[Illustration: Fig. 17. Combined Record of Insertions, Costs, and

Sales]

All of the information of practical value can be combined with a record

of insertions on the form shown in Fig. 17, using a sheet for each

publication. The record includes the date of order, space, subject,

copy No., cut No., dates of insertion, checking, and proofreading, the

date and amount of bill, and the number, amount, and average cost of

sales. The record of sales should be entered monthly from the detail

record.

[Illustration: Fig. 18. Daily Record of Sales of Advertised Goods in a

Retail Store]

These sheets are filed in a loose-leaf binder, indexed alphabetically

under the names of the publications. One sheet will accommodate the

full yearly schedule for a monthly or weekly publication.

_Retail Advertising Returns._ To check returns from retail advertising

is quite a different problem from checking returns from keyed ads in

monthly magazines. There are no keys, and no mail inquiries to be

traced. But a record of general results is very desirable, and it is

possible to obtain records which will, at least, indicate the increase

in sales due to advertising.

Results of retail advertising must be measured by comparison; if a

department store advertises handkerchiefs as a leader for Tuesday,

_all_ handkerchief sales for that day would not be due to the

advertising, but it is legitimate to credit advertising with any

increase over normal sales. If correct sales records are kept, it will

be possible to tell the exact amount of handkerchief sales for that and

every other day in the year.

[Illustration: Fig. 19. Detailed Record of the Shipment of Street Car

Cards]

A close check on returns can also be obtained by requiring each

sales person to put a distinguishing mark of some kind on sales for

advertised articles. Proofs of the day's ads, showing the articles

advertised in the department, should be mounted on cards and hung in

each department, that the sales person may know when advertised goods

are sold. If made large enough, the card can be ruled for a tally of

sales, and each sale of advertised goods tallied.

[Illustration: A CORNER IN THE SALES ROOM AT THE CLINTON ST., CHICAGO,

PLANT OF THE WESTERN ELECTRIC COMPANY]

There should be an office record showing the results of advertising for

each department. In comparing these records sales alone cannot be used,

for the weather, and unusual events calculated to increase the crowds

in town, must be considered. To-day's sales of an advertised article,

with unfavorable weather conditions, probably will not equal the sales

of the same article one year ago, which was circus day. If daily

records, similar to that provided in the form shown in Fig. 18, are

kept, they will soon become very valuable to the advertising department

of any retail store.

[Illustration: Fig. 20. Record of Street Car Contract and Net Costs]

STREET CAR ADVERTISING

Street car advertising is of a general publicity nature. It is

intended, not to secure direct orders, but to influence sales by

keeping the name of a commodity before the public. It is local in its

effects, influencing sales only in the cities in which the cards are

used.

Street car advertising is now controlled by a small number of agencies,

who own the space in the cars in the different cities throughout the

country. Through one of these agencies, contracts can be made for space

in street cars in any city in the country.

The rate for street car advertising is based primarily on population,

the _circulation_ consisting of the number of passengers carried. When

the advertiser buys space, he pays for having his card appear in a

specified number of cars, for a stated period. As a rule, the rate is

for monthly periods, with special discounts on yearly contracts, and

cards are changed each month. On certain contracts the agency will

include extra service, without additional cost, by running cards in a

number of extra cars, which are put on during the rush hours.

If desired, the agency will design the copy and print the cards, making

an additional charge for the service. Many street car advertisers

prefer, however, to furnish their own cards. This is probably the

better plan for advertisers who maintain efficient copy departments.

Although this book is not intended to teach the technical details

of the art of preparing copy, it may not be out of place to suggest

that copy for street car cards is in a class by itself. Experienced

advertisers have found that to use wordy arguments on a street car card

is a mistake. The card must catch the eye, for it is expected to arrest

the attention but a moment at best. A picture that tells the story at a

glance, large type, and plenty of color seem to meet with most favor.

The special records required for street car advertising are simple,

consisting of records of contracts. A form for such a record is shown

in Fig. 19. This can be on a card or loose leaf. The form is headed

with the name of the city and instructions for shipping. Below the

heading, is a monthly record of the copy No., subject of the ad, size

of cards, and other necessary data including the gross and net cost.

On the reverse, Fig. 20, is a detailed record of the contract, and a

record of total costs. These sheets are filed in a binder or in a card

tray, indexed by cities.

OUTDOOR ADVERTISING

Outdoor advertising is the term used to describe all such forms of

publicity as bill boards, signs, painted or printed posters, etc. This

is strictly general publicity advertising.

Like street car advertising, outdoor advertising is thoroughly

organized, and the sale of space is practically controlled by a few

companies. Local bill posters, who control the boards, or _stands_,

as they are technically known, have their own national organization

which standardizes the practices of the business, regulates rates, and

insures the advertiser against paying for service that he does not

receive.

Rates for this class of advertising are based on population and the

relative desirability of the location. In a city of 500,000 population,

a stand which 150,000 people pass daily is worth more than one in

another section of the city, which is seen but by 50,000 people.

The advertiser pays for his space on the basis of the number of stands

used, size of posters or signs, relative number of _down town or

preferred position_ stands, and length of service. Rates are figured

for periods of one week, two weeks, one month, and longer.

The records of outdoor advertising are very similar to those of street

car advertising. By changing the column headings of Fig. 19 from cars

to _stands_, the form shown answers every requirement.

No outdoor or street car advertising campaign of national scope should

be undertaken until provision has been made to take care of the

business. The _trade_ must be covered first; when the ad appears on the

boards the goods must be on the dealers' shelves.

Indeed, this is a most important factor in any publicity campaign

intended to create a demand for goods sold through the retailer.

Every possible preparation must be made in advance to secure a wide

distribution so that the consumer attracted by the ad will find it easy

to buy the goods. Making known the name of an article in a locality

where it is not carried in stock, or without telling the consumer where

it can be bought, can result in little advantage to the manufacturer.

WHERE ADVERTISING AND SALESMANSHIP MEET

A very effective method of producing sales--most largely used in

campaigns intended to secure direct orders, by mail--is the use of

circulars, booklets, and form letters. This literature is advertising,

but to use it to secure the best results requires the application of

a certain amount of salesmanship. The advertising man may prepare

an attractive piece of printed matter, well-written and containing

convincing arguments, but unless judiciously used, the time and study

put into its preparation is wasted.

A large quantity of such literature, distributed indiscriminately,

would probably bring some business, but the best results are obtainable

only when its use is concentrated; when it is confined to a particular

class and followed up in a systematic manner. Knowing his goods and the

class of people who use them, the salesman is naturally the best judge

of where and when to use those forms of advertising which he turns into

salesmanship by mail. The discussion of systems of record and methods

of use of this form of literature is taken up under the head of the

_sales department_.

SALES DEPARTMENT

The sales department proper is in charge of a sales manager, who has

immediate authority over his subordinates and is responsible for

the results secured by his department. No position in the business

organization carries with it greater responsibilities, for on the sales

manager rests the burden of marketing the goods at a profit.

Without entering into a discussion of the science of salesmanship, the

writer takes the liberty of suggesting some necessary qualifications of

a sales manager.

He must be thoroughly imbued with the importance of his work and have

an abiding faith in his ability to get the very best results out of

his department. He must be enthusiastic and capable of imparting his

enthusiasm to others.

He must _know_ the goods, be they pianos or investment bonds. He must

believe in his goods and his house. Unless he feels that his house is

the best on earth and offers goods second to none, he cannot produce

the full measure of results of which he is capable.

He must know the goods of his competitor and what methods his

competitors are using. He must be willing to abandon his own pet

schemes when they fail to produce, or to adopt a new plan, even though

originated by another.

He must be a close student of human nature with the capacity for

judging men. He must be a salesman in every sense else he is in no

position to judge the qualifications of those in his employ.

On the other hand, the sales manager should be given full control

of his department, until he proves to be incompetent. While other

members of the organization will be consulted before a new campaign is

launched, when the plans have been approved he should be permitted to

_try them out_ without interference. Assuming that he is a competent

man in the first place, he will be the first to detect the weak points

and set about to find a way to strengthen them.

Many a sales manager has had his usefulness impaired by the

interference of others before he has had an opportunity to give a

selling plan a fair trial. Selling campaigns have been discontinued

before the turning point was reached, because someone higher in

authority lacked faith; when they would have proved successful, if

carried out as originally planned.

This is not an argument for a stubborn adherence to plans, regardless

of consequence--any sales committee is liable to make errors--but

before the campaign is launched the extent to which it shall be tried

out should be decided. If the sales manager is given an appropriation

of $500.00, or $5,000.00, for a trial, he can work intelligently, but

if told to go ahead, and then ordered to stop before his campaign is

well under way, he should not be charged with a failure.

Another thing that the sales manager should control is the question of

salaries paid to the salesmen. We maintain that the amount of salary

paid to a salesman is of no moment provided he is a profitable man.

A $10,000.00 man who sells goods at a cost of 10% is more profitable

than the $5,000.00 man who sells at 10%, or even 9%, because of the

greater volumes of his business. The management should gauge the sales

department by net costs, not by the amount of individual salaries.

BRANCHES OF SALES DEPARTMENT

The sales department is logically divided into two branches--mail

order and personal salesmanship. The mail order branch is that part of

the organization which has to do with the promotion of sales by mail.

The personal salesmanship branch is the division which makes sales by

personal contact with the customer.

The work of the mail order branch is conducted by

correspondents--letter salesmen--assisted by clerks to look after the

routine of the department.

The personal salesmanship branch is conducted, primarily, by salesmen

who visit the customers and personally sell goods. In many lines, the

personal salesmanship branch is supplemented by agencies, who come in

direct contact with the customer.

There are businesses in which the dealers, who carry the goods in

stock, are assisted by both the mail order and personal salesmanship

branches in making the sale to the customer. An example is the piano

business in which inquiries are referred to dealers, the dealer and

prospective customer followed up by mail, and the traveling salesman

sent to assist the dealer to close the sale.

THE MAIL ORDER BRANCH

When the mail order branch is spoken of it does not refer necessarily

to an exclusive mail order business, but the term is used to identify

the department in any concern which uses the mails to promote sales.

While there are many exclusive mail order houses, employing no personal

salesmen, there are practically no exclusively personal salesmanship

houses. There may be no effort to secure direct orders in this manner,

but the mails are used to influence sales. Extensive circularizing

campaigns are conducted for the purpose of making known to the consumer

the merits of certain commodities, which are sold only through dealers.

In the sense here used, such campaigns are within the province of the

mail order branch.

=Form Letters.= An important factor in the conduct of the mail order

branch, is the use of form letters. In a campaign intended to secure

direct orders, the form letter takes the place of the personal salesman.

The form letter presupposes a uniformity of conditions. It is written

to appeal to certain desires of the recipient; its arguments are based

on the supposition that the same desire exists in the minds of all to

whom it is sent, and that the same arguments will cause its readers, as

a class, to yield to those desires.

The result of a form letter campaign depends on the extent to which the

letter fulfills its mission in adapting itself to the conditions of

the class to which it is sent--its adaptability to the mentality and

environment of its readers. The same argument will not appeal to the

mechanic, farmer, merchant, and banker.

The failure of most form letter campaigns can be traced to one of two

causes--failure to adapt the letter to existing conditions, or lack of

judgment in selecting a list for a trial. The goods offered may be used

by plumbers and lawyers, but the same letter should not be expected

to _pull_ with both classes. Like the selling talk of the personal

salesman, the letter should be changed for each class.

Other conditions, also, must be studied. Iowa may have harvested

a bumper crop, while Kansas suffers from a drought; mills in the

Pittsburg district may be running overtime, while Buffalo is in the

midst of local labor disturbances. All of these local conditions

influence the results of the letter campaign.

As to lists used for trials, the more usual mistake is in the use of

too small a list. Some sales managers, who have mailing lists of from

25,000 to 100,000 names, profess to try out a letter with a list of 300

to 500 names. A list of this size is not sufficient to give an actual

test of the pulling power of any letter. Some of the most successful

letter salesmen give it from their experience that the very smallest

list from which a safe test can be made is 1,000 names.

_Keying Form Letters._ It is just as necessary to _key_ form letters

as to key magazine ads. The key makes it possible to trace results.

The question of keying is most important when a series of letters is

used--which is true in most campaigns--for it then becomes necessary to

check the returns from each letter in the series. When one letter only

is sent to a given list, the replies received from that list can be

safely credited to the letter.

There are several methods of keying form letters, among which are

the following: the reader may be requested to address his reply to a

certain department; he may be offered a sample or some novelty; or the

letter may be written in the first person singular so that replies will

naturally be addressed to the writer.

The writer confesses to a preference for the last named method. The

average mail order buyer likes to feel that he is receiving personal

attention--that there is someone in the house to whom he can write,

instead of addressing the house. A personal touch can be put into the

letter signed by an individual that is impossible in a letter signed in

the name of the house.

[Illustration: Fig. 21. Detailed Record of Form Letters Mailed]

There are those who contend that only the name of the house should

be used, that the name of an individual should never be signed to

a letter, and who have printed on their letter heads the phrase:

"_Address all communications to the company, not to individuals._"

While it is perfectly proper to use every legitimate means to keep the

name of the house before the public, there is a good deal of senseless

fear that the prestige of the house will be usurped by the individual.

In some quarters this fear has resulted in the adoption of ridiculously

extreme rules and regulations. One incident in the personal experience

of the writer will serve to illustrate the point. Having occasion

to request a favor from a certain manufacturer--a favor which would

be granted, if at all, by the advertising manager--and knowing the

advertising manager personally, he addressed the request to him, using

his title in connection with the name of the firm. Somewhat surprising

was the following letter, received a few days later:

DEAR SIR:

We have your favor of the 12th, addressed to our Mr.--------, and

your request will receive the attention of the proper individual.

Our method of handling correspondence is such that, to insure proper

attention, all communications should be addressed to the company. We

request that you observe this rule in the future.

Yours truly,

No more reason for the fear that the house will be injured by the

personality of one of its correspondents can be seen, than that the

personality of the salesman will have greater weight with customers

than the reputation of the house. If the personality of an employe--be

he a personal salesman or a correspondent--is worth anything in a

business way, the benefit accrues to the house that employs him.

There is one other objection to the use of the name of the writer of

the letter, and it comes from the United States Statute making it a

criminal offense to open mail addressed to another. But this objection

can be easily overcome; any employe whose name is used will sign an

order authorizing the opening of letters addressed in his name, unless

marked _personal_.

[Illustration: Fig. 22. Record of Sales Resulting from Form Letters]

_Form Letter Records._ A copy of each form letter written should be

kept permanently. The copies should be filed in a manner that will

make it easy to refer to them. For this purpose an arch file or binder

is most satisfactory. The letters themselves may be punched for the

file, or the loose-leaf scrapbook idea can be adopted, pasting several

letters on one leaf.

Each letter should be given a number for the purpose of identification,

whether or not it appears on the letter itself. The copies should be

arranged in the file in numerical order, but where there are several

departments or divisions using form letters, they should be divided by

departmental indexes.

It is also well to keep a second copy of the letter with a sample of

the enclosures, as the enclosures may have an important bearing on the

results. These copies may be preserved in the manner suggested for

filing copies of ads and printed matter.

When a form letter is written, a record form, as shown in Fig. 21,

should be started. This may be on a card or loose leaf; the latter is

preferred on account of the larger space for the record. The heading

shows the No. of the letter, the subject, name of the writer, its

No. in the series to which it belongs--first, second, or third--the

enclosures, and the names of any special lists used. The body of the

form provides for a record of letters mailed during the year, with a

monthly record of total costs.

The sheets are arranged in the order of letter Nos., in a card file or

a loose-leaf binder.

The reverse of this record form is ruled, as shown in Fig. 22, to

provide a record of sales resulting from the use of the letter. Sales

can be entered daily or weekly, but the daily record is recommended.

The methods of obtaining the details for these records is described

later.

=Follow-up Systems.= A necessary and very important factor in the

success of a business transacted through the mails, is the follow-up

system. And in a business in which sales are made by personal salesmen,

the follow-up is used for certain purposes, and is as important as

though used to secure orders.

To follow-up is to keep after, to keep in touch with, and to keep a

certain subject before certain individuals. Whether used to secure

orders or make collections, the idea of the follow-up is the same,

though it is better known as a system for promoting sales.

The follow-up arises from the same necessity that compels the personal

salesman to call on a prospective customer more than once--often many

times--before the first order is secured, and continue to call to

hold his trade. The follow-up simply makes use of letters and other

literature to take the place of the personal salesman.

Mechanically, the follow-up system is a _system_ or _method_ that

insures the sending of the right literature at the right time.

Letters--both form and special--catalogs, booklets, folders, circulars,

and mailing cards are all used in the process of following up the

prospective purchaser; the automatic method of showing when each piece

of literature in the series should be sent, is the follow-up system

itself.

[Illustration: Fig. 23. Vertical File Drawer Equipped as a Tickler]

_Tickler Method._ The simplest method of handling the follow-up system

is to use a tickler in which to file memoranda or correspondence by

dates. A tickler consists of a file equipped with a set of indexes

numbered from 1 to 31 to represent the days of the month, and 12

indexes printed with the name of the month. The monthly indexes are

arranged in order, and the daily indexes are placed in front of the

monthly indexes in numerical sequence. The file may be a vertical

correspondence file, a card tray, or a flat desk file.

In using the tickler for a correspondence follow-up, letters are filed

back of the index representing the day on which the subject is to

receive attention. Each day the letters filed behind that day's index

are removed, and after receiving attention, are filed ahead to the next

follow-up date.

If it is desired to have a letter come up for attention in another than

the current month, the day of the month is noted on the letter, and it

is placed back of the monthly index. On the first of the month, the

index for the previous month is placed at the back of the file, which

brings the current month's index to the front. All papers that have

been filed back of the monthly index are then distributed by dates. A

correspondence file drawer, equipped as a tickler, is shown in Fig. 23.

For a small amount of correspondence, the use of the tickler is very

satisfactory, and it is also used to excellent advantage for keeping

track of the many matters that require attention at a future date.

A tickler should be included in the equipment of _every_ office, no

matter what the line of business.

_Card Follow-up._ For most extensive follow-up systems, the card index

is used, for the reason that a card is easy to handle, occupies but

little space, and can be adapted to any classification desired. A

card is used for each prospective customer, or name on the list to be

followed up, and should bear the name and address and a brief history

of the efforts made to secure an order, or accomplish the object of the

follow-up.

Cyclopedia of Commerce, Accountancy, Business Administration, v. 01 (of 10) · 第 6 / 22 段