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By Neil Hopper Borden

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Sample text

One investigation of trends of purchase of consumer goods revealed that out of 34 products, 20 classes of goods showed upward trends, 11 downward, and 3 neither up nor down. Back of all such trends fie basic changes in the character of the population and its way of living: changes in urban distribution, in occupation, in age distribution, in sex distribution, in family size, in housing, in education, and in modes of transportation and communication. Such sociological changes are slow and hence bring slow but persistent change in the demands for various products.

If advertising is to influence not only consumers but sales or­ ganizations and distributors as well, then the sales managers must make sure that the sales organizations and distributors are duly informed re­ garding the advertising and are led to time their selling and promotional efforts so as to maximize the selling effect of the program as a whole. The Task of Determining the Probable Effect of Advertising upon a Product's Demand When trying to appraise what advertising is likely to accomplish in a particular mix of marketing elements, the manufacturer should begin with a careful appraisal of the demand for his product and of the chances of his advertising, in conjunction with the other selling proc­ esses, influencing that demand within required cost limitations.

This brief discussion of the interrelation between advertising expend­ itures and the various parts of the operating statement is, of course, oversimplified. Considerable ingenuity is required by operating execu­ tives to think out in advance the effects which advertising may produce on business operations; and often it is difficult to measure advertising effects after the event, because a decision to use advertising probably entails other changes to be made at the same time, the effects and impli­ cations of which may be widespread.

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Advertising, text and cases by Neil Hopper Borden

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