states which would make him money if properly cultivated, he would be vastly better oti, even thougn lus total volume of business might be much les:. Most of each dollar that a manufacturer takc3 in he must pay out again He must take varying percentages of it to pay for raw material, for labor, ft- distribution expenses, for interest, for rent, and it is only the residue that remains in his posses sion in the form of net profits. Scientists, business efficiency experts, production engineers nd mechanical gent' es have shaved off every bit of unneces aary cost in the production of advertised goods. Economies Save centered in this end of the business Only by the adop tion of the zone system of merchandising and advertising can corresponding economies be made in distribution costs. By careful study of distribution the proportion of each dollar that remains with the manufacturer in the form of net profits can be greatly increased And the first step is to make each zone self-supporting, which can be done only by localizing sales and advertising campaigns. Adapt Pressure to Needs Any sales manager knows that every section of the United States is not entitled to the same amount of sales effort. He knows that there are some districts where his product is so thoroughly established that a small amount of advertising pressure will produce maximum results. He knows that there re other districts where he cannot break in without an adver tising effort prohibitive in its cost. He knows that there is an indefinite number of gradations between these two extremes. When he limits his campaign to advertising in big national pe riodicals which boast of having in evecy community the same proportion of circulation to population, he is over-advertising In some sections and under-advertising in others. Newspaper advertiting permits him to exert precisely the amount of preiiure n-rded in each and every taction of the Unite". States. Meet Competition Squarely By zoning sales and advertising efforts the manufacturer can meet and smash competition wherever It arises. His machin. try of attack is mobile it can be shifted from point to point and adapted to the particular conditions in each section. He can sell his motor trucks In Kansas City because the town has hills, and in Chicago because the town is flat. He can feature his five-ton model in Philadelphia and his one-ton truck in Denver. He can take into consideration every factor of com petition, of season, of topography, of local custom, of buying habite. of legislation, of transportation in every lection where he aelJs goods. The advertiser in national magazines is some ttmts in the ridiculous position of fighting competition in a core of places where it does not exist in order to meet It in ne place where it bothers him. r This map shows the United States divided into thirteen logical jobbing and merchandising zones. It also shows how each of these zones, and therefore the entire United States, can be covered by advertising in the following 'forty-eight cities, using newspapers with radiating circulation. Zone It Boston; ions :: New York. Buffalo, Rochester, Syracuse ions Jl Philadelphia, Pittsburgh, Washlnrton, Baltimore, Richmond, Charleston, zona 4- Raleigh, Columbia, Atlanta, Savannah, Jacksonv ilia) sons S: Cincinnati, Cleveland, Columbus, Louisville, Memphis, Nashville, tone : Birmingham, Mobile, New Orleans; rone 7l Chic ago, Detroit, Indianapolis, Milwaukee, Des Moines; xona ll Kansas City, St Louii Oklahoma City; tone J! Dallas, San Antonio, Houston, El Paso; tone 10: Minneapolis, St. Paul, Duluth) ions 111 Omaha, Denver, Salt Lake City, zona 12i Lei Angeles, San Francisco; sons 13: Portland, Seattle, Spokane. '. 1 vvrlV' - k ( M The last four columns of this tabulati prove that metropolitan newspapers co the territory OUTSIDE the cities in which they are published even better than this territory is covered by any magazine. JJ "C a1 US I I? ' 0 I u Q I li i m I o.uu .a. 52 ! 1 : Zone 1 . . . Zone 2 . . , Zone 3. . ,. Zone 4..., Zone 5.. . , Zone 6. . . . Zone 7 ... Zone 8 Zone 9 Zone 10 . Zone 11 . Zone 12.. Zone 13 . 514,823 1,818,774 ' 1,260,697 215,275 723,176 369,762 1,201.200 372,841 134,730 187,975 I 156,760 350,000 230,000 ' 916,504 825,504 1,649,047 1,338,257 I 1,213,420 852,910 2,148,605! 1,463,566 833,209 645,681 i 411,655 310,187 329,707 597,598 1,206,067 703,808 154,547 941,594 125,037 759.436 459,026 171,601 160,064 155.357 413,507 155,091 .55 2.03 1.46 .39 1.15 .29 .94 .6075 .42 .21 .245 I .785 .37 220,771 ' .20 1,193,283 ! 1.53 948,897 59,017 329,479 120.364 644,883 377,225 83,685 512,062 232,810 1.36 .08 .705 .20 .75 .5475 .25 .38 .335 135,707! .25. 693,367 I 2,131,744 "1,404,994 ' 268,413 ' 862,403 302,162 , 1,348,629 , 789,973 ! 324,585 366,164 I 419,198 741,486 I 358,294 ' .70 2.64 2 41 .425 1 565 605 1.67 1.15 .72 .56 .635 1.22 .725 v.. TOTAL. 148 1 7.536,010 ,12,911,315 59 '6,489,755 '9.4475 38 4,858,183 ' 6.5875 ' 78 ' 10,011,412 15.025 423,964 1,454,665 966.171 137,657 505,953 218,094 835,525 408,138 194,516 173,286 203,457 396,980 229,728 6,148,134 1.214 1.25 1.305 1.61 1.429 1.695 1.433 .911 .693 1.085 .77 .7 i.oqi 1.226 268,082 667,463 422,477 128,967 346,592 81.263 490,331 379,340 126,306 187,131 l 209,050 I 233,438 1 119,507 1 3,659,947 3 415 1 238 3 905 11.376 3.501 10 742 4.382 3 858 6.597 3.449 1.969 1329 2 759 3 528 J Make Copy Seasonable Our tremendous variations in climate are a matter of common, daily discussion. We know that bathing suits are being worn at Palm Beach while furs are necessary in New England. We know that raincoats are bought in California during the winter rainy season, and in Chicago during the summer rainy season. We know that the buying habits of vast masses of population with regard to food, clothing and many other necessities are controlled by the weather. But the advertiser who confines his copy to national periodicals cannot take advantage to the fullest extent of these appeals of varying seasons and climates. The local advertiser finds climatic and seasonable changes the very breath of life for his advertising. But the national ad vertiser in an attempt to talk to Maine and California in the tame ad loses this direct sales producing punch. Make Copy Timely Advertising should be news if it is good advertising. It may be shecrly news of the merchandise to be sold. But a great element of value can be added to advertising by tying It up with the big events of the hour. Here again the local mer chant is Johnny-on-the-Spot with his timely announcements, linking his sales talks with the big topics which are upper most in every mind. 3"he man who relies upon national periodicals, on the other hand, is apt to find his copy given the lie by events taking place between the time it is printed and the time it Is circu lated. Thus, for a considerable period after the armistice magazines were filled with excited advertising almost ludi crously unconscious that the war was over. Suit Advertising to Transportation The zone system of marketing enables the manufacturer to adapt his sales and advertising campaigns to exigencies of transportation. The freight embargoes of a year ago caused many an advertiser to concentrate all his sales effort (except his advertising) in limited territory within which he could ship his merchandise. He cut off all sales expense in the zones which were barred l to him, except his advertising. Over his advertising, however, unless it was localized by zones, he had no control. Freight rates have arisen to a point where many manufactur ers find it unprofitable to attempt to cover the entire United Statea. They find that increased volume in distant sections does not mean anything like the increased net profit that a smaller volume would produce nearer home. Every such advertiser should, as a matter of course, adopt the zone sys tem for his advertising and merchandising. To pay for advertising in a section where he does not and cannot tell his merchandise is like paying; freight rates on good he does not ship. More Circulation for Less Money Every advertiter In national publications is now spending from one-sixth to one-fifth of his appropriation in Illinois, Indiana, Iowa, Michigan and Wisconsin, becauie from one-sixth to one fifth of the circulation of the magazines which ha uses is in these five states. If hit appropriation it $100,000, approximately. (20,000 should be charged to the Chicago Territory. . It is therefore pertinent that he ask himself whether he it using the most efficient, economical means of covering- thia great market from an advertising standpoint. Advertising in various publications must be reduced to some common denominator before comparisons can be made. The usual basis is the cost per agate line of space per thousand circulation. The following figures showing cost of space per agate line per thousand speak for themselves: 21 Standard Magazines 0062 11 Women's Magazines 0054 7 Leading Weeklies 005 Saturday Evening Post 004 i503 Sunday Newspapers (minimum) 0017 396 Morning Newspapers (minimum) 0019 1647 Evening Newspapers (minimum) 0023 59 Metropolitan Morning Newspapers (gross) .0015 38 Metropolitan Evening Newspapers (gross) .0014 78 Mr tropol'tan Sunday Newspaper (gross) . ..0015 ; Chicarjo Da'ly Tribune (minimum) 001 Chicago Sunday Tribune (minimum) 0008 But this tells, c-i part of the story of the economy of the) zone system of merchandising and advertising. Suppose, for instance, a manufacturer has distribution in the Chicago Ter ritory only. He uses the 21 standard magazines noted aDove to stimulate a demand for his product a demand that he can cash in on only in Illinois, Indiana, Iowa, Michigan and Wisconsin. The combined rate of the 21 magazines is $38.55, for which the advertiser would receive in the Chicago Territory 1,107,000 circulation. Suppose, on the other hand, he uted the largest Sunday news paper in each of the five states named. He would then secure) 1,143,000 circulation at a combined rate of $1.10 per line greater circulation for his purposes with a minimum of dupli cation for a thirty-fifth of the cost using five publicationa instead of twenty-one. Radiating Metropolitan Influence Thia question may arise in the advertiser's mlndi By using on newtpaper in each ttat am I not reach ing only on city in each state? Will it not be neces sary to utilize at least one newspaper in every town in the five states? The answer is found in the radiating influence of metropolitan centers. Every great city dominates the surrounding territory commercially. Many newspapers have as large circulation out, of town as in the city of publication. The Chicago Tribune.) has a larger circulation in Iowa than any national periodical' and larger than any except a very few Iowa newspapers. The map and tabulation on this page show how the entire United States can be covered with upward of ten million circulation by using 78 newspaper in 48 metropolitan centers at a cost of $15 per line, Nol only do thets newspapers reach practically every Eng lish reading family in these cities, but two out of seven families OUTSIDE the cities. Exert Maximum Dealer Influence By localizing advertising, that much sought and much misuiw' derstood asset, "dealer influence" is multiplied. "Dealer Influence" is the influence which a manufacturer haa with a dealer because the dealer believes that the advertising planned by the manufacturer will move the goods he haa stocked. The dealers of the United States have found to their sorrow, in many instances in the past, that this confidence on their part has been misplaced. They have come to realize that the in fluence of some of the advertising to which they trusted wai in truth "dealer" influence. It influenced them to buy but did not influence their customers. Distant pastures look green and dealers have often been de luded into thinking that a few beautiful pictures in a big national magazine would have a powerful effect on their trade But experience has given them a keener understanding; of advertising and they now demand copy of sufficient slza and frequency and in such mediums as will actually MOVE THE GOODS. Investigation has shown that the average jobber or retailer in The Chicago Territory ranks advertising mediums in the following order: LOCAL NEWSPAPERS, CHICAGO TRIBUNE, NATIONAL PERIODICALS. In 6hort, the dealer is coming more and more to demand adVj vertising support which can be given only by the adoption oi the zone system of merchandising and advertising. The Chicago Territory, Zone No. 7 When considering the order in which various sections of th United States should be developed, there can be no question that the rich market made up of Illinois, Indiana, Iowa, Michigan and Wisconsin comes first. These five states contain one-sixth of the population of the nation, in one-eleventh of its area. This one-sixth of the ?opulation produces one-fifth of all the products (raw mater als) of fields, forests and mines; makes one-fifth of all manu factures, and possesses one-ffth of the national wealth. Chicago being the greatest railway center in the world, has tha finest facilities in the country for distribution. The people are most receptive to advertising and the metropolitan news paper situation is such that the advertiser can cover thit) wonderful market with extraordinary economy. THE CHICAGO TRIBUNE REACHES ONE FAM ILY IN FIVE IN THE CHICAGO TERRITORY. Chicago Tribune Merchandising Servico Some vears ago The Chicago Tribune formulated this theory. The Tribune consider it a waste of money to adver tise a product distributed through the retail and job bing trade until that trade has been supplied with merchandise to take care of the consumer demand when created. How radically this differed from the old method of usimf' advertising to force distribution only one familiar wijh job bing and retailing can appreciate. The story of low The Chicago Tribune spent fortunes in order to live up to its theory the story of Chicago Tribune Merchandising ssirvlce is too big to tell even on another page like this. It is a story which has new chapters evety day. If you are interested in the sale of any product, ask a mer chandising expert to call and give you the advantage of the enormous practical experience of The Chicago Tribune in establishing products in the greatest market In the UnltafSi States the one marked Zone No. 7 on the map above. I WRITE ON YOUR LETTER HEAD FOR 1919 BOOK OF FACTS o m. -Jqfcug Xrxhnm m THE WORLDS GREATEST NEWSPAPER ' ' i . l ( Circulation in Excess of 400,000 Daily and 700,000, Sunday && , -WfTrfi . v -v. g. i ,'V w M4rr. '"tel rACTCDW DDAMrU rkCCir'17 9C1 CTCTU APMiTC rVTClir V."DaV- ijiiv ujvniiwi (vj -- a iu uinvwwi., iwiw i vrniv ? dw-htfttJ &&M!s$ ' rX'HMXBM- I? fc 1 -.-.- . j -. ' T J . . ,.MLi li-rtfflJ .r'J k.J. tT .A'vbS .. n.vT) JAVl? .ft. $ At I a i- ,' & ' - " l W? u " . Hi... ji .... - 1 afr, ,"' 1 Mi. Witfatf8ffi fflr...r ZJMkStitt&l&lS.& nmen i. i imi ..-uj, -."..
Significant historical Pennsylvania newspapers