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A survey of the use of television advertising by retail stores

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A SURVEY OP THE USE OF TELEVISION ADVERTISING BY RETAIL STORES

A Thesis Presented to the Faculty of the Department of Retailing University of Southern California

In Partial Fulfillment of the Requirements for the Degree Master of Business Administration

fcy Carl Edward Pearson June 1950

UMI Number: EP43266

All rights reserved INFORMATION TO ALL USERS The quality of this reproduction is dependent upon the quality of the copy submitted. In the unlikely event that the author did not send a complete manuscript and there are missing pages, these will be noted. Also, if material had to be removed, a note will indicate the deletion.

Dissertation Publishing

UMI EP43266 Published by ProQuest LLC (2014). Copyright in the Dissertation held by the Author. Microform Edition © ProQuest LLC. All rights reserved. This work is protected against unauthorized copying under Title 17, United States Code

ProQuest LLC. 789 East Eisenhower Parkway P.O. Box 1346 Ann Arbor, Ml 48106-1346

M fiA ,

'So

V3&I

T Z t w thesis, w ritten by cm.iinmiaD..iiEMs.Qi!i................ under the guidance of h , i S —F a c u lty Com m itteej and app ro ved by a l l its members, has been presented to and accepted by the C o u n cil on G raduate Study and Research in p a r t ia l f u l f i l l ­ ment of the requirements f o r the degree of

H A a T E R . . Q R . 3 . l I S J .....

Date ......... jym .2250

Faculty Committee

Charles Whitlo Chairman

.si*. DeVol Merrill

TAB’ L L OP CONTENTS

IITTHODUCTIQD.......................... Purpose of the study ............... Scope of the study ................. Method of the study

...............

Definition of terms

. . . . . . . .

Organization of thesis

........ ..

GELERAL EVALUATION OP TELEVISION A D V E R T I S I N G ....................... Development of television industry • Adaptation to sales promotion

• . •

PRESENT ADD PROSPECTIVE USE OP TELEVISION BY RETAIL STORES

. . . .

Dumber of respondents presently using t e l e v i s i o n ............

. .

Prosn^ative>u«e of. television by ^respondent non-users , ......... , Sources of television presentations. Length of television presentations • Sponsorship of television presentations

........

. . . . .

Technique of television presentations

. . . . . . . . . .

iii CHAPTER XV,

PAGE PRESEBT ADD PROSPECTIVE USE OF TELEVISION! BY RETAIL STOKES (COETIBUED) . . . . . . . .

42

Types of television presentations.

42

Time of television presentations *

46

Frequency of television p r e s e n t a t i o n s .............. * •

49

Factors influencing selection of s t a t i o n

.

51

Expenditures on television pr e s e n t a t i o n ...................

53

Audience and sales measurement of television

presentations,

••

57

Commercial length of television presentations V,

• « , , • • • • •

61

SUMMARY AHD C O N C L U S I O N S ...........

BIBLIOGRAPHY APPENDIX A,

65

.....................

73

Questionnaire and request for cooperation

APPEHDIX B,

Distribution of returns by cities and volume groups .

APPENDIX C.

78

"Television

,

84

Is Here To Stay” ,

87

L IS T

OF TABLES .GE

Estimated Output of 20 Television Receiver Manufacturers in 1950 .

. . .

3

• •

13

Distribution of Television Receivers in th.e United States, April, 1950

Number of Respondents Using Television, by Volume Groups

. . .

18

Prospective Use of Television by Respondent Fon-Users . • .............

20

Source of Television Presentations, by Volume Groups

. . . . .

........

24

Length of Television Presentations, by Volume Groups

• • •

29

Sponsorship of Television Presentations, by Volume Groups

32

Technique of Television Presentation, by Volume Groups • . • • • • • • • • »

41

Types of Television Presentations, by Volume Groups

44

Time of Television Presentations, by Volume Groups • • • • • • • • • • •

47

TABLE XI.

PAGE Frequency of Television Presentations, "by Volume G r o u p s

XII.

* . .

Expenditures on T e l e v i ^ o n

.•

52

..

54

..

56

■j

Presentations, "by Voluxfc^J^oups XIV.

50

Factors Influencing Selection of Station, “by Volume Groups

XIII.

. .

Planned Increase in Television

|

Expenditures, by Volume Groups!.

CHAPTER I PURPOSE OF THE STUDY In three years, since the en$L-o#™We«3rd War II, the growth of television as a saj.es promotion mediima has been meteoric.

The purpose of this study was to attempt^to

measure the impact of this ^ew advertising medium upon the major retail stores of jthe nation and to obtaan

me

estimate of the degree of acceptance of television vertising by store executives\responsible for sales Ipromotion programming.

X SCOPE OF THE STUDY

The retail stores included in the study are the major department stores and specialty stores of the United States in those retail trading areas being served by tele­ vision stations.

The study is not offered as a scientific

analysis of the pattern of use of television by retail stores.

The dynamic growth of the use of television sales

promotion and the nature of the mail questionnaire technique of survey do not allow a claim of complete accuracy.

The

use of television by retailers is, as yet, in the formative stage of development and much of its use is purely experi­ mental.

2 METHOD OP THE STUDY The mail questionnaire technique of research so­ licits returns from a highly selective group resulting in a return that is not proportional to the existing universe, but the limited sources of information on the subject made its use necessary*

Magazines and newspapers

of the retailing trade cite individual store experiences with television sales promotion, but the patterns and techniques of retailers’ use of television as a group have not been studied. The mailing list used for the survey consisted of major department stores and specialty stores most likely to have television experience in those cities of the nation served by television facilities*

The

complete universe of the retailing trade is not known and the mailing list is not a proportional sample of that unknown universe*

A sample of the questionnaire

used and the letter soliciting cooperation of the re­ spondents is included in Appendix A.

The questionnaire

called for both facts and opinions of retailers regard­ ing the value of television advertising and their plans concerning present and prospective use of the medium. Retailers, traditionally, are secretive concerning their

own operations and anxious to learn mdi*e about the com­ petitor* s method of operation.

To satisfy this desire

for anonymity, the only attempt at classification of respondents was by volume groups. used were: ten million;

(l) over ten million?

Five volume groups (2 ) five million to

(3) two million to five million;

(4) under

two million; (5) volume not given. A total of two hundred and sixty-six question­ naires were mailed to major retail stores in the na­ tion's retail trading areas then served by television stations.

A total of.one hundred and eleven usable rei * turns from stores in l^rty-six cities of the United .

\

States were received and made the basis of the findings This unusually high percentage of returns (41.7^) is indicative of the current interest of*1 -Retailers in the problem of television advertising and their desire to gain more knowledge concerning this new advertising i

medium and its application to their sales problem.

The

distribution of questionnaire returns by retail trading areas and by volume groups is listed in Appendix B. Secondary sources of information used in the study were the several trade newspapers and trade mag­ azines widely distributed among retailers of the nation The most helpful source was the daily newspaper of

4 apparel retailers, Women* s Wear Daily, published by Fair­ child Publications of New York, DEFINITION OP TERMS The term ”retailers” as used in the text applies to those major department stores and specialty shops in the nation whose primary appeal lies in the sale of soft lines as contrasted to those retail outlets with a lim­ ited line of what is generally known as ’’hard goods” . ’’Television advertising” is used synonymously with the term ”television sales promotion” as descrip­ tive of the non-personal presentation via television of sales information pertaining to goods and services of­ fered by retail stores.

The term ’’television sales

promotion” is not to "be confused with the promotion of sales of the television receivers themselves. The ”commercial” of a television presentation is that part of an entertaining or educational program that is devoted to the sales promotion of the sponsor’s prod­ uct or services.

Some program types are continuous

”commercials” in that no attempt is made to entertain or to educate the viewer. Television as an industry has a nomenclature as distinct and peculiar to the industry as does the Army

5 for its ordnance*

Terms of television advertising when

not self-explanatory, will be defined as clearly as the limited experience of the author will allow as they are used in the text*

QRGAh IZATI ON OF THE THESIS Following the introductory remarks of Chapter I, a general evaluation of television advertising and in­ formation concerning the growth of the television industry with its adaptation to sales promotion are contained in Chapter II; Chapter III presents the findings of the mail survey concerning the number of present and prospective users of television among respondent stores and the source, length, sponsorship, and technique of their television pres­ entations; Chapter IV is a continuation of the survey find­ ings presenting the type, time, and frequency of television programs by respondent stores, the factors influencing sta­ tion selection, the amount of expenditures on television advertising, the audience and sales measurement methods used by retailers in this study, and the length of com­ mercial presentation; Chapter V contains a summary of the findings and conclusions derived from the survey*

CHAPTER II GENERAL EVALUATION OE TELEVISION ADVERTISING Any attempt to evaluate the ability of television sales promotion to sell merchandise must consider both the quantitative and qualitative aspects of the medium* The growth of television receiver sales has been phenom­ enal and television can now be classified as one of the "mass media".

Wide circulation, plus qualities not

peculiar to any other medium, make this sales medium potentially one of the most potent sales devices in existence. DEVELOPMENT OE TELEVISION INDUSTRY The growth of the television industry and tele­ vision’s use as an entertainment and sales promotion medium has exceeded the most optimistic forecasts of the industry leaders.

Sales have kept a steady pace

with increased output of the nation’s television manu­ facturers.

The production briefs of each week’s busi­

ness reports in the McGraw-Hill publication, Business Week, cites new gains in television receiver production similar to the following "DuMont's new TV tube plant at Clifton, N. J . , will up annual production by 1 million.

7 Half of the production will go into DuMont* s receivers, the other 50^ to outside set manufacturers. plant:

$3 million."!

Cost of the

The estimates of total production

of television receivers for the year 1950 vary widely in amount, but the majority of production estimates indi­ cate that close to 5,000,000 receivers will be made and sold.

Table I lists the production goals of the top

twenty television receiver manufacturers in the country as determined by a survey of the Television Shares Man­ agement Company and reported by Harold Walsh, Dos Angeles Times financial editor on April 16, 1950.

The spectacular

rise of the industry is dramatically illustrated by the following excerpt from the article. Weekly production for the industry is running close to 1 1 0 , 0 0 0 units and dollar-wise production is going along at an annual rate of well over $ 1 ,0 0 0 ,0 0 0 , 0 0 0 at the retail level— a total reached after a little over three years. Ho other American industry has moved ahead so fast in so short a time. At the close of last year, the wholesale value of all television sets in the hands of cons toners exceeded $ 1 ,0 0 0 ,0 0 0 , 0 0 0 whereas it took the automobile industry, operating at a much higher price bracket, over 1 0 years to reach that figure. By the end of next year, according to Barron’s estimate, the manufacturers and broadcasters in

1 "Production Brief", Business Wee k . Ho. 1070:56, March, 1950.

8 TABLE I K S T M A T E D OUTPUT OP 20 TELEVISION RECEIVER MANUFACTURERS IN 19502

Manufacturer

....

Admiral Radio Corp. of America Philco Motorola Zenith Emerson General Electric DuMont Teletone Hallicrafters Westinghouse Avco (Crosley) Meclc Raytheon (Belmont) Sylvan ia Magnavox Ca,pehart-Fa rnsworth Olympic Garod (Majestic) Hytron (Air Ring) Total

Average Factory

Total Value

§145.00 155.00 145.00 135.00 165.00 145.00 150.00 225.00 125.00 140.00 155.00 150.00 115.00 135.00 155.00 215.00 160.00 145.00 145.00 125,00

#116,000,000 108,500,000 90,625,000 72,225,000 54,450,000 47,850,000 45,000,000 42,750,000 21,875,000 23,800,000 23,250,000 22,500,000 17,250,000 18,900,000 13,600,000 21,500,000 16,000,000 14,500,000 14,500,000 13.500,000

Units 800,000 700,000 625,000 535,000 330,000 330,000 330,000 190,000 175,000 170,000 150,000 150,000 150,000 140,000 120,000 100,000 100,000 100,000 100,000 120,002

5,365,000

#149.78* #803,575,000

^Average 2 Harold Walsh, Finance editorial in the Los Angeles Times. April 16, 1950, citing Television Shares Management Company survey.

9

television should have an investment of close to §3,000,000,000* By comparison this is more than the investment in the entire motion picture in­ dustry, including everything from the studios here in Hollywood to the 19,000 motion picture theatres throughout the country .3 The growth of the industry is even more amazing when com­ pared to production figures beginning with 1946: The 6,500 receivers made in 1946 seem more like somebody*s income figure than the total productive capacity of a now mighty industry. Railroads that certainly never staggered under the pressure of the shipment of 1947* s 162,181 television sets have long since looked longingly at the coming freight poten­ tials of the industry, especially since the sets shipped in 1948 came closer to a cool million. How the 1949 figures are solidifying and place the ex­ pected set production for televisions greatest year at over 2 ,0 0 0 , 0 0 0 sets.4 Much of television*s rapid growth has been achieved be­ cause of the precedents established by the radio industry. The technical '’know-how” of radio mass production was adapted to the assembly line manufacture of television receivers.

As a result of television*s accelerated growth

the future of the radio industry is much in doubt and radio is faced with a serious decline in receiver sales and lis­ tening audience.

Harold Walsh, Financial Editor in the Los Angeles Times. April 16, 1950. 3

4 Hat Boolbach, "The Golden Age of Television”, Radio Television J o u m a l . Vol. 66:12, December, 1949.

10 Sales of television receivers in all market areas reached by television stations have kept pace with pro­ duction.

Although sales promotion is aggressive and

price competition keen, the major television receiver manufacturers report inability to fulfill existing orders for television receivers.

The demand for new sets is

strong, but there also exists a large replacement demand for new, larger-screen receivers that are being offered at continually lower prices.

In the face of a constantly

growing demand and a continuing shortage of television re­ ceivers the retail price of the sets has been reduced by about one-fifth on the

1 2 -1 / 2

inch receiver and nearly

one-third on the 16 inch set within the five month period following December of 1949.

Continued increases in pro­

duction and decreases in price have brought about a total set distribution estimated to be in the neighborhood of 5,200,000 receivers as of April of 1950.

Total retail

trading areas served by television reach 60 and the total number of television stations serving these markets is 103.5

A more rapid expansion of the number of television

stations and markets served will presumably come about when the Federal Communications Commission lifts its

5 "Weekly Summary of April 17", BroadcastingTelecasting. Vol. 38:16, April 17, 1950.

11 current ban on new station construction in certain areas* The Chairman of the Federal Communications Commissions, Hr* Wayne Coy predicts, *'400 television stations will be in operation by 1951, and, possibly 1,000 within six or seven years . ” 6 The United States Summary of the Monthly Retail Trade Report of the Department of Commerce lists RadioHousehold Appliance dealers as leading national retail sales in percent of gain over 1949.

The percentage

change in sales, nationally, over the first three months of 1949 was a plus 28^, exceeding the 24^ gain in sales of the automotive group.

Locally, the Monthly Retail

Trade Report for the cities and areas of the Pacific Region lists the percentage gain in Radio store sales in the Los Angeles market area as a 1l10 % gain over the first two months of 1949.

The Los Angeles television

market is now exceeded only by the Hew York area.

In

Los Angeles county during the past four months (January, February, March, April) consumer investment in the tele­ vision receivers has averaged $ 1 2 ,0 0 0 , 0 0 0 per month— fully 40^ of the amount being spent in the Los Angeles

MFCCfs Coy Tells What He How Thinks of Tele­ vision Medium”, Westers Radio and Appliances. Vol. 5;39, March, 1949. 6

12 area for new passenger automobiles

The ratio, dollar-

wise, of television receiver sales to radio sales is about two to one according to The Department of Labor so the category Radio Stores should, possibly more correctly, be called Television Stores*

Table II lists the distri­

bution of television receivers in the United States as of April, 1950, as estimated by the publication BroadcastingTelecasting*

Sales of television receivers may decline

during the coming summer months, but promised improvement in program variety and quality for next fall and winter should bring further expansion in receiver sales*

Top

radio stars not yet on television shows are considering a possible change to television entertaining to reach increasing nightime audiences* ADAPTATION TO SALES PROMOTION Television offers to the advertiser a combination of characteristics not to be found in any other medium of non-personal presentation of goods and services* Television as a sales promotion medium provides sound, motion, immediacy, and sight, in a combination not found

^ Research Department, Security-Pirst National Bank of Los Angeles, Monthly Summary Vol. 29:3 March 16, 1950*

13 TABLE II DISTRIBUTION OF TELEVISION RECEIVERS IN THE UNITED STATES, APRIL, 19503

City Albuquerque Ames Atlanta Baltimore Binghamton Birmingham Bloomington Boston Buffalo Chicago Cincinnati Cleveland Columbus Dallas Ft* Worth Davenport Dayton Detroit Erie Ft* Worth Dallas Grand Rapids Greensboro Houston Huntington Charleston Indianapolis Jacksonville Johnstown Kalamazoo Battle Creek Kansas City Lancaster Los Angeles

Out­ lets 1 1 2

3 1 2 1 2 1

4 3 3 3 3

Number of Sets

City

2,475 8,860 32,350 146,191

Louisville Memphis Miami Milwaukee Minneapolis St* Paul Nashville New Haven New Orleans New York Newark Norfolk Oklahoma City Omaha Philadelphia Phoenix Pittsburgh Portland Providence Richmond Rochester Salt Lake City San Antonio San Diego San Francisco Schenectady Seattle St. Louis Syracuse Toledo Tulsa Utica-Rome Washington Wilmington

11,220 12,100

5,000 305,793 84,849 418,366 99,500 200,269 49,600

1

49,125 9,375 47,900 203,000 33,432

1 1 1 1

49,125 23,200 10,400 17,500

1 1 1 1

7,200 36,500 9,000 16,560

1 2

3

- -

1 1

7

10,986 32,347 40,720 448,737

Out­ lets?

Number of Sets 25,901 29,775

2 1 1 1

101,016

2

74,900

- -

22,000

100

72,700 19,897 1,145,000 Incl. in N.Y 10,008 24,775 21,088 3 435,000 1 4,500 1 91,000 - 887 1 34,125 1 26,213 1 35,436 2 14,200 2 13,427 1 34,900 3 43,442 1 70,000 1 24,450 1 111,500 2 33,758 1 39,000 1 20,800 1 11,500 4 118,250 1 32,669 1 1 6 1 1 1 2

3 "Weekly Television Summary", Bit?adcasting-Telecasting. April 17, 1950.

14 in any other advert is ing medium#

Hot until color tele­

vision is perfected and widely distributed will black and white telecasting be matched in natural advantages in the communication of sales information to the consum­ ing public.

Dr. Allen B. DuMont, president, Allen B*

DuMont Laboratories,

Incorporated describes television,

"Ho other medium will be able to match it in conveying pleasure to the public.

Advertisers have been quick

to learn of the astonishing power of TV to move goods and its acceptance as an important medium is now com­ plete."®

A more enthusiastic description of television

advertising, perhaps with some bias, is offered by Mr. Murray B. Grabham, vice-president in charge of American Broadcasting Company owned and operated stations, he states: Television has reached that stage where it is no longer necessary to hazard a guess as to its future. As television rapidly sheds its growing pains it becomes more and more apparent that it will be--if it is not already--the greatest form of entertain­ ment and advertising in history. More advertisers are realizing everyday that television offers them the opportunity to deliver their selling message with an impact many times greater than any other known medium.^

8

Editorial in Televiser. Vol. 6:25, September,

9

Ibid. p. 32.

1949.

15 An ancient Chinese philosopher is credited with having said "One picture is worth ten thousand words." The sense of sight in man teaches him more ah out his environment than the other four senses combined.

It is

estimated by some psychologists that ninety percent of m a n ’s total experience is gained through his sense of sight.

Television’s inherent advantage lies in this

attribute of human nature*

A flash of light tells a

story in a fraction of the time needed to construct it in words* Some economists see in television the "innova­ tion" of Schumpeter which serves as the originating force creating cumulative increases in business activity and prosperity*

Sociologists see in television a power­

ful educational force and a means of unifying the social unit.

And, some retailers see in television a sales

promotion medium that will assist them in extending their trading area and will enable them to present their wares under the most favorable circumstances, as. & guest within the homes of thousands of potential customers*

CHAPTER III PRESENT AND PROSPECTIVE USE OP TELEVISION BY RETAIL STORES Tlie primary source of information concerning tlie present and prospective use of television advertising by retailers was, as stated previously, the question­ naire returns of

111

retail department stores and spe­

cialty shops in forty-six cities of the United States# The order of the presentation will follow the order of the questions as outlined in the questionnaire (Appen­ dix A ) •

Secondary sources of information will be re­

ferred to covering phases of the questionnaire about which other studies have been made and findings pub­ lished#

The current nature of the topic is reflected

in the source of the supporting references#

Current

periodicals and newspapers of the retailing trade pro­ vide most of the current thinking on the use of tele­ vision by retailers# NUMBER OP RESPONDENTS PRESENTLY USING TELEVISION Television advertising as a means of gaining additional sales volume is being considered by most alert retailers#

Current interest in its use is

17 reflected by the high percentage of questionnaire returns (41*7/0 by retailers contacted in the survey*

The fact

that non-users were required to return the questionnaire to receive a summary of the findings increased the per­ centage of returns beyond that which could normally be expected, and also increased the proportion of non-users, removing some of the inherent bias of questionnaire techniques and bringing the findings more closely into accord with the retailing universe* The percentage of respondents by volume groups, now using television sales promotion is listed in Table III#

Retailers in the “Yes *1 category are those retailers

now using television seasonally, irregularly, or regu­ larly*

Seasonal users of television are those adver­

tisers who use the medium before peak seasonal periods such as Christmas and Easter#

Irregular users exploit

television, as the classification implies, for major sales promotion events as the occasions arise*

Regular

users of television have periodic television presenta­ tions usually on a weekly basis*

The major users of

this new medium are those retailers in the sales volume groups above 5 million dollars*

In the total of all

volume groups forty-nine, or 44^, of the are using television at the present time*

111

respondents

Hew users of

18 TABUS I I I

NUMBER OF RESPONDENTS USING TELEVISION, BY VOLUME GROUPS (Millions) Volume Do you now Over 10 5 to 10 2 to 5 Under 2 Not Given Total use TVY____ m u 2 MSU 2 Msu....fz M * % . 2 UQ^--2 .

Yes

37

55

No

5 £ 4 £ £ £ 2 H 2 2 £ 8 £ 2

Total

67

6

100 12

Source: Question I

50

3 21

2

100 14 100 10

20

100

1

13

49

44

82 8

of mail questionnaire.

100

111 100

19 television advertising are reported by trade publications regularly and the percentage of TV users will gain con­ sistently* The highest percentage of use was reported in the volume group over 10 million dollars*

Out of the total

of sixty-seven respondents in this class, 37, or 55%, are using TV sales promotion at the present time*

As

sales volume decreases, the percentage of television use decreases in all volume groups.

The high cost of tele­

vision advertising relative to other available media has discouraged its use among low-budget retailers.

The high

cost per viewer has been difficult to justify with the lower-cost proven media available to advertisers* PROSPECTIVE USE OP TELEVISION BY RESPONDENT NON-USERS In an attempt to determine the attitude of those respondents not using television advertising at this time, the second question inquired about the possible use of television later this year.

Table XV is a break­

down, by volume groups, of the sixty-two retailers not presently using television indicating their present attitude toward the use of television advertising within the year.

In the total of all volume groups thirty-nine,

20 TABLE IV PROSPECTIVE USE OP TEIEVISION BY HESPOUDEITT BOM-USERS (Millions) Do you plan its use within Volume the year? Over 10 5 to 10 2 to 5 Under 2 Hot Given Total Mo

16

3

9

5

6

39

Yes

3

2

2

2

1

10

Probably

6

-

6

Uncertain

_B

JL

=r

JL

-

7

Total

30

6

11

8

7

62

Source:

Question II of mail questionnaire.

21 or Z5%, of tlie original 111 respondents are definitely not contemplating the purchase of television time this year.

The uncertainty of many non-users concerning use

of television -was due in many instances to uncertainty of opening dates of new television stations and avail­ ability of extremely limited facilities, rather than the lack of faith in the ability of the new medium.

Sig­

nificantly, of the sixty-seven retailers in the over

10

million group, only 16, or 24%, were definitely not buy­ ing television time within the year.

Success stories of

television presentations and the pressure of competitor’s use of the medium will serve to convince those uncertain at present and possibly convert those presently opposed to its use. Retailers, wherever television facilities are available, are seriously considering its use as a sales promotion medium.

Fot all stores can afford to investi­

gate the medium on the scale of the Sears organization as reported in Wpmeng ¥e&x Daily: Philadelphia.— Sears, Roebuck and Company will shortly survey customers, here, to determine the advantages of sponsoring a television show, follow­ ing a similar survey conducted by Sears in the Few York area, according to a spokesman for the store chain here. The local survey will be patterned after the one in Few York, which was directed to Sears’

22

"best customers'*, or about 5 per cent in that area. Primary purpose of the surveys will he to develop the chain’s telephone shopping service as well as counter sales, it was said. The Sears organization presently has no television shows, hut utilizes spot announcements in certain localities .1 Their scientific approach to the sponsorship of a. tele­ vision show is to he highly commended, hut few retailers could afford the expenditure involved.

Television of­

fers an opportunity for additional sales to retailers of all sizes and some degree of use is available to all. The attitude of the majority of the nation’s retailers is stated very aptly by Mrs. Evelyn Del Barrio, sales promotion and advertising director of the Neiman-Marcus organization in Dallas, Texas, who states, "Any alert store is investigating the possibilities of television . " 2 SOURCES OE TELEVISION PRESENTATIONS The retailer has two possible choices as to the source, or origination, of the program which he spon­ sors.

The presentation can originate locally, within

the market area of the store, or be a network presenta­ tion, in which case the program originates in the central

1

Hews item in Women's Wear Daily. March 15, 1950.

2 "Promotions On The Air", Women's Wear Daily. October 12, 1949.

23 studio of the telecasting system and is re-telecast in the participating cities simultaneously "by means of cable connection or at a later date by means of kinescope re­ cordings.

Almost unanimously, the television presenta­

tions originated in local studios.

In Table Y the choice

of program source for all volume groups is tabulated. Only three users indicated participation in a network presentation.

The overwhelming choice of local program­

ming follows closely the pattern of use in radio advertis­ ing.

The local presentation is more flexible in nature

regarding time and talent expenditures*

Also, the local

program is more readily adaptable to the individual store personality* The network type of presentation, in which the local sponsor presents his individual commercial during that portion of the program alloted to a sales presenta­ tion, does have several advantages, especially in those television areas connected by the coaxial cable*

This

direct telecast, through cable-connected stations, is more popular with viewers than the kinescope reproduc­ tion which lacks the clearness and definition of the direct show*

The kinescope recording is a filmed ver­

sion of the program in which the camera records the show from the image tube of a monitoring television receiver.

24 TABLE V SOURCE 03P TELEVISION PRESENTATIONS B Y VOLUME GROUPS (Millions) Source of Telecast-

Volume Over 10

Local

40

IS .2— tflJ-HLdg.r,2 6

4

3

Total 53

Chain

3

3

Intrastore

5

5

Source:

Question III - 1 of mail questionnaire.

25 The resulting reproduction in a re-telecast of the show is inferior to other programs being directly telecast and many viewers will prefer to watch an inferior program directly presented over a show with better talent that is reproduced by kinescope recording*

Consequently, the net­

work show presented directly by means of the coaxial cable link between major cities of the East has been more successful and sought after by retailers.

The ad­

vantages of participating network shows for retailers lie in the sharing of time, talent, and production costs by a number of users*

Non-competing retailers in net­

work cities, in conjunction with manufacturers can offer top talent during the most popular evening hours at costs within their reach.

Without a cooperative ar­

rangement the individual burden of program costs defi­ nitely limits the quality of the presentation. An excellent example of local use of a network show is cited in W pmS B *fi

BajJLy.

Pittsburgh.— The Rosenbaum Co. reports initial excellent results on a half-hour television program which the store sponsors locally over Station WDTV on Wednesday nights. Program is known as Fireside Theatre in 26 cities, but the store calls the program ”St range Adventures1* locally. Currently, program is seventh in rating nationally. The store has 2-1/2 minutes of the half-hour for commercials. Rosenbaum* s will spon­ sor the program for 15 consecutive weeks.

26 . . • Commercials are prepared locally. In some instances, the store will have cooperative sponsor­ ship with manufacturers. Program has an ideal spot locally. It is scheduled from 9 to 9*30 p.m., between Arthur Godfrey and the wrestling matches.3 Dramatic presentations are very popular program types, but often too costly for individual retailer sponsorship. The time of the program is ideally located in a network position few individual stores can afford.

Participating

sponsorship in network presentations allows the use of a quality program beyond the means of a single store. The use of intrastore television was indicated by five respondents.

This type of television show is

entirely contained within the producing store.

One type

of intrastore presentation is the fashion show type of program held within the store auditorim or lunchroom and transmitted by direct wire to monitoring television receivers at strategic locations within the store. Intrastore televising allows wider circulation of a selling theme to a more-or-less Mcaptive” audience within the store, but the major contribution of tele­ vision to retailing, in the opinion of the author, will be the bringing of customers into the store rather than selling those customers already there.

3 MPromotions On The Ail*', Women 1 s Wear Daily, March 22, 1950.

27 LENGTH OF TELEVISION PRESENTATIONS The majority of retail stores reported the use of spot announcements and chain break commercials of one or two minutes in length*

A total of seventy-seven

programs were reported, of which 36 were of one or two minute length*

The chain break commercial occurs be­

tween major network programs and obtains the benefit of the carry-over audience of the prior show and the early ”tuners-in” of the following show*

Its length

varies between thirty seconds and one minute and its value depends on the quality of the preceding, and fol­ lowing, programs*

The spot announcement is, ordinarily,

a part of a sustaining program offered by the station to fill in a time position not sponsored by an advertiser. As part of a sustaining program, the spot announcement is dependent upon the quality of that program for its suc­ cess*

The times of sustaining programs are usually during

those times of day when viewership is low and individual advertisers do not consider the time advantageous for full sponsorship.

The aforementioned, plus the desire on the

part of television broadcasters to decrease operating defi­ cits by overloading sustained programs with spot announce­ ments, has reduced the effectiveness of these commercials

28 were given wrong initial opinions of televisions effec­ tiveness to experimental users of the medium.

Even though

the individual commercials are not long in themselves the cumulative effect of the multitude of sales presentations militates against the success of any. The second most common length of prog m m was the thirty minute show, closely followed hy the fifteen min­ ute program presentation,

A one hour show is being spon­

sored by seven retailers.

Daytime hours in most areas

have time charges one-half the amount of time charges for periods after

6

p.m.

The reduced rates plus the predomi­

nantly female audience has enhanced the use of daytime television hours.

Reduced audience size can be somewhat

compensated for by longer program periods available at one-half the time charge cost.

Table VI provides a

breakdown of program lengths by volume groups, SPONSORSHIP O P ’TELEVISION PEESEiMTATIOE The high cost of television presentations has delayed its use by retailers who could see more tangible results and greater circulation available in newspaper advertising.

An important factor in the growth of re­

t a i l e d s use of television has been the cooperative sponsorship of programs by manufacturers of the various

29

TABLE VI LENGTH OE TELEVISION PRESENTATION BY VOLUME GROUPS (Millions) Length, of Telecast.

Volume Over 10 5 to 10 2 to 5 Under 2 Not Given Total

60 minutes

7

30 minutes

14

1

15 minutes

9

2

8

minutes 3

3 minutes

1

Chain Breaks Remote events Total Source:

1

1

5 minutes

Spot announce­ ments

-

-

1

2

-

7

-

15

-

12

-

l

-

4

-

1

-

28

-

8

21

2

3

7

-

1

-1

=

_

=

=

1

63

6

5

3

-

77

Question III - 2 of mail questionnaire.

30 products promoted on the air#

Sharing the burden of costs

has advanced the popularity of television as a medium of sales promotion and has been of mutual benefit to manu­ facturer and retailer.

A cooperative sponsorship was in­

dicated in thirty-four of the

66

reported sponsorships.

The most usual participating relationship was that of retailer and manufacturer.

A typical cost-sharing ar­

rangement is that of the Broadway Department Stores, Incorporated of Los Angeles, California on their one hour, twice-weekly daytime variety program. combination of comedy, music, and eight

The program is a 2 -minute

com­

mercial presentations for which the participating manu­ facturer, or dealer, pays #75 for each 2-minute sales offering.^

mated at

The total cost of the show has been esti­

#2000

weekly which leaves a net cost to the

Broadway organization of about #800 weekly, after deduc­ tion of the manufacturers* contribution of $1200.5

Other

major department stores throughout the nation are using this arrangement to defray high costs of production and talent, among them:

March

8

Saks-34th in New York; Macyfs in

4 “Promotions On The Air”, Women*s Wear Daily, , 1950. 5

Ibid.

New York; the Hecht Company stores in the Baltimore area. Table VII lists the sponsorship arrangements of the re­ spondent stores* Retailer and retailer cooperation within the same retail trading area is not prevalent.

Traditionally,

retailers find it difficult to agree and cooperate with competitors and the three instances of retailer and re­ tailer cooperation reported found the participators in separated market areas.

An example is the co-sponsored

show of the John Wanamaker store in Philadelphia and the Woodward and Lathrop store in Washington, D. C.

The in­

tervening distance removes the possibility of competition between sponsors and allows the use of higher quality time and talent.

A n unusual example of retailer and re­

tailer cooperation within the same marketing area is sponsored by the local Pashion Group in Philadelphia. The Fashion Group sponsors a twenty minute daily fashion show over station WCAU-TV each afternoon, Monday through Friday.

Stores belonging to the Fashion Group partici­

pate in the para.de of styles by providing their own models, apparel, and commentators.

The retail stores

joining in this somewhat historic evidence of retailer

6

News item in Women* s Wear Bally. March 21, 1950.

32 TABLE VII SPONSORSHIP OP TELEVISION PRESENTATIONS BY VOLUME GROUPS (Millions) Sponsorship of £ele£.ag£________ Oyer IQ 5. to 10 2 ^ t p 5 Unde^

2

Volume Not Given Total

Independent

28

2

1

1

-

32

Participating

25

5

2

2

-

34

Retailer and Manufacturer

20

5

2

2

-

29

Retailer and Retailer

2

1

Manufac turer only Source:

1

1

Question III - 3 of mail questionnaire.

-

3

-

2

33 cooperation are the John Wanamaicer store, Gimbel Brothers of Philadelphia, N. Snellenburg & Company, Lit Brothers, Strawbridge & Clothier, The Blum Store, C. A. Howell, Mawson-de Many, B. P. Dewees, Incorporated, Bonwit Teller & Company, Blauner 1 s, and Nan Buskin.? Manufacturers give valuable assistance to re­ tailer* s use of television by providing high quality film presentations for product demonstration with a pro­ vision for the individual store sponsor to be identified. These films are of the one-minute commercial variety with a ten second interval alloted to the sponsoring store. The store usually pays the time charges for the presenta­ tion, but no charge is made by the manufacturer for the use of the film.

In some instances the manufacturer

also shares the cost of the time charge for the spot announcement.

One of the most ambitious manufacturer*s

offerings to retailers is that of the Conmar Zipper organization.

The program is a fifteen minute film

presentation of fashion apparel featuring the Conmar Zipper.

The setting is a luxurious cafe and the enter­

tainment is of highest quality.

Retailers in the eight

7 11Promotions On The AirM, Women 1 s Wear Daily. October 12, 1949.

34 cities in which the show appears are given mention as sources where those fashions displayed may be purchased. The appeal of highest quality entertainment during the popular evening hours can be exploited by local retailers at a very nominal c o s t . 8 The cooperative sponsorship of television presen­ tations by retailer and manufacturer has advanced the growth of television advertising at a rate not possible with independent sponsorship.

By means of a manufac­

turer’s subsidy, retailers are being introduced to the problems of the use of television at much lower cost and to the benefit of all concerned.

As use of television

grows, the demand upon manufacturers for equal assistance in individual retailer’s sales promotion plans may become a considerable burden.

The manufacturer must offer equal

facilities to all resources through force of law and good business practice, so, his assistance of a few may bring about what may be known some day as the "welfare cor­ poration" • The participating sponsorship of a television advertisement does reduce total costs to the retailer, but also requires the promotion of merchandise that in

8

News item in Women’s Wear Daily, April 19, 1950.

35 some cases is not of the storefe choosing.

Many of the

participating manufacturers are those with widely ad­ vertised, and widely-merchandised tra.de marks.

Some

retailers sponsoring programs in which national brands are promoted feel that all the benefit of the sales promotion effort is not accruing to their store.

They

are doing a good job of selling the national brand, but not the store.

As shown in Table VII, on page 32, about

one-half the retailers are independent sponsors of their television advertising.

Single sponsorship allows greater

freedom and elasticity in product selection and program type*

Merchandise presented can be exclusive brands and

trade-marks or possibly own brands of the retail store. Those items presented will, more probably, be purchased from the sponsoring store.

Programs of an institutional

nature (all programs are, but those designed as such) can be tailored, or adapted, to the individual store’s char­ acter and personality.

Independence Is costly, but its

rewards can be large, TECHNIQUE OP TELEVISION PRESENTATIONS Several techniques are available to the tele­ vision advertiser for the presentation of his sales message or program.

The direct or "live show" is

36 presented as it occurs in either the studios of the television station, or, from some location at a distance from the studios.

The film presentation is merely the tele­

vising of the previously filmed event directly from the projection room*s movie screen.

The kinescope recording

is a sound film presentation in which the film cameras record the proceedings of a directly telecast show as projected on the face of the image tube of a television receiver monitoring the telecast.

The kinescope record­

ing is used for the delayed re-telecast of a network program in those cities not joined by the network co­ axial cable which allows simultaneous telecasting in those cities enjoying the benefits of the cable link. The direct or "live” show was used in the majority of television presentations by respondent stores in this study.

The greater clearness and sharper definition of

the viewer*s picture of the proceedings is a distinct advantage over recorded programs.

The knowledge on the

part of the viewer that the event is occuring while he is watching increases the sense of participation of the viewer and increases the total impact of the event wit­ nessed,

The thrills and excitement of witnessing the

action of a football game as it actually occurs cannot be compared to the lesser effect on the viewer of watching

37 an

post facto movie of the same.

Television is new

and exciting because it is in a sense an extension of human sight and the viewer can he in two places at one time in the present.

Movies lack this immediacy and when

used on television are merely achieving wider distribu­ tion than formerly. Most direct television presentations originate within the station studios where specialized facilities and a somewhat ideal production environment exists. Studio productions have more polish and greater control over the sequence of events than do the remote telecasts, but the informality and spontaneity of some unrehearsed efforts adds to their appeal.

Some stores are fortunate

in having auditorium facilities for the staging of their program within the store before customer audiences.9 The daily, Monday through Friday, one-hour show of variety acts and audience participation events of Snellenburg1s in Philadelphia, will attract many new customers to the store and provide wide promulgation of publicity through word-of-mouth advertising concerning the store and its show.

The "mousetrap merchandising” effect of such a

show would be especially advantageous.

This show

9 "One Hour TV Show Planned by Snellenbuig",

Women* £ Wear Daily. January 11, 1950.

38 entitled,

11Snellenburgfs

TV Jamboree” is the biggest tele­

vision venture on the part of any retailer in the nation at the present.

The five hundred-seat auditorium of the

Philadelphia department store is exclusively reserved for the daily show.

Television, as used by this store,

has the double-barreled effect of selling those customers viewing the program, and convincing those customers in the store viewing the actual production of the show. The simulcast technique was reported by two re­ tailers.

Por the simulcast technique the presentation is

so arranged that the program can be broadcast and tele­ cast simultaneously, reaching both the radio audience and the television audience.

Production costs of the show

are increased because of greater equipment needs, but a greater number of people are reached at lower total costs than by separate use of radio and television.

The

number of program types adapted to this technique is limited because of radio restrictions on movement and complications of equipment needs.

The technical diffi­

culties involved in simultaneous broadcasting and tele­ casting have caused several stores to abandon its use. The use of film technique is confined mainly to the users of spot announcements and chain break com­ mercials.

The filmed commercial can utilize the highest

39 type of talent and, polish, and edit the film to the satis faction of all concerned.

The direct, or "live”, com­

mercials are, on occasion, undependable and valuable time and energy have been wasted by live talent missing their lines or suffering from stage fright before the cameras. The presentation of a sales talk on television requires a photogenic person who is remarkably well-poised and capable of memorizing lengthy commercials.

This type of

person is not numerous and those who have the qualifica­ tions do not always have the technical experience neces­ sary to demonstrate convincingly a complicated appliance. Untrained demonstrators have often connected the wrong fittings and caused a vacuum cleaner to blow out instead of suck in the dirt.

Sears, Roebuck & Company have

launched a spot announcement campaign, on film, to be used wherever television is available.

The individual

announcements cost from §500 to § 1 , 0 0 0 to produce, but the high cost of production is offset by the very slight expense of making additional prints for use in other localities.

Additional prints cost a mere §1.50 apiece

and allow the use of top talent in a, controlled presenta­ tion at nominal expense.l°

The initial investment is

10 prews item in Women* s V/ear Daily, January, 1950.

large, but extensive users of television spot announce­ ments can save total production expense by the use of filmed commercials. The kinescope recording of a network program was reported by one user of television.

The poor quality

of tne kinescope reproduction limits the acceptability of this type of presentation in those areas where the viewer has a choice between competing stations.

In

spite of the high quality of talent available to this type of networlc program viewers are willing to sacri­ fice quality for distinctness of picture of the inferior direct presentations.

Table VIII lists the technique

of telecast used by retailers in this study.

41 TABUS VIII TECHNIQUE OF TELEVISION PRESENT AT ION BY VOLUME GROUPS (Millions) Technique of Telecast

Volume Oyer...10 5 to 10 2 to__5 Under 2 Not Given Total

Direct or “live 11 show

30

Studio pro­ duction

16

3

1

2

3

-

37

1

-

19

Remote

5

5

Simulcast

2

2

Film

18

3

3

Cartoon

1

-

1

Kinescope

1

Sources

1

-

Question III - 4 of mail questionnaire.

25 2 1

CHAPTER IV PRESENT AMD PROSPECTIVE USE OP TELEVISION BY RETAIL STORES (CONTINUED) TYPES OP TELEVISION PRESENTATIONS The combination of sight and sound communication that television affords has made available a number of program types to the television user.

Program types

cover the wide range of group activities that interest modern society.

The choice of program type is dependent

on several factors:

the character of the store; merehand

ising policy of the organization; time available; compet­ ing programs.

The character, or personality, the store

wishes to present to the public must be considered in the choice of program type.

The upper-income store ap­

pealing to the "carriage trade" must appeal to the cul­ tured taste of its clientele.

Merchandising and advertis

ing policy determines the institutional or promotional nature of the program.

The time of day available (lim­

ited facilities make rational choice impossible in some areas) determines the structure of the audience and the type of program that will gain acceptance.

Night hours

have a large proportion of males in the viewing audience and the single television receiver of most homes will not

43 be tuned to cooking lessons*

Competition of other pro­

grams at any time of the day will require the choice of a program type at the level or above that of competitors* The daytime hours have relatively little competition as yet, but increased daytime programming of television stations will force improved quality in daytime programs. It is difficult to classify program types into distinct categories because of the multiple character of many programs.

A narrow margin separates the shop­

ping program and the fashion show and occasionally pro­ grams change character abruptly.

In Table IX the various

types of programs used by the respondents are listed, with the frequency of their mention, by volume groups. The spot commercial is both a program length and a pro­ gram type.

The extensive use of spot announcements

reflects the relatively high costs of television ad­ vertising and the experimental status of television in the publicity programs of retail stores. The fashion show* s popularity as a program type reflects the department store and specialty shops em­ phasis on apparel.

Gimbels of Philadelphia opened its

first daytime program with fashion apparel and ac­ cessories.

The program is not fixed in its theme and

will feature a wide diversification of items.

Hr.

44 TABLE IX TYPES OF TELEVISION PKESEBTAT IONS BY VOLUME GROUPS (Millions)

Type of Program

Volume Over 10 5 to 10 2 to 5 Under 2 Rot Given Total

19 Spot Commercials Fashion Shows 9 Shopping Program 6 6 Variety Show Audience Participa­ tion 6 Sporting Events 7 2 Baseball Basketball 2 Football 2 Wrestling 1 Boxing 1 Rodeo 1 Hockey Hews and Weather 4 Commentators 3 Childrens Programs 3 2 Puppet Show Westerns 1 Birthday Party 1 2 Teen-age Variety o Symphony Orchestra Feature Films 1 Travelogue 1 Dance Orchestra 1 Disc Jockey Show 1 Source;

O 1 1 1

3

25 13 7

2

1 1

-

-

-

-



1



8

_ _

8 2

-

-

1

1

-

-

-

— -

— — -

-

— -

1 1



-

-

_

1 1

1 1



-

-

-

-



-

-

-

-

-

-

-

-

-

-

-

-

-

2





-

-

-

-

-



-

mm

-

Question IV of mail questionnaire.

-

-

7 2 2 1 1 1 1

5 3 5 4 1 1

2 2 3 1 1 1

45

David Arons, publicity director, describes the program, ”It would feature fashion shows, provide demonstration, conduct interviews with designers and manufacturers, as well as supply a spot specially priced sales item each day* The shopping program differs from the fashion show in variety of merchandise presented, but is not fixed in its character.

It has a flexible character

and well suited to the department store and its wide varieties of merchandise.

The shopping program brings

the wares of the retailer into the home of the viewer creating what is in effect a display case within the customers* homes.

The merchandise itself interests

and attracts the viewer and proper selection and technnique by the retailer make his television presentation a branch store easily accessible by telephone or letter. The illustrated catalogue of the mail order retailer never had the sales potential of this revolving display window called the shopping program*

Several lapge depart­

ment stores have recently instituted this type of program and the daytime use of the shopping program may well be the typical presentation of the large retailer in future years*

1 Fews item in Women* s Wear Daily, March 21, 1950*

46 Experimental use of television has resulted in a wide range of program types being tried by retailers. Television’s inherent qualities allow a wide variety of program types.

Expansion of daytime programming

will result in program types appealing to the preponder­ ance of women in the daytime audience.

The shopping

program is a relatively low cost vehicle in which wellselected merchandise provides the interest and enter­ tainment.

This type of program can be successfully

exploited by the department store with its wide diversi­ fication of merchandise and may eventually prove to be the retailer’s most popular program choice. TIME OE TELEVISION PRESENTATIONS In many television areas the element of choice as to time of the presentation does not exist.

Very

limited facilities in the form of number of stations and hours on the air, plus, late entry into the medium has forced some organizations to utilize time not of their choosing.

The present program time is a stop-gap

measure to obtain some representation on the air and gain experience in the new medium.

In Table X the pro­

gram times used by the respondents are listed by volume groups.

The popularity of the evening hours cannot be

47 TABLE X TIME OP TELEVISION PRESEiJTATIOHS BY VOLUME GROUPS (Millions) Volume Time of Program Over 10 5 to 10 2 to 5 Under 2 Hot Given Total 9 a.m. to 1 p.m.

4

1 p.m. to 5 p.m.

11

1

-

5

1

1

21

5

3

5 p.m. to 6

p.m. to Source:

p.m.

6 11

p.m.

1

2

Question V of mail questionnaire.

4 13

1

7

-

31

48

regarded as the result of the retailers own choosing. Day time telecasting is comparatively new and until recently, Los Angeles, with seven operating stations, had but a single daytime station operating afternoons only. The breakdown of program times is patterned after the times used in network time rate schedules. evening hours from

6

p.m. to

11

p.m. are the full rate

hours because of maximum audience size. 5

p.m. and

6

The

The hour between

p.m. carries a time charge of three-fourths

the full rates and is the favorite viewing time of children. full rates.

All other hours of the day are one-half the The afternoon hours at one-half rates, plus

a predominantly feminine audience finished with daily chores, should eventually prove to be the retailer*s most popular time of program presentation.

The change­

over of large-budget national advertisers from radio to television evening hours will provide difficult competition for the relatively small-budget retail ad­ vertiser with his modest program.

Increased daytime

programming by television stations will bring more re­ tailers out of the evening locations into lower-cost and less competitive daytime hours.

49 FREQUENCY OF TELEVISION PRESENTATIONS Television, like all advertising media, must be used consistently and frequently to realize Lest results.

The majority of retailers, as indicated in

Table XI, are using television regularly on a weekly basis.

As yet, a limited number are sponsoring daily

presentations.

The daily presentation is in all in­

stances the spot announcement advertisement.

The choice

of days for present weekly programs is also indicated in Table XI.

Thursday and Friday rank as favorite days for

retail advertising and indicates the trend toward week­ end lumping of promotional activities by retail stores for Friday night openings and Saturday selling.

The day

that is least popular among retailers is Saturday, with only four users. Seasonal and irregular users of television are in the minority.

Irregular users of television have

coordinated its use with other media during special pro­ motion events and store-wide sales programs.

Seasonal

users exploit television before peak seasons such as Christmas and Easter.

Increased facilities available

when the present "freeze" on new station construction is lifted by the Federal Communications Commission will

50 TABLE XI FREQUENCY OP TELEVISION PRESENTATION BY VOLUME GROUPS (Millions) Frequency* of Proa* ram

Over 10 5 to

10

2

Volume to 5 Under 2 Not. Given T o t

2

1

1

1

-

5

33

4

3

2

-

42

11 12 11

1 1 2

1

-

15 14 4 9

-

-

-

1

1



14 13 15 17 4

Seasonal

4

-

-

-

Irregular

8

2





DailyWeekly Monday Tuesday Wednesday Thursday Friday Saturday Sunday

Source:

2



12

1

Question VI of mail questionnaire.

-

-

11

4 -

10

51 convert many seasonal and Irregular users of television to the weekly offering of programs. FACT OHS INFLUENC IiiG- SELECT ION OF STATION The most important factor considered in the choice of stations hy advertisers was the time available.

The

available stations are limited by the temporary halt of new station openings in areas where conflicts in signal have arisen*

Because of limited station facilities the

factors of quantity of circulation, quality of circula­ tion, cost per viewer, and services offered will not be given full consideration in the selection of stations. Table XII lists the factors considered in station choice by volume groups as reported by those using television. Expanded construction of new television stations, upon lifting of the Federal Communications Commission1s ban in overlapping transmission areas, will allow the retailer to make a rational choice from a number of competing sta­ tions.

When the element of choice is available to the

prospective user of television he can invest his publi­ city dollar to best advantage in television sales promo­ tion.

52 TABLE XII FACTORS INFLUENCING SELECTION OF STATION BY VOLUME GROUPS (Millions) Factors of Station Selection

Volume Over 10 5 to 10 2 to 5 Under 2 Not Gi v e n Total

Quantity of Circulation

9

1

1

-

Quality of Circulation

9

1

1

-

Cost per Viewer

7

2

1

-

-

10

Time Available

12

2

1

-

-

15

Services Offered

11

1

-

-

-

12

-

11

11

Sustaining Program Available

4

-

-

-

All Stations Used

2

-

-

-

-

2

Network Program

1

-

-

-

-

1

Source:

Question VII of mail questionnaire*

4

53 EXPENDITURES ON TjELEVISION PRESENTATIONS The majority of respondents have set up special "budgets for their television expenditures*

The limited

number of receivers and the high cost per viewer of television advertising had kept the use of the medium out of last yearTs budget planning*

The rapid expansion

of receiver production and sales, projected television into the retailer’s consciousness without provision for funds*

uncertainty as to continued use, and continued

faith in other media, required extra, appropriations for experimentation in this new medium*

The size of the

special budgets are unknown but some estimates of program costs will be cited in a later chapter* Those reta.ilers paying for television time out of their regular publicity budget spent, in all reported instances, less than television advertising*

of their existing budget for In fact, the majority indicated,

as shown in Table XIII, less than 1$ of their present publicity budget being spent on this medium.

The experi­

mental status of television as a medium is rather clearly indicated by the very small proportion of publicity funds being spent for its use.

Increased receiver distribution

and continuing success stories of other retailers may

54 TABLE XIII EXPENDITURES ON TELEVISION PRESENTATIONS B Y VOLUME GROUPS (Millions) Portion of Publicitv Budget Special Budget

Volume Over 10 5 to .10 2 to 5 Under 2 Not Given Total

Portion of Exist­ ing Budget

18 10

2 % to 4^

3

1^

2

to 2 ^ Less than 1 % Sources

5

3

2

2

2

1

-

13

-

1

-

3 2 6

Question VIII of mail questionnaire

-

25

55 force serious consideration of televisions use in next season 1 s "budget planning* The majority of respondents using television were definite in their plans to increase their use of the medium within this year*

Only ten of the total of 42

responding to the question were definitely not extend­ ing its use this

3'ear.

As shown in Table XX\T, those

planning an increase were asked if television 1 s expan­ sion would he at the expense of other media being used at the present. on this subject.

Intentions were about evenly divided Television would be a supplementary

medium of sales promotion and result in an increase in total advertising expenditures for one group*

The other

half planned to decrease the use of other media with radio singled out as the greatest loser. The future of radio as an effective medium for advertisers is a much debated topic.

Hr. Paul V. Galvin,

the president of Motorola, Incorporated, offers what ap­ pears to be the opinion of the raaj'ority, "Television will no more kill radio than radio killed the movies or the record industry.

It will change the character of

the radio industry, however."2

Radio appears destined

2 "Television Roundup", Radio and Television Journal. 6 6 :8 , December, 1949.

56 TABUS XIV ILAENEB INCREASE IN TELEVISION EXPENDITURES BY VOLUME GROUPS (Millions) Bo You Plan An Increase?_____ No Yes

Volume Over 10 5 to 10 2 to 5 Under 2 Not Given Total 6

2

1

1

10

12

2

3

1

18

Probably

7

7

Uncertain

6

7

Increase at E x ­ pense of other M e d j a g ___________

No

15

1

1

1

18

Yes

12

3

3

1

19

12 3

3

2

1

1

1 1

18 5

Radio Newspaper Birect Mail Other Uncertain Source:

1 3

Questions IX and X of mail questionnaire.

1 1

57 for more selective use as an advertising medium*

Its

nightime audience has decreased tremendously in those areas served by television.

Its daytime audience con­

tinues large and the demand for undivided attention of busy housewives will limit the daytime potential of television, especially during the morning hours.

Many

areas cannot be served by television for many years to come.

The in-transit audience of radio is increasing

as car radios increase in number. and small radios have increased.

The sale of portable Radio will have to

change its character, but a large share of total ad­ vertising expenditures will fall to radio in future years.

Like all new media, television will probably

be a supplementary medium that will serve to increase total advertising expenditures throughout the nation. A U D IE liC E A L L SALES MEAS U ltE ilS LT OR THE T E L E V IS IO U PRLSEHTATIOHS

The majority of retailers in the study were more concerned with the measurement of actual sales results achieved by television advertising than with the measure­ ment of audience size.

This is due, in part, to the ex­

tensive use of spot announcements by retailers, which are best measured by the sales results they achieve. Also, few retailers,

in this study, have invested in an

58 institutional type of program whose effectiveness is best measured by the determination of the size of the viewing audience.

The few retailers sponsoring programs

of an institutional nature subscribed, in the majority of instances, to the Hooper system of coincidental tele­ phone survey, and, secondly, to the Pulse system of pro­ gram recall* The effectiveness of a television sales presenta­ tion cannot be fully evaluated solely on the basis of ad­ vertised merchandise sold.

Customers attracted to the

store by the advertisement contribute to general sales activity of the store and purchase other merchandise than those items advertised.

Some retailers who recognize this

characteristic of item advertising have instituted measure­ ment techniques consisting of store traffic counts and ac­ tual interview of shoppers within the store in an attempt to estimate the indirect benefits of the advertisement. Hot all advertisements motivate immediate response on the part of the viewer, but do sell merchandise beyond the period of measurement decided upon by the retailer.

Eval­

uation of television as a sales medium on the basis of sales achieved on a short-run basis of advertised items alone is not completely justified. In spite of this, those retailers attempting to measure the effectiveness of their television advertisement,

59 in this survey, indicated the actual count of merchandise sold as the basis for estimating the worth of the adver­ tisement. The grea,t majority of retailers were of the opin­ ion that television costs are not justified by actual sales results.

They felt the total expenditures involved

in its use could he better used in reaching more people with lower cost media.

Their analysis was based on circu­

lation figures primarily and overlooks the greater quality of the medium.

The cost per 1,000 viewers may not compare

with other media, but the number of sales achieved per viewers probably would outrank those of competing

1,000

media.

A direct comparison of various type of media is

difficult but a number of successful users of television are very enthusiastic in their praise: Entered into with a lot of trepidation, the Broadway department store*s new twice-weekly tele­ vision show, is proving to be a great retail suc­ cess. The television shows, presented every Monday and Friday from 2 p.m. to 3 p.m., provide unlimited pos­ sibilities for advertising store merchandise in an appealing manner, according to advertising depart­ ment officials.

Very good results were noted in sales of ceramic figurines advertised and in portable radios shown. A large upswing in the interest in automs.tic washers

60 was noted following a program advertising tlie machines. Housewares items are especially good, officials s a i d . 3 Another example of exceptional results achieved is that of a specialty shop in Detroit, Michigan: Detroit, Dec. 6 .--Much of the credit for a 26.9 per cent sales increase in October and a 54.2 per cent advance in Fovember were credited to tele­ vision shows by Fat Greene, owner of a womenTs specialty store in the For triwest Sherwood section here. Apparel business in Fovember rose 36.3 per cent and millinery v/ent ahead 43.7 per cent. Mr. Greene will use a full hour program on Dec. 11, between 4 and 5 p.m., employing guest stars, as in the past. The cost is $900. Por a 20 minute program, including talent, he pays $650. . . Volume of the store, as noted, is between $350,000 and $400,000 a year . 4 Later reports on the progress of the program find Mr. Greene just as enthusiastic about the qualities of tele­ vision advertising.

Gimbels, in Philadelphia, have one

of the oldest television shows in the country sponsored by a department store.

The show began originally as a

fifteen minute weekly program of an institutional nature.

3 "Broadway TV Program Successful", California Apparel Hews. Fovember 11, 1949. 4

1949.

Hews item in Women* s Wear Daily. December

6

,

61 Hr. David Arons, the store publicity director, reports that the excellent results of the show has raised con­ sideration of enlarging the program to a half-hour presentation running five days a week.

Sales results

achieved were phenomenal during the Christmas season. A five minute commercial on a mechanical automobile sold 1,000 units at $3.95 and $5.95.

A sales talk on

hams sold $8,000 worth in a single day.5

Success stories _

of this magnitude are not typical of the results accruing to the users of television, but the exceptional success of some users of the medium testifies convincingly of the potency of television when properly used. Retailers * use of television will be mainly as a promotional medium for the meediate sale of merchan­ dise.

Institutional use of the medium will require

some type of audience measurement to determine the value of the program, but the maj ority probably will look to total unit sales as the most valuable method of judging effectiveness of television advertising. LENGTH OP COMMERCIAL OP TELEVISION PRESENTATIONS Surveys of viewer desires concerning television

5

February

,fPromotions On The Air’*, Womenfs Wear Daily. , 1950.

8

62 programming indicate that in the opinion of those sub­ jected to the sales wpitch” the commercials are too long *6

On the other hand investors in television ad­

vertising complain that high costs necessitate aggres­ sive sales promotion in order to justify use of the medium*

In the long-run the basic motive of the tele­

vision viewer in purchasing the receiver will legislate the proportion of commercial to program length that is acceptable*

The viewer seeks pleasure through enter­

tainment and will seek to maximize that pleasure and minimize the pain— and some commercials are painful* Just as individual newspaper advertisements compete within the newspaper for readership the television ad­ vertiser must compete in commercial technique with other advertisers*

As ever, the retailer must adapt his think­

ing to that of his customers*

Public opinion is merely

the collective force of individual opinions.

Fo preroga­

tive is attached to the purchase of television time* The retailer must realize his position as a guest within the home of his best friend— the customer*

Long, repeti­

tive sales talks may bring greater resentment than sales volume.

6 Evry, Hal, Woodbury Television Ratings. Tele­ vision Research Bureau, Woodbury College, Los Angeles, California. Fovember, 1949*

63 The technique of presentation was considered by most respondents to be the determinant of commercial length.

A well integrated sales presentation with some

humor involved can have greater length than an aggres­ sive hard-selling ”pitch” on a complicated appliance. The type of program determines to some degree, the limits of sales talks*

A shopping program advertised as such

will condition the viewer and eliminate the viewer seek­ ing entertainment rather than enlightenment.

The size

of the audience will be limited by the selective nature of the program, but those watching will not be disap­ pointed because dancing girls do not appear.

The in­

tensely exciting drama cannot be broken into at frequent intervals with long, drawn out commercials without caus­ ing some resentment. In general, the ratio of sales presentation to program length conformed to the standards set for radio advertising on major networks.

About three minutes in

fifteen minutes is the typical ratio.

In many respects

the television industry is fortunate in having the prece­ dents of radio as a guide to operation, but basing tele­ vision commercial standards on radio experience ignores the inherent superiority of television as a means of communication.

The flash of a picture can tell a complete

story in a fraction of the time required to construct it by means of words alone.

To use more time than is needed

invites resentment and loss of hoped for acceptance of organization or product.

CHAPTER V SUMMARY AID CONCLUSIONS The use of television as an advertising medium by department stores and major specialty stores in the nation is increasing rapidly*

Rapidity of growth unparalleled

in the industrial history of the nation has brought the production of television receivers from a post-war low of 6,500 in 1946 to an estimated 5,000,000 television re­ ceivers in 1950.

Present levels of receiver distribution

in the sixty largest retail trading areas of United States has introduced television into the ranks of the "mass media"

Ever-growing circulation through continued high

sales plus an inherent quality possessed by no other ad­ vertising medium has projected television as a sales medium into the thinking of many retailers. The retailer’s first evaluation of television was quantitative rather than qualitative.

The quality of

this medium that combines sight, sound, motion, and im­ mediacy, was overlooked in an analysis that considered circulation figures only, in comparison with other sales media.

Experimental use by progressive merchants did

not meet with instant success, but individual examples of outstanding success forecast the eventual worth of

66

television to retailers*

Early entrants gained valuable

experience concerning proper techniques and, prior rights to desirable times on limited facilities and hours of transmission.

Expanding receiver sales found them ready,

willing, and able to exploit this new advertising medium. Success stories of these early television users have brought other retailers into the field expecting to achieve equal results. Television has great power in communicating images and ideas to viewers but other factors of sales promotion cannot be neglected*

Television, like other

forms of advertising, cannot sell merchandise that is not wanted.

Those disappointed over television results

have condemned the medium without complete justification. The newspaper will continue to be the retailer’s major vehicle for sales promotion, but no retailer, regardless of size, can afford to overlook the sales producing pos­ sibilities of this new medium. The mail survey disclosed that nearly one-half of those retailers returning questionnaires are now using television as a sales promotion medium either periodi­ cally or at irregular intervals.

Those respondents not

using television at the present time are seriously con­ sidering its use in the near future.

The highest per­

centage of use was reported by those retailers with a

67 sales volume over five million dollars*

The relatively

high cost of television advertising with an uncertain circulation has discouraged its use among low-budget retailers who cannot afford present time charges and production expense* The majority of retailers* television presenta­ tions originate locally in station studios and are spot announcements and chain brea.lc commercials of one or two minute length.

The spot announcement depends upon the

quality of the sustaining program for its success and some heavily loa.ded sustaining programs offer slight appeal for the viewer and have had little success. The high cost of time charges and production ex­ pense have been shared by retailer and manufacturer in cooperative sponsoring of television programming.

Nearly

one-half of the retailers indicated a participating arrangement with their vendors, which does offer a sav­ ings in expense but limits the variety of merchandise offered on the program.

The majority of independently

sponsored programs were offered by stores having a sales volume over ten million dollars.

The single sponsor can

adapt his program and merchandise to serve his best ad­ vantage and enjoys much greater flexibility and freedom in the selection of the type of program.

68

The direct or "live” show was used by the majority of respondents in this study.

The greater sharpness of

picture is an advantage over filmed or kinescope presenta­ tions.

The use of film is increasing for spot announce­

ments and chain break commercials.

Film presentation of

commercials can be carefully polished and edited to avoid possible mistakes and confusion on the part of members of a direct sales presentation.

Initial costs of film pro­

duction are high but reprints are inexpensive and longlasting, resulting in lower total costs. Program types are difficult to classify, but the fashion show and shopping program was preferred by the retailers in this study.

As television programming ex­

pands into daytime hours the program types will be tailored to suit a predominantly female audience.

The

shopping program offers new and interesting merchandise as the main attraction and the large department store with its wide variety of goods and services will find this a particularly suitable medium to seek customer ac­ ceptance and additional sales. The time available to the retailer for his tele­ vision program is limited in many retail trading areas by insufficient facilities and the freeze of new con­ struction by the Federal Communications Commission.

69 The success of daytime telecasting in some areas has en­ couraged more retailers to seek daytime locations for their programs and, the competition of large-hudget national advertisers for limited evening hours will force more of the relatively low-"budget retailers1 tele­ vision presentations into the lower-cost daytime hours. At the present time the majority of retailers in this study present their television program during the even­ ing hours, hut a substantial share of the total are using the afternoon hours and it is probable that this share will increase. The majority of retailers in this study offered their television presentations at weekly intervals* Most programs were on the air once each week, but sev­ eral large department stores now have daytime shows telecast Monday through Friday each v/eek.

The greatest

share of the advertising was presented on Thursday and Friday for week-end selling.

The few daily presenta­

tions reported were spot announcements and chain break commercials recorded on film* Those retailers responding indicated that a very small portion of their total publicity budget was spent on television advertising.

Use of the medium is experi­

mental as yet, but most respondents expressed the in­ tention of increasing their television expenditure this

70

year.

Ab o u

o

on6*liS‘Xf planned "to incr6&ss the us © of

television at the expense of other media.

The use of

radio advertising will he decreased in most instances and radio appears destined for a highly selective use as an advertising medium in future years.

Television,

in most instances, will serve as a supplementary medium to be used in conjunction with other methods of sales promotion now employed by retail stores, adding to total publicity expenditures. The measurement of sales results achieved by television advertising consisted of actual counts of advertised items sold within a two or three day inter­ val following the presentation.

The respondents in­

dicated little use of audience measurement services. Most retailers’ programs are of a promotional rather than an institutional nature and the measurement of sales achieved by use of the medium is the primary concern of the stores in the study. Television advertising offers qualities not found in other present-day media.

The use of tele­

vision by retailers has been experimental, but the rapid growth of receiver production and sales has brought about the regular use of the medium by many, and attracts new retailers to television constantly.

71 Television can sell merchandise unassisted, "but its greatest use will “be as a supplementary medium used with other external media of retailers and internal dis­ play.

Television allows the retailer to display his

wares under favorable circumstances in the homes of thousands of potential customers.

Television as an ad­

vertising medium has come of age and each retailer must give serious consideration to its possible use in his sales promotion planning.

BXBLIOGRAHiy

73 BIBLIOGRAPHY A.

BOOHS

Bettinger, Hayland, Television Techniques. Harper and Brothers, 1947. 237 pp.

Few York:

Deforest, Lee, Television. Today and Tomorrow. York: The Dial Press, 1942. 357 pp.

Few

Eddy, William C., Television. The Eyes Tomorrow. Few York: Prentice-Hall, 1945. 306 pp. Hubbell, Richard, Television. Bra&gMffiling and ffxgd>ion. Few York: Murray Hill Inc., 1945. 205 pp. Hutchinson, Thomas H . , Here Is Television. Hastings House, 1948. 363 pp. Lee, Robert E . , Television: The Revolution. Essential Books, 1944. 230 pp. Lohr, Lenox R., IftlggAaAan Broadcasting. McGraw-Hill Company, 1940. 271 pp.

Few York: Few York

Few York:

Royal, John P., XeI.eZ.iS.ion PffQducjJLan Problems. Yrok: McGraw-Hill Company, 1948. 155 pp.

Few

Sposa, Louis A., Television Primer of Production and Direction. Few York: McGraw-Hill Company, 1947. 227 pp. B.

PERIODICALS

Abrahams, H. P., "What Are Retailers Doing About Tele­ vision?", Sales Management. 62:46-7, April 1, 1949. Boolbach, Fat, "The Golden Age of Television", Radio X&Iezi.ffj.QS Journal. 66:12, December, 1949. Editorial in Televiser. 6:25, September, 1949.

74

"FCC* s Coy Tells What He How Thinks of Television” , Western Radio aijd A ppliances, 5:39, March, 1949. Fuchs, B. V., ”Television Commercials”, Printers Ink. 222:34-5, January 30, 1948. ’•How Will Television Effect Other Advertising Media” , Printers Ink, 224:29-30, August 13, 1948. Jonas, H . , ”Intrastore Television As A Sales Promotion Medium”, Journal of Retailing. 24:15-20, February, 1948. Hathan J * f "Who’ll Watch Daytime Television?”, Sales Manasement. 62:46-7, April 1, 1949. ”Production Briefs” , Business W eek. Ho. 1070:56, March, 1950. "Television Advertising, Ten Sponsors Report on the Payoff", Sales Management. 63:52-4, September, 1949. "Television Films for Stores to Use”, Department Store Economist. 12:32, Hovember, 1949. "Television Roundup”, Radio and Television Journal. 66:8, December, 1949. "Televising Home Furnishings” , Department Store Economist. 12:93, Hovember, 1949. "Weekly Television Summary", Broadcasting-Telecasting. April 17, 1950. Weiss, E. B . , "Radio and Television Promotions in the Hew Department Stores", Printers Ink. 222:43-4, March 12, 1948. C.

UNPUBLISHED MATERIALS

Evry, Hal, Woodbury Television Ratings, Television Re­ search Bureau, Woodbury College, Los Angeles, Cali­ fornia. November, 1949. Research Department, Monthly Summary. Security-First National Bank of Los Angeles, 29:3, March 16, 1950.

75 D*

IfEWSPAPERS

Editorials in Women* s Wear Daily. September 8 through April 19, 1950* Editorials in the LflJS Angeles Times, November 18, 1949 through April 16, 1950# Editorial in the California Apparel News. ]fovember 11, 1949*

APEEIIDIX

APEEHDIX A QUESTIOKHAIRE AMD REQUEST EOR COOPERATION

U N IV E R S IT Y O F S O U T H E R N U N IV E R S IT Y

C A L IF O R N IA

PARK

LOS A N G E LES 7

78 February 8, 1950

Gentlemen: The Department of Retailing of the University of Southern California is conducting a survey of major retail stores in the United States to determine the impact of Television as a sales promotion device upon retail stores. The study covers the extent of present use; prospective use; problems of television sales pro­ motion; evaluation of television as an advertising medium; measurement of results. The cooperation of your organization will be greatly ap­ preciated. Your answers to the enclosed questions will be, of course, kept in strictest confidence. Any opinions you may care to add to the survey please list on the back of the questionnaire. The use of television as a sales promotion device is, as yet, in the formative stage of development. Definite patterns and techniques of presentation have not been formed and much of television's use is purely experimental. Because of this fact the following questions may not be appropriate in all cases. Please feel free to write in any alterations to questions or opinions regarding pertinent problems not covered by the ques­ tionnaire. Vie sincerely hope that the results of this survey will be of benefit to all retailers. Thank you for your valuable assist­ ance. Sincerely yours, —^ 'Yff O

A--

Carl E. Pearson Fellow in Retailing University of Southern California Encl. 1

DEPARTMENT OF RETAILING UNIVERSITY OF SOUTHERN C.ALIFORiMIA

79

LOS ANGELES 7, CALIFORNIA

Does your store now use television as an advertising medium? Yes II.

()

No ( )

If you do not presently use television do you plan its use within the year? Yes

()

No ( )

Remarks ______________________________________________ III.

What is the method of your television presentation (or presentations)? 1.

2.

Source of telecast: Local ( )

Chain (or network)

( )

Intrastore ( )

Other ____________________

Length of telecast: Full period sponsored ( ) 60 minutes

( )

30 minutes ( )

15 minutes

( )

Other ________________ ____

Spot announcements ( ) Chain "break ( ) 3.

Sponsorship of telecast: Independently sponsored ( ) Participating (or cooperatively) sponsored ( ) Retailer and retailer ( ) Retailer and manufacturer ( ) Other _________________________________________

80 4.

Technique of telecast: Direct or 11live” show Studio production (

) Remote pickup ( )

Kinescope recording ( Film

(

Cartoon

(

Other What type of program do you now use (or plan to use) in your television promotion? If more than one type of program is used please indicate number and type. 1.

News and weather ( )

2.

Variety show ( )

3.

Audience participation ( }

4.

Sports ( ) Wrestling ( )

Baseball ( )

Boxing ( )

Basketball

Football ( )

Hockey ( )

( )

Other _____________________ ____________________ 5♦

Drama ( )

6*

Dance orchestras ( )

7.

Symphony orchestras ( )

8.

Commentators ( )

9.

Fashion shows ( )

10.

Feature films ( )

81 11.

C h i l d r e n s programs ( ) Puppet show

()

Movies

()

Westerns

()

Variety acts

()

Other ____ __________________________ __________

V.

12.

Amateur Variety show ( )

13.

Other ___________________________________________

At what time (or times) of the day is your television presentation on the air? 9 a.m. to 1 p.m.

( )

5 p.m. to 6 p.m. ( ) VI.

1 p.m. to 5 p.m.

( )

6 p.m. to 11 p.m. ( )

What is the frequency of your television presentations? Daily ( ) Weekly ( ) Monday

()

Friday

Tuesday

()

Saturday ( )

Wednesday

()

Sunday

Thursday

()

Irregular intervals ( ) Seasonal Other

( )

( )

( )

82 VII*

If more than one station was available in your trading area what factors influenced your selec­ tion? Quantity of circulation ( ) Quality of circulation

( )

Cost per viewer

( )

Time available

( )

Services offered

( )

O t h e r ___________________________ ; ____________ _ _ VIII.

What portion of your publicity budget is now spent on television presentations? ________ %

IX.

Special budget ( )

Do you plan to increase this percentage within the year? Yes (

)

No { )

O t h e r __________________ _____ _____________________ X.

Will any increases in television use be made at the expense of other advertising media? Yes (

)

No ( )

If so, at the expense of which, media? Radio

()

Newspaper ( ) XI.

Direct mail

( )

Other ___________________

What methods of audience measurement do you employ? Hooperating ( )

Pulse ( )

Tele Que ( )

Other ___________________

85 XII.

What methods do you employ in the measurement of sales results of television advertising. Please list briefly.

XIII.

In your opinion are the relatively high cost of television sales promotion justified by actual sales results?

XIV.

In your opinion what is the acceptable ratio of "commercial” to program length?

XV.

XVI.

Please list briefly any facts concerning the use of television as a sales promotion device that would be of interest to other retailers.

Would you desire a summary of the findings? Yes ( )

No ( )

Name of Store (optional) City ____________ ________ Approximate volume: Under #2,000,000

( )

Between #2,000,000 and 5,000,000

( )

Between #5,000,000 and 10,000,000 ( ) Over #10,000,000

( )

APPENDIX B DISTRIBUTION OP RETURNS BY CITIES AND VOLUME GROUPS (Millions) Volume Citv and State Alabama Birmingham California Los Angeles San Diego Ss.n Francisco Oakland

Over 10 5 to 10 2 to 5 Under 2 1 3 4

1 1 1

2

1

1

1

3

7

District of Columbia ¥ashingto n 9 D. C. 5

5

Georgia Atlanta.

1

1

Indiana Indianapolis

1

1

Illinois Chicago

5

5

Kentucky Louisville

2

Louisiana New Orleans

1

3

Maryland Baltimore

2

4

Massachusetts Boston

5

5

Michigan Detroit

2

3

Minnesota Minneapolis St. Paul

85 APPEBDIX B (continued) DISTR3BUTION OB RETURNS BY CITIES A K D VOLUME GROUPS (Millions) Citv and State

Volume Oyer 10 5 to 10 2 to 5 Under 2 Mot Given Total

1 1 1 5

Horth Carolina Charlotte

1 1 1 -

1

1

2

1 -

Pennsylvania Erie Lancaster Philadelphia Pittsburgh

2 2

1 X 1 1

1

-

Tennessee Memphis Uashville

1 1

-

1 1

02 02

1

H

Rhode Island Providence

rlrl^l1 02

1

C\2

Oklahoma Tulsa

tOHHH

3 1 1 1

H

Ohio Cincinnati Cleveland Columbus Toledo

1

tOHHCQC*

Uew York Buffalo Rochester Schenectady Syracuse Few York

02 02

Missouri S t • Louis Kansas City

86 APPEMDIX B (continued) DISTRIBUTIOH OP RETURHS BY CITIES AMD VOLUME GROUPS (Millions) Citv and State

Volume Over 10 5 to 10 2 to 5 Under 2 Hot Given Total 2 3

Utah Salt Lake City

1

Virginia Richmond

1

Washington Seattle

1

1 1

3

1

-

-

Total

1 1

West Virginia Huntington Wisconsin Milwaukee

to to ^

Texas Port Worth. Dallas Houston

1 3

_1

_z.

67

12

14

-

1 4

10

8

111

APEEEDIX C One of the earliest shopping programs on tele­ vision is tha.t of Saks-34th Street in Few York City. The program has had marked success and recently other large department stores# namely Macy* s and Gimbels, have adopted somewhat the same technique for their day­ time television presentations.

The following descrip­

tion of the program was written by Mr. Arthur M. See, sales promotion manager of Saks-34th Street, and is in­ cluded in this study as a case history of a sticcessful television presentation, and a possible future pattern for the television programs of retailers throughout the nation: TELEVISIOH IS HERE TO STAY Television looks like a natural for retailers who want to sell merchandise hard, and move merchandise quickly. Radio could never do an effective Job for major retailers in spite of the best efforts of networks and merchants to find some way to utilize the medium.

Ex­

perience proved to these retailers that radio could move only pre-sold merchandise.••It*s impact could make a

88 woman remember that Duz did everything> that cigarettes were Lucky Strikes, that an army of funny entertainers and nice young men were sponsored by an army of this and that company*

The radio voice could make a woman remem­

ber a brand but the radio voice alone seemed unable to create a specific immediate demand, a go-out-and-buy urge*

Radio became, in a sense, a very adequate medium

for institutional advertising which will, of course, al­ ways have great merit* Television offers more*

You have an unlimited

opportunity to do institutional spots, but on top of that is the opportunity to sell hard - to the woman with a telephone, or a postal card, or bus fare to your store* For instance, Miss ITorris, our Television Shopper devoted three minutes to a $6.95 dress*

We sold 110 dresses by

phone, by mail or from the floor - with every one of those 110 sales directly traceable to the program*

Another

day she showed m e n Ts overcoats - even put one on her hus­ band, Wilbur Stark, and brought his enthusiasm into the sale.

At the close she said to her Television Audience,

•'Call your husband now and tell him to get over to Saks34th on his lunch hour and get one of the overcoats•” That afternoon five men showed up at Saks and bought five $59.00 overcoats*

Every one of those men said

89 that their wives had called after seeing the TV program. That is pretty plain proof that TV can sell hard and im­ mediately.

Nov/ let’s see why:

TV shows from 5:30 to 7:30 P.M. belong to the small fry; from 7:30 to 11 P.M. to the whole family. Pop likes the fights, Mom the teary dramas, and human beings like Milton Berle--but just try to ring in the retail commercial, and it becomes an animated radio commercial, and, like a radio commercial, something to put up with.

The folks are watching the show for the

show...the entertainment.

The beauty of daytime tele­

vision to the retailer is that the commercial is the entertainment. When a woman tunes in to watch a TV show it is Kathi Norris, our saleswoman who they watch.

That woman

likes Kathi Norris, she believes Kathi Norris, Kathi Norris becomes her good friend - best of all her per­ sonal shopper.

That makes the merchandise, that Miss

Norris shows our v/oman, the entertainment,

the thing to

be considered, and oh-andahed at - and bought: the pluses:

Here are

the retailer using TV makes a sales presenta­

tion under ideal circumstances.

Your listener is a cus­

tomer - and an interested customer - or she wouldn’t be tuned in; your listener is right in her ov/n living room

90 and having her second cup of* coffee, comfortable, unrushed, completely open to any kind of persuasion; sitting with your listener is your saleswoman - someone your listener has come to know well day after day, someone w h o fs an in­ telligent, well-dressed, well-spoken woman with children and a husband and normal woman-problems and normal woman-likes and normal woman-impress ions, someone your listener likes and trusts. how you begin your salestalk.•.a dress looks like a dress, there is no arty artwork that may floss it up; there are no copywriter-adjectives; there are just plain women-words a n d ‘honest enthusiasm. force of that enthusiasm alone.

Consider the selling

In our instance, for

example, one of the most extraordinary things about Hiss Horris is the delightful "oh boy" she gets into her sell­ ing.

Instead of saying in 36 point type that a sweater

is soft, she holds the sweater to her cheek and sighs try and beat that for selling softness.

Our program is

conducted in an easy, informal manner talking about our merchandise as one woman would talk to another.

As a

matter of fact, that is precisely what she does - she talks to one woman who is all woman.

When she finds

something that interests her, she swells on it and invariably her listeners are interested too.

As our

91 shopper is her listeners’ friend, we want to make our store her friend too.

Television can personalize a

store; it can make shoppers feel that they know its policies, its personnel as well as its merchandise* In time, every corner of a store can he as fami­ liar to customers as the old country store used to he. It takes the frost off shopping, you know.

Prom time

to time, people from a store can go on a show.

Many

buyers can he guests, as can he personal shoppers, com­ parison shoppers, copywriters, in the store for many years.

employees who have been The more store people

women know, the better they’ll know the store.

To that

end, a few moments of many programs can he spent talking to women about policy and to guide them in wise and economical buying.

Of course, ever and always the em­

phasis should he on selling - persuading women to put down their coffee, pick up their telephone and order the items they’ve just seen and heard, or to hurry down to the store. Such a program should he hacked up by using nearly all the promotional means at your disposal. Windows should plug the show, toppers should go on all signs covering merchandise shown on the show*

In addi­

tion, circulars can he distributed throughout the store

92 and dropped into all out-going packages; and a line or two should he run in nearly every ad inviting readers’ attention to the program, .get behind your television shopper 100/£. The day has come when a little man can plop a television set on your desk, plug it in, turn it on and it goes to work.

So, this retailer*s point of view

is that (to coin a phrase) “Television’s here to stay.”

:

C/T

Southern California