|
|
CHAPTER V - BUSINESS AND THE PUBLIC
THE relationship between business and the public, has become closer in the
past few decades. Business to-day is taking the public into partnership. A
number of causes, some economic, others due to the growing public
understanding of business and the public interest in business, have
produced this situation. Business realizes that its relationship to the
public is not confined to the manufacture and sale of a given product, but
includes at the same time the selling of itself and of all those things
for which it stands in the public mind. Twenty or twenty-five years ago,
business sought to run its own affairs regardless of the public. The
reaction was the muck-raking period, in which multitude of sins were,
justly and unjustly, laid to the charge of the interests. In the face of a
aroused public conscience the large corporations were obliged to renounce
their contention that their affairs were nobody's business. If to-day big
business were to seek to throttle the public, a new reaction similar to
that of twenty years ago would take place and the public would rise and
try to throttle big business with restrictive laws. Business is conscious
of the public's conscience. This consciousness' has led to a healthy
cooperation. Another cause for the increasing relationship is undoubtedly
to be found in the various phenomena growing out of mass production. Mass
production is only profitable if its rhythm can be maintained - that is,
if it can continue to sell its product in steady or increasing quantity.
The result is that while, under the handicraft or small-unit system of
production that was typical a century ago, demand created the supply,
to-day supply must actively seek to create its corresponding demand. A
single factory, potentially capable of supplying a whole continent with
its particular product, cannot afford to wait until the public asks for
its product; it must maintain constant touch, through advertising and
propaganda, with the vast public in order to assure itself the continuous
demand which alone will make its costly plant profitable. This entails a
vastly more complex system of distribution than formerly. To make
customers is the new problem. One must understand not only his own
business - the manufacture of a particular product - but also the
structure, the personality, the prejudices, of a potentially universal
public.
31
Still another reason is to be found
in the improvements in the technique of advertising - as regards both the
size of the public which can be reached by the printed word, and the
methods of appeal. The growth of newspapers and magazines having a
circulation of millions of copies, and the art of the
modern
advertising expert in making the
printed message attractive and persuasive, have placed the business man in
a personal relation with a vast and diversified public. Another modern
phenomenon, which influences the general policy of big business,
is the new competition
between certain firms and the remainder of the industry, to which they
belong. Another kind of competition is between whole industries, in their
struggle for a share of the consumer's dollar. When, for example, a soap
manufacturer claims that his product will preserve youth, he is obviously
attempting to change the public's mode of thinking about soap in general -
a thing of grave importance to the whole industry. Or when the metal
furniture industry seeks to convince the public that it is more desirable
to spend its money for metal furniture than for wood furniture, it is
clearly seeking to alter the taste and standards of a whole generation. In
either case, business is seeking to inject itself into the lives and
customs of millions of persons. Even in a basic sense, business is
becoming dependent on public opinion. With the increasing volume and wider
diffusion of wealth in America, thousands of persons now invest in
industrial stocks. New stock or bond flotations, upon which an expanding
business must depend for its success, can be effected
only
if the concern has understood how
to gain the confidence and good will of the general public. Business must
express itself and its entire corporate existence so that the public will
understand and accept it. It must dramatize its personality and interpret
its objectives in every particular in which it comes into contact with the
community (or the nation) of which it is a part.
32An
oil corporation which truly understands its many-sided relation to the
public, will offer that public not only good oil but a sound labor policy.
A bank will seek to show not only that its management is sound and
conservative, but also that its officers are honorable both in their
public and in their private life. A store specializing in fashionable
men's clothing will express in its architecture the authenticity of the
goods it offers. A bakery will seek to impress the public with the
hygienic care observed in its manufacturing process, not only by wrapping
its loaves in dust-proof paper and throwing its factory open to public
inspection, but also by the cleanliness and attractiveness of its delivery
wagons. A construction firm will take care that the public knows not only
that its buildings are durable and safe, but also that its employees, when
injured at work, are compensated. At whatever point a business enterprise impinges on the public consciousness, it must seek to give its
public relations the
particular character which will conform to the objectives which it is
pursuing. Just as the production manager must be familiar with every
element and detail concerning the materials with which he is working, so
the man in charge of a firm's public relations must be familiar with the
structure, the prejudices, and the whims of the general public, and must
handle his problems with the utmost care. The public has its own standards
and demands and habits. You may modify them, but you dare not run counter
to them. You cannot persuade a whole generation of women to wear long
skirts, but you may, by working through leaders of fashion, persuade them
to wear evening dresses which are long in back. The public is not an
amorphous mass which can be molded at will, or dictated to. Both business
and the public have their own personalities which must somehow be brought
into friendly agreement. Conflict and suspicion are injurious to both.
Modern business must study on what terms the partnership can be made
amicable and mutually beneficial. It must explain itself, its aims, its
objectives, to the public in terms which the public can understand and is
willing to accept. Business does not willingly accept dictation from the
public. It should not expect that it can dictate, to the public. While the
public should appreciate the great economic benefits which business
offers, thanks to mass production and scientific marketing, business
should also appreciate that the public is becoming increasingly
discriminative in its standards and should seek to understand Its demands
and meet them. The relationship between business and the public can be
healthy only if it is the relationship of give and take. It is this
condition and necessity which has created the need for a specialized field
of public relations. Business now calls in the public relations counsel to
advise it, to interpret its purpose to the public, and to suggest those
modifications which may make it conform to the public demand.
34
33
The modifications
then recommended to make the business conform to its objectives and to the
public demand, may concern the broadest matters of policy or the
apparently most trivial details of execution. It might in one case be
necessary to transform entirely the lines of goods sold to conform to
changing public demands. In another case the trouble may be found to lie
in such small matters as the dress of the clerks. A jewelry store may
complain that its patronage is shrinking upwards because of its reputation
for carrying high-priced goods; in this case the public relations counsel
might suggest the featuring of medium-priced goods, even at a loss, not
because the firm desires a large medium-price trade as such, but because
out of a hundred medium-price customers acquired to-day a certain
percentage will be well-to-do ten years from now. A department store which
is seeking to gather in the high-class trade may be urged to employ
college graduates as clerks or to engage well known modern artists to
design show-windows or special exhibits. A bank may be urged to open Fifth
Avenue branch, not because the actual business done on Fifth Avenue
warrants the expense, but because a beautiful Fifth Avenue office
correctly expresses the kind of appeal which it wishes to make to future
depositors; and, viewed in this way, it maybe as important that the
doorman be polite, or that the floors be kept clean, as that the branch
manager be an able financier. Yet the beneficial effect of this branch may
be canceled, if the wife of the president is involved in a scandal. Big
business studies every move which may express its true personality. It
seeks to tell the public, in all appropriate ways, - by the direct
advertising message and by the subtlest esthetic suggestion - the quality
of the goods or services which it has to offer. A store which seeks a
large sales volume in cheap goods will preach prices day in and day out,
concentrating 1% its whole appeal on the ways in which it can save money
for its clients. But a store seeking a high margin of profit on individual
sales would try to associate itself with the distinguished and the
elegant, whether by an exhibition of old masters or through the social
activities of the owner's wife. The public relations activities of a
business cannot, be a protective coloring to hide its real aims. It is bad
business as well as bad morals to feature exclusively few high-class
articles, when the main stock is of medium grade or cheap, for the general
impression given is a false one. A sound public relations policy will not
attempt to stampede the public with exaggerated claims and false
pretenses, but to interpret the individual business vividly and truly
through every avenue that leads to public opinion. The New York Central
Railroad has for decades sought to appeal to the public not only on the
basis of the speed and safety of its trains, but also on the basis of
their elegance and comfort. It is appropriate that the corporation should
have been personified to the general public in the person of so suave and
ingratiating a gentleman as Chauncey M. Depew - an ideal window dressing
for such an enterprise.
While the concrete
recommendations of the public relations counsel may vary infinitely
according to individual circumstances, his general plan of work may be
reduced to two types, which I might term continuous interpretation and
dramatization by high-spotting. The two may be alternative or may be
pursued concurrently. Continuous interpretation is achieved by trying to
control every approach to the public mind in such a manner that the public
receives the desired impression, often without being conscious of it.
High-spotting, on the other hand, vividly seizes the attention of the
public and fixes it upon some detail or aspect which is typical of the
entire enterprise. When a real estate corporation which is erecting a tall
office building makes it ten feet taller than the highest sky-scraper in
existence, that is dramatization. Which method is indicated, or whether
both be indicated concurrently, can be determined only after a full study
of objectives and specific possibilities. Another interesting case of
focusing public attention on the virtues of a product was shown in the
case of gelatine. Its advantages in increasing the digestibility and
nutritional value of milk were proven in the Mellon Institute of
Industrial Research. The suggestion was made and carried out that to
further this knowledge, gelatine be used by certain hospitals and school
systems, to be tested out there. The favorable results of such tests were
then projected to other leaders in the field with the result that they
followed that group leadership and utilized gelatine for the scientific
purposes which had been proven to be sound at the research institution.
The idea carried momentum. The tendency of big business is to get bigger.
Through mergers and monopolies it is constantly increasing the number of
persons with whom it is in direct contact. All this has intensified and
multiplied the public relationships of business.
35
The responsibilities
are of many kinds. There is a responsibility to the stockholders-numbering
perhaps five persons or five hundred thousand - who have entrusted their
money to the concern and have the right to know how the money is being
used. A concern which is fully aware of its responsibility toward its
stockholders, will furnish them with frequent letters urging them to use
the product in which their money is invested, and use their influence to
promote its sale. It has a responsibility toward the dealer which it may
express by inviting him, at its expense, to visit the home factory. It has
a responsibility toward the industry as a whole which should restrain it
from making exaggerated and unfair selling claims. It has a responsibility
toward the retailer, and will see to it that its salesmen express the
quality of the product which they have to sell. There is a responsibility
toward the consumer, who is impressed by a clean and well managed factory,
open to his inspection. And the general public, apart from its function as
potential consumer, is influenced in its attitude toward the concern by
what it knows of that concern's financial dealings, its labor policy, even
by the livableness of the houses in which its employees dwell. There is no
detail too trivial to influence the public in a favorable or unfavorable
sense. The personality of the president may be a matter of importance, for
he perhaps dramatizes the whole concern to the public mind. It may be very
important to what charities he contributes, in what civic societies he
holds office. If he is a leader in his industry, the public may demand
that he be a leader in his community. The business man has become a
responsible member of the social group. It is not a question of ballyhoo,
of creating a picturesque fiction for public consumption. It is merely a
question of finding the appropriate modes of expressing the personality
that is to be dramatized. Some business men can be their own best public
relations counsel. But in the majority of cases knowledge of the public
mind and of the ways in which it will react to an appeal, is a specialized
function which must be undertaken by the professional expert. Big
business, I believe, is realizing this more and more. It is increasingly
availing itself of the services of the specialist in public relations
(whatever may be the title accorded him). And it is my conviction that as
big business becomes bigger the need for expert manipulation of its
innumerable contacts, with the public will become greater.
36One
reason why the public relations of a business are frequently placed in the
bands of an outside expert, instead of being confided to an officer of the
company, is the fact that the correct approach to a problem may be
indirect. For example, when the luggage industry attempted to solve some
of its problems by a public relations policy, it was realized that the
attitude of railroads, of steamship companies, and of foreign
government-owned railroads was an important factor in the handling of
luggage. If a railroad and a baggage man, for their own interest, can be
educated to handle baggage with more facility and promptness, with less
damage to the baggage, and less inconvenience to the passenger; if the
steamship company lets down, in its own interests, its restrictions on
luggage; if the foreign
government eases up on its baggage costs and transportation in order to
further tourist travel; then the luggage manufacturers will profit. The
problem then, to increase the sale of their luggage, was to have these and
other forces come over to their point of view. Hence the public relations
campaign was directed not to the public, who were the ultimate consumers,
but to these other elements. Also, if the luggage manufacturer can educate
the general public on what to wear on trips and when to wear it, he may be
increasing the sale of men's and women's clothing, but he will, at the
same time, be increasing the sale of his luggage. Propaganda, since it
goes to basic causes, can very often be most effective through the manner
of its introduction. A campaign against unhealthy cosmetics might be waged
by fighting for a return to the wash-cloth and soap-a fight that very
logically might be taken up by health officials allover the country, who
would urge the return to the salutary and helpful wash-cloth and soap,
instead of cosmetics. The development of public opinion for a cause or
line of socially constructive action may very often be the result of a
desire on the part of the propagandist to meet successfully his own
problem which the socially constructive cause would further. And by doing
so he is actually fulfilling a social purpose in the broadest sense. The
soundness of a public relations policy was likewise shown in the case of a
shoe manufacturer who made service shoes for patrolmen, firemen, letter
carriers, and men in similar occupations. He realized that if he could
make acceptable the idea that men in such work ought to be well-shod, he
would sell more shoes and at the same time further the efficiency of the
men. He organized, as part of his business, a foot protection bureau. This
bureau disseminated scientifically accurate information on the proper care
of the feet, principles which the manufacturer had incorporated in the
construction of the shoes. The result was that civic bodies, police
chiefs, fire chiefs, and others interested in the welfare and comfort of
their men, furthered the ideas his product stood for and the product
itself, with the consequent effect that more of his shoes were sold more
easily. The application of this principle of a common denominator of
interest between the object that is sold and the public good will can be
carried to infinite degrees.
37
"It matters not how
much capital you may have, how fair the rates may be, how favorable the
conditions of service, if you haven't behind you a sympathetic public
opinion, you are bound to fail." This is the opinion of Samuel Insull, one
the foremost traction magnates of the country. And the late Judge Gary, of
the United States Steel Corporation, expressed the same idea when he said:
“Once you have the good will of the general public, you can go ahead in
the work of constructive expansion. Too often many try to discount this
vague and intangible element. That way lies destruction.” Public opinion
is no longer inclined to be unfavorable to the large business merger. It
resents the censorship of business by the Federal Trade Commission. It has
broken down the anti-trust laws where it thinks they hinder economic
development. It backs great trusts and mergers which it excoriated a
decade ago. The government now permits large aggregations of producing and
distributing units, as evidenced by mergers among railroads and other
public utilities, because representative government reflects public
opinion. Public opinion itself fosters the growth of mammoth industrial
enterprises. In the opinion of millions of small investors, mergers and
trusts are friendly giants and not ogres, because of the economies, mainly
due to quantity production, which they have effected, and can pass on to
the consumer. This result has been, to a great extent, obtained by a
deliberate use of propaganda in its broadest sense. It was obtained not
only by modifying the opinion of the public, as the governments modified
and marshaled the opinion of their publics during the war, but often by
modifying the business concern itself. A cement company may work with road
commissions gratuitously to maintain testing laboratories in order to
insure the best-quality roads to the public. A gas company maintains a
free school of cookery.
38But
it would be rash and unreasonable to take it for granted that because
public opinion has come over to the side of big business, it will always
remain there. Only recently, Prof. W. Z. Ripley of Harvard University, one
of the foremost national authorities on business organization and
practice, exposed certain aspects of big business which tended to
undermine public confidence in large corporations. He pointed out that the
stockholders' supposed voting power is often illusory; that annual
financial statements are sometimes so brief and summary that to the man in
the street they are downright misleading; that the extension of the system
of non-voting shares often places the effective control of corporations
and their finances in the hands of a small clique of stockholders; and
that some corporations refuse to give
out
sufficient
information to permit the public to know
the true condition of the concern. Furthermore, no matter how favorably
disposed the public may be toward big business in general, the utilities
are always fair game for public discontent and need to maintain good will
with the greatest care and watchfulness. These and other corporations of a
semi-public character will always have to face a demand for government or
municipal ownership if such attacks as those of Professor Ripley are
continued and are, in the public's opinion, justified, unless conditions
are changed and care is taken to maintain the contact with the public at
all points of their corporate existence. The public relations counsel
should anticipate such trends of public opinion and advise on how to avert
them, either by convincing the public that its fears or prejudices are
unjustified, or in certain cases by modifying the action of the client to
the extent necessary to remove the cause of complaint. In such a case
public opinion might be surveyed and the points of irreducible opposition
discovered. The aspects of the situation which are susceptible of logical
explanation; to what extent the criticism or prejudice is a habitual
emotional reaction and what factors are dominated by accepted clichés,
might be disclosed. In each instance he would advise some action or
modification of policy calculated to make the readjustment. While
government ownership is in most instances only varyingly a remote
possibility, public ownership of big business through the increasing
popular investment in stock and bonds, is becoming more and more a fact.
The importance of public relations from this standpoint is to be judged by
the fact that practically all prosperous corporations expect at some time
to enlarge operations, and will need to float new stock or bond issues.
The success of such issues depends upon the general record of the concern
in the business world, and also upon the good will which it has been able
to create in the general public. When the Victor Talking Machine Company
was recently offered to the public, millions of dollars' worth of stock
were sold overnight. On the other hand, there are certain companies which,
although they are financially sound and commercially prosperous, would be
unable to float a large stock issue, because public opinion is not
conscious of them, or has some unanalyzed prejudice against them.
39
To such an extent is
the successful floating of stocks and bonds dependent upon the public
favor that the success of a new merger may stand or fall upon the public
acceptance which is created for it. A merger may bring into existence huge
new resources, and these resources, perhaps amounting to millions of
dollars in a single operation, can often fairly be said to have been
created by the expert manipulation of public opinion. It must be repeated
that I am not speaking of artificial value given to a stock by dishonest
propaganda or stock manipulation, but of the real economic values which
are created when genuine public acceptance is gained for an industrial
enterprise and becomes a real partner in it. The growth of big business is
so rapid that in some lines ownership is more international than national.
It is necessary to reach ever larger groups of people if modern industry
and commerce are to be financed. Americans have purchased billions of
dollars of foreign industrial securities since the war, and Europeans own,
it is estimated, between one and two billion dollars' worth of ours. In
each case public acceptance must be obtained for the issue and the
enterprise behind it. Public loans, state or municipal, to foreign
countries depend upon the good will which those countries have been able
to create for themselves here. An attempted issue by an east European
country is now faring badly largely because of unfavorable public reaction
to the behavior of members of its ruling family. But other countries have
no difficulty in placing any issue because the public is already convinced
of the prosperity of these nations and the stability of their governments.
The new technique of public relations counsel is serving a very useful
purpose in business by acting as a complement to legitimate advertisers
and advertising in helping to break down unfair competitive exaggerated
and overemphatic advertising by reaching the public with the truth through
other channels than advertising. Where two competitors in a field are
fighting each other with this type of advertising, they are undermining
that particular industry to a point where the public may lose confidence
in the whole industry. The only way to combat such unethical methods, is
for ethical members of the industry to use the weapon of propaganda in
order to bring out the basic truths of the situation. Take the case of
tooth paste, for instance. Here is a highly competitive field in which the
preponderance of public acceptance of one product over another can very
legitimately rest in inherent values. However, what has happened in this
field? 40One
or two of the large manufacturers have asserted advantages for their tooth
pastes which no single tooth paste discovered up to the present time can
possibly have. The competing manufacturer is put
in the position either of overemphasizing an already exaggerated emphasis
or of letting the over emphasis of his competitor take away his markets.
He turns to the weapon of propaganda which can effectively, through
various channels of approach to the public-the dental clinics, the
schools, the ; women's clubs, the medical colleges, the dental press and
even the daily press-bring to the public the truth of what a tooth paste
can do. This will, of course, have its effect in making the honestly
advertised tooth paste get to its real public.
Propaganda is potent in meeting
unethical or unfair advertising. Effective advertising has become more
costly than ever before. Years ago, when the country was smaller and there
was no tremendous advertising machinery, it was comparatively easy to get
country-wide recognition for a product. A corps of traveling salesmen
might persuade the retailers, with a few cigars and a repertory of funny
stories, to display and recommend their article on a nationwide scale.
To-day, a small industry is swamped unless it can find appropriate and
relatively inexpensive means of making known the special virtues of its
product, while larger industries have sought to overcome the difficulty by
cooperative advertising, in which associations of industries compete with
other associations.
Mass advertising has
produced new kinds of competition. Competition between rival products in
the same line is, of course, as old as economic life itself. In recent
years much has been said of the new competition, we have discussed it in a
previous chapter, between one group of products and another. Stone
competes against wood for building; linoleum against carpets; oranges
against apples; tin against asbestos for roofing.
41
This type of
competition has been humorously illustrated by Mr. 0. H. Cheney,
Vice-President of the American Exchange and Irving Trust Company of New
York, in a speech before the Chicago Business Secretaries Forum. "Do you
represent the millinery trades? " said Mr. Cheney. "The man at your side
may serve the fur industry, and by promoting the style of big fur collars
on women's coats he is ruining the hat business by forcing women to wear
small and inexpensive hats. You may be interested in the ankles of the
fair sex-I mean, you may represent the silk hosiery industry. You have two
brave rivals who are ready to fight to the death-to spend millions in the
fight -for the glory of those ankles-the leather industry, which has
suffered from the low-shoe vogue, and the fabrics manufacturers, who yearn
for the good old days when skirts were skirts.
"If you represent
the plumbing and heating business, you are the mortal enemy of the textile
industry, because warmer homes mean lighter clothes. If you represent the
printers, how can you shake hands with the radio equipment man? ...
"These are really only obvious
forms of what I have called the new competition. The old competition was
that between the members of each trade organization. One phase of the new
competition is that between the trade associations themselves-between you
gentlemen who represent those industries. Inter-commodity competition is
the new competition between products used alternatively for the same
purpose. Inter-industrial competition is the new competition between
apparently unrelated industries which affect each other or between such
industries as compete for the consumer's dollar-and that means practically
all industries. ...
"Inter-commodity competition is, of
course, the most spectacular of all. It is the one which seems most of all
to have caught the business imagination of the country. More and more
business men are beginning to appreciate what inter-commodity competition
means to them. More and more they are calling upon their trade
associations to help them- because inter-commodity competition cannot be
fought single-handed.
"Take the great war
on the dining-room table, for instance. Three times a day practically
every dining- room table in the country is the scene of a fierce battle in
the new competition. Shall we have prunes for breakfast? No, cry the
embattled orange-growers and the massed legions of pineapple canners.
Shall we eat sauerkraut? Why not eat green olives? is the answer of the
Spaniards. Eat macaroni as a change from potatoes, says one advertiser-and
will the potato growers take this challenge lying down?
42 "The
doctors and dietitians tell us that a normal hard-working man needs only
about two or three thousand calories of food a day. A banker, I suppose,
needs a little less. But what am I to do? The fruit growers, the wheat
raisers, the meat packers, the milk producers, the fishermen-all want me
to eat more of their products-and are spending millions of dollars a year
to convince me. Am I to eat to the point of exhaustion, or am I to obey
the doctor and let the farmer and the food packer and the retailer go
broke! Am I to balance my diet in proportion to the advertising
appropriations of the various producers? Or am I to balance my diet
scientifically and let those who overproduce go bankrupt? The new
competition is probably keenest, in the food industries because there we
have a very real limitation on what we can consume-in spite
of higher incomes and higher living standards, we cannot eat more than we
can eat." I believe that competition in the future will not be only an
advertising competition between individual products or between big-
associations, but that it will in addition be a competition of propaganda.
The business man and advertising man is realizing that he must not discard
entirely the methods of Barnum
in
reaching the public.
An example in the annals of George Harrison Phelps, of the successful
utilization of this type of appeal was the nation-wide hook-up which
announced the launching of the Dodge Victory Six car. Millions of people,
it is estimated, listened in to this program broadcast over 47 stations.
The expense was more than $60,000. The arrangements involved an additional
telephonic hook-up of 20,000 miles of wire, and included transmission from
Los Angeles, Chicago, Detroit, New Orleans, and New York. Al Jolson did
his bit from New Orleans, Will Rogers from Beverly Hills, Fred and Dorothy
Stone from Chicago, and Paul Whiteman from New York, at an aggregate
artists' fee of $25,000. And there was included a four-minute address by
the president of Dodge Brothers announcing the new car, which gave him
access in four minutes to an estimated audience of thirty million
Americans, the largest number, unquestionably, ever to concentrate their
attention on a given commercial product at a given moment. It was a
sugar-coated sales message. Modern sales technicians will object: "What
you say of this method of appeal is true. But it increases the cost of
getting the manufacturer's message across. The modern tendency has been to
reduce this cost (for example, the elimination of premiums) and
concentrate on getting full efficiency from the advertising expenditure.
If you hire a Galli-Curci to sing for bacon you increase the cost of the
bacon by the amount of her very large fee. Her voice adds nothing to the
product but it adds to its cost." Undoubtedly. But all modes of sales
appeal require the spending of money to make the appeal attractive. The
advertiser in print adds to the cost of his message by the use of pictures
or by the cost of getting distinguished endorsements.
43
There is another
kind of difficulty, created in the process of big business getting bigger,
which calls for new modes of establishing contact with the public.
Quantity production offers a standardized product the cost of which tends
to diminish with the quantity sold. If low price is the only basis of
competition with rival products, similarly produced, there ensues a
cut-throat competition which can end only by taking all the profit and
incentive out of the industry. The logical way out of this dilemma is for
the manufacturer to develop some sales appeal other than mere cheapness,
to give the product, in the public mind, some other attraction, some idea
that will modify the product slightly, some element of originality that
will distinguish it from products in the same line. Thus, a manufacturer
of typewriters paints his machines in cheerful hues. These special types
of appeal can be popularized by the manipulation of the principles
familiar to the propagandist - the principles of gregariousness, obedience
to authority, emulation, and the like. A minor element can be made to
assume economic importance by being established in the public mind as a
matter of style. Mass production can be split up. Big business will still
leave room for small business. Next to a huge department store there may
be located a tiny specialty shop which makes a very good living. The
problem of bringing large hats back into fashion was undertaken by a
propagandist. The millinery industry two years ago was menaced by the
prevalence of the simple felt hat which was crowding out the manufacture
of all other kinds of hats and hat ornaments. It was found that hats could
roughly be classified in six types. It was found too that four groups
might help to change hat fashions: the society leader, the style expert,
the fashion editor and writer, the artist who might give artistic approval
to the styles, and beautiful mannequins. The, problem, then, was to bring
these groups together before an audience of hat buyers. A committee of
prominent artists was organized to choose the most beautiful girls in New
York to wear, in a series of tableaux, the most beautiful hats in the
style classifications, at a fashion fete at a leading hotel. A committee
was formed of distinguished American women who, on the basis of their
interest in the development of an American industry, were willing to add
the authority of their names to the idea. A style committee was formed of
editors of fashion magazines and other prominent fashion authorities who
were willing to support the idea. The girls in their lovely hats and
costumes paraded on the running-board before an audience of the entire
trade. 44The
news of the event affected the buying habits not only of the onlookers,
but also of the women throughout the country. The story of the event was
flashed to the consumer by her newspaper as well as by the advertisements
of her favorite store. Broadsides went to the millinery
buyer from the manufacturer. One manufacturer stated that whereas before
the show he had not sold any large trimmed hats, after it he had sold
thousands.
Often the public relations counsel
is called in to handle an emergency situation. A false rumor, for
instance, may occasion an enormous loss in prestige and money if not
handled promptly and effectively.
An incident such as the one
described in the New York American of Friday, May 21, 1926, shows what the
lack of proper technical handling of public relations might result in.
$1,000,000 LOST BY FALSE RUMOR ON
HUDSON STOCK
Hudson Motor Company stock
fluctuated widely around noon yesterday and losses estimated at $500,000
to $1,000,000 were suffered as a result of the widespread flotation of
false news regarding dividend action.
The directors met in Detroit at
12:30, New York time, to act on a dividend. Almost immediately a false
report that only the regular dividend had been declared was circulated.
At 12:46 the Dow, Jones & Co.
ticker service received the report from the Stock Exchange firm and its
publication resulted in further drop in the stock.
Shortly after 1 o'clock the ticker
services received official news that the dividend had been increased and a
20 per cent stock distribution authorized. They rushed the correct news
out on their tickers and Hudson stock immediately jumped more than 6
points.
A clipping from the
Journal of Commerce
of April . 4, 1925, is
reproduced here as an interesting example of a method to counteract a
false rumor:
BEECH-NUT HEAD HOME TOWN GUEST
Bartlett Arkell Signally Honored by
Communities of Mohawk Valley
(Special to The Journal of
Commerce)
CANAJOHARIE, N. Y., April 3.-To-day
was 'Beech-Nut Day' in this town; in fact, for the whole Mohawk Valley.
Business men and practically the whole community of this region joined in
a personal testimonial to Bartlett Arkell of New York City, president of
the Beech-Nut Packing Company of this city, in honor of his firm refusal
to consider selling his company to other financial interests to move
elsewhere. When Mr. Arkell publicly denied recent rumors that he was to
sell his company to the Postum Cereal Company for $17,000,000, which would
have resulted in taking the industry from its birthplace, he did so in
terms conspicuously loyal to his boyhood home, which he has built up into
a prosperous industrial community through thirty years' management of his
Beech-Nut Company. He absolutely controls the business and flat stated
that he would never sell it during his lifetime
'to
anyone at any price,' since it
would be disloyal to his friends and fellow workers. And the whole Mohawk
Valley spontaneously decided that such spirit deserved public recognition.
Hence, to-day's festivities. More than 3,000 people participated, headed
by a committee comprising W. J. Roser, chairman; B. F. Spraker, H. V.
Bush, B. F. Dlefendorf and J. H. Cook. They were backed by the %
Canajoharie and the Mohawk Valley Chambers, of Business Men's
Associations. Of course, everyone realized after this that there was no
truth in the rumor that the Beech-Nut Company was in the market. A denial
would not have carried as much conviction. Amusement, too, is a
business-one of the largest in America. It was the amusement
business-first the circus and the medicine show, then the theater- which
taught the rudiments of advertising to industry and commerce. The latter
adopted the ballyhoo of the show business. But under
the
stress of practical experience it adapted and refined these
crude advertising methods to the precise ends it sought to obtain. The
theater has, in its turn, learned from business, and has refined its
publicity methods to the point where the old stentorian methods are in the
discard.
46The
modern publicity director of a theater syndicate or a motion picture trust
is a business man, responsible for the security of tens or hundreds of
millions of dollars of invested capital. He cannot afford to be a stunt
artist or a free-lance adventurer in publicity. He must know his public
accurately and modify its thoughts and actions by means of the methods
which the amusement world has learned from its old pupil, big business.
As public knowledge increases and public taste improves, business must be
ready to meet them halfway.
Modern business must have its
finger continuously on the public pulse. It must understand the changes in
the public mind and be prepared to interpret itself fairly and eloquently
to changing opinion.
1
- 2
- 3
-
4 -
5
-
6 -
7
- 8
-
9 -
10
-
11
History of Banking Fraud:
The Coming Battle
By M. W. WALBERT
The Coming Battle
documents from Congressional records, newspaper reports and writings by
the founding fathers and others a chronology of events long forgotten that
shaped our fledgling nation from 1776 to 1899. Read about the manipulation
of our money and its supply, the intentional creation of recessions,
depressions and panics, manipulation of the stock markets, and the
demonetization of silver.
Secrets of the Federal Reserve
by Eustace Mullins
Eustace Mullins' carefully
researched and documented treatise picks up from Walbert's expose' of
control of the money supply and the economy and
brings it to the mid 1980's.
The
World Order
by Eustace Mullins
How control of the world's money has inexorably led to an ever tighter
grip on control of the world's people.
Uranium Wars by Leuren Moret
How control of the world's people has inexorably led to wider use of
depopulation methods which include spreading radioactivity in food,
water, air, and the human genome.
Taking Back Your Power
by Allen Aslan Heart
WHAT CAN YOU DO? Stop playing THEIR game. Take back
your power. Stop paying taxes that are not legal or lawful. Stop paying
bills you don't really owe. Stop using THEIR money. There ARE ways if you
open your mind and look for the gaps in their fences that keep the sheeple
in their pasture. Are you chattel or a real person? You are the one who
makes that choice.
Our experienced
debt elimination service professionals have been
helping people with
debt elimination,
tax freedom, and
credit repair for over
ten years. To contact them
click here.
This
Real Debt Elimination
information is
for the purpose of education and broadening horizons ONLY.
See
Real Debt Elimination links
© 2007, Allen Aslan Heart / White Eagle Soaring of the Little Shell Pembina Band,
a
Treaty
Tribe of the Ojibwe Nation
|