LAB DAILY Filmed & Processed by the Library Photographic Service University of California Berkeley 94720 jos NO_4 DATES 2 year Reduction Ratio a———————— —————— ——————— —————— I —————————— ————————— ———————————— I 125 ——— —— ——————————— MICROCOPY RESOLUTION TEST CHART , HON eS METRIC 1| } 2 } feet Seri Str TTT OUNWERSITY of CAL FORE erkeley) 14 , 1S] TTT ® ® THE MASTER NEGATIVE ,FROM WHICH THIS REPRODUCTION WAS MADE, IS STORED UNDER THE SUPERVISION OF THE LIBRARY PHOTOGRAPHIC SERVICE, ROOM 20, MAIN LIBRARY, UNIVERSITY OF CALIFORNIA, BERKELEY, CALIFORNIA 9 4 7 2 0 &F FOR ADDITIONAL REPRODUCTION REQUEST MASTER NEGATIVE NUMBER 9 o 50 a a —__ I. Il ie —— rn ET Be Sa OE Er Rm Sn Ass —— - ENR. A —r————, F rR i E PSYCHOLOGY OF SELLING AND ADVERTISING T THE PSYCHOLOGY OF SELLING AND ADVERTISING BY EDWARD K. STRONG, Jr. Professor of Psychology, Graduate School of Business, Stanford University; formerly Carnegie School of Life Insurance Salesmanship Author: “Relative Merit of Advertisements,” ‘Psychology of Selling Life Insurance,” etc. Chiba ggg a LU LLL LLL LL LLL "He Graw Hil Book @ he. PUBLISHERS OF BOOKS FORo Electrical World v Engineering News-Record Power v Engineering and Mining Journal-Press Chemical and Metallurgical Engineering Electric Railway Journal v Coal Age American Machinist v Ingenieria Internacional Electrical Merchandising v BusTransportation Journal of Electricity and Western Industry Industrial Engineer TITTY TT 1 11 AL TITTTTTITT First EDITION i McGRAW-HILL BOOK COMPANY, Inc. 4 NEW YORK: 370 SEVENTH AVENUE Ih LONDON: 6 & 8 BOUVERIE ST., E. C. 4 } 1925 CopPYRIGHT, 1925, BY THE McGraw-HiLL Book Company, Inc. TO MY WIFE Ee WHOSE DEVOTION AND HELP PRINTED IN THE UNITED STATES OF AMERICA HAVE MADE THIS WORK POSSIBLE THE MAPLE PRESS COMPANY, YORK, PA. 0894051 PREFACE The fundamental objective of selling is to make a customer. It is only recently that this truth has been appreciated. Many sellers are still striving only to make sales; some comprehend the difference between making sales and making customers, but do little else than talk about it. The leaders in merchandizing have incorporated the new objective into their sales procedure. Selling in terms of permanent satisfaction, developing good- will, converting potential prospects into regular customers, are all real psychological problems. They result when certain definite changes have taken place in the minds of prespects so that they come to think and feel in a new way. To the extent that a seller knows what changes must take place and how they may be brought about, to that extent is he likely to be successful in his primary aim. The purpose of this book is to supply a working formula in terms of which a seller may not only make each individual sale in an efficient manner but may also tend steadily to convert buyers into customers. A few years ago there would have been little interest in this subject. Today the chief problem of business is to cut the cost of distribution. Consequently any possibility of increasing the efficiency of selling is welcome since it naturally tends toward success in business. Based as it is upon this new objective of selling, it is inevitable that this book will present a somewhat different view from that found in older texts. New concepts have been added and old ones modified or eliminated. - The book is designed to meet the needs of three groups: first, professional leaders in the field; second, beginners; and third, those who desire a psychology, written in non-technical language, dealing with the problem of influencing others. Leaders in the selling and advertising world will see that the chief theses of this work are set forih in Chaps. I to VI. Many vil viii PREFACE readers need go no further. If any point seems not entirely clear it will be found more fully discussed in a subsequent chapter. For example, the derivation of the ‘buying formula’ is given in Chaps. IX to XV; consideration of the use of the ‘‘obstacle” occurs in Chap. XVIII. A reader interested in the writer’s substitute for ‘human interest’ and ‘“‘reason why’ will find it explained in Chaps. XVI to XIX; one inclined to question the writer's insistence on eliminating the phrases ‘getting atten- tion”” and “securing interest’’ will find the argument supporting such insistence in Chap. XII. Apprentices in selling and advertising will probably not grasp all that is involved in Part I. But they should obtain a good orientation in the subject, thus enabling them to fit all the details that follow into a well-rounded whole. Possibly inex- perienced salesmen will prefer to read Part IV before Parts II and III. Many business men desire a psychology text which outlines the basic factors involved in handling and influencing others—— possibly the most important problem of the age. Parts II and III are largely concerned with this matter. The book is in no sense a substitute for a company sales manual which contains details respecting the company’s policies, products, and peculiar selling problems. It may, however, be viewed ag supplementary to such manuals, presenting among other things the whys and wherefores of many of the items in the sales manual. The references at the close of each chapter have been carefully selected so as to present a variety of opinions, as well as to supply sources for additional information. No attempt has been made to give a complete bibliography. I am indebted to many individuals in the compiling of this book. Many of them are unknown to me, for their contributions have come indirectly. To a few it is possible to say a personal “Thank you.” W. H. Ingersoll, Harry Tipper, H. L. Holling- worth and J. McK. Cattell were originally responsible for my research fellowship in advertising, supported by the New York Advertising Men’s League and later by the Association of National Advertisers. It was while holding this position that I laid the foundation for the book. Later I had the good fortune PREFACE : 1X to be associated with W. V. Bingham, A. A. Hamerschlag, Win- slow Russell, Walter Dill Scott, and E. A. Woods, who were instrumental in establishing the Bureau of Personnel Research. From it grew the Research Bureau for Retail Training, the School of Life Insurance Salesmanship, and the Life Insurance Sales Research Bureau. Associated there were W. W. Charters, C. F. Hansen, J. M. Holcombe, Jr., H. G. Kenagy, H. W. Mec- Intire, G. M. Lovelace, C. J. Rockwell, J. A. Stevenson, and C. S. Yoakum, to name only the leaders. To the researches and discussions carried on with these groups I owe much. I am further greatly indebted to several hundred experienced salesmen who have been in my classes. From their practical viewpoint I have gained a better and broader understanding of the problems of selling, and also a realization of the need that such men have for a simple workable theory in terms of which they may plan their work. Portions of the manuscript have been read by J. J. Cuddy, Advertising Manager of the Standard Oil Company of California and President of the San Francisco Advertising Club; J. B. Duryea, General Agent of the Penn Mutual Life Insurance Company at San Francisco; R. M. Neustadt, Managing Director of the Retail Merchant's Association of San Francisco; C. R. Niklason of the Bureau of Management Research, San Francisco; F. P. Trask, The Caltex Company; Professors C. P. Stone and I.. M. Terman of Stanford University; my father, Edward K. Strong; and my wife. From them I have received many helpful suggestions. I am also indebted to P. K. Judson and W. E. Lange for the sales interviews contributed by them and repro- duced in Chap. IV. 1 wish to call grateful attention to the Research Department of Printers’ Ink as a source of real and prompt assistance in matters of selling and advertising. Portions of Chaps. XIV and XXII have already appeared in the Insurance Salesman and the Journal of Applied Psychology, respectively. Permission to quote has kindly been granted by authors and publishers referred to in footnotes throughout the text. E. K. 8, Jn. July, 1925. PREFACE. CHAPTER I. 11. 111. IV. V. VI. VII. VIII. IX. X. XI. XII. XIII. XIV. XV. PART III. PRINCIPLES OF SELLING AND ADVERTISING XVI. XVII. XVIIL XIX. XX. XXIL XXII. XXIII. XXIV. XXV. XXVI XXVIIL XXVIIL INDEX. PART IV. CONTENTS PART I. GENERAL SURVEY Tue Two Points oF View ANALYSIS OF A PURCHASE ANALYSIS OF A SALE. . FURTHER ANALYSIS OF Saris ETRRVIEWS WHERE TO Pur THE EMPHASIS. : : A CUSTOMER, NOT A SALE, THE OBJECTIVE + OF SELLING THE SALESMAN . Tue COMMODITY OR Service. PART II. HOW MAN SATISFIES HIS WANTS MAaN’s NATIVE WANTS. . ‘ MaN’s NATIVE Social WANTS AcQUIRED WANTS How SOLUTIONS ARE Disco OVERED. DECISION AND ACTION. ; SATISFACTION—IMMEDIATE AND Forune ROLES oF FEELING, SENTIMENT, GOODWILL INTENSIFYING THE WANT—MOTIVATION TECHNIQUE OF MOTIVATION EMPHASIZING THE (OBSTACLE . wal RT ESTABLISHING THE ADEQUACY OF THE SOLUTION ASSOCIATING WANT WITH COMMODITY AND TRADE-NAME Tue ROLE oF MEMORY THEORIES OF SELLING. APPEALS STRATEGY AND TACTICS OF SELLING PROSPECTING DETERMINATION OF Sass ES StRavecy STARTING THE INTERVIEW PRESENTING THE PROPOSITION CLOSING THE SALE 3 20 33 53 86 100 122 141 160 175 188 201 217 232 251” . 272 286 297 311 332” 3487 360 7 379 397~ 409 426 442 161 PSYCHOLOGY OF SELLING AND ADVERTISING PART 1 GENERAL SURVEY Summary and introduction are combined in this book and appear together in the first six chapters. This somewhat unnat- ural union has been made in order quickly to present the main points of the work to the hasty reader, and to clarify the general notions of the beginner before introducing him to details. Chapter I calls attention to the inevitable conflict between the points of view of buyer and seller, and stresses the fact that selling may be accomplished along the lines of least resistance when the seller adopts the buyer’s point of view. The process of buying is analyzed in Chap. II and the elements of buying set forth in a formula around which most of the book is centered. In Chaps. IIT and IV it is shown that this buying formula explains the process of selling as well as the process of buying. . In Chaps. V and VI the principal problems of advertising and selling are considered and their solutions pointed out in terms of the various elements in the buying formula. Two additional chapters (VII and VIII) are included in Part I. They do not advance the chief thesis of the book, but relate to the problem of what the salesman should be who is to do the selling under consideration, and to the problem of what knowl- edge he should have of the commodity he sells. PSYCHOLOGY OF SELLING AND ADVERTISING CHAPTER 1 THE TWO POINTS OF VIEW There is a real need for salesmanship in the world today. Even though everyone should know exactly what he wanted, he would not know just where or how to obtain it. The salesman’s funec- tion is to make him realize his wants and to show him how to find satisfaction. It sounds easy. But it is not so simple as it sounds. There are, of course, many reasons, connected with the product itself, why a given product does not sell. It may be as out of date as a mustache cup, as limited in appeal as a pet rattlesnake, as disappointing as a cheap cigar, once tried and ever after not wanted. The chief concern here is not with such cases. It is taken as a premise that our salesman is dealing in a reputable, authentic commodity which is designed to serve some useful end or increase the sum total of human happiness. But many a worth-while article does not sell as it should. Obviously, then, the trouble is with the salesman. He is not reaching all his real prospects. Or if he reaches them, he is not interesting them. Or, if he interests, he is not holding them. Why? One of the chief causes of such inefficiency is illustrated in the following story told by Lambert :! A salesman had covered three states in the South for a year and a half and was not making the progress that the sales manager expected. The product was something new in ice boxes and rather costly. It embraced several patented features, among which was a home process for manufactur- ing the ice. ! LAMBERT, S. C., “When the Salesman Samples His Own Line,” Printers’ Ink, Jan. 19, 1922. 3 PSYCHOLOGY GF SELLING AND ADVERTISING The salesman’s home was in Atlanta, where he owned a modest little bungelow — Iasiruciiens were given by the sales manager to have one of the boxes sent there as a gift from the company. “You have been selling this product of ours for almost a year and a half now,” remarked the sales manager casually during an office talk with the salesman, “but you are not so well acquainted with what it will do as you might be. We have sent one to your house. Accept it with our compliments. Tell me what your wife thinks of it.” : The idea worked like a charm. The salesman played with that new- fangled ice box as a child might fuss with a toy. And, while he had thought he knew its virtues before, he now recognized that it was superficial knowl- edge. There was no special enthusiasm back of the road relationship. 45 In talking it over some months after with his sales manager, he said: “Business seems to be getting better for me. I'm selling along new lines, and I suspect it’s because I know the product intimately. I see it work under my own roof; I can visualize the pleasure of the womenfolk when 1t 1s installed, and I impart this enthusiasm to my prospects. I can sell more intelligently to the dealer. You knew what you were about when you sent one over to my house.” The sales manager nodded. “Yes,” he admitted, “I did. For I knew you could do better than you were doing. Our product was right. You were simply selling under a quarter head of steam. You had only factory knowledge of I, and that 1s entirely different from home knowledge and intimate contact. The salesman did not make progress as long as he was only a salesman. When he became a consumer also he learned a new point of view. Before that he and his prospects had looked at things from different angles; afterwards he had learned to put himself in the prospect’s place and to see with his eyes. And his sales increased because his arguments were strengthened by being the prospect’s own arguments, because he had stolen the prospect’s own thunder. : : This is what all salesmen must learn to do. Inefficiency in selling is traceable, again and again, to the fact that seller and buyer have different points of view. The Point of View of the Salesman Is Different from That of the Buyer.—All men and women must admit, although they may not want to, that the chief interest of each is in him or herself. Each one of us evaluates everyone else and every object in the light of his or its effect upon us. To this extent a salesman and a buyer are alike. But they differ in other respects. The salesman is selling in order to earn a living. Naturally he is most interested in the commodity he sells, the company he THE TWO POINTS OF VIEW 5 works for, his territory, and everything related to his work. Because of his interest in all these things he most naturally talks about his commodity and his company; he emphasizes the value of his goods; and he is quick to refute the claims of his competitors. Salesmanship means to him, “the power to persuade people to purchase that which he has to sell, at a profit.” Because he knows little or nothing about his prospects and their concerns, he is little interested in them and has little to say about them. The buyer, on the other hand, just because he is primarily interested in himself, is very much interested in his own business and all that pertains to it. But he is not interested in the sales- man, in his company, or in his goods. The only way he can become genuinely interested in them is to see in them something that will help him in his own affairs. He can be interested in what he can get out of the salesman’s commodity—what he can gain from its resale or from its service. One or the Other of These Two Points of View Must Be Uppermost during Any Sales Interview.—If the average sales- man’s point of view is dominant in a sales interview then the prospect must listen to much that bores him, or else he must dismiss the salesman. If he does listen he is forced to sort out from what the salesman presents those items that apply to his own problems, make his own applications, and decide whether the result will be worth while. And because the salesman does not comprehend the prospect’s problems he cannot know very well what part of his sales talk has interested the prospect, nor comprehend why any particular part has interested him, and hence cannot adjust his presentation so as to fit the particular prospect’s situation. A life insurance salesman visiting in San Francisco answered a number of advertisements of competing companies in order to observe how other insurance salesmen presented their propo- sitions. He said a few days ago, “I am amazed at what they talk about. They told me all about their companies and a little about their policies, and that’s about all.” Then he flushed a little and added, “But one of them pretty near sold me. He made me realize that I do not carry enough.” If it were possible to obtain the stenographic record of this interview the writer is certain it would show that the prospect’s 6 PSYCHOLOGY OF SELLING AND ADVERTISING point of view was dominant in the presentation. The salesman in this case “got close” to the prospect, discovered some of his plans, and made him see that life insurance would really serve him. - Naturally, the prospect was interested because his own interests were being discussed. In all such cases the salesman’s commodity is presented as a solution to some problem of the prospect. Because the salesman has discovered what that problem is, he can lead the prospect step by step to see how it may be solved. Selling may be accomplished when either the buyer’s or seller’s point of view is dominant. But when the salesman presents his commodity in his own way he is contending against the prospect’s maximum resistance; whereas when he discusses some problem of the prospect and how it may be solved, he is selling along the line of least resistance. Selling in Terms of the Salesman’s Point of View Naturally Causes Inefficiency.— When a salesman presents his proposition from his own point of view he emphasizes the commodity he has for sale. His aim is to tell everything he can about it. But because he has learned that “too much” is often as bad as “too little,” he talks about the commodity for a while and then attempts to close. If unsuccessful he talks some more and then attempts to close, and so on. The idea back of this procedure seems to be simply, “The more you tell, the more you sell.” This sounds well but is not necessarily sound. Most advertisements of automobiles illustrate this tendency to present as much as possible. For example: The ——- policy persists inflexibly to produce the finest motor car in the world. By finest motor car in the world we mean, without reservation, the most attractive in appearance, the most comfortable and least fatiguing in which to travel; the most fascinating to drive; the most dependable; the most enduring; the most roadworthy; and by every standard the most desirable and most satisfying motor car of which it is possible to conceive. The effecting of that policy is made possible only because of abundant resources—in scientific equipment, in adept craftsmen, and in finances which are practically without limit. This style of selling has been dubbed the shotgun method. All the talking-points that can be discovered are loaded into one presentation and fired at the prospective buyer with the fervent hope that at least one will hit him. The opposite style of selling, THE TWO POINTS OF VIEW ; 7 the rifle method, involves the selection of just the talking-point which is pertinent to the particular prospect to be interviewed, or to the particular class of prospects to be reached through advertising, and then the shooting home of that one point in the most effective manner possible. The “rifle” method necessitates knowing the prospect and presenting the proposition from his point of view. When the ‘““shotgun’’ method is employed there is little interest in studying the prospect; the whole aim is to play up the proposition—the commodity and the house. The salesman, moreover, views “selling as something he does; he does not recognize that the pros- pect must think and feel in certain ways before he will finally agree to buy. There results accordingly enormous overemphasis upon stunts used in securing the interview, in getting attention, and in closing. Salesmen who sell in this way want only one thing from psychology. That is, a stunt, a device, or a trick which when obtained will enable them to sell everyone they meet. The writer has been interviewed by many such salesmen and received letters from many more. When he has stated that no such device exists they have lost all interest in him. The Trend in Selling Is Clearly toward Presenting the Pros- pect’s Point of View.—From 1750 to 1880 was the period known as the Industrial Revolution. Starting with the discovery of steam as a source of power there came a constantly increas- ing number of inventions each year and a corresponding develop- ment of machinery in production. During this period production increased by leaps and bounds. But the markets of the world increased even more rapidly as a result of such factors as the development of the railroad, the telegraph, the steam-driven ship; the opening up of great areas of country in North and South America, Africa, and Australia; and rapid increase in population in the civilized world. Throughout this period the supply of products never caught up with the demand. It was a seller's market and so there .was no incentive to improve selling methods but only to produce more goods. The period from about 1880 to the present time is called the period of the Commercial Revolution. During this time produc- tion has caught up to demand and at times even passed it. The emphasis has shifted from producing more to selling more. 8 PSYCHOLOGY OF SELLING AND ADVERTISING With this shift to a buyer’s market there have come tremendous changes in selling. Witness the growing interest in salesmanship as expressed in the number of books issued on the subject. The Library of Congress records show that but one book on Salesmanship existed in 1869. By decades the statistics are: PUBLISHED TorAL ISIO-ASR0. civilians 2 HSS0=IR00. ......o i000 irra rans 5 ISO0=T000 . .......o cir hs 6 11 HO0G=M000........... i er anay 30 47 H00=3030. . ........... eine 220 267 1920-1922. .........ocnvuvsvuss ss saws 181 (3 years only) 418 A few years ago not a course on salesmanship or advertising was given anywhere. Today many of our colleges and uni- versities offer such courses and more and more emphasis is being put upon the training of salesmen by industrial concerns. Simi- larly, there was until recently no research work in the whole field of distribution. Now such work is met with on every hand. And Congress has just concluded a report on distribution, the total cost of which would have amounted to $5,720,000 if the men who cooperated in the investigation had received their regular salary for the time they voluntarily contributed. This change of emphasis is beyond the control of business men today. Whether they like it or not they must concentrate on selling their goods. And as competition increases they must provide better goods to sell and they must sell them as cheaply as do others. To a production man the most obvious way to decrease cost seems to be to increase production. But this solution only intensifies the problem because it provides a still greater surplus to be disposed of. The recent Congressional report on Distribution indicts the business world for wasteful distribution of effort, unwise attempts to force distribution in territories already oversupplied, and general lack of knowl- edge of consumer requirements. But it makes clear that there are in many cases no excessive profits and that consequently a decreased cost of selling cannot be obtained from cutting profits. There remains the possibility of decreasing the price of goods by decreasing the cost of selling those goods. This is the problem of more efficient sales management and of better salesmanhip. THE TWO POINTS OF VIEW Many changes in selling procedure have of necessity been made in the past fifteen years. Among them is the growing recogni- tion of the buyer's point of view. The development of the famous slogan—*“attention, interest, desire, action, satisfaction”’—illustrates this. In 1898 E. St. Elmo Lewis used the slogan, “Attract attention, maintain inter- est, create desire,” in a course he was giving in advertising in Philadelphia. He writes that he obtained the idea from reading the psychology of William James. Later on he added to the formula, “get action.” About 1907, A. F. Sheldon made the fur- ther addition of “permanent satisfaction” as essential to the slogan. Very few in 1907 felt the need for the last phrase, but on every hand today is heard the necessity for rendering service, of securing the goodwill of the buyer, of selling him what he needs, of establishing permanent satisfaction. It is only a little more than a decade ago that advertising men first became seriously interested in honesty in advertising. Now that word forms the motto of the Associated Advertising Clubs of the World, and Vigilance Committees or Better Business Bureaus spend time and money in enforcing that high standard. These changes have taken place so gradually that many sales- men and advertisers have failed to appreciate their inherent relationship to each other or their significance. Many have not seen, that honest service to a buyer in terms of his needs so that he will feel goodwill, and be permanently satisfied, means that the buyer’s interests must be dominant, not the seller's. And fewer still have seen that the easiest way, and in fact the only way, to guarantee that this will be achieved is for the seller to present his proposition from the buyer’s point of view. This trend toward selling from the prospect’s point of view is further illustrated by the growing interest in merchandising. Many sellers do not sell to ultimate consumers but to jobbers, wholesalers, and retailers. These business men must be satisfied with their purchases or they will not buy again. To meet this situation an increasing number of selling organizations are studying the merchandising needs of the wholesaler and retailer who handle their goods. Careful study has been made of the retail merchandising features of many a product, of its place on the shelves in the retail store, of its correct period of turnover, 10 PSYCHOLOGY OF SELLING AND ADVERTISING of the retail selling expense properly chargeable against it on the average, of the loading it should carry. And many selling organi- zations have spent time and money teaching the retailer better methods of conducting his business, realizing that a successful retailer is better able to dispose of their goods than one who is not. How the Salesman Can Learn to Sell in Terms of the Pros- pect’s Point of View.—The most natural thing for the salesman is to present his proposition in almost the reverse order from that desired by the prospect—to talk about a commodity and its uses instead of the prospect’s problem and its solution. Many a successful salesman, however, uses the latter methods, often without realizing it. Involving, as it does, the forgetting of his own interests and putting himself in another’s place, it 1s not an easy way of handling a sale for the salesman, especially at first. In the past the able salesman has learned almost entirely from experience, from many failures and successes. Frequently it has taken him years to acquire an efficient procedure. The process has been expensive, expensive to the salesman, to his firm, to his customers, and to society in general. In a campaign to secure salesmen for a company selling one of the so-called “intangibles,” 888 newspaper advertisements were run. Irom the 11,983 replies, 5,537 men were asked to call. Only 3,951 did so. From this number 521 men were hired and given a month’s intensive training course at their own expense. Of these, 255 finished and started work. And 87 finally succeeded and remained with the company. Consider the waste! Seven- tenths of 1 per cent of those originally considered made good. Yet in terms of that company’s experience the campaign was viewed as a success! In a study of 10,000 life insurance salesmen it was found that 20 per cent sold 80 per cent of all the business secured. The question is: How many of the remaining 80 per cent will learn to sell efficiently under the present method of “try, try again;” also how many can never be taught? One of the most discouraging aspects of all this, aside from the cost, is that those salesmen who do succeed are seldom able to tell how they sell and so their successes aid very little in advancing the progress of salesmanship. In many cases indeed they stress aspects of selling which clearly can have little or no bearing upon THE TWO POINTS OF VIEW 11 the real issue; and in this way they actually interfere with the progress of others. The only short cut away from this trial-and-error type of ° learning to sell is selection of those men most likely to succeed and adequate instruction. Whether or not a man can ever be taught to sell efficiently right from the start remains to be seen. In the year 1925 it is certain that training methods are not yet advanced to such a stage. All that now can be expected from the best training courses is elimination of scme mistakes and guidance toward methods which will result in fewer candidates failing and more of them selling efficiently in a short time. The instruction needed by a prospective salesman centers around four main topics. First, he needs to know his commodity and the policies and history of his company. Second, he needs to understand selling methods, or at least one of them. Third, he needs to be able actually to carry out this method. And fourth, he needs to understand people, particularly the group to whom he expects to sell. Today, if any instruction is given at all it 1s concerned with the first two topics. But seldom is a sales- man drilled until he knows how to act as well as speak. And equally seldom is he taught to study his prospects so as to understand their desires, their interests, and their problems. It is this last topic that needs to be stressed if the salesman is to start selling in terms of the prospect’s point of view. Unless he knows what his prospects want he cannot talk to them about their interests. And unless he knows their wants he will not be able to appeal to the motives that cause them to buy, except in a general ‘“shotgun’ manner. But when a salesman understands what his prospects want then he can very clearly and simply show them how they can get what they desire through the purchase of his commodity. And this is undoubtedly just what the refrigerator salesman, referred to at the beginning of this chapter, did after he had used the refrigerator in his home. Having become a bona fide user himself he talked as one buyer to another instead of as a seller to a buyer. The purpose of the remaining chapters is to show how a per- son’s mind works when he buys or accepts a salesman’s proposi- tions, and to make clear what a salesman or advertiser should do in order to proceed along the line of least resistance. 12 PSYCHOLOGY OF SELLING AND ADVERTISING Questions 1. In what is the salesman naturally interested? 2. In what is the prospective buyer naturally interested? 3. To what extent do these interests coincide? 4. The salesman can attempt to interest the prospect in what the sales- man is interested in or he can force himself to become interested in what the prospect is interested in. Which should he do? 5. What difficulties result from either of the above lines of procedure? Consider concrete cases. 6. How can these difficulties be overcome? Consider concrete cases. 7. What changes have taken place in selling during the last fifteen years? What has caused these changes? References Congressional Joint Commission of Agricultural Inquiry—Marketing and Distribution. Summarized by SypNEY ANDERSON, ‘The Case as to Distribution,” The Nation’s Business, January, 1923. CHERINGTON, P. T.: “Advertising as a Business Force,” 1913. — ———: “Elements of Marketing,” 1920. CopeLAND, M. T.: “Principles of Merchandising,” 1924. FiLeng, A. L.: “A Merchant’s Horizon,” chap. XI, 1924. Harr, S. R.: “Writing an Advertisement,” chaps. III, IV, 1915. Horcukiss, G. B.: “Advertising Copy,” 1924. MaRrsHALL, L. C.: “Business Administration,” chap. IV, 1921. Russert, T.: “Commercial Advertising,” introduction and chaps. I, 11, 1920. Trerer, H.: “The New Business,” 1914. Woops, E. A.: “Life Underwriting as a Career,” chap. 111, 1923. CHAPTER II ANALYSIS OF A PURCHASE This chapter starts with a description of what one purchaser thought and did in the course of an everyday purchase. The picture is typical. MRS. CARTER’S MORNING ORDER As soon as breakfast was over Mrs. Carter sat down with paper and pencil and began to plan her day’s menus. This was her usual custom, for she found it made ordering from the stores so much easier. First she considered the matter of leftovers which could be utilized, and then proceeded to list the things which must be bought. ‘Large loaf bread,” she wrote automat- ically. Her family used one daily. She considered a minute, then inserted the word ““Tiptop”’ before bread. “I must remember to impress that on the grocer,” she thought, “he has been sending me ‘‘Aunt Hannah's” and it is too crumbly for toast.” “One pound butter, one dozen eggs, five pounds sugar,” were added to the list with little consideration. They were articles that must be renewed as they were consumed. Then Mrs. Carter consulted her menu. “Lamb from the butchers,” she reflected, “then a can of Grandmother’s peas and Eddy’s currant jelly from the grocer. And two cans of tomato soup. No, he charges 1214 cents a can and I can get it for 10 cents at the A. & P.” She bit her pencil a minute then added the soup to the list after all. “I really haven't time to go over today, so I might as well pay the nickel extra. But I must remember to lay in a supply some time when I have the car out.” Mrs. Carter had been resting her paper on the back of a magazine as she wrote. . Now her eye fell by chance on the advertisement on the back which portrayed a bowl of delicious canned peaches. “I might as well order some peaches,” she thought, “I haven't any on hand and they are so nice if any one comes to lunch unexpectedly.” She looked her menu over again. “That’s really all I need today, with what I have in the house. Oh! but it’s wash day tomorrow. I must see how I am in supplies.” She went out to the laundry and looked over the shelves. “Starch is nearly gone. Well, I want to try this new Linit anyway. I don’t suppose it will come up to the advertisement, nothing does, quite. 13 14 PSYCHOLOGY OF SELLING AND ADVERTISING But I'll try it. And soap flakes—two boxes of Ivory. I've had such good luck with my washing machine since I’ve used nothing else. Not a single streaky color. Mrs. Mills says Ivory isn’t strong enough to get out the dirt. But she is always fussing about her colors running. And if I run the cylinder for 20 minutes I get the dirt out all right. I wonder if it would be worth while to get some of this Soakem to soak the clothes with overnight. The advertisements are certainly glowing. However, mother tried it and said she couldn’t see it made a bit of difference. I won’t bother now.” Just here the front doorbell rang. Mrs. Carter went to the door to see a rather nervous young woman who began immediately, ‘Good morning, Madam, may I come in and demonstrate to you the Cochran baking powder, one of super excellence and—" “It wouldn’t be worth your while,” said Mrs. Carter, “I use Royal and I'm perfectly satisfied.” “But, Madam, you would be surprised to see how your cakes would improve with Cochran. You know how often they fall with Royal. But with—" “No, mine don’t fall so very often. Anyway I am not going to change. Good—" Mrs. Carter tried to close the door but the woman had her hand on it. “Surely you won't be so prejudiced as not to see our demonstration at least. Then you can make an intelligent choice and—" “Good morning,” snapped Mrs. Carter and shoved the door vigorously. “I hate to be so rude,” she thought, “but what can one do? And she wasn’t very complimentary herself. Still I suppose I am unduly prejudiced for Royal. I never have tried any other but that once up in the country when I could only get Sanford’s. It was awful. Or maybe it was the stove. But my goodness, I remember cutting out cookies with an old Royal tin when I was a tiny thing in grandma's kitchen. Mother never used anything else. And I wouldn’t know my kitchen cabinet without a red Royal can, and a blue package of Baker's chocolate.” ANALYSIS OF A PURCHASE The mental processes involved in a purchase when reduced to their simplest elements are: 1. Want. 2. Solution. 3. Purchase. Mrs. Carter wants to wash the clothes tomorrow. To do so she must have soap, and as she has very little, she orders more. She orders Ivory Soap because she has found it satisfactory. If it had not been so, she would have tried somethingelse. Because the outcome of the purchase determines whether there will be ANALYSIS OF A PURCHASE 01D a repeat order or not, and because today nearly all selling organi- zations are interested in repeat orders, it is necessary to add a fourth element to our analysis of a purchase. The four elements are, then: 1. Want. 2. Solution. 3. Purchase. 4. Satisfaction. The Solution.— Whenever a want is felt it means that the individual is confronted with some difficulty or is conscious of a deficiency of satisfaction. In the world of selling and buying the solution to such a difficulty will always be some commodity or service. And the commodity or service will be somebody’s commodity or service. Mrs. Carter, for example, starts to satisfy her want to have clean clothes by purchasing soap flakes, and definitely buys Ivory soap flakes, not Lux. In purchasing, then, the element “Solution” involves, always two parts: a. Commodity (service) b. Trade name. In order to have a terminology here that will fit every case of purchasing, the term ‘trade name’ must be stretched consider- ably. It will be used to cover such cases as the buying of Ivory, not Lux; of buying sugar from Hawkins’, not Sanders’, store: and of buying tea from Smith who calls at the door, not from Jones. In other words, the solution to any want that is satisfied through a purchase always involves buying a commodity and, moreover, buying some particular company’s or store’s or sales- man’s commodity. FORMULA OF BUYING It is useful to be able to express the elements entering into the process of buying in the form of a diagram or formula. It helps greatly in remembering them. But any formula which represents mental processes is inadequate and tends to misrepresent the facts. This must be frankly recognized at this point in the 16 PSYCHOLOGY OF SELLING AND ADVERTISING development of the subject. In the discussion that will follow a fuller and more accurate treatment of the subject will be made. [In buying anything, the purchaser proceeds mentally from want to commodity, to trade name, then purchase; and, upon using the commodity, he experiences satisfaction or dissatis- faction. This can be represented as follows: Satisfaction. Want —Commodity —Trade name—Purchase — ge ; Dissatisfaction. Retail Store This formula covers the elements involved in buying where a definite buying habit has been established. Thus Mrs. Carter no sooner felt the want of groceries for the day’s menus than she wrote down “1 pound butter, 1 dozen eggs, 5 pounds sugar’ all of which she telephoned the grocer in a few minutes. So also she wrote down, ‘can of Grandmother's peas and Eddy’s currant jelly,” as soon as she thought of lamb. But the above formula does not yet contain certain elements that are involved whenever a habit of buying is not fully established or is interfered with by competing habits. For example, Mrs. Carter has been receiving Aunt Hannah’s bread which is not satisfactory because it is “too crumbly for toast.” And so Tiptop bread is ordered. Aunt Hannah's bread, to repeat, does not adequately satisfy Mrs. Carter’s wants. She is changing to Tiptop because she believes it will more adequately satisfy her. Consider another example: Mrs. Carter has been using Ivory flakes in her washing machine. A recent caller, Mrs. Mills, has recommended another soap in preference to Ivory flakes because the latter does not “get the dirt out.” Her remarks have weakened the habit of buying Ivory flakes. And so when Mrs. Carter now starts to write down Ivory flakes she must decide whether she will or will not buy it. Reasons flash through her mind attacking Mrs. Mills’ objection and also supporting her own use of Ivory. Had she absolutely no reasons to give herself in defense of her established habit of buying Ivory, the chances are that she would try Mrs. Mills’ soap. In buying it is frequently necessary that reasons be advanced in support both of the commodity and of the trade name. And it is also necessary, possibly even more essential, that a pleasant ANALYSIS OF A PURCHASE v 1% feeling shall be experienced when the commodity and the trade name are thought of. Lava soap is bought for the garage because it removes grease better than any other that has been tried (reason), and Palmolive soap is bought for the bathroom because of a liking for it (pleasant feeling). The action in the latter case cannot be defended in terms of reasons because it is known from using other soaps in hotels and at the homes of friends that Palmolive is not the only soap that will clean easily. But the purchaser likes it so much that he unconsciously asked for Palmolive shaving cream one time when he needed this com- modity. Again feelings came into play. The shaving cream was all right but the purchaser didn’t like the color scheme of the tube, so he hasn’t bought any more. To insure purchase the commodity must be considered ade- quate and also pleasing. In a great many cases if the commodity is viewed as adequate it is also liked, and vice versa. But this is not always the case. There are some objects which have been found quite adequate but which are not liked, and there are some things that are liked and bought which are admittedly not so good as other competing commodities. When adequacy and pleasant feelings are included in the buying formula a diagram like this is the result: Adequacy establiched ’ Adequacy established Want— Commodity — Trade name(orstore) Purchase — Satisfaction “Pleasant feelings ‘Pleasant feelings Fic. 1..—The buying formula. When a buying habit is being established it is necessary that the buyer shall be able to give himself reasons as to why the commodity is an adequate solution to his want and as to why the particular trade name is the best one to buy. It is also necessary that he shall feel pleasantly toward the commodity and the trade name. And whenever his buying habit is challenged by a friend’s remark, a salesman’s presentation of a competing article, or the statements in an advertisement, it is essential that the buyer 18 PSYCHOLOGY OF SELLING AND ADVERTISING shall have reasons with which to defend his action, and that in addition he shall feel pleasantly toward both the commodity and the trade name. All this is represented by the dotted lines in the formula. To repeat; whenever the commodity is questioned, as, for example, whether concrete or brick will be used in building a sidewalk, the reasons and feelings that come to mind determine the choice. And whenever the trade name is questioned—whether Ivory or Palmolive shall be used—the reasons and feelings that come to mind again determine the choice. Consequently, when a person is being influenced to buy, not only the first time but also later on, it is important, whenever he hesitates, that reasons for buying both the commodity and the trade name shall be ready to his need and that he shall be conscious of a pleasant feeling tone in both connections. Recognizing all that has been said in the preceding paragraphs, nevertheless it is true that the primary elements in a well-estab- lished buying habit are those on the central line of the formula connected by solid lines. The majority of objects that are bought are purchased with scarcely a thought as to why, and with a minimum of feeling. And it should be the constant aim of the salesman and advertiser to form such direct associations. Rea- sons and pleasant feelings are related to elements on the central line by dotted lines to indicate that they consitute the elements of defense of the buying habit. As long as they are present buying will continue as in the past. This is well illustrated by Mrs. Carter’s reaction to the Cochran baking powder saleswoman. Royal baking powder made good cake and it aroused pleasant memories of childhood in mother’s kitchen. As long as it so brought to mind cogent reasons as to its use and pleasant recol- lections it would continue to be bought. An investigator reports that out of 69 sales made in a drug store one morning, there were 32 sales in which the goods were asked for by brand, 23 were made without reference to brand, and 14 were selected by the purchaser from goods he could see displayed in the store. When the brand was asked for there existed a well-established connection between want, commodity, and trade name. Reasons and pleasant feelings had influenced the development of that ANALYSIS OF A PURCHASE 19 association. But at the time the purchaser asked for the article these secondary elements were not prominently in his wind. When the brand was not named, the purchase was not ry until after there had been some consideration of the pros and cons of one article versus another, and a certain amount of feeling experienced. It is not surprising that the investigator found that when the brand was asked for, the sale took considerably less time than when the suggestion came from the salesman. The process of voluntary purchasing has been analyzed into the elements set forth in the buying formula. The next chapter will discuss whether these same elements can be employed to explain the process of buying when a prospect is influenced by a salesmen. Questions 1. Jot down as well as you can the ideas that flashed through your mind recently when you decided to buy some article. : 2. Why did you buy the particular article instead of some other object ? 3. Why did you want any object at all? I 4. In answering Question 3 you have presumably stated that you wanted the object for some purpose. Now why were you interested in that purpose? 5. Suppose you continued to ask “why” to each of your answers: Would it be possible to keep this up indefinitely or would you finally come to some answer beyond which you could not go? If you decide there is no final answer, explain why. If you decide there is a final answer, give an example. 6. What are the essential elements in a purchase? 7. Can you reproduce the buying formula from memory ? References Carters, W. W.: “How to Sell at Retail,” 1922. Hawkins, N.: “The Selling Process,” chap. I11I, 1918. lrprER, H., HoLuingwortTH, H. L., Horcukiss, Gi. B., and Parsons, F. A : “Advertising,” chap, IV, 1915. CHAPTER III ANALYSIS OF A SALE The distinction between selling and buying is just that between the obverse and the reverse of a coin. They are merely two views of the same thing—the exchange of a commodity for a considera- tion satisfactory to both buyer and seller—although in one aspect the seller takes the initiative and in the other the buyer. In matching pennies it is of importance which side of a coin falls uppermost. And in business it is of value to consider whether a product will be bought or must be sold. The matter will be taken up more fully later. At present it will be sufficient to recognize that the mental processes of the buyer are essentially alike whether he buys or is sold to. Here is an example of selling taken from the life insurance field. Let us see if it shows our buying formula (Fig. 1) to be of equal value in expressing the mental process of one to whom something is sold. WILLIAM BAGLEY INTERVIEWS DR. CARTER C. BARNES! Picture of Carter C. Barnes, dentist, Middletown, Conn. Age, thirty-six in 1919—born, May 25, 1883. Has $3,000 twenty-premium life in this company, taken out at age of thirty. No other insurance known. Married—has three young children, a boy and two girls. Now practices alone, but until recently was associated with an elder dentist, Dr. Warden. Income unknown; probably about $3,500 to $4,000. ) 1 From StroNG, E. K., Jr.: “The Psychology of Selling Life Insurance,’ lesson 1, 1922. Reprinted with permission of Harper & Brothers. The sale that is outlined here was an easy sale, although of the fifteen salesmen who had called on Dr. Barnes during the year, no! one had been able to interest him. The author was acquainted with the successful salesman, several of the unsuccessful salesmen, and the prospect, and thus obtained the details of the sale. These were outlined to Griffin M. Lovelace, who finally wrote out the sales interview as it now stands. 20 ANALYSIS OF A SALE : 21 Graduate of local college, Wesleyan University, takes an active interest in college affairs and in his fraternity, Psi Upsilon. Is a member of the Methodist Church, the Country Club, and the University Club. Wife has inherited $35,000 from an uncle, according to the papers. Plan.—Educational policy to provide four year’s expenses for son’s college education. Thirty-five-year endowment, continuous premiums, dividends accumu- lated for old-age fund. Insurance payable as follows: Interest on principal payable to the boy until eighteen (or age estimated at which he will enter college) if insured dies before the boy is eighteen years old. Beginning at such age the principal to be paid in instalments for four years, payable semiannually in September and February. If the father lives to see the boy through college and wishes to change the beneficiary so as to increase the protection for his daughters, he may do so. Interriew.—Bagley telephones Dr. Barnes, saying he wants to see him for a few minutes and asking what time ‘today’ would be most convenient. The dentist says he has no engagements for three o’clock and that if this is not taken later, he will see Bagley at that hour. Bagley calls at three and finds Dr. Barnes at liberty. Bagley: Dr. Barnes? Barnes: Yes. Bagley: I'm Mr. Bagley. 1 telephoned you this morning. Barnes: Oh, yes. Bagley: Thank you for letting me see you promptly. I thought of something the other day which I believe is a matter of interest and importance to you and I just got the details worked out yesterday. I am glad I can present them at once. Barnes: What did you want to see me about? Bagley: Dr. Barnes, I believe you have a son. Barnes: Yes. Bagley: Of course, he’s not old enough to go to college yet, is he? Barnes (laughs): No, he’s only ten years old. But he’s already interested in college. Says he's going to Wesleyan, as I did; knows all the football players and is better posted on Wesleyan athletics than I; although I am something of a fan myself. Bagley: That's fine. It must be a source of much pleasure to you to find your little son already interested in college and thinking defi- nitely of going to college. 1 came to speak to you about your boy. May I sit down a moment? Barnes: Certainly. (Both sit.) Bagley: From what you have just said, Dr. Barnes, I don’t need to ask you if you believe in a college training. As you look back on your own experience is there anything else you could give your boy which you believe would benefit him as much as a college education? 22 PSYCHOLOGY OF SELLING AND ADVERTISING Barnes: No, there isn’t. It’s a big thing for any young man. It broadens his view of life, deepens his capacity for enjoying the better things of life, and equips him to do his part in every way. Bagley: 1 heartily agree with you. And doesn t it also bReransy . his ability to earn a living and to take a high rank in his community’ Isn’t it of real practical value also? : Barnes: I think it is decidedly. But what was 1t you wanted to see me about? Aren't you with the American Home Life Insurance ? gird ; I am; and I am glad to see from our records that you are insured in our company. Barnes: Yes, I have a small policy in your company. Bagley: You haven't yet made any insurance provision for your son’s college education, have you? Barnes: I don’t understand just what you mean. : : Bagley: I mean you haven’t taken out an educational policy for your boy. Barnes: No. I never heard of an educational policy. Bagley: This is the idea. If you live, you mean to see that your son gets a college education. If you should happen to die before he is old enough to go to college, or before he completes his college course, he may or may not get a college education, although that 1s the one thing you would rather he should have above all others to fit him for life. The educational policy insures your boy a college education. When you think of the scale of living to which you have accustomed your family, you will realize that it would probably take all your present insurance and whatever investments you and Mrs. Barnes have to support the family properly, if you should die. : There might possibly be enough to pay all or a part of the boy S way through college, but you would no doubt feel a lot better satisfied if you made a special provision for a four-year income payable 10 your son during his college course. Not only would you feel happier to know that his college education was provided for, but you can understand that if anything happened to you, a high-spirited boy would probably hesitate to allow his mother to send him to college if the family income were not ample to provide his expenses without anv sacrifice on his mother’s part. : Of course, he might work his way through college wholly orin part. Many boys do so and there are persons who seem to think it is a good thing for a boy to have to do so. But I have talked with college teachers and administrators who are strongly of the opinion that the bov who has to pay his way entirely is under a distinct handicap; that so much of his time is required to earn a living that his studies suffer, no matter how conscientious and industrious he may be. Barnes: I really hadn’t thought very much about it. Indeed, I had never seriously considered the possibility of my not being able to see the boy through college myself. ANALYSIS OF A SALE Bagley: But we must face the fact, mustn't we, Doctor? There is such a possibility. About one father in five does not live long enough to see his boy through college. You are in good health and have every reason, so far as your own personal and family history are concerned, to hope to see your boy through college. But there is in your case, as in mine and as in the case of every man, the possibility that our expectations will not be realized. You have seen men in the best of health, men of good habits, and of a long-lived family, cut down suddenly by influenza or some other disease; and many of them were not prepared to go, so far as provision for their children’s future was concerned. No doubt you knew Dr. Kellar. Barnes: Yes, I knew Kellar. Bagley: A fine man. One of the best physicians in the city; in the prime of life, in good health; just arrived at a position of distinction in his profession and earning a good income. But the influenza took him and we find that, financially, he was not ready to go. He had a son at the Taft School last year; but this year the boy has heen in the local high school, and I understand the family is not left in very good circumstances. If this boy goes through college, he will have to work his way, unless some friend or relation helps him out, and that will be a source of embarrassment to him and to his mother. What a fine thing it would have been, if Dr. Kellar had had such a proposition for his boy as the educational policy I am prepared to submit for your consideration. Barnes: What is the proposition? Bagley: How much do you think your boy would need each year to see him through Wesleyan? Barnes: Well, he could live at home. I should think his other expenses would be at least $300 or $400. Bagley: Wouldnt it be well to figure for him if he would have to pay his board so that he would be prepared for anything that might happen? Let me show you the plan I had worked out, as a minimum for tuition, board, clothes, books, college activities. I estimated about $750 a year. From what I can gather from various sources, I judge that $600 might be considered a fair minimum today. Formerly, $500 might have been a fair figure. But costs are much higher now as all of us know. Each thousand dollars of insur- ance will provide about $260 a year for four years; $3,000 will provide about $780 a year for four years. This can be settled in semiannual payments, say the first of September and the first of February, just at the time of the year when there will be special college expenses. The amount of insurance is small. It is really quite wonderful to think that for such a small amount of insurance, your boy could have the benefit of four years at college, if anything happened to you, just as surely and under just as favorable circumstances as if you were living, without requiring any sacrifice on the part of his mother, i AB FOR srr ER SBR Pp RR ET ——— 2 24 PSYCHOLOGY OF SELLING AND ADVERTISING independently of any assistance from anybody, and without the necessity of devoting any of the time needed to do his college work properly to working his way through. Is there anything else that would mean so much to your boy at such a time? Is there anything else which would make him more appreciative of his father; anything else that would more surely tend to keep alive in his heart all his life a deep affection and high regard for the memory of his father? The fact that his father had the foresight and the sense of responsibility and the love for him to provide for his college education would seem to him the most certain evidence of all, that his father was the kind of a father he had always believed him to be. Barnes: That is a fine proposition, Mr. Bagley. I'm very much interested. As a matter of fact, I've been thinking lately of taking out some more insurance. Bagley: How much have you now, Doctor? Barnes: The $3,000 in your company and $4,000 in the Mutual Aid Company. Ihave been talking with one or two agents who have been in to see me and had thought I would take out a little more insurance, but they had not presented anything concrete as you have done. I want to do something for my children. Mrs. Barnes has some. independent means and the $7,000 I already have is payable to her. I wouldn’t want to change that; but I felt I might take some insurance for the children. This plan of yours is definite. It accomplishes the very thing I would want to do for the boy above all others. What is the premium? Bagley: If you agree, I'm going to put this on the thirty-five-year Old-age Plan, deposits every year, and get you to leave the dividends to accumulate at compound interest. If the present dividend scale continues this would make your policy fully paid up in about twenty- three or twenty-four years and fully matured for $3,000 in cash in about age sixty-three or sixty-four; and yet the annual deposit is very little more than the ordinary life plan. At age thirty-six, the ordi- nary life deposit is $27.17 a thousand. For the plan I offer, the thirty-five-year old-age policy, it is only $29.91. Yet you can convert it into a paid-up policy in twenty-three or twenty-four years by accumulating your dividends, assuming our present dividend scale will be continued, and the policy will mature as an old-age cash payment at sixty-three or sixty-four. This is a plan we advise for professional men who may feel the need of retiring in the sixties, and who have not commercial business which may be continued by an employee. It is not only a fine proposition for the boy but it is a good thing for you, if you live out vour natural lifetime. Don’t you think it is a fine combination plan? Barnes: Yes, it looks pretty good. 1 suppose this policy has all the usual features, cash values, paid-up and extended insurance, and all the usual privileges. 125 130 135 140 145 150 160 165 170 ANALYSIS OF A SALE Bagley: Yes, all of them. It’s a beautiful contract and when I get the policy we will go over the details together. (Gets out the appli- cation and his pen, asks the usual questions, and is particularly careful to get the questions regarding the beneficiary right. Barnes signs and Bagley gets a check for $89.73 and arranges to have the 175 examination made that evening.) Bagley: There is just one important thing, Doctor, that I am going to leave until tomorrow, but I want to get it settled if possible before we send your papers to the Home Office. Please figure out when you expect your boy will enter college, whether in his eighteenth 180 or nineteenth year, so that we may specify that, in the event of your death before he enters college, the payments shall begin at the age of entry, eighteen or nineteen as the case may be. There are certain details that will have to be arranged when we know the age at which he will probably enter college. 185 Barnes: All right, I'll think that over tonight. Bagley: Dr. Barnes, you have one or two daughters, haven’t you? Barnes: Yes, two. Bagley: As I understand your plans for the protection of your children, I believe you would be interested in something concrete to 190 consider for each of your daughters, just as you have selected a concrete proposition for the boy. Will you give me the names and ages of your daughters? Barnes: Madeline Embry and Eleanor Louise. They are twelve and seven years of age. 195 Bagley: Thank you, Doctor. I'll want a day or so to work out a plan carefully for each of them. I'll drop in when the plans are ready. Good-bye. Thank you very much, Doctor. Barnes: Good-bye. I'm much obliged to you. THREE ASPECTS OF A WANT This sales interview between Bagley and Barnes has dealt both explicitly and implicitly with the wants of Barnes. Before beginning an analysis of the interview it is advisable to consider the three aspects of a want. A person feeling a want may focus his attention upon how bad he feels, or upon how good he will feel when he gets what he wants, or upon the thing that blocks him from getting what he wants. These three possibilities may be spoken of as the negative, the positive, and the obstacle aspect of the want. The negative aspect of a want has reference to the dissatis- faction felt right now. The positive aspect, on the other hand, has reference to the satisfaction to be obtained, the fun, the joy, the happiness that is desired. A day-dream is characteristically ~ 26 PSYCHOLOGY OF SELLING AND ADVERTISING a dwelling upon what is positively desired. When out for a long hike a man may feel how hungry and thirsty he is, how hot and sweaty, how tired and how dusty the road is, and so on. Or he may, on the other hand, enjoy the anticipation of ice cream to be obtained at the end of the day. How good it will taste, how cold it will be, how pleasant it will be to sit in the shade and rest—all such pleasures are enjoyed imaginatively. The pessi- mist naturally thinks of the negative aspect of his want; the optimist thinks of the positive aspect. The former finds fault and is unhappy almost regardless of how good the situation is; the latter obtains pleasure almost regardless of how bad the situation is. Sometimes the negative aspect of a want and sometimes the positive aspect should be emphasized in selling. Ordinarily some emphasis on both is desirable, for each intensifies the other. But now what is the obstacle aspect of a want? Psychologi- cally recognition of the obstacle is the first step in the solution of a want. In the case of our tired hiker, the obstacle is the five miles that must be traveled before he reaches the end of the street- car line. If the five miles could be eliminated he could enter the welcoming “joint,” enjoy his cold, refreshing ice cream, stretch his tired legs, and feel the pleasure of having finished a fine outing. But the five miles remain—they constitute an obstacle to his getting what he wants, they force him to keep on and so he must continue ite with the heat, the dust,and his aching muscles and sore feet. f our hiker turns his attention from the negative or the positive aspect of his want—whichever occupies his mind—and concen- trates on the obstacle, the distance to go, he is most likely to start thinking of some way of eliminating it. Before he has realized it, he may hail a passing auto and ask for a ride. It is just because the average man tends to find a way to eliminate an obstacle as soon as he gets to thinking about it, that it was stated above that, psychologically, recognition of the obstacle is the first step in the satisfying of a want. Consider another example. A gentleman of fifty years of age realizes from time to time that he has not the strength he used to have; he finds himself getting tired rather frequently; he experi- ences headaches; his work is less interesting, and so on (negative aspect). He has a general desire to feel better, he wishes to do ANALYSIS OF A SALE 27 things which he does not, however attempt (positive aspect). He secretly attributes his condition to the fact of getting old (an obstacle he cannot overcome). But one day his family physician says to him, ‘Come in and let me look you over. You don’t look well.” And the physican locates some disorder (an obstacle he may possibly overcome). Now our middle-aged man finds his troubles concentrated in this particular obstacle. Before this, his wants were so general he more orlessignored them. Now they are intensified because they are focused on one thing which must be eliminated. A vague longing is converted into a dynamic want by emphasis upon the obstacle. It is analogous to the effect of damming a great river. A quiet though mighty flow is changed into a source of energy. Subsequent chapters will make clear all that this word “want” means, but it has been explained sufficiently so that it can be used in analyzing our sales interview. ANALYSIS OF THE BAGLEY-BARNES SALES INTERVIEW IN TERMS OF THE BUYING FORMULA The object of this chapter is to show that the buying formula (Fig. 1) will apply to a sale as well as to a purchase. The Bagley-Barnes interview is accordingly analyzed here in terms of the five headings: —(1) the wants of the prospect, (2) the solu- tion, (3) the reasons that the solution is adequate, (4) the pleasant feelings associated with the solution and (5) the act of purchasing. First, what did Barnes, the prospect, want, which might be satisfied by the salesman? 1. Positive aspect of the want. From what Bagley, the sales- man, knew of Barnes, he could guess that Barnes wanted the following: a. His boy should go to Wesleyan College. This is the primary want; all others are secondary. (The usual primary want appealed to in selling life insurance is the protection of one’s wife. But it would be difficult to base a sale on this in the present case because of her recent inheritance of $35,000.) b. His boy should become a success in life—a good athlete, a good mixer, have the association of college men after graduation, ete. (But the salesman could not know whether Barnes wanted his boy to work his way through college or not.) 28 PSYCHOLOGY OF SELLING AND ADVERTISING c. His wife should be free from worry and personal sacrifice. d. He should be approved by his son, daughter, wife, friends, associates in business, and the salesman. That is, he desired that his son would always cherish a high regard and pride for him; that people would say, ‘Look what Dr. Barnes did for his boy;’’ that his own conscience would be satisfied that he had done everything possible for his son. Barnes was planning and working to satisfy all these wants. He was looking forward to the time when he would see his boy entering college. But he was not considering the possibility that he might die, and that in that event his wants might not be satisfied. Consequently, his activities were not directed defi- nitely toward the particular end desired by the salesman, but merely toward the general goal of success in his profession. It was consequently necessary to emphasize the obstacle aspect of the want, and in connection with it the negative aspect, in order to make Barnes feel that he had certain wants that might never be satisfied. 2. Obstacle aspect of want. a. The possibility of Barnes’ death before his boy finished college, and a subsequent decrease in income for the family. (Barnes was not thinking of this when the salesman called.) 3. Negative aspect of the want. (Barnes was also not thinking of the following possibilities when the salesman called.) a. His boy might not go to college for lack of funds, or b. His boy might have to work his way through college, thereby preventing him from getting certain advantages of a college education, or c. His boy might have to go to some cheaper college than Wesleyan, or d. His wife might have to worry and sacrifice herself to help the boy, and e. People generally would not approve of him as much as if he had absolutely guaranteed the boy’s education. Here are the items which would fully arouse Barnes to an appreciation of what he has long been planning to do and to a strong emotional state because the plans were now threatened by the possibility of his death. The most natural response to this ANALYSIS OF A SALE 29 attitude would be to inquire if there were any way of eliminating the effect of his possible death. Second, what is the solution? 1. An insurance policy will pay the boy’s expenses through college in case the father dies. 2. The particular policy that will do all this is the one the sales- man has to sell, 7.e., a policy of the American Life Insurance Company. Third, what reasons are presented as to why the policy will adequately satisfy Barnes’ wants? 1. The boy will be paid $3,000 in eight semiannual instalments beginning the September of the year the boy enters college, if the father dies in the meantime. (This is the only contingency that is insured against in this sale.) 2. The money paid out for the policy will not be wasted in case the father does not die, for the policy can be continued and Barnes will receive $3,000 in his own old age. In this sale there is no discussion of the relative merits of the salesman’s policy and competing company policies. This is usually the case when a salesman has presented his proposition as an adequate solution of what the prospect wants. Fourth, what pleasant feelings are aroused which help make Barnes desire to buy Bagley’s policy? To answer the question as to what pleasant feelings were aroused to help make Barnes desire Bagley’s policy it would be necessary to list everything that was pleasantly experienced by Barnes during the interview, taking into account also every- thing that was unpleasantly experienced by him. The more the prospect experiences pleasantness as opposed to unpleasantness the more he will like the salesman and his proposition. In this connection consider what the effect must have been on Barnes when he heard such expressions as the following: “little son already interested in college” (line 23) ‘““as you look back on your own experience in college” (29) “increase his ability to earn a living and to take a high rank in his community” (35) “feel happier” (62) ‘““a high-spirited boy would probably hesitate to allow his mother to send him to college” (64) ES Kai lS - = : ’ 3 — i A A ET TE RS Rei ol rn, wr ” i A ER 8 a ee - sii : ga Ri A Sr ome as lS : = 8 i ——. a re RR - ed = sR tom it . ¥ " a RSME Ena SE a ——— er 30 . PSYCHOLOGY OF SELLING AND ADVERTISING “without requiring any sacrifice on the part of his mother” (124) “‘is there anything else that would mean so much to your boy at such a time?” (128). Etc. Contrast all this forward-looking plan for the boy’s success and happiness with the opposite type of selling, in which is played up all the trouble that might befall the boy because his father did not carry insurance. Fifth, what elements facilitate the purchase? In order to study selling it is necessary to divide the process up into small parts for ease of presentation. When this is done the student is very apt to obtain a false notion of the whole process because he studies, not the whole process, but only its parts. This is strikingly so in the case of studying the act of purchasing, the “close” as it is usually designated. The student comes to believe that after the presentation has been made then the salesman does some new things in order to close. This is correct but only to a limited degree. He does make the act of purchasing as easy as possible. And the process of doing this is peculiarly part of the close. But a complete and true conception of the elements entering into the purchase must involve all that has gone before. Only when the salesman has definitely in mind completing the sale when he commences his interview, and maintains this objec- tive throughout the interview, is he likely to secure the sale. A pirchase occurs when there is a sufficiently strong want and a solution, a way of satisfying it, that appears to be adequate. If the want is not strong enough or the manner of satisfying it not sufficiently understood and accepted, so that the prospect would not buy of his own accord, he may be led to purchase if the salesman closes the interview in a proper manner. The three elements that distinctly facilitate a purchase other than the funadamental elements of want and solution are: first, keeping all competing solutions and wants out of the prospect’s mind; second, making the act of purchasing as easy as possible; and third, giving him a “push.” In a subsequent chapter these elements will be discussed at length. At this point it is sufficient to give a general idea of them. The successful salesman endeavors to eliminate from the mind of the prospect all competing wants—not only wants that can ANALYSIS OF A SALE 31 be satisfied by purchasing a competing trade-marked commodity but also any commodity that will satisfy another set of wants. For example, the insurance salesman tries to prevent the prospect from thinking about other insurance salesmen, or about investing money in bonds or business, or about buying an auto, or a home. It is because a salesman does manipulate the mental processes of his prospect so that the prospect comes to feel strongly the want for the salesman’s commodity and to think little or not at all about other wants, that people buy more from a salesman than they would purchase on their own initiative. In selling, the act of purchasing is facilitated by making it easy to buy. Every exertion that must be made in order to buy is an obstacle to buying. Many a retail merchant finally refuses to buy because he has suddenly appreciated the labor involved in rearranging his shelves to accommodate the new line of goods. Many a college professor has refused to use a new textbook because it will entail much labor on his part in rearranging his lectures. Kase of purchase and ease of installing and using the commodity (particularly as these affect the purchaser) are accordingly factors that affect the sale. The more a prospect has resisted the salesman, the more figura- tively he has set his brakes, the more necessary is it for the sales- man to give him “a push’ at the end in order to start him going. Even after a prospect has ceased to resist, is really sold, he will remain silent, just as an auto will often stand on a gentle slope after the brakes are released. But if the auto is given a jar it will start rolling. So if the prospect can be induced to do some little act, as bringing a glass of water, or deciding which one of the bindings he likes the best, or figuring out some calculation, he will come along and sign when he would not do soa moment before. In the Bagley-Barnes interview, the purchase was facilitated by : 1. Intensifying Barnes’ wants for his boy, wife, ete.: 2. Showing Barnes how the effects of his possible death could be eliminated through life insurance. . Leading him to buy through: a. Keeping all competing solutions and wants out of his mind. b. Making the act of purchasing as easy as possible. c. Giving him many ‘ pushes.” 32 PSYCHOLOGY OF SELLING AND ADVERTISING In this case the pressure was constant rather than jerky. For from the very first “yes” to the question as to whether he had a son, Barnes was successfully kept by Bagley in an acquies- cent attitude. He was unable to deny or disagree with any of Bagley’s statements or arguments as they were all calculated to fit in with his own ideas. Each agreement led him nearer the purchase, and his final “yes” was only one step ahead in the path he had been following—really easier for him than an abrupt “about face’ would have been. Questions 1. What are the three aspects of a want? Illustrate the three aspects in selling: (a) aspirin (or quinine); (b) pair of shoes; and (c) real estate in a new residence district. 2. What elements facilitate a purchase, i.e., facilitate the final act of buying? Illustrate each of them in selling one of the commodities named in Question 1. 3. The Bagley-Barnes sales interview illustrates the sequence with which ideas are presented when the salesman is presenting the subject from the buyer’s point of view. What would have been the sequence if Bagley had presented the subject from the average salesman’s point of view? 4. Are the essential elements of a sale the same as those given in Chap. II for a purchase? How does a sale differ from a purchase? References Complete sale interviews are given in the following: Strong, E. K., Jr.: “Psychology of Selling Life Insurance,” chaps. I, II, XVI, XXII, XXIII, XXYV, 1922. WHITEHEAD, H.: “Principles of Salesmanship,” chaps. XXIII-XXV, XXXIII-XXXVI, 1917. CHAPTER IV FURTHER ANALYSIS OF SALES INTERVIEWS The term ‘““sale’” may be either broad or narrow in connotation. The essential in any sale (or in any purchase, for the two are but two aspects of one fact), is the exchange of the seller’s commodity or service for the buyer's money, to the satisfaction of both. This exchange is what is meant by ‘sale’ or “purchase” in the narrow and most usual sense. But the student of salesmanship must recognize that there is more to the process than the exchange —there is all the fringe and halo of the purchaser’s wants, means, and limitations on the one side, and all the influences which affect the seller on the other. These latter, which have to do with market conditions, supply and demand, overhead, etc., are beyond the purpose at present. The chief interest is in the state of the purchaser before, during, and after a sale and all these phases will be considered under the term, “a complete process of purchasing.” Distinction between a Sales Transaction and the Complete Process of Purchasing.—Recently I walked into a 5 and 10 Cent Store, sauntered along the counter until I saw mousetraps on display, read the sign of “3 for 10 cents,” picked up three traps and handed them to the saleswoman, at the same time presenting 10 cents with the other hand. She rang up the money, wrapped up the traps, and handed them to me; whereupon I walked out. Although no word was said on either side, this may be called a complete sales transaction—the essentials of a sale were present. But it cannot be said that these steps alone constitute the complete process involved. Many other items must be added to those in the preceding paragraph before the entire picture is presented. For example, the day before I bought the traps I discovered that mice were in the pantry, I appreciated what that meant in loss of food and in annoyance to my wife. I 33 34 PSYCHOLOGY OF SELLING AND ADVERTISING remembered that mice were caught with traps, that the best trap I knew of was sold in 5 and 10 Cent Stores, and that there was such a store in Palo Alto. I accordingly decided then and there to buy some traps, also some cheese. And still further I remembered my decision when I was downtown, and I went to the store and bought them. “The process of purchasing, in the broad sense, starts with the rise of a want and ends with the experiencing of the purchased solution. To date I have caught one mouse. From past expe- rience 1 feel fairly sure there is at least one more in the house, and so the traps are still set. I have experienced a certain amount of satisfaction with my purchase so far, but the incident is not yet closed. The very simplest type of selling is of that sort outlined above in the buying of a mousetrap. Here the decision to buy has occurred prior to meeting the salesman. The most complex type of selling is that where the salesman brings to the mind of ‘the buyer a want of which he had not been conscious and then sells him a solution to it. The interview in the preceding chapter illustrates such selling. In between these extremes are to be found many gradations. If a retail merchant, for instance, views selling only in the light of what takes place in his store, he must come to a very erroneous notion of the subject. But if he realizes that his sales force can do relatively little in many cases to influence the purchases that are made because the decision to buy was made before the customers entered the store, then such a mer- chant has a clean-cut objective for his advertising. And that objective will not be the simple announcement of his wares at sales prices but it will include the influencing of people to make up their minds to buy his commodities and at his store. The extent to which the retail salesman fails to see selling in its true and broad aspect is illustrated by an incident related by Roland Cole, writing in the October, 1923, issue of Sales Management: At a dinner in Detroit, a speaker said he had not bought an auto because no one had asked him to do so. The president of Detroit’s largest depart- ment store said to the speaker, ‘That may have happened in the automobile business, but it could not have happened in my store.” FURTHER ANALYSIS OF SALES INTERVIEWS 35 His claim was challenged by the speaker, who offered to send two people into his store, & man and a woman, give each one $200 in cash, with instruc- tions to buy only when invited to buy. If, at the end of three days, either the man or the woman had any money left, the store proprietor would pay the speaker an equal amount. If they both spent their $200, the speaker stood to lose $400, which the department store man would thereby gain in sales. On a specified morning the man and the woman entered the store, each with $200 in cash, and went separate ways. It was agreed that each one would wander from counter to counter looking at merchandise. In the event of a clerk asking them to buy, they were to buy; but if the clerk said, “Is there anything I can do for you?” or ““ Are you looking for something ?”’ or “Are you being waited on?” or any similar question, the man would answer, “I am waiting for my wife,” and the woman, “I am waiting for my husband.” Upon the evening of the third day neither the man nor the woman had purchased a single dollar’s worth of merchandise, and the only thing to report was that in a half dozen instances the woman had been offered a chair and invited to make herself comfortable while waiting for her hus- band. They had been spoken to by clerks hundreds of time but in no case after they had submitted that talismanic bit of intelligence about the delinquent spouse, had a sales person said, “While you are waiting let me show you . .,” or anything that approached it. Clearly, none of these salespeople considered that their jobs of selling included the arousing of wants in the minds of pro- spective customers. Their whole function was to help people decide whether they would buy this coat or that one and to take the money, but never to induce a person to buy a coat who had not come into the store for that purpose. Several sales interviews follow. All of them illustrate good procedure from the standpoint of the principles of this text. As you read them over, keep constantly in mind the buying formula given in Chap. IT and note how it is exemplified in the sales interviews. Selling a Set of Reference Books for Use of School Children.— Salesmen selling this set of ten reference books in their house-to- house canvass are instructed to obtain the names of parents and children from school teachers as far as possible. They are emphatically told to wait until they get inside the home before commencing what follows, and that while giving this introductory talk they are not to have their prospectus in their hand or lap. The sales talk they are expected to memorize and use is as follows: 36 PSYCHOLOGY OF SELLING AND ADVERTISING Opening Remarks.—Mrs. Smith, the mothers are being visited at this time in a movement to make the school work more effective under the new methods of teaching. You may have noticed that the school work today is very different from what it was in your school days. (Give prospect opportunity to comment.) We find many mothers who do not understand what our teachers are trying to accomplish and do not, therefore, know how to give necessary cooperation in the important task of education. When vou and I were in school, Mrs. Smith, our studies were principally memory work—*learning by heart” as we used to say. But the aim of the earnest teachers today is to stimulate the pupil to think rather than to memorize, to investigate, to get information through his own efforts. With this purpose in mind the teachers assign subjects for investigation, compositions to write, questions to answer. You probably know something about this supplementary or project work, as it is called. But, unfortunately, Mrs. Smith, the teachers have had much trouble with this work for a great many years. Pupils who are assigned topics to look up, return to school and say, “I couldn't get the information—mother was too busy to help me,” or “mother doesn’t understand the new methods.” ; Now as a matter of fact the teachers have had much trouble in trying to get Walter to help himself. They do not want you to help him. The difficulties encountered with this important phase of the school work were discussed by teachers throughout the country and finally an organization known as the Home and School Education Society was formed to study the situation and to devise a remedy for the trouble. : About two hundred teachers were chosen to prepare lessons in all the grades from the kindergarten to the last year of high school. They have worked out a wonderful chart plan which is proving a bless- ing to mothers, teachers, and pupils. Under this new plan, the pupils get their research work quickly, effectively, and lastingly. It has proved such a splendid success that we want every mother to know about it. : But I can show you more quickly than I can tell you about it. I have a great number of mothers to see today, and I can stay only a few minutes. Under this new plan, the pupil is greatly assisted by pictures. Pictures, you know, Mrs. Smith, make a vivid and permanent 1mpres- sion on the child’s mind and enable him to understand much more quickly. Take the study of geography, for example: You know the pupils are required to learn, among other things, the products and industries of the different states and countries. In your day and mine, Mrs. Smith, we simply rep ated these facts over and over until we had FURTHER ANALYSIS OF SALES INTERVIEWS committed them to memory, then we went to school and recited, and then—we forgot all about it. And I feel sure that if you were called upon now to name the industries and products of any state you could not do it because you did not receive a lasting impression under the old way of learning. But under this new picture-chart plan, the pupils learn with one- fourth the effort you and I put into our work and they learn in a way they don’t forget. Demonstration.—Let us suppose the lesson for tomorrow is on Michigan, and Walter's class is told to come prepared to name the industries and products of Michigan, and tell just where in the state they are located. He can turn to his picture-chart— (Produce your prospectus and open instantly to the graphic on Michigan—and find here a presentation of the information he must learn.) Down here (indicate) he sees a picture of the automobile, and in the lesson that goes with this chart (turn momentarily to page 1835) he learns that three-fourths of all the automobiles in the world are made in Michigan. Here (indicate) he sees the salt represented and here (point) he sees the furniture of Michigan. Here (indicate) are the grains and here the fruits (point) and vegetables (point) of Michigan, including the celery and the sugar beets (point). Over on this page (indicate) Walter sees where these various prod- ucts and industries are located. He sees that celery (point) comes from down here, sugar beets from here (point) and copper, iron, and lumber from up here (indicate). (It is of the most importance that you follow implicitly the instrue- tions given as to the time to produce your prospectus. Don't get it out before the point indicated and don’t let it be seen before that point. Don’t even think about it before that point.) Closing the Sale.—(This plan should be followed closely. The rarious steps in this closing talk are arranged in a definite, scientific sequence to compel action): 1. You will understand now, Mrs. Smith, how important this plan is in its relation to school work and how much it means to Walter. I know you will be pleased to learn that these lessons are being placed in the homes of our boys and girls on such easy terms that the poorest and humblest may have them as well as the rich who have thousands of dollars invested in helpful home libraries. In fact the terms of sale are just what you would expect to pay for the rental of the lessons if you could rent them for your home. 2. The lessons have been bound in a strong and durable binding so they can stand the wear and tear of constant use. 3. The teachers who had this work in charge decided to offer the lessons in three bindings to meet the different conditions of home finance and to let the mothers pay for them on any terms they desired —to permit the mothers to name their own terms so that every home 38 PSYCHOLOGY OF SELLING AND ADVERTISING might have the educational opportunity and advantage which this plan provides, so that even a poor washerwoman’s children may have the same home opportunities as the rich banker’s sons. (Pro- duce stretcher.) This is the way they would appear in your bookcase or on your library table. 4. You see there are ten volumes. These first seven volumes (fold stretcher to show only first books) contain the reference material arranged alphabetically so that Walter can turn quickly to any subject on which he needs information. If, for example, the history class is asked to get something on the Monroe Doctrine or the Punic Wars he will turn to this volume (indicate) or this. Or if it issome character in history, such as Charlemagne, or Socrates, or Napoleon, he finds them alphabetically just like the names in the telephone directory, and he finds the information given in a style that interests him and develops his self-reliance. The last three volumes (fold stretcher to show only Study Guides backs) are called Study Guides. Here Walter will find outlines of study, suggestive questions, and many special departments which guide and systematize his research work in these other volumes. He does not need to bother mother about his lessons—he does not have to go back to school and offer an excuse. 5. These three Study Guides volumes correspond to the three divisions of a child’s education—Volume VIII (indicate) is devoted to the needs of the child before school begins; Volume IX is for the child in the grammar grades; and Volume X is for the high school studies—the sciences, literature, commercial law, and so on. 6. Mrs. Smith, we are arranging for the delivery of these lessons now. We are taking the names of mothers who are interested in education and who are willing to cooperate in an effort to improve the school work. I don’t believe there is anything you can put into your home that would mean so much to Walter in his present studies and his future life. These lessons make a wonderful companion for your children. They stimulate their interest in school, change drudge work into delightful home study, broaden their knowledge and develop self-reliance and independence. 7. The complete set just as you see it here is delivered to you on a small initial payment, and you can pay the balance in monthly pay- ments just as you please. The library buckram binding is only $39.50. This is a strong and durable binding containing exactly the same lessons and illustrations as the bindings that cost more. You can name your own terms—you can pay at $10 a month or $8 or $5 or even as little as $3 a month, which means only 10 cents a day. In this binding the initial payment is made as low as $3.50. 8. (Explain the other bindings and terms.) 9. (Show the loose-leaf seryice certificate and explain.) 10. (Show the monthly Service Bulletin and explain.) FURTHER ANALYSIS OF SALES INTERVIEWS 39 11. (Show picture of the set illustrated in large circular.) 12. Here 1s a good picture of the complete library just as it would appear in your home. Isn't that attractive? Wouldn't you have been delighted with such a help in your school days? Some mothers have said it made them feel like going back to school again. Here is the way we arrange this. You select the binding you like The library will be delivered within a few days. A small initial pyihent brings you the entire library which will be delivered within a few days with all shipping charges i prepaid. You can arrange th ini payments as you please. £ oe x mother seems undecided, go back to your prospectus for five minutes of additional demonstration before showing her the subscription blank.) Analysis of Thuis Sales Interview.—The opening remarks of this sales interview are devoted to arousing in the mind of the mother the desire that her children should get their lessons better in school. Such a want will be intensified by the mother herself, as she realizes that Johnny is not doing so very voll that Mrs. Brown’s boy has just jumped a grade leaving Jolin behind, etc. The negative aspect will be so supplied spontane- ously and so, also, the positive aspect— the dream of great success for each of her children. (Both of these could be touched aren more than they are, to advantage.) The obstacle aspect must be supplied by the salesman, for the mother does not ADpraciofe Just why her children are not succeeding. When it is made clear that the children fail to do their work because of the lack of proper reference books, then and only then is the mother inter- ested in the books for sale. And the more strongly she wants Johnny to catch up to Willie Brown the more interest the Pooks oe for her. Not that she cares a rap about the books themselves ut she comes to see that they e 1 Uh oe cen tod f ey may make it possible for Johnny Selling a Gasoline Pump to a Hardware Dealer.— This pres- entation appears in the October, 1923, issue of Sales Marae ment “Warming Up the Buyer Who Just Sits There and Lets You Talk,” by J. D. Rauch. : 7 The prospect was owner of a large, new, brick hardware and general store 0 Bowman, the salesman, everything about the place bespoke thrift and progressiveness. The sidewalk in front was wide and clean; in fact ho place had an inviting appearance. The windows were full of atic] ’ of the highest grade, including automobile accessories and the best x makes of tires. E idk 40 PSYCHOLOGY OF SELLING AND ADVERTISING An acquaintance explained to Bowman that the prospect was known to all pump and tank salesmen and had been solicited many times, but that he was dead set against such equipment from the standpoint that the profits from the sale of gasoline would not pay for the time and trouble of running out to the curb to run it. Upon entering the store Bowman noted clean stock of the best grades, all neatly arranged, but no customers. The proprietor was large, good- natured, thrifty, evidently catering to the farmer trade of a large and prosperous community. “Don’t get up!” said Bowman, “I’m only after a little information. I was attracted by your display of such-and-such a tire in the window, and because I use that particular make myself and find them superior, I was just curious to know how many you sold a week. I'm not in the tire business so you need have no fear.” He said he had not had very much success, although he had sold a few. Bowman's account of the resulting interview follows. “Well, that’s too bad,” I said, “if you could only get a chance to tell every farmer who drives into town what you and the rest of us know about that tire, you'd be busy selling tires every day. Why don’t you put a hitch rack out in front?” Of course, he thought I was “nutty,” but that remark seemed to arouse his interest. You see he had what I term a ‘“‘negative personality,” so he must be approached from a negative angle. “Sure,” I continued, ‘‘a hitch rack. I take it that you learned the merchandising business in a large general store. It did a prosperous busi- ness, too, and held the biggest trade in the community. And you also had the biggest hitch rack in town in front of that store, so as to get all the teams possible to stop there.” That must have awakened some fond memories, for he got up from his chair and started to talk about that store, and I kept bringing up the importance of that hitch rack. Finally he admitted that without that hitch rack they could not have held their trade. “Well,” I said, “how can you expect to get and hold that same trade today without a hitch rack? The only difference is that they drive auto- mobiles instead of teams, so your hitch rack should be one or more large, attractive gasoline pumps out there in front.” He shied a little from force of habit, but I told him I was only suggesting it to him as a common-sense, profitable idea. He said he never had looked on it in that light, and there had been so many salesmen call on him to sell him a pump that he had formed a real antagonism toward them, but that the next one who came along he would surely look into prices, ete. Well, he bought a large outfit from me. I didn’t sell it—he bought it with the hitch rack idea in his mind. I only sold him the negative idea. Analysis of the Sale—The unsuccessful salesmen had tried to sell the hardware merchant in terms of his want for additional FURTHER ANALYSIS OF SALES INTERVIEWS 41 profit from his business. But the merchant did not want extra profit sufficiently to be willing to keep running out to the curb to attend to customers. Once having made up his mind on that point it became practically impossible to sell him in terms of the usual sales talk. Bowman appealed to a much stronger motive-—not more additional profit from selling gasoline, but the greater profits from selling his regular line of hardware. The key to this sale was the clever emphasis on an obstacle to success which was immediately appreciated by the merchant. Once the gasoline pump was identified with the valued old hitching rack, the dealer was sold. Selling Soap to a Retail Grocer Who Has Not Previously Carried the Salesman’s Brands.—The following was prepared at the writer's request by W. E. Lange, then Research Assistant of the Bureau of Personnel Research, Carnegie Institute of Technology. Mr. Lange had just returned from an extended trip in which he had accompanied, one after another, some two dozen salesmen as they called upon 500 retail grocers. He had had in this way an excellent opportunity to study the sales tactics of these salesmen who were selling an established line of soaps and soap products. Mr. Lange made the following preliminary observations: The salesman calling upon the average retail grocer today has probably been preceded by half a dozen or more ‘knights of the grip” and most likely, before the day closes, will be followed by an equal number. The retail grocer trade is being intensively worked and the mere sight of a sales- man frankly bores the dealer. The “happy-go-lucky” salesman of yesterday with his ready smile, his hearty handshake, and his fund of stories can no longer get orders. His former ‘‘all-sufficient’’ tools, the price list and order book are woefully inadequate. His wonderful personality, even the dealer’s friendship for him, seem to get him nowhere. He is rapidly discovering that he must use real salesmanship or else “fall by the wayside.” That group of salesmen sel- ling soap to the retail grocer is probably experiencing the truth of these remarks in the bitter school of “hard knocks’ more forcibly than any other group. Competition in the soap business is very keen and every day finds the grocer approached with some special deal on a brand of soap or soap powder of which he has never heard, but which, on paper, will yield him a fancy profit. The salesman handling an established line of soap prod- ucts, who has been preceded by such a proposition, must use real sales tactics to sell his line of goods. In addition to this type of com- 42 PSYCHOLOGY OF SELLING AND ADVERTISING ; FURTHER ANALYSIS OF SALES INTERVIEWS petition he must meet real competition from other established brands. 1 ‘““Here is a fine cake of soap. That soap has been on the market To sell the grocer, an elaborate sales talk cannot be used. His time ; longer than you and I have been on this earth, and it is still selling is too valuable. The salesman must size up the dealer accurately and then 4 well. It sells especially well in this part of the country. Selling drive home to him, in a concise sales talk, the quality of the goods, the soap like that at 5 cents, you are making a good profit for yourself customer’s goodwill he will build by handling these goods, and the profit and also giving your customers a fine value for their money. Just in the goods. now we have a special deal on Excell. We give one case free with The Sales Interview.— Driving through the central part of Georgia, the salesman suddenly noticed a new store. ‘‘Hello,” he said, ‘‘there is a new store. I must call on the proprietor and see if he needs any of my goods.” Stopping his car, he got out and entered the store. The store was typical of the extreme South. A small building of rough, unfinished, and unpainted boards housed a couple of hundred dollars worth of groceries, tobacco, candy, etc. A glance at the shelves disclosed the fact that the dealer’s supply of soap was extremely low. A few bars of a competing brand of laundry soap and a couple dozen cakes of a cheap violently colored brand of toilet soap consti- tuted the entire stock. The dealer proved a young chap in the early twenties who evidently had had but little previous grocery experience. The site he had selected for his store seemed a logical one, and as he had no competi- tors, he was a good prospect. “How do you do?” said the salesman. ‘‘My name is Brown. Iam with the Blank Soap Company.” “My name is Perkins, Mr. Brown.” “Il am glad to know you, Mr. Perkins. I suppose you know the products our company handles—Royal soap, Excell soap, K N soap powder, etc. I am here to sell you these products direct.” “What do you mean by direct?” “I mean that we sell these products direct from our warehouses to you. I am not selling through the jobber. Selling products direct to you, we eliminate expense, sell to you cheaper, and give you better service in the way of quick delivery and fresh stock. We will deliver to you, freight prepaid, an order as small as two boxes. However, I always like to write up a five-box order because it means a saving of almost $1.25 to the dealer. Our terms are very liberal also. If you pay your bill within ten days, you may deduct 2 per cent as discount, otherwise our terms are cash at the end of thirty days.” “I don’t believe I need five boxes of soap, Mr. Brown.” “You don’t have to take five boxes of one kind of soap. You can make up any assortment of five boxes and get a reduction on each box.” “I couldn't use five boxes of your products.” “You are getting pretty low on soap. You have only a few bars of laundry soap on your shelves. You'll need some soap soon.” Reaching into his sample case, the salesman drew out a cake of Excell soap, unwrapped it, and handed it to the dealer. five cases, or a half a case with two and one-half cases. This makes the price very low to you. Let's figure what it costs you per cake!” Getting out a pad, the salesman started to figure before the eyes of the dealer, the dealer meanwhile following with interest. “The five-box price is $4. With each box you get twenty cakes of soap free. Four dollars divided by 120 equals 314 cents. As a 5-cent seller this soap will make you a profit of 124 cents per cake, or 50 per cent on your money. In other words, you will make $2 on an invest- ment of $4. Can you beat that? These profits are not paper profits. Excell will sell for you because you are giving your customers as much value for a nickel as you now give them for 7 cents when you sell that laundry over there on your shelf.” Going to the shelf,“the dealer picked up a cake of the competing laundry soap and then compared its size, weight, color, and odor to the corresponding qualities of Excell. He then said, “I will take two boxes.” ““Mr. Perkins,” said Brown, “I can’t give you a good price on only two boxes of soap. Let me write you down for two and a half boxes and you will receive half a box free; then let me write you down for two more boxes of some other of our products.” “I can’t handle five boxes. I am just starting in business, and I can’t tie up much capital.” “You won't tie up your capital. Your account will be carried for 30 days and in that time you will have practically all of the five boxes sold. Do you have any calls for a high-grade toilet soap?” ““No, I don’t; my customers are all niggers and they want these colored or perfumed soaps.” “Well, how about washing powder? You haven't got a bit. I bet you have calls for washing powder. Here's a powder you ought to sell, K N. It’s the biggest 5-cent seller on the market and yields vou a nice profit of 114 cents a package. Let me add two boxes to your Excell order and give you advantage of the five-box price.” “All right, send me the five boxes.” Brown sized this dealer up accurately and sold him despite the fact that he seemed to be a reserved and non-committal individ- ual. By comparing the quality of his goods to that of the competing brand, by stressing the consumer’s goodwill that the dealer would build by handling his soap, and by showing the 44 PSYCHOLOGY OF SELLING AND ADVERTISING dealer the profit in black and white, Brown sold the dealer and gained another customer for his company. Selling the Dealer More Than He Wishes to Buy..—Many salesmen find it difficult to sell to a woman. Women buyers evidently do not worry Smith, as may be judged from the follow- ing sale: Entering a small store in the factory district of one of the great indus- trial centers of the country, Smith greeted the proprietor, an elderly Jewish woman. “What can I do for you today, Mrs. Abrams?” “How much is White soap?’ “White soap costs you $4.75 in five-box lots and $5 in single-case lots.’ ““What! Why I only need two boxes and yet your five-box price is higher than the chain store's retail price. I bought ten cakes from a chain store the other day for 45 cents. “You can’t buy soap at that price now. Soap has gone up. It now costs you 6 cents at the A. & P.” “That K. Q. store across the street is still selling ten cakes for 45 » y cents. “They may be, but they will soon raise their prices. The A. & P. stores act as a barometer for all the chain stores. When their prices go up, the prices of all other chain stores go up.” “When I need soap, I am going to buy from the chain stores and not from you.” “Suppose your customers find that you are buying from the chain stores. How will it look?” “I won't let them find out.” “You can’t buy enough soap from the chain stores. Besides their prices are already up or will be up in a day or so.” “No, I won’t buy from you.” ‘““Here’s something you can sell, Mrs. Abrams—K N powder.’ “I don’t want any, I've got some other powder on the shelf.” “Yes, but you haven't got much left. K N is a better value for the money, and a quicker seller. Let me weight one of those pack- ages. Do you see what it weighs? Now, see what K N weighs, at least 2 ounces more. Let me order you some. You can take the discount and make money on these goods. You also need some Royal soap. Let me put you down for two boxes of White soap, two boxes of Royal soap, and a box of K N powder. “T’ll figure out the cost for you on this pad. Two boxes of White soap cost you $9.50, two boxes of Royal soap cost you $8.50, and a box of K N costs you $3.50. That is $21.50 in all. Take your discount and it is $20.47.” “Why should I pay for the soap right away when it takes me two months to sell it? I don’t make 4ny money that way.” ) FURTHER ANALYSIS OF SALES INTERVIEWS “You'll make money on this order. You get $12 for your White soap, $10 for your Royal soap, and $5 for K N powder. That is $27. Your profit is $5.93.” “I’ll take two boxes of Royal soap and a box of White soap, if you will sell them to me at the five-box price.” “I can’t do that, Mrs. Abrams. It would not be fair to other small dealers. Besides my job wouldn’t be worth anything if I did that.” “Then I don’t want anything from you.” The salesman started to close his sample case, but just before closing it, he handed the box of K N powder to the woman and said, “You really need this powder.” As the woman continued to handle the package, he said, “A single box of that will cost you $3.75. Your profit will be 3314 per cent. It will sell well for you.” “Give me a box.” “You are making a good profit on that powder, but you can make still more. Order two boxes of White and two boxes of Royal and you get the five-box price on all of them.” “I'll take a box of White and a box of Royal and no more.” “Mrs. Abrams, here is the slip on which I figured your profit before. Your percentage of profit is much higher if you buy five boxes. At the single-box price your profit on K N is 3314 per cent. At the five-box price your profit is about 43 per cent. Isn’t that extra profit worth something to you? Order one box of K N, two of White and two of Royal and you not only get this increased profit on K N but you also increase your profit on Royal and White!” “I guess, I'll take all five boxes then.” “You won't make any mistake in doing it, Mrs. Abrams. You need all of it, and can sell all of it at a good profit.” Mr. Lange's comments on this sale: This particular sale was interesting for several reasons. First, because the complaint of the small independent dealers against the cut- rate prices of the chain stores was raised. The salesman was for- tunate, at the time, in having an effective comeback—the chain stores had really raised their prices. Generally, the salesman is not so fortunate and must proceed carefully, for he is touching an extremely sore spot of the small retailer. He cannot bluntly tell the dealer that his merchandising methods are most often the cause of the great difference between chain-store prices and his own, nor can he convince the small dealer that chain stores often sell at cost or less to draw business. All possibility of a sale seemed to have been lost in this particular case. Smith's persistence, however, had its reward. By returning to K N powder after Mrs. Abrams had definitely refused to buy anything, Smith used the proper tactics. Her interest in the powder seemed to be greater than her interest in the soaps, although she needed them all equally. It was logical to assume, therefore, that 46 PSYCHOLOGY OF SELLING AND ADVERTISING her resistance could be most easily broken along the line of her interest. Having penetrated her resistance by selling her the powder, building up the order progressively to five boxes became a much easier task. Selling a dealer more than he wants, or ‘loading him’ as it is sometimes called, is not to be commended unless the dealer really needs the goods. In this case, the dealer was not loaded. Although she had previously never purchased more than a couple of boxes, she always had them disposed of before the salesman made his next call. There seems to be little doubt that with a slightly greater effort she could dispose of one or two boxes more in the same period of time. In selling her more than she wanted, therefore, Smith really did her a service. Selling Insurance to a Prospect Who Has All He Wants.—In the selling of life insurance, a salesman is more frequently forced to give a complete sales presentation than in the selling of most other commodities. It seems, therefore, appropriate to consider another life insurance sales interview. This interview was prepared by one of the writer's former students, Paul K. Judson, a San Francisco agent of the Penn Mutual Life Insurance Company. It very well illustrates the theories set forth in this book; at the same time, it is known that very satisfactory results have been obtained through its use. The interview follows a telephone appointment made after the prospect has received a three-page letter outlining what is a complete life insurance program. The Interview. Salesman: Good morning, Mr. Prospect. I'm Mr. Judson of the Penn Mutual. I'm very glad to meet you. Prospect: I'm glad to meet you, Mr. Judson, although I'm afraid you're only wasting your time. I'm loaded with insurance, and couldn’t carry any more if I wanted to. Salesman: Then its a cinch I can’t sell you anything. I can’t sell you anything you don’t want, and I don’t want to sell you any- thing you don't need. But, as I told you over the phone, it’s my business to know what all companies and all policies will do, and I may be able to show you how you can get more value out of what you are already carrying. You're married? Prospect: Yes. Salesman: Family? Prospect: Boy and girl. Salesman: Good for you. What are their ages, may I ask? Prospect: The boy is six and the girl is four. Salesman: Both in good health, I suppose? Prospect: Yes, they're in perfect health, FURTHER ANALYSIS OF SALES INTERVIEWS Salesman: That's fine. Has the boy started school yet? Prospect: He starts in this fall. Salesman: It’s looking a long ways ahead, of course, but I suppose you are going to send him to college? My boy is looking forward to Stanford but I imagine if California keeps having such wonderful football teams he is liable to decide on California. S————— rospect: Well, my boy doesn’t pay much attention to football yet, but I want him to go to college, of course. Salesman (after a slight pause): Mr. Prospect, did it every occur to you that your life insurance might prove to be no protection at all for your family? Prospect: Why, no. What do you mean? Salesman: Let me put it this way. The ordinary man thinks when he takes out a life insurance policy that he has solved a problem. He doesn’t realize that in giving his wife a certain sum of money to invest he is putting her up against the toughest problem a woman ever has to face. Instead of leaving something which is going to take care of her, he leaves her something to take care of, and in a pitifully large number of cases she loses the money. We paid a Berkeley woman a few years ago a little over $50,000 when her husband died. Now undoubtedly when he bought that insurance he figured something like this: “6 per cent on $50,000 is $3,000 a year, or $250 a month. That will give mother all she will need to keep the family together and educate the children.” And she handled the money just the way he expected her to. She didn’t buy any oil stock and she didn’t squander any of it. She followed the advice of his business associates and attempted to complete several of the business enterprises which he was engaged in when he died. They didn't succeed, and she got all that money back into general circulation inside of two years. And his three children will not get the education he planned for them, just because he failed to realize the difference between life insurance and protection. Prospect: But how are you going to prevent such a thing? What insurance can I take that will do those things? Salesman: I'll come to that in just a minute. That man did just what most buyers of insurance do. Instead of leaving his family a structure which would take care of them he gave his wife a pile of building materials and said ‘“Here they are. Now you build your own House of Protection.” His wife failed, as most women do, because of the utter lack of experience in this very difficult job. That experience has become so common that one of the large life insurance companies recently made a survey of the claims they had paid out in cash and came to the conclusion that seven years, at the outside, was the length of time you could expect such money to last. Personally, I don’t think that insurance of that sort is worth much. Prospect: No, I guess it isn’t, but I don’t know what you are going to do about it. ES ARLE SR AREER EE Le 48 PSYCHOLOGY OF SELLING AND ADVERTISING Salesman: Mr. Prospect, you may be sure that I wouldn't think of coming here and uncovering this problem if I were not prepared to offer a solution, and just to show you what can be accomplished along this line I'm going to tell you very briefly about my own case. ‘Mrs. Judson and I have four children—boys twelve and five and a girl two years old and a three-months-old baby. I've got some wonderful plans for those kiddies’ future. They are all going to college and have every advantage it is possible for me to give them. And it doesn’t take much foresight to figure out that those kiddies’ dad has got to hustle right along for the next 20 years to come across with the money it is going to take to carry out those wonderful plans. After twenty years Mrs. Judson and I can take it easy. Instead of six of us to support there will be only two, and of course the drain on our finances will be greatly reduced. But I want those plans for the youngsters carried out whether I am here to attend to them or not. And I'm not kidding myself either. The day after I'm gone, and I may well go in the next twenty years, those youngsters will be just as hungry for dinner as they will be tonight. And they'll wear out just as many pairs of shoes. My presence or absence isn’t going to affect their needs or desires in the slightest, and I don’t want it to affect their opportunities. So this is the way I have things fixed. When the “Big Bell” rings for me, Mrs. Judson will receive $3,000 in cash. I figure that will be enough to clean up all expenses incurred at that time—such as doctors’ and, possibly, hospital bills, open accounts, ete. I realize that I am figuring rather close on this item, but I believe that $3,000 will be sufficient as a “clean-up” item. Of course, that doesn’t cover the mortgage on the house. 1 have a $6,500 mortgage on our home and have no present intentions of pay- ing it off. I figure I can use the money to better advantage in other ways. But it is one thing for me to carry such a mortgage, with all the details of refinancing, and quite another thing for Mrs. Judson to have to do so. She won’t even see the money which will release the mortgage ‘if, as, and when’ I bump off. The Penn Mutual will pay the money direct to the bank and Mrs. Judson will be left with no bills or accounts to worry about, and a home to live in. Her problem, then, will be to feed five, clothe five, and educate four, and here is the way I've worked it out. Until the older boy is through college and able to take care of himself, $375 a month. Until the rest of the children have become self-supporting, $350 a month; and then, when she has no one to care for but herself $175 a month for the rest of her life. Now Mrs. Judson won't have to give a single thought to investment conditions. The condition of the money market, of current rates of interest, won’t bother her in the least. She knows just how much she will have to live on each month and she knows that the first of each succeeding month there will be a check for a like amount placed to her credit. I will admit that FURTHER ANALYSIS OF SALES INTERVIEWS this is not the ideal House of Protection I originally designed, but it is a pretty good compromise, and it has taken a lot of worry and responsibility off my shoulders. If I want to speculate a little on the stock market, which I do now and then, or if I want to buy a new car or indulge in some other extravagance, I have the very comfortable feeling that I am the only one who is taking a chance. So far as Mrs. Judson and the kiddies are concerned, I have all bets coppered. Do you know any other way in the world that I could accomplish this? Prospect: No, I don’t, but I don’t see how that is going to help me. I've got all the insurance I can afford now. Salesman: Mr. Prospect, I don't know that you need any more. I didn’t come here with the idea of selling any particular type of policy or amount of insurance. I have no idea as yet what youneed. And I would be the last man in the world to suggest dropping of the insurance you are now carrying. But as I said before, it is my business to know what all companies and policies will do, and I have no doubt I can show you how you can transform the materials created by your present insurance into some sort of a structure which will provide a measure of shelter for your family. But first let us figure out the kind of a building we want to erect. The first item, of course, is cash. But how much cash do you figure it would take to square yourself with the world? Prospect: Do you mean right now? Salesman: That's about the only way we can figure a thing of this sort, although, if you are contemplating any additional liabilities they should be taken into consideration. Prospect: Well, it wouldn't take much of anything to square me right now. Salesman: That’s exactly what I used to think about myself until [ discovered that I would always be about a year behind in income tax and state taxes, and that doctors’ and undertaker’s bills run into quite a bit of money. Then if a man has been sick a month or two there are additional items. What shall I put down for you? Prospect: Make it $2,500. Salesman: $2,500. You own your own home, don't you? I suppose, like all the rest of us, you are supporting a mortgage? Prospect: There is a flat $4,500 mortgage. Salesman: That takes care of the cash items. Now the youngsters are six and four. May I ask if there is any reason to suppose that vour family has attained its maximum size? I ask this because anything I have to suggest will depend on your answer. Prospect: I hope not. Salesman: Good for you. Then the next eighteen or twenty years following your death will undoubtedly be the years of heaviest expense for Mrs. Prospect. What shall I put down as a minimum monthly allowance? 49 50 PSYCHOLOGY OF SELLING AND ADVERTISING Prospect: I haven't the least idea. I never gave this thing any thought. Salesman: Well, Mr. Prospect, this is a problem that has got to be solved sometime, and if we don’t attempt its solution now, Mrs. Prospect may be forced to face it under less favorable circum- stances. Remember the idea of this thing is not to provide luxuries. What we want to determine is the least they will need to get along with and have the advantages you want to give them. Prospect: It’s an awfully hard question to decide. Salesman: I know it is. Would you undertake the job for $150 a month. : : Prospect: I would not. They'd have an awful time getting by on twice that. Salesman: I appreciate, of course, that you would want them to have every comfort, but in constructing your House of Protection the necessities are what we want to provide first. Couldn't they get along on less than $300 a month? Prospect: Well, make it $250. Salesman: $250. Now that will take care of the expenses of all three. But after the children are able to earn their own living and Mrs. Prospect has only herself to provide for she won't need so much. What shall I put down as the irreducible minimum for the rest of her life? Prospect: I suppose about $150. Salesman: That's very nice. I suppose she could get along very comfortably on less than that if she had to, couldn’t she? Remember she will own her own home. ] Prospect: Well, you might make it for $100 or $125. Salesman: I'll put it down at $100. (Draws a line around the figures he has put down and, after a slight pause, says): Here is the blue print of the House we want to construct: $2,500 for last expenses, $4,500 mortgage money, $250 for the first twenty years, and $100 for the rest of Mrs. Prospect’s life. Now let’s take a slant at the mate- rials we have to work with. (Prospect looks blank.) Your present insurance, I mean. Prospect: I have $20,000. Salesman: Good for you—what companies and amounts, please? Prospect: I have $5,000 in the Equitable, $5,000 in the New York Life, and $10,000 in New England. 2 Hed Salesman: You certainly used excellent judgment in picking the companies. $7,000 from a total of $20,000 leaves $13,000, or 2 monthly income over twenty years of about $80. Looks as if we'd have to send out for some more material. Prospect: Or else they’ll have to live on that. Salesman: Maybe we'd better revise our figures. You will remenm- ber that at my suggestion we modified nearly all of your original figures. Can we cut down that education allowance of $250 at all? FURTHER ANALYSIS OF SALES INTERVIEWS Prospect: 1 suppose we could, but I'd hate like the dickens to do it. Salesman: How is business, anyway, pretty good? Prospect: Yes, we've had a very fair year. Salesman: I forgot to ask your age, Mr. Prospect. Prospect: Thirty-eight this fall, Salesman: And Mrs. Prospect? Prospect: Just three years younger. Salesman (after some figuring on paper before him): Mr. Prospect, if your income were to be cut down about $75 a month would it force any drastic change on the family budget? Prospect: No, we wouldn’t notice it. Salesman: Still play golf two or three times a week, could you? Prospect: Yes. Salesman: And not worry if you lost an extra ball occasionally? Prospect: No, I guess not. Salesman: Mr. Prospect, for that very slight deposit you can bind the materials which you now have into the permanent House of Protection which will give Mrs. Prospect and the children at least the minimum amounts we have decided they will need. Is there any other way in the world that you could use a small portion of your surplus to guarantee these things which mean so much to the family? Prospect: Does that mean new insurance? Salesman: It does if you are able to get it. When were you exam- ined last? Prospect: I took that New England policy about three years ago. Salesman: Has there been any change in your personal or family history since that time? Prospect: None that I know of. Salesman: Dr. Sanborn of our staff is generally free in the after- noons. Can you see him about 3 o’clock today? Prospect: I'd rather make it about 4: 30. Salesman: That will be fine. I need a little information before you go to him. (Turns application blank over.) What is you first name? Questions 1. In studying selling why is it essential to distinguish between a sales transaction and the complete process of purchasing? 2. In which of the five sales interviews given in this chapter was a com- plete process of purchasing most fully illustrated? In which of them was 1t least illustrated? 3. Analyze the five sales interviews given in this chapter in the same way that the Bagley-Barnes interview was analyzed in Chap. III. Outline: a. What the prospect wanted. Consider positive, negative, and obstacle aspects. 52 PSYCHOLOGY OF SELLING AND ADVERTISING b. What the solution was. ; ¢. What was presented to satisfy the prospect that the solution was adequate. d. What was presented to cause the prospect to feel pleasantly toward the whole matter. (Consider also if anything was done to arouse unpleas- ant feelings.) e. What elements facilitated the purchase. CHAPTER V WHERE TO PUT THE EMPHASIS Prospective buyers are not all alike. Some have never heard of the seller’s commodity; some may have heard of it, but have never seen it; some have seen it used but never handled it them- selves; some have used it once; others, many times; and still others have used it but found it unsatisfactory. These various prospective buyers must be handled in different ways in order to sell them. Does this mean that radically dif- ferent sales talks or advertisements must be prepared to meet these different attitudes? Or does it mean that essentially the same sales strategy can be used in each case, only that the empha- sis must be shifted according to the attitude and past experience of the prospect? In order to show that the latter view is the correct one, a variety of sales problems will be considered in this chapter, and the proper sales strategy for each pointed out. But in doing this it is desired primarily to point out that the solution to each sales problem is implied in the buying formula; and that the differences among these various solutions are merely differences in the em pha- sis that is put upon the elements in the formula. All this will be illustrated from advertising rather than selling because it is much easier—an advertisement can be seen almost at a glance whereas a sales talk requires many minutes to read. But the principles apply equally well to both advertising and selling. COMPLETE AND INCOMPLETE PRINTED SALES PRESENTATIONS The Sanatogen advertisement (Fig. 2) is a complete sales presentation in that it aims to arouse a want and show how it may be satisfied by the advertised product. It makes clear that a trial purchase may be had at the druggist; and, if the reader is not yet ready to spend a dollar, it suggests writing for a booklet. 53 54 PSYCHOLOGY OF SELLING AND ADVERTISING V i end THE WORLD’S WORK ADVERTISER “I wish 1 could stay home tonight and rest” HEN the nerves have been ¥ exhausted by business or anxieties, even pleasures seem but a new drain. Yes, even ‘‘rest’’ is often hard to get, for sleeplessness fre- quently adds its burdens to loss of appe- tite and the distresses of indigestion. To this crisis Sanatogen brings the common- sense help of a concentrated food-tonic containing the very elements that are actually being clamored for by the nerves. The “‘lift’’ of Sanatogen's good cheer to the cells of the system helps sanely and naturally the rebuilding of strength in the body. This has been the experi- ence of many of the most active of the world’s famous men and women-——as their grateful letters testify. And over 21,000 practicing physicians write, over their own signatures, words of praise which may well give you confidence | ZLENLE Sa™ in Sanatogen’s power | Col Henry Watterson to restore. rs Sanatogen is sold by | Vomit a ar good druggists every- where in three sizes | wove city wen we digponion wagers and ners from $1.00, sentern Grand Prive International Congress of Modicine, London, 1913 SANATO G E 21.000 [(CI&ANS Jor Elbert Hubbard's Neav Book—** Health in the Making."® Written in his attractive manner and filled with his shrewd philosophy together with capital advice on Sanatogen, health and contentment. Tt is free. Tear this off as a reminder to address THE BAUER CHEMICAL CO., 26 D Irving Place, New York Fig. 2,—Illustrating a complete sales presentation. WHERE TO PUT THE EMPHASIS FACTS ABOUT A FAMOUS FAMILY The family’s crests You recocyize these trademarks. They arc the crests of manufacturing mem- bers of the General Motors family — symbols made immensely valuable by years of public confidence. : “Product of General Motors” “is your assurance that back of each company are the resources and strength of the whole big family of which it is a part. GENERAL MOTORS Buk « Cabnrac - CHEVROLET + OLDSMOBILE Oakraxn « GMC Trucks Fig. 3.—Illustrating something other than a complete sales presentation. Slane TS RE ar RE Di ck SR BEE a 56 PSYCHOLOGY OF SELLING AND ADVERTISING Undoubtedly many readers who knew nothing of Sanatogen before reading this advertisement responded in one of these two ways. The General Motors advertisement (Fig. 3), on the other hand, is not a complete sales presentation, for no reader would buy after looking at the advertisement. To begin with, the products are not even mentioned, and only to the extent that the trade names are already known can the reader understand what it is all about. This distinction has already been made in connection with the sale of a mousetrap and of life insurance. The salesgirl in the 5 and 10 Cent Store “sold” a mousetrap. But, psychologically speaking, the most important elements in the sale took place before the buyer entered the store. In the Bagley-Barnes insurance interview, on the other hand, all the mental processes necessary to buying took place while the salesman was present and because of his guidance of the buyer’s thinking and feeling. A “want ad” is typically an incomplete sales presentation. The want that leads to action is presupposed to exist and to be so strong that the prospective buyer will of his own accord turn to the classified section and later get in touch with the seller. The want ad DODGE Sedan, good condition, sell chp., 1201 Walnut St. states what is for sale, gives two reasons for buying and tells where to find the seller. No attempt is made to intensify the the want, to arouse pleasant feelings, or to stimulate the act of buying. A much better advertisement of this sort would be: DODGE sedan, 1924, driven 6,000 miles on city streets. Five cord tires, one new, wire wheels, inside mirror, motormeter, two bumpers, clock, shock absorbers, and other extras, upholstery good as new and motor in perfect condition; must sell to meet realty obligation. $1,050 cash. 1201 Walnut St. The advertisement of the Frederic N. Whitley, Inc. (Fig. 4) has been run for years and brings in a satisfactory amount of business. The want for a fireplace which will not smoke is brought to the reader’s attention. And a solution is guaranteed. ¥ WHERE TO PUT THE EMPHASIS 57 The statement, “No payment accepted unless successful,” is offered as proof that the work will be an adequate solution. No pleasant feelings are played up but anyone contemplating getting rid of a smoky fireplace will need no suggestions along that line. These two small advertisements are sufficient to get the desired business because the elements that are not played up in the advertisements are already present in the minds of those who reply. But if these elements were not present the advertisements would not produce any business. S k Also expert services on mo y general chimmey work, heating and ventilating. Fire ] No payment accepled P aces unless successful Frederic N. Whitley,Inc Engineers and Contractors Made to 217 FuLTtON ST., BROOKLYN Draw Fra. 4.—An effective advertisement but not a complete sales presentation. WHERE TO PUT THE EMPHASIS Emphasis may be put upon any one of the elements in the =~ buying formula. Where it should be placed depends upon a variety of circumstances. Without going into detail 1t may be said: 1. If the prospect does not feel a want that can be satisfied by the commodity, the want must be emphasized. 2. If the prospect does not think of the commodity when he feels the want, the association between want and commodity must be emphasized. 3. If the prospect does not think of the trade name when he thinks of the commodity, the association between commodity and trade name must be emphasized. 4. If the want, commodity, and trade name are well associated, emphasis must be put upon making purchase and use easy. 5. If competition is felt, emphasis must be put upon establish- ing in the minds of prospects the adequacy of the trade-named r oJ commodity, also pleasant feelings toward it. eR —— mg Sas i TE me Se Se 25 He pr. Sun, NT PC H8 PSYCHOLOGY OF SELLING AND ADVERTISING 6. If sales are desired from new prospects, every element in the formula must be presented. 7 If more sales are desired from old customers, they must be reminded. (Developing new uses is comparable to selling to new customers.) As all these conditions confront every advertiser more or less all the time, it behooves him to keep all the elements in the formula constantly before the public. But while doing so he can put the emphasis in his advertising upon one element or another depending upon what he considers his most serious problem. This is quite a different matter from that of designing advertise- ments to accomplish only one specific end. Such advertisements frequently fail to interest any other readers than those specially aimed at. 1. Emphasis upon Want.—If there is no want, the com- modity cannot be profitably sold. It is reported that H. D. Perky, the inventor of Shredded Wheat, spent $40,000 before he found that the French are not a breakfast-eating people. There was no want there for any kind of breakfast food. To sell them it would be necessary to form habits of eating an Anglo- Saxon breakfast—much too expensive a task for any breakfast- food company. | The picture and heading in the Listerine advertisement (Fig. 5) suggests a want possessed by many women. The copy in small type suggests the possibility of bad breath as the obstacle to be overcome. Interest is naturally aroused in the solution— Listerine. The Weed Chain advertisement (Fig. 6) arouses a want to be in the position of the man on the left. Much of the copy empha- sizes the negative aspect of this want—the unpleasantness of being responsible for an accident—but the complacericy of the man with the cigar causes the positive aspect of the want to be primarily brought out. The International Correspondence School advertisement (Fig. 7) stresses the positive aspect of the want to succeed, to obtain promotion, to earn more money. If the negative aspect were to be stressed, a man would be depicted as dejected, dis- couraged, a failure. The positive aspect is also aroused in the WHERE TO PUT THE EMPHASIS Fic. 5.—Emphasizing negative and obstacle aspects of a want. 60 PSYCHOLOGY OF SELLING AND ADVERTISING WHERE TO PUT THE EMPHASIS WHO is held responsible? The driver without $50 Raise!” WEED CHAINS, of course! a or vreene! veins will do for a man. “Ialways use WEED CHAINS on wet, Every mail brings letters from some of the thousands of students of the Inter- skiddy streets and roads” says the national Correspondence Schools, telling of experienced motorist, “because if advancements won through spare-time study. there was an accident and Weed How much longer are you going to wait before taking the step that is bound to bring Chains were not on the tires of my you more money? Isn't it better to start car while the other car had them noes than to wait for years and then realize on its tires, 1 would be blamed what the delay has cost you? One hou fer supp ach night t ith th whether 1 was at “fault or not." I 1. DE position you want, Without cot, without obligation, it don’t care to take chances of mark and mail this coupon, Lu il right now! being held responsible.’’ - ma a et i — ——— — INTERNATIONAL C CORRESPONDENCE SCHOOLS Box 2525-8, Suanten, Penna, Put genuine WEED CHAINS on Without cost or « ation on IY part, please tell me te ; ! tion of in the subject befors rw Lean quali! y your tires at the first drop of rain or which 1 have marie BUSINESS TRAINING COURSES flake of Snow. They serve to protect (Bustos Management Salesimanship you against law suits, personal in- Fane Oran ation Better Letters i fie Manage 4 jury and car damage. Hines Law eet A Sienography and Typing {4X tanking and Banking Law Business Engiiah 5 Ranking ang Liapk ns O0. A) (Civil Serv oe net Accounting Rat} 1 CY They are genuine WEED CHAINS Hhokheeping Common Benoa! Subjects Rm — a 30 per aE only when the name WEED is stamped on the Cross Chain Hooks and Connecting Hooks of the side chains. Look for this mark which has stood for quality and safety for over 20 years. AMERICAN CHAIN COMPANY, Inc. ® BRIDGEPORT, CONNECTICUT In Canada: DOMINION CHAIN COMPANY, LIMITED, Niagara Falls, Ontario District Sales Offices: Boston Chicago New York Philadelphia Pittsburgh San Francisco THE WORLD'S LARGEST MANUFACTURERS OF WELDED AND WELDLESS CHAINS FOR ALL PURPOSES Fi1G. 6.— Emphasizing positive and negative aspects of a want. w H Private Secretary [Spanish {J French High School Subjects J Lustratiog TECHNICAL AND INDUSTRIAL COURSES Pleciricsl Engineering Electric JAghting “IMechanteal Enginear MiMechandeal Draftsman Machine Shop Practices Railroad Positions Gas Engine Opersting Civil Engineer surveying and Mapping Metallurgy ining Steam Engineering [J Radie Architest Blue Print Rea Contractor and Pukider Architectural Draftsman Concrete Builder i Engineer Che "ry Puamary Automobile Airplane Engines a5 Heutture and d Poultry sthematics Address CItY. oovrvenmnenn Oeeupation..... ... Porsems residing in ‘Canada “should wend this coupon to the enee international Corriaps Sekools Cunadien, Limited, Montred, Conade Emphasizing positive aspect of a want. RE 62 PSYCHOLOGY OF SELLING AND ADVERTISING Palo Alto Hardware advertisement (Fig. 8). Who can fail to want to go fishing after looking at it? The Schrader advertisement (Fig. 9) is a fine example of where the obstacle aspect of a want is emphasized. The man in the cut looks puzzled and dissatisfied, and the copy outlines his conjectures as he tries to figure out what is wrong. What obsta- cle is it which he must overcome? It is not skidding, or driving He's hooked— | you'll land him if EM you have the right "kind of tackle. Don't wait until the last minute to get your fish- ing outfit in shape. Look it ever NOW. Season Opens Thursday, May 1 Come in and look over our tackle—you'll find everything you need. Get Your Fishing License Here Palo Alto Hardware Co. HE WINCHESTER store Fic. 8.— Emphasizing positive aspect of a want. over ruts, or scraping the tires against the curb, or the like. Finally, he thinks of the chance of underinflation. The copy in small type makes clear why that is, indeed, his trouble. And the fitting solution of his difficulty is shown to be the constant use of a Schrader Tire Pressure Gage. These five advertisements emphasize a want. The Listerine advertisement stresses the negative and then the obstacle aspect of the want; the Schrader, the obstacle aspect primarily, but the v WHERE TO PUT THE EMPHASIS “I hear about long mileage —why don’t I get it?” “TI do not skid my tires by applying the brakes too suddenly. “1 drive slowly over ruts and rough roads. “I do not scrape the side walls of my tires against the curb. “1 have cuts promptly repaired. “My wheels are in alignment. “My tires fit their rims. “1 do not understand why I cannot get maximum mileage out of my tires. “I wonder if incorrect inflation can be the reason why my tires wear out too soon.” That's just the reason. His tires are seldom correctly inflated. That is why they wear out - long before their time. Some day this man will awake to the importance of correct tire inflation evenly maintained. And he will attend to the job himself. He will own and use a Schrader Tire Pressure Gauge. This device will tell him at a glance the exact air pressure in his tires at any time. He will find his favorite make of tire yielding more mileage. The Schrader Gauge is accurate and will last for years. Buy your gauge today. On sale at motor acces- sory shops, garages, und hardware stores. A. SCHRADER'S SON, INC, BROOKLYN, N.Y. Chicago Toronto £ yz) FICE = BE RE OAVSE £2 E TRADE MARK RE GS TERED IN U.S. BAT TIRE ~ BAY DY, Special type for wire and disc wheels, wheels with thick spokes or large brake cr Makers of Pneumatic Valves Since 1844 [ire Valves - Tire Gauges Fic. 9.—Emphasizing obstacle aspect of a want. 64 PSYCHOLOGY OF SELLING AND ADVERTISING WHERE TO PUT THE EMPHASIS 65 2. Emphasis upon Associating Want and Commodity.— When- ever a company’s commodity is not well associated, in the minds _— of prospective buyers, with their wants, the commodity must be played up. Of course, such advertising helps every company that is selling that commodity. The best way to handle the situation is for all competitors to join in a cooperative campaign. This is what the brick people have done and the advertisement in Fig. 10 emphasizes brick, but no particular trade name. Such advertising causes all those readers who are planning to build homes to think of using brick, not wood, concrete, stucco, or stone. And so it helps all brick merchants. There has been a remarkable development since the war of , trade associations carrying on cooperative advertising campaigns. There is no question that there will be far more because it is the most equitable and efficient way of handling the problem of associating want with commodity. The Cast Iron Pipe advertisement (Fig. 11) is another example of cooperative advertising. But it stresses the want for water and only incidentally refers to the commodity. In the follow-up provision is made for stressing the commodity. 3. Emphasis upon Associating Commodity and Trade Name. This is the most common problem in both advertising and selling, for.in the great majority of sales the prospect knows what commodity he wants; and the seller is only concerned in getting him to buy the seller’s own brand of goods, or in the seller’s own store. A Fownes Brothers & Co. advertisement is headed: “Why, ‘a pair of Fownes’ means ‘a pair of gloves.” The first few lines of the copy follow: negative also by implication; the I. C. S. and the Hardware, the positive aspect; and the Weed Chain advertisement both the positive and negative aspects. A want always involves all three A Brae aw WA Ad CLL Cait Ik The Growing Popularity of the Face Brick House OME, the most cherished dream of the American family, H finds its truest expression when beauty and durability are combined with economy. That is why Face Brick is increasing in popularity year by year. Its wide range of color tones and textures satisfies the most divergent tastes. It is durable as the hills. The savings in repairs, painting, depreciation, fuel costs and insurance rates soon wipe out the slightly higher initial cost of the Face Brick house and make it the most economical home you can build. These matters are fully discussed in “The Story of Brick.” For your copy, address American Face Brick Association, 1744 Peoples Life Building, Chicago, Illinois. 2 EF LE LER LL ELT LL —_il iE Er YY Li Li IT TIE EET IE EL EL EL EER EEE 3 r1 3 LL EF EE REEEC ERE ET LF EL EEF F EF EEE EEE FFF EFEEEEFEEEREELEETE Booklets you ought to have: “The Story of Brick,” a mostartistic, illustrated with them for a hundred times their cost, They are book with indispensable intormation for anyone simply invaluable to me." Aoi ¢ thinking of building. So interesting that it is used “The Home of Beauty” contains Si esis of as a reader in a number of schools. Sent free. Face Brick houses, mostly two stories, selectec “Invaluable to home-builders. Information well from 350 designs submitted by architects, in a worth $5.00,” says one of hundreds of enthusi- nation-wide competition, Sent for Jets 3 astic readers. Home of Beauty’ is far ahead of any book © “Face Brick Bungalow and Small House Plans” house plans I have gyer seen, sok contained embrace 96 designs of Face Brick bungalows anc The Home Fires” isa Dew " analaing 20 small houses, They are issued in four booklets, 3 attractive original Breplace d esigns, 2 } pie re sof to 4-room houses, 5-room houces, 6-room houses, fireplaces designed by well KNOW mdrchites wind and 7 to 8-room houses. The entire sct for one an article on proper fireplace construction. ; 3 ce ease r 2 nts. “We are truly delighted with this dollar; any one of the books, £5 cents. Please for 25 cents. e are send stamps or money order. © 1 would not part piece of literature. When you say— “I want a pair of IFownes,”” to any American glove merchant, he is not likely to answer: “Excuse me, what was it you wanted?” He knows that you want gloves—good gloves—and he will show you I'ownes if he has them, or explain the merits of another brand. FEL LE RE EL FL} | J TIFT Er TER EEE EEE EEE EEE EEE FEF FEE EET tv] rier Fr rrr cc rr XX COLL Cr Ll ni PY a SEuE Sr rt Cr Lx al = F1G. 10.— Emphasizing association between want and commodity. Illustrates : Wn And the slogan at the bottom of the advertisement is: “It’s a co-operative advertising. Fownes—that’s all you need to know about a glove.” Here the whole emphasis is upon associating gloves with Fownes, of attempting to get the reader to say ‘‘Fownes” instead of “eloves” when he goes into the haberdashery. aspects, but whether one or two or all three aspects are in mind at any time depends upon just how the individual happens to think of the matter at the moment. sii ee pm r— et d—— . 1I.—Emphasizing/ want PSYCHOLOGY OF SELLING AND AD VERTISING you live ina small town you get a great deal out of life that is denied the city dweller. On the other hand, all city folk enjoy a blessing which most inhabitants of small towns miss. That is water—pure and abundant. Many towns with electric light arid the best of pav- ing still struggle along with wells and pumps, or with a central water supply that trickles into failure just when it is needed most. The only reasons are inertia and lack of information. Any town of 500 or more—and some with less—can have a thoroughly up-to-date water supply and pay forit toa considerable extent out of savings in the cost of fire insurance. Aside from the luxury of clean water and plenty of it, it is the one defense against fire. If your water comes from a well, if it comes from a pumping plant too small for the demand, or if the mains are inadequate, you are just as much in peril as a man who smokes in a gasoline refinery. Incidentally, the brakes are set on the growth of your town. We have prepared a book, “Planning a Water- works System,” which covers the problem of water for the small town. A copy awaits the re- quest of any interested person. THE CAST IRON PIPE PUBLICITY BUREAU 122 South Michigan Avenue, Chicago cooperative advertising. EE ———— and associating it with commodity. Illustrates WHERE TO PUT THE EMPHASIS 67 There are two conceptions of memory that affect advertising strategy. In one case the mind is viewed as like any container; to Insure memory it is only necessary to put the idea in the wind. In the second case memory is viewed as the result of associating one idea with another. Nothing is to be gained by putting ideas into mind unless they are connected with other ideas to form a useful whole. Although the General Motors advertisement (Fig. 3) has several features which seem to bring it into this latter class it 1s essentially only a display of trade names: there is no associating of commodities with trade names, for the commodities are not even mentioned. It may, indeed, be more properly classified as institutional advertising. The object in such advertising is not to sell a particular product but rather a whole line of products. The immediate objective is to play up the firm that sells the line. In Cigarette this case emphasis is upon the units Toasting the tobacco the General Motors have to sell. for LUCKY STRIKE Institutional advertising is of costs a fortune but it greatest assistance to selling when saves the flavor. all the units have a common trade ~~ 0 = name. When this is not the case er npkaddiag aoc the name of the company must be name. Illustrates reminder ad- taught the public in addition to Vena the names of each of the products. It is questionable whether this is worth while in some cases. Institutional advertising is of value also when stocks or bonds are to be put upon the market, or when for some cause other than that concerning the merit of the goods the company has suffered a loss of reputation, or when jobbers and dealers are to be influenced. The Lucky Strike advertisement (Fig. 12) illustrates reminder advertising in which the trade-marked commodity is kept before the public, and at least one reason is supplied as to why it should be bought. : “ITS TOASTED” Se eS Sal - rm La 68 PSYCHOLOGY OF SELLING AND ADVERTISING But in many advertising campaigns emphasis is placed alto- gether too much upon the trade name. This is even more strik- Distributors: HAAS BROS. Fic. 13.—Emphasizing ease of buying. Illustrates associa- tion of occasion for buying with trade-name. ingly seen in the work of many salesmen. Until the prospect is aware of his want and the commodity to be used in satisfying it, he is not inter- ested and can hardly be made to be interested in any seller’s trade name. On the other hand, once he wants the commodity he is naturally interested in the kinds of commodities, and infor- mation about them is retained with little effort. 4. Emphasis upon Making Pur- chase and Use Easy.—Many a sale is lost because it is not known where the article can be bought or it is too much trouble to go to the only store that carries it. The Ridgway Tea advertisement (Fig. 13) suggests phoning—a very easy way of securing the commodity. A great variety of advertisements could be grouped here, all making clear how and where to buy. The Weed Chain advertisement (Fig. 14) makes clear how to use the product. In doing so it eliminates one of the causes of procrastination, for no one likes to buy something he does not know how to use and he dreads the ridicule that may arise if he buys and then cannot use the article. Developing a buying habit in the maximum number of consumers means widespread distribution. Coupled with it goes the necessity of informing consumers where the goods can be obtained. The writer has moved to several different cities WHERE TO PUT THE EMPHASIS Practice putting on: WEED Tire Chair in the Garage It only takes a few moments to attach them when you know how. No jack required. Study the directions, illustrated on the right. Women drivers are very numerous nowadays. They are driving out into the country over all sorts of roads—they surely need protection against the dangerous skid. How many of them know how to put on Weed Chains? Have you ever instructed your wife, your sister or your daughter? The directions for attaching Weed Chains are simple yet most important. Avoid annoyances on the road — learn how easy it is to put them on correctly—practice in the garage and give the women instruc tion. It will amply repay you in security, satisfaction and comfort. AMERICAN CHAIN COMPANY, INC. BRIDGEPORT \¢,/ CONNECTICUT In Canada: Dominion Chain Company, Limited, Niagara Falls, Ont. DISTRICT SALES OFFICES: Boston, Chicago, New York, Philadelphia, Pittsburgh, Portland, Ore. San Francisco The Complete Chain Line—All Types, AllSizes, All Finishes —From Plumbers’ Safety Chain to Ships’ Anchor Chain THE LARGEST MANUFACTURERS OF CHAIN IN THE WORLD Observe these three fundamentals Fic. 14.—Emphasizing ease of use. 70 PSYCHOLOGY OF SELLING AND ADVERTISING and has been much impressed with how difficult it is to find many nationally advertised goods until they are stumbled upon. There is no way of finding out who sells them except by inquiring, and competitors usually “don’t know.” And itis also very surprising to what an extent local stores refrain from giving their address. Apparently, after contributing to campaigns to get people to come to their city, they are content to have them buy at any place. Some hotels will be advertised to tourists for miles ahead and then there is no name on the building to identify it when the traveler gets there. Much attention can be given by some sellers to the problem of making it easy to order. Practically no book publisher gives his address beyond “New York” or “Chicago,” and many people will not write with no more definite address than that. Part of this problem of making purchasing easy is that of courteous and efficient service in the store, delivery of goods, answering inquiries, ete. And this applies not only to adult customers but also to children. A check up in most any com- munity will show that considerable of the buying is determined by the children. They naturally avoid stores where they are kept waiting until all adults have been served. 5. Emphasis upon Adequacy and Pleasant Feelings.—Iivery- one acts with a minimum of reasons and feeling when only one course of procedure is open. But when confronted with two or more possible courses, then deliberation appears. So, whenever an old customer is confronted with a substitution, he at that moment needs reasons to defend his accustomed pur- chase. If they do not immediately flash into mind, he will probably succumb to the salesman’s pleas. And if the customer does not feel pleasantly toward the old commodity he will be ready to consider something else that may give him such feeling. To maintain one’s trade, it is then essential to have associated with the trade name reasons as to its adequacy and pleasant feelings. The advertisements of the Sarco Company (Fig. 15) and the Foamite-Childs Corporation (Fig. 16) illustrate emphasis upon the adequacy of the product. The Edge Moor Boiler advertise- ment (Fig. 17) is an example of what is often spoken of as ‘“bor- rowed prestige.” The advertised boilers are introduced through WHERE TO PUT THE EMPHASIS ALE 7 You Saveon Steam trap This diagram shows at a glance the big difference between the size and the price of the clumsy, cum- bersome bucket trap and a simple, compact, Steam Trap SARCO. The difference in size and the difference in price are, as a matter of fact, cause and effect. For it is the larger size of the bucket trap—with its superflu- ous parts, such as floats, levers, valves, water gauges, bowls, toggles and packing—that you have to pay the Reger price for. It is the compactness and simplicity of Steam Trap SARCO that makes it possible for you to buy it for 14 the price of the bucket trap. Rated size for size, SARCO has the same ca acity as the big float trap. Its efficiency is greater. It dis- charges condensate as rapidly as it collects, conse- quently doesn’t need to be large. It closes promptly and prevents all loss of live steam. Its compactness permits it to be installed in many places where there would not be room for a cumbersome bucket trap. WHY, therefore, pay the LARGER PRICE for a bucket trap when it Sets you neither increased capac- ity nor increased efficiency? Use Steam Trap SARCO and save 2-3 of your Steam Trap costs. We'll send it on thirty days’ free trial and let it convince you in your own plant, away from the influence of salesmen, that the SARCO is all we claim, and more. Write for Booklet H-6. SARCO CO., INC. 11 Barclay St., New York City Boston Chicago Detroit Philadelphia Buffalo Cleveland Peacock Bros., Montreal. Ena A a ne IIT WI iy F1G. 15.— Emphasizing adequacy of the trade-named commodity. : WHERE TO PUT THE EMPHASIS 72 PSYCHOLOGY OF SELLING AND ADVERTISING Why big industries install Foamite Protection Such great companies as Procter & Gamble, U. 8, Steel Corporation, and the Firestone Tire & Rubber Company, protect their plants with Foamite devices and systems because they refuse to gamble with fire. They want positive assurance that their production will not suffer through fire disaster; and Foamite Protection gives them that assurance. Leaders in every industry today find that Fire- foam, generated by Foamite equipment, is vastly more effective than any other extinguishing means known. It controls and extinguishes any ordinary or extra-hazardous fire at the start—checks it— stifles it—smothers it-—in a few seconds. Even highly inflammables like oil, gasoline, and paint quickly succumb to Firefoam; while ordinary fires haven't the slightest chance against it. Why the remarkable gas bubbles of Firefoam will smother ary fire Firefoam is a mass of tough, clinging gas bubbles produced by the combination of Firefoam liquid and other solutions. Thrown out from Foamite appa: ratus, this remarkable substance will blanket any burning surface —float on any liquid—and shut out oxygen so that fire can’t burn. After the fire is smothered, you brush away the dry foam and find it has done less damage than , water would do! The fire protection engineers who perfected Foamite Protection can now prescribe it in a form to safeguard any plant, large or small. A Foamite- Childs man can tell you whether your risks call for Foarnite hand extinguishers, or Foamite portable engines, or a Foamite system. And he can install It should have been checked at the start and the firemen couldn't be there then. Every plant needs scientific. first-aid protection. Amert-an Fhote Servics and maintain the equipment with an exact know- ledge that guarantees instant readiness for any emergency. The Foamite-Childs Corporation has developed fire protection devices and systems for 27 years, Now its engineers offer the Foamite method ass the last word in industrial protection. They also offer three other extinguishing methods, each adequate in a definite field—Fire-Gun for electrical fires and automotive equipment; Childs Soda-and-agid ex- tinguishers and engines, and the Allweather non freezing extinguisher for ordinary fires, Our new booklet, * The Essentialsof Self- Protection Against Fire,” points out just how to have real se- curity against your fire risks, Reading this booklet may save you from a serious setback. Send for a free copy today. 1000 gallons of blazing oil extinguished by Firefoam in 3 minutes! Fhe Fhotor by Fire & Water Engineering’ i - ——— At the recent Convention of Fire Chiefs, in * Richmond, Va. this remarkable test was made ~= 1000 gals. of mixed ofl and gasoline in an © open pit were ignited and affowed fo burn for A stream of Fieefoam was thrown onto the raging ames from Foamite apparatus, and in after the fire Foamite fens than 3 minutes the fire was entirely out fire rally amorhered under a clinging, Hosting Fire Chiefs inspecting 3 minotes. Thea ~ mass of tough, gas-inflaced bubbles. tionary svstems. i Woamite-({@ilds @rporation Fire Protection Engineers and Manufacturers 626 Turner Street, Utica, N. Y. : Foamite-Childs of Canada, Ltd., Toronto, Ont. Sales and Engineering Representatives in the leading cities of all countries ec available for indunrial fire risks of aff kinds in Foanmite extinguishers, engines, and sta, Fic. 16.—Emphasizing adequacy of the trade-named commodity. The model plant of the Hershey Chocolate Co. at Hershey, Pa. show- ing new power plant at right and (below) four 750 HW, P. Edge Moor Boilers in ser wice there, Eight Edge Moor Boilers totaling approximately 5,000 B. H. P. also are in. stalled in the cone panv's suger central xt Bainoa, near Havana, Cuba. SR URING the past ten years the Hershey Chocolate Company has installed twenty Edge Moor Boilers, totaling more than 12,000 B.H.P.,in its model plant at Hershey, Pa., and its sugar central at Bainoa, Cuba. These boilers represent five separate orders—the first placed in 1913, the latest in 1923. The performance of the first Edge Moor Boilers at Hershey resulted in their selection for the new power plant built in 1920, and for the Cuban mill. In the confectionery industry, as in a score of others, Edge Moar users are among the representative leaders. The Edge Moor catalogue details the advantages of this boiler that have won it preference among discerning purchasers. We shall be glad to send you a copy. EDGE MOOR IRON COMPANY Established 1868 EDGE MOOR, DELAWARE New York Boston Chicago Pitsburgh Si. Paul Charlotte Fig. 17.—Emphasizing adequacy of the trade-named commodity. Illustrates “borrowed prestige.” PSYCHOLOGY OF SELLING AND ADVERTISING The all steel Stanley vacuum bottle —will not break N© jolt or jar, no fall or mishap can rob you of the piping-hot coffee or icy cold drink when carried .in the all-steel Stanley Vacuum Bottle. It will not break. : The Stanley is made entirely of steel. There is no glass in it. It does away with the need for “refills.” It is lined with blue Amalite,— a mineral coating fused into the steel itself which will neither rust nor tarnish, Stanley Bottles come in pint, quart and two- quart sizes. They are priced at $7.50, $10.00 and $15.00 respectively. The Stanley Lunch Kit . is equipped with pint size bottle. The new Stan- not break ley Food Jar in one and two-quart sizes is ideal for use in home or outdoors for keeping solid food hot or cold for hours at a time. Stanley Hot Water Bottles, though without the vacuum feature, have the same unbreakable qualities. If your dealer does nat carry these Stanley products, send us his name and address. Stanley Insulating Com. pany, 200 Fifth Avenue, New York City. Factory: Great Barrington, Mass. STANLEY VACUUM B OTTLE FERROSTA Keeps liquids piping hot or icy cold . 18.—Emphasizing adequacy of the trade-named commodity. WHERE TO PUT THE EMPHASIS 75 the established interest in Hershey’s chocolate. But a real reason is given here as to the value of the boilers, namely, the Hershey Company has repeatedly ordered more of them. Obvi- ously, they would not do so if the boilers were not satisfactory. The “big idea’ in the Stanley Vacuum Bottle advertisement (Fig. 18) is “will not break.” This is a reason for buying that A cigarette 1s known by the smokers it keeps “Nothing else will do” FATIMA CIGARETTES pecs il oZ but taste the difference Liccert & Myers Tosacco Co. Fic. 19.—Emphasizing pleasant feeling. Illustrates ‘‘atmosphere.” company’s product instead of the ordinary vacuum bottle made of glass. In the second paragraph of the copy, supporting state- ments are made as to why it will not break. The advertising of Community Silver, Holeproof Hosiery, Palmolive soap and Karpen Furniture affords good illustrations of the method of making the whole advertisement so attractive that it is impossible not to like the product, although, actually, 76 PSYCHOLOGY OF SELLING AND ADVERTISING the pleasant feeling may result not from the product but from one or more irrelevant items in the advertisement. Such adver- tisements are spoken of as having “atmosphere.” A good example of atmosphere effect is shown in the newspaper adver- tisement of Fatima cigarettes (Fig. 19). For years the advertising of Ivory soap emphasized the various occasions around the home when something had to be cleaned, and showed how Ivory was the soap to be used. In addition, this campaign stocked the minds of readers with reasons why Ivory was the best soap. The advertising of Palmolive soap has been very different. It has associated with the soap pleasant feelings, aroused by looking at beautiful women, children, and babies. Recently much of the advertising of Ivory soap has been directed at ridiculing the idea that soap can make women more beautiful. The relative value of these three campaigns _ remains to be seen. 6. Emphasizing the Whole Formula.—Every year, old custom- ers die and boys and girls become men and women and start buying. In a few years a commodity will disappear from the market if it is not energetically advertised and sold. It will disappear, if for no other reason, because those who know it have passed on. In any selling campaign, consequently, considerable attention must be given to the forming of a buying habit in new prospects. This requires that all the elements constituting such a habit must be associated together in the new prospect’s mind. Reminder advertising has its place, but unless it is supplemented by com- plete presentations of the product and how it satisfies wants the new prospect will not be sold. Or if he is “sold” he will be easily influenced to try substitutes. The advertiser has here exactly the same problem that the teacher has in the school. He must form certain definite asso- ciations and must drill the learner until the lesson is well learned. Too many advertisers grow tired of their own copy and spend much time and money trying to find new stunts, overlooking the fact that what is monotonous to them is new to thousands of readers. 7. Emphasis upon Reminding Old Customers.— The aim here is to remind people of their wants before those wants are realized, before those individuals have had time to go somewhere else. WHERE TO PUT THE EMPHASIS 77 For years the words ‘Royal Baking Powder” appeared on every riser on the staircases to the elevated railway stations in New York City. One could hardly escape repeating the name several times as he climbed the steps. Such repetition of a trade name has value in preventing one from forgetting the name and in reminding one to buy if the product is wanted. But such advertising does not refresh the mind with the reasons and feelings so necessary to defend the old habit against substitutions. If they are not revived from time to time, they will most likely be forgotten. There are all manner of devices that can be used to stimulate the habit. In the old days in San Francisco after the sidewalk had been cleaned in the early morning the saloon-keeper threw a mugful of beer on the sidewalk so that the smell would stimulate desire of the passerby. One druggist sprinkles a little perfume in the telephone booths of his store. On the wall a sign tells the name of the perfume. It is said that “almost invariably lady patrons show an interest in this perfume.” The same principle is illustrated by the common custom of placing umbrellas at the door on a rainy day. And displays in the window and store serve the same purpose. Many buying habits can hardly be stimulated sufficiently through advertising unless the prospect is also stimulated by some additional experience at the same time. For example, the average man will not buy an electric fan on a cool day; he must suffer from the heat before he will buy, and then only if he happens to think of a fan. Consequently one company arranges to have its advertisements released directly following a hot day and when it seems probable that the next day will also be hot. The best time for any reminder to appear is just before the prospect will naturally think of buying. So a card near the bottom of a can of coffee reminding the housekeeper to order another can is effective, for it suggests the order before she has come to think about the matter, thus heading off the ideas that might come to mind about other brands. Another type of reminder which everyone uses but which is seldom employed by advertisers is that of preparing a list of things to buy for a certain occasion. Upon request, many have 78 PSYCHOLOGY OF SELLING AND ADVERTISING outlined to their friends what to take on an automobile trip. Yet when that question was systematically asked of every sales- man in five auto accessory departments in one large city only one gave anything like a satisfactory answer. And he was only an errand boy. But on being interrogated he replied that he was going to drive out West in his flivver the following summer. "GOOD TO THE LAST DROP" Oo SOLD ONLY £4 SEALED TIN CANS» CONVENIENT TO QFEN AND USE ee eet siiiia 00 MAXWELL HOUSE COLTER: Also Maxivell House Tea EAL COFFEE CO. s KEW YORK Sa 0 AR Ar 4 Fic. 20.— Emphasizing satisfaction—positive aspect of the want. A good reminder advertisement. Some day groups of advertisers are going to band together and collectively tell prospects what to buy when they want to do this or that. A beginning along this line is to be seen in the practice of some concerns selling dress-goods who recommend a certain soap to be used for washing. And linoleum is shown in a kitchen which has a kitchen cabinet in it, and vice versa. Each of these is helped by the other. The best stimulus of all is to play up the want and the satisfac- tion obtained through use of the commodity. “Good to the last WHERE TO PUT THE EMPHASIS 79 drop” is a wonderful slogan in this respect, especially when satis- faction of drinking coffee is depicted as in Fig. 20. But why do advertisers with such possibilities spend money displaying girls that distract one from the commodity and often react unfavor- ably upon women readers (see Fig. 21)? Certain advertise- ments such as the first one of these two Maxwell House Coffee advertisements and those of Rogers Peet (Fig. 22), and of the Todd Protectograph (Fig. 23) might be classified as primarily So ANEE > Good to the Jast drop ; EAs a matter of fact, | the fist drop tells you |} why Maxwell House y SOLILOQUIZING : cifi d h I “Such a satisfactory hour! 1 spe 1cd whenever ) “Stepped into one of their one is particularly ‘four corners’ and completed anxious to have the my Winter wardrobe with- occasion just right. out delay or extravagance. “Such an abundance of] ; ure.” HOU SE He Rogers Peer CoMPANY things to wear. “Such a big variety. “Such prompt service. “A pleasant place, where outfitting’s really a pleas- ! Broadway Broadway rE at 13th St. “Four at 34th St. : Convenient ) Broadway Corners” Fifth Ave, ! at Warren at 41st St. ES AA ba Fie. 21.—‘* Making the reader want Fra. 22.—Emphasizing satisfac- » 4 > . “gh coffee’ sacrificed in order to “get atten- tion—positive aspect of the want. ry : . tion. A good reminder advertisement. representing the satisfaction that results from using the com- modity. But such advertisements, the writer believes, can be better classified under the heading of emphasizing the positive aspect of the want. Whenever a reader sees someone depicted 80 PSYCHOLOGY OF SELLING AND ADVERTISING | feel safe FEIT S checks since IAS ONE! Uy - PROTOD- E Ffserbas Joey Proof Checks npering alteration, or counterfol the Protects graph bke this: vic Cert’ of new ancy Standard Forgery Bonds at Discounts of ¢ 28% To % Upwards i fre boy Tow gash Le. ine. N.Y. NY Fic. 23.—Emphasizing satisfaction—positive aspect of the want. of the advertisement too crowded to give good effect. Lower half attention at any cost. WHERE TO PUT THE EMPHASIS 81 as enjoying satisfaction he is usually made to feel a want to enjoy the same satisfaction. Although satisfaction is pictured the reader feels a want, not satisfaction. ADVERTISEMENTS THAT DO NOT FIT THE FORMULA The Brooklyn Union advertisement (Fig. 24) does not fit our buying formula. It is a typical advertisement of some advertis- Hl I i ii | rc cl J L Db ml > 5 h \ z | f fou 3 = i ili 1. 4 can 5; : > | 0) aj) N Wil a fo : li lL uli > li 's Ma I'1G. 24.—Does not Hi to po buying formula. a hing sacrificed to get attention. ing agencies and of many newspapers when selling their own service; and it is typical of the sort of advertising a college boy or a small merchant likes to run. Apparently, no thought is given as to The supreme effort is to get — 82 PSYCHOLOGY OF SELLING AND ADVERTISING No. a— Julius Caciar Julius Caesar Makes Good ULIUS CAESAR had his faults; but he certainly was no coward. Profligate that he was, he feared no living man or set of men. On one of his Syr- jan war journeys, it is told, he was captured by Egyptian pi- rates who coolly informed him he would remain their prisoner until his friends produced amil- liondollars.* Amilliondollars!” he exclaimed, “why, owe per- sonally more thanthat. Let me go or I'll come back some fine dav and crucify the whole bunch.” But the pirates held him, nevertheless, until Rome notified them that the million was ready for Caesar's return, But once back at his marble desk, the General refused to ship the money. “Hold it unt 11 die, and then pay my debts. Ii wo back and fix up this other thing.” So hewentonce more to Syria, ashehad prom- ised, crucified the necessary pirates, and fell in love with Cleopatra. The ransom EDWARD D. DUFFIELD President 95.—Does not conform to the buying formula. IF EVERY WIFE KNEW WHAT EVERY WIDOW KNOW fund was kept for his creditors after death. Nowadavs one does not have to argue with pirates to accumulate a stated sum as a guarantee for creditors. He can get an in- surance company, for a stipend a year, to make this guarantee for him. Many busi- ness men find life insurance a very great convenience in matters of this sort. THE PRUDENTIAL INSURANCE. COMPANY OF AMERICA HOME OFFICE: NEWARK New Jersey $~—EVERY HUSBAND WOULD BE INSURED sacrificed to secure interest. Almost everything WHERE TO PUT THE EMPHASIS what impression should be, or will be, premanently estab- lished in the minds of the readers as a result of the advertising. The Julius Caesar appeal of the Prudential Insurance Company (Fig. 25) is not only poor—it is bad. The posing of the braggart Roman before the smirking queen makes even the tiger sneer. The copy arouses mixed senti- ments, among which con- tempt is strongly present in most readers. These un- favorable sentiments aroused by both cut and copy are certain to be directed not only toward Caesar but toward those who hold him up for imitation. The effect here is just the reverse of good ‘‘atmospheric”’ adver- tising. The feeling aroused becomes associated with the product and the company. It is amazing when there is so much of interest to everyone in life insurance that a great company feels it must spend all but one inch of space in a desperate effort to get inter- est, and to get it insucha way! The Ditto advertisement in I'ig. 26 is an illustration of one written from the seller’s point of view and not the buyer’s. Control is Meddle-Proof DITTO insures positive production control. It provides every required form ormemorandum needed throughout the organization and entirely eliminates the possibility of any person altering, substituting, or marring any word or figure. The distinctive appearance of DITTO copies can’t be counterfeited. The DITTO original — from which every needed form is made—is a guarantee of accuracy and honesty. Every DITTO copy is a facsimile of the entire original, or any desired part of it. Signed or initialed authori- zations, or instructions are reproduced intact. And there’s no chance of a “6,” for example, becoming “0” or “9” as may happen when manual copying or re- writing is employed in preparing the various forms. From a single writing—made with pen, pencil, type- writer, or billing machine—or a drawing, chart or graph, O provides, within a few moments, from 15 or 25 up to 100 distinct, durable copies. These copies may be made upon practically any paper, or even cardboard, of uniform or varying sizes or colors. Small tags, slips, and envelopes are copied with the same ease as forms up to 18 x 32 inches. There's no type to set, no stencil to cut, no carbon paper to pack. Up to five colors can be used. Any'bright boy or girl, with a little practice, can operate DITTO, saving considerably in payroll as well as material costs. No matter what you make, or how large or small your plant may be, you need the economical, accurate service of DITTO. Doubt- less, our systems and statistical depart- ment can show you how firms of the same oe as Jour own are saving with DIro, se the coupon—-pin it to your letter weary, head—right Row. DITTO, Incorporated, th Floor, 530 South Dearborn Street, CHICAGO he hazard of leaks in o T! For E xample: materials and stores is, eliminated by using DITTO copies for pur- chase requests, bids, quotations, receipts, and similar data fhvolving the strictest attention to jeturacy and checkage. And for posting stock ledger sheets and withdrawals, DITTG cares for every step, by providing convenient, error- f, unit slips which are taken direct from the rderitsell, Manulacturing. planning. dispatching, en, , assembly and ship~ gineering, sg : fork for DITTO, all have equally important Trade Mi hy os, ark Sar ’ 4 1M.8.23 ¢ Dito, Inc. # 9th Floor, 530 7’ S. Dearborn St., / Chicago, Ill. &¢ Giveusfullfacts regarding &# Ditto. Send the Ditto Book, J! Name ’ Nature of Business, Fig. 26.—Does not conform to the buy- a ————— - TT SS SRS SR wee EAE SSA : : ing formula. Seller's point of view, not It begins with the trade name buyer's, dominant. 84 PSYCHOLOGY OF SELLING AND ADVERTISING and recites the uses of the product. Recently, fifty young men and women were asked, “What is Ditto?” Though they were given three guesses apiece, only four of them mentioned ‘copying machine.” But all knew ‘“multigraph” and ‘“mimeograph.” When they were told what “Ditto” really is, most of them declared they had never heard of it! Had Ditto been advertised for some time from the buyer’s point of view, giving wants first and the machine as a solution, this surprising ignorance would not exist. As it is, a reader, not knowing what Ditto is, ignores all such headings as, “Ditto control is meddle-proof.” What business is it of his? GENERAL SUMMARY Advertisements may be constructed so as to bring into the reader’s mind all the thoughts and feelings that are necessary to lead him to buy. Or they may be constructed so as to bring to mind only certain of all these thoughts and feelings. In this case they are not complete sales presentations. ’ An advertisement that is not a complete sales presentation is entirely justifiable providing that the elements that are omitted from the advertisement are already in the minds of the prospec- tive buyers. An advertisement that is not a complete sales presentation may also be justifiable, even when it does not meet the above specification, if it 1s designed to put into the minds of the pro- spective buyers just one idea, leaving to other advertisements in the campaign the function of establishing the remaining ideas and feelings that are necessary to lead the readers to buy. With the buying formula in mind, it will be most natural to put the emphasis where it belongs, depending upon the partic- ular selling problem that is to be solved. And at the same time the effect of the entire advertisement will be to develop in the minds of every reader a complete buying habit. But when such a buying formula is not in mind it is very easy to put the emphasis upon items in such a way that little or no good results. Thus the advertiser who concocted the Maxwell House Coffee advertisement (Fig. 21) was undoubtedly concerned with getting attention for his little advertisement. He got it. But did the advertisement sell his coffee? WHERE TO PUT THE EMPHASIS 85 When the buying formula is followed there is no need whatever to worry about “attention,” “interest,” “conviction,” “desire,” ain 1 al | , . ; action,” or “memory.” If a want is played up, atlention, interest, and desire are simultaneously aroused; and when the solution 1s properly presented conviction, action, and memory are similarly taken care of. Reduced to the simplest terms, the main concern is with satisfying wants. But in doing so the elements must be presented in their proper sequence or the desired end is not likely to be obtained. This applies to personal selling as well as advertising. The bugaboo of preapproach, approach, and all the rest can be forgotten. If a salesman knows what a prospect wants and knows his commodity will satisfy that want he has got to tell his story very badly in order to fail to interest his prospect. Questions 1. Consider each of the last twenty-five advertisements in the last issue of The Saturday Evening Post, counting backwards from the outside back cover, and determine what element, or elements, of the buying formula are emphasized. In determining what is emphasized note approximately the amount of space given to the various elements of the formula in each adver- tisement, also what you believe the advertiser intended to stress. 2. Which of these twenty-five advertisements would you classify as complete sales presentations? i ! 3. Which of the advertisements, if any, make you feel like buying the product advertised? Explain why. } References Core, R.: “Plate Glass Manufacturers Advertise Jointly to Extend « - » .. pra’ ~ )¢ * Market, Printers’ Ink, p. 129, Aug. 10, 1922. OsBoRN, A. F.: “A Short Course in Advertising,” chaps. 1I-V, 1922. RusseLn, T.: “Commercial Advertising,” p. 280-288, 1920. ; J 3 IN } £ . vit ‘ Te » ¥ y . STERNBERGER, C. A.: “Writing a Want Ad,” published by San Francisco Examiner, 1923. Watson, J. B.: “How to Break Down Resistance to Life Insurance,” Insurance Field, Nov. 25, 1921. pr — RT JE eR a ——— A iy CHAPTER VI A CUSTOMER, NOT A SALE, THE OBJECTIVE OF SELLING “This is what advertising is for, never forget—to make a customer, through the merit of the merchandise advertised, not merely to make a sale through the merit of the advertisement. Advertising sells the goods once. The goods must sell the goods thereafter.”! So writes Thomas Russell, the dean of advertising men in Great Britain. In well-nigh every recent book on advertising this point has been emphasized. The aim of advertising is not merely to make a sale, but to make a customer. : A customer is one who has a habit of buying certain things in a certain place. A few days ago the conversation of two women was overheard. One was saying she must get some cre- tonne to cover her porch furniture. The other woman instantly replied, “You can get that in the Emporium.” There's a cus- tomer, a real one! When she thinks of buying cretonne, she thinks “ Emporium.” And if she had to buy cretonne, she would go to the Emporium to get it. fd Barker Bros., of Los Angeles, is well known as an institution that “realizes that customers with ‘the habit of coming to the store’ are worth much more than the ability of a salesman to sell big orders by the high-pressure method.” Recently one of their salesmen sold within a few dollars of $50,000 of house furnishings in one month. ‘During that particular month not one of his customers was new. His entire business was done with people to whom he had previously sold goods.” Manly M. Gillam wrote years ago: In any large city, the floating bargain hunters are comparatively few. By far the largest part of the business of any store is from the regular 1 RusseLL, T., “ Commercial Advertising,” p. 122, 1920. : 86 A CUSTOMER, NOT A SALE, THE OBJECTIVE OF SELLING 87 patrons of that store. It is this devotion of patrons that constitutes the goodwill of a store. The advertising of a store is read by the followers of, the believers in, that store. In New York, for instance, the mass of Altman followers wouldn't know what Macy or Hearn were offering any more than the thousands of steady patrons of Marshall Field & Co. in Chicago would know of the advertised things at The Fair or at Siegel Cooper Co.’s. In some quarters there is not this general recognition that the objective is to make a customer. It is true there is today a great deal of talk about service and consumer goodwill and the like. But many have not gone sufficiently far in their thinking to see that service is not the end, but only the means to the end of establishing a habit of trading regularly at the store. Ander- son! recognizes this view when he writes: There are certain axioms which are applicable to both productive and selling processes. I may briefly outline them in this way: It costs less to sell a standard commodity than one which is not standard; it costs less to sell few varieties than many; it costs less to sell large quantities than small quantities; it costs less to sell a commodity that has a continuous and established demand than one which has a seasoral demand or is new to the market; it costs more to sell a commodity for which consumer demand has not been definitely established than one for which consumer demand has already beeen created. The last two of these axioms are true because it costs money and effort to form a habit of buying. Once the habit is estab- lished the buyer tends to continue buying. But in the minds of many sellers there is little thought of this, hardly more than the thought of putting over the immediate sale, and no worrying about tomorrow until tomorrow comes. There are few business concerns which do not depend for their success upon repeat orders. Even with commodities which are bought only once in a life time, the sales today depend upon the sales of yesteryear. The vogue of the Steinway piano is a reflection of its past quality and the opinions of those who own and use it. Take away this heritage from past sales and the Steinway would be no better in the eyes of the buying public than the latest piano put on the market. This heritage—the goodwill of the public—is a definite way of thinking that exists in the minds of thousands of people. When a piano is mentioned, they think “Steinway.” They 1 ANDERSON, SypnEy, “Limits to What Cooperation Will Do,” The Nation's Business, February, 1924. 88 PSYCHOLOGY OF SELLING AND ADVER TISING think, moreover, “It is the best piano.” “The best musicians prefer it.” “When I buy a piano I'll get a Steinway,” ete. If the advertising of this piano and the sales procedure of those who sell it tend to increase this heritage, the future sales are made easier. On the other hand, if the aim is only to sell as many as possible today, it is easy to overlook many little things that would help in future sales. What it is sought to present in this book is a general point of view in selling and advertising which will do two things: first, guide one in making a single sale in an efficient manner; and, second, guide one not only in making a single sale but in planning a long campaign so as to secure a maximum of repeat orders. To make the point clear it is necessary to consider next what is meant by a psychologist when he uses the term habit. THE ROLE OF HABIT IN SELLING One of the leading lawyers of the country wrote years ago for Printers’ Ink as follows: The impelling cause of most of the things we do is habit, and it is well for us that this is so. A distinguished psychologist has said that an attempt to make a rational choice every time anything has to be done results in inde- cision and worry and doing nothing at all, and is conducive to nervous prostration and brain fag. Consider for a minute the ordinary day of the average man. He gets up at an appointed hour, bathes, shaves, dresses, breakfasts, catches a train or car, and gets to his office. These things are done in a certain order, a certain way, all the result of habit. Watch yourself tomorrow morning and see if this is not so, and then try the experiment of changing the habitual order of doing things, or manner of doing them, and see what happens. If you shave before you bathe, try reversing the process, or if you habitually put your right arm in your coat sleeve first, try putting the left arm in and see if you can do it, or if you are pertinacious, see how long it takes to change the habit, and thereafter always put your left arm in the sleeve first. I venture the assertion, if you are over twenty years old, you cannot change and put your coat on differently without a distinct and conscious mental effort on cach occasion, and every time this effort of will is lacking you will find your- self unconsciously doing it in the old way. The same is true of a thousand things that we do every day without thinking. The way of putting on a coat is only one of an infinity of things done habitually. There is no right way or wrong way. One way of putting on a coat is as good as another, as long as the coat is got into and is not ruined inthe process. Few of us realize the influence of habit on our daily A CUSTOMER, NOT A SALE, THE OBJECTIVE OF SELLING 89 lives. We are accustomed to associate the word with something more or Joss disereditable and think of our habits as things we are better off without, such as the number of cigars we smoke a day, or the like, when, as a matter of fact, deprived of habits we would be almost helpless. If we were compelled to reason out everything we do, we would be in a state of indecision and never accomplish anything. As habit thus impels most of the things we do, let us for a moment consider its bearing on the way we buy the things we use. Here self-complacency will obscure the truth. Most of us fancy that we use a certain brand of soap because we choose to do so. We may have had a reason for its use originally, but have we now? There are doubtless others just as good, but we resent the drug clerk’s telling us so and attempting to sell us some. We think he is trying to interfere with our freedom of choice, but as a matter of fact, he is doing a more difficult and more serious thing. He is trying to break us of the habit of using that particular brand of soap, because the fact is that the use of a particular brand of any article is almost invariably a matter of habit. Reason does not enter into the matter to any appreciable extent. Reason, or what we may flatter ourselves is reason—but more than likely it was suggestion—may have influenced the original purchase, but it is habit that induces the successive ones We say we have the tobacco habit. What we have in most cases is a brand habit. I don’t smoke tobacco generically but specifically. 1 smoke a certain brand of cigar or smoking tobacco. I call for it as a matter of habit. That brand habit of mine is worth money to the producer of the brand which I use. “Brand Habits’ become fixed and permanent only by giving the purchaser by means of a trade mark or label a certain and easy method of identifying the article, something which the mind seizes upon and retains without conscious effort.’ WHAT IS A HABIT? A habit is something a person has learned to do. He was born with the ability to do some things, such as to ery, to spit nasty things out of his mouth, and to eat good things. But he learned to read, to recite the Ten Commandments, or to comb his hair. A habit, however, may be a learned way of thinking as well as of acting. Thus, many people have a feeling of unpleasantness in connection with Friday or the number 13. Or they think of “brides” in connection with “June.” They have formed a habit of associating one with the other. Memory is a similar type of mental habit. The multiplication tables have been used 1 Rogers, E. S., “Habit and Its Influence on Consumer Demand,” Printers’ ‘Ink, Jan. 21, 1913. i { a cn CEA r—t or = NNN A Gi ma hs a ——— Ea a 90 PSYCHOLOGY OF SELLING AND ADVERTISING so often that the habit is formed of always thinking 6 when 3 times 2 is thought of. Consequently, for the sake of simplicitly, the term habit will be used to cover not only learned ways of action, but learned mental procedures such as are often spoken of as “association” or “memory.” For instance, say ‘Form a habit of thinking ‘Ivory’ whenever ‘soap’ comes to mind,” instead of ““ Associate ‘Ivory’ with ‘soap.”” Consider the idea whether or not to use a new stunt in a retail store not in abstract terms of ‘‘goodwill,” but as to its effect on the public’s habit of coming to the store. Five Aspects of a Habit.— When a habit is mentioned, any of five aspects of a habit may be meant: what is done; the drive toward doing something; the physiological structure of the habit; what is consciously in mind; or the occasion that stimulates the habit into action. The Response Aspect of a Habit.—Habits are generally named in terms of what actually is done, thus: tying a necktie; eating with a spoon; writing one’s signature; reciting the Twenty-third Psalm; buying Campbell’s soup; trading at the White House. The Drive Aspect of a Habit.—There is usually a recognition of the impulsive drive of habit when such habits as drink- ing, gambling and drug taking are under consideration. The difficulty an addict has in controlling his tendency is well-known. And occasionally this drive aspect of a habit is recognized when a story is told on the “absent-minded professor,” or when we relate how we change our clothes for dinner and “came to” in bed. But ordinarily in everyday life no attention is paid to the fact that there is an impulsive drive in a habit, and that, given the proper occasion, the average person will act as he has learned to act, unless something interferes. The Structure Aspect of a Habit.—The physiological structure of a habit is ignored in everyday life. The structural elements are never seen and so are overlooked. But clean-cut thinking regarding selling and advertising is dependent upon recognition of a structure. Here is an analogy. On the wall is a push bution and overhead is an electric light. When the button is pushed the light flashes on. The presence of electric current represents the impulsive aspect of this phenomenon. The light represents A CUSTOMER, NOT A SALE, THE OBJECTIVE OF SELLING 91 «what is done.” The push button, wires, and electric light bulb together with the distant power plant constitute the “structure.” Another analogy is even better for the purpose— that of the automatic telephone. A man manipulates the dial and presently his friend Jones says, “Jones speaking.” Another manipulation brings Smith to the phone. Here the structure consists of the sending telephone with its dial, wires to central, a vastly complicated system of wiring at central, wires to the receiving telephone, and the telephone instrument with its bell. Depending upon the dial combination, this or that friend’s phone is reached. In a human being a habit structure consists of a sense organ, nerve fibers from the sense organ to the brain, connecting fibers in the brain, nerve fibers from the brain to one or more muscles, and the muscles. When “6 X 7” is seen, the throat muscles move in such a way as to pronounce “42”; when “6 X 8” 1s seen, “48” is said instead. The stimulus “6 X 7” corresponds to the dial manipulation on the sending telephone. Depending upon what stimulus or dial manipulation is made, there results a certain connection in the brain or at central with the resulting definite action or particular phone ring. The Conscious Aspect of a Habit.—There is a very decided difference between the structure of a human habit and a tele- phone. Whenever a habit structure is operated the human being that houses the habit structure is conscious of what is going on. A telephone system has no consciousness. What the relation is between the habit structure and consciousness no one knows. But it is known that with every habit activity there is consciousness of the stimulus arousing the habit and of the action that results. When a habit is being formed the individual is very conscious of what he is doing, but as the habit becomes perfected he becomes less and less conscious of it, until a thoroughly formed habit is performed with a minimum of consciousness. In learn- ing to drive an auto it is necessary to stop and think before doing each separate stunt and it is found particularly difficult to acquire the knack of doing two things at the same time because it is difficult to keep the mind on both simultaneously. The experienced driver does all these things easily and quickly Ed 2 me: A re rs a SS ST se = BA SG TT ois ac PRE SAS : a I li ili i ees ge Swag = BE A et Po aT amas wt oi S535 Tg yo Esha ra 92 PSYCHOLOGY OF SELLING AND ADVERTISING and with his mind almost entirely upon other matters. In drawing up job specifications of the duties of executives it was found that the executive who had been on the job from six months to a year could, on the average, tell more of what he had to do and explain each part in greater detail than those executives who had been doing the same work for a long time. The same situation is found when people are asked to explain why they buy a certain article. Those who have bought the article for years have long ago forgotten how and why they formed the habit. Their remarks are almost always of no value. But those who have just recently bought can recall fairly well what was in mind at the time they made the first purchase. The Occasion Aspect of a Habit.—With every habit there is some occasion or stimulus that sets it off. When the occasion “9 w 7” is encountered, “63,” flashes to the mind, not “49” or “ Mississippi’; when the occasion “getting on a street car in San Francisco’ is encountered, a nickel is brought forth and put in the coin box. (But if the occasion is altered by “in Oakland” (not San Francisco), then six cents is deposited.) This is uni- versally known. It seems preposterous to spend time on the point. But too often the significance of these facts in selling is overlooked. And it is most vital. Habits arespecific. Each act isin response to aspecific occasion. An inquiry made among a group of young men showed that each had bought his wearing apparel from at least five different stores. Thinking of a hat led to one store, of shoes to another; yet some of the stores could furnish all their needs. The fact seems to indicate that this buying from a variety of stores was due largely to chance. Apparently, the boys happened to buy socks in one store when they first came to town and had more or less kept up the habit. And the same was true of the other articles of apparel. If any one of the merchants wants all the business from these young men he must encourage them to form five habits not just one. Consider anotherexample. Mrs. A puts Pearssoapin the guest- room, but Palmolive in her own bathroom; she uses Ivory soap to wash dishes, Octagon to wash the clothes, and Lux to wash her delicate lingerie; while her husband uses Colgate’s soap to shave with and Lava soap in the garage. Each specific occasion A CUSTOMER, NOT A SALE, THE OBJECTIVE OF SELLING 93 sets off a different habit: each in this case involves the use of a different soap. If one of these soap manufacturers desires Mrs. A to use his soap for more than one use he must teach Mrs. A the habit. And the habit will be a definite response to a definite occasion. The mind is not comparable to a filing cabinet. Ideas are not stored in brain cells, as some seem to think. Nor does one recall a previously acquired idea by referring to some sort of a card index system and then to the appropriate brain cell that houses the idea. Nothing of the sort. The only way Smith can get Jones on the phone is by giving Jones’ number. If he has not the number he is out of luck. So with most of the ideas a man has. If he has not the combina- tion he cannot get the idea. Such an experience is common to almost everyone. When told the answer to some question, the average person will say, “ Why, I knew that.” Yes, he knew it in the sense that he once acquired the idea. But he did not know it in the sense that it would come into mind when the question was asked. : Not only is it true that a machine will turn out but one prod- uct, and only when the proper material is fed into it, but also that no one expects a defective machine to turn out good goods just because it is invited to do so. Yet much of our advertising is based on the assumption that a customer can be made by mere invitation; that a definite habit of buying can be built up without any effort. Summarizing.—A habit on the objective side is a physiological structure that has been acquired; when the proper occasion is encountered energy is released within the habit structure causing a certain response to be made, or at least an impulsion toward that response. On the subjective side the person who has the habit is conscious more or less of the occasion, of the desire to act, and of the action he is performing, or wants to perform. To develop a buying habit the seller must teach just what is to be learned. To do this he must know what it is that he wants learned. An analysis of a hundred advertisements will force the conclusion that many sellers either do not know what they want learned or else that they are using most inefficient methods. a mi i PR ss A A PS TTT ——— a no tsi i ta 94 PSYCHOLOGY OF SELLING AND ADVERTISING HOW A HABIT IS FORMED A habit results from one or more repetitions. In exceptional cases a person may learn from one experience. So most people formed the habit of leaving bees alone after being stung just once. But ordinarily such an intense experience is not present and the performance has to be repeated many times before it is really learned. Three admonitions a week for five years are not always enough to train a boy to comb his hair before every meal. The problem of getting men to say “(Colgate’s,” instead of “Williams’,”” or ‘“Mennen’s,” or “ Palmolive,” when buying shaving-cream is psychologically the same problem as getting the boy to comb his hair just before coming to dinner. Or, possibly rather, it is a more difficult problem, because every competitor of Colgate’s is doing his best to break up the Colgate habit and substitute another one, whereas no one in the family is constantly telling the boy not to comb his hair. An editorial in Batten’s Wedge ‘well expresses this necessity for repetition. A man’s name is mentioned and you say, “Yes, I've heard of him.” Later on you are introduced, and the next time he is mentioned you remark, “I’ve met him.” After a bit, you are able to say, “I know him.” You find he wears well and before long you say, ‘He's a friend of mine.” Many times you have gone through those stages that lead into friendship with people. And many times you have unconsciously gone through the same stages with inanimate objects. The name of some article is mentioned and because you have seen it advertised you realize that you have “heard of it’’ somewhere. Then you try it, grow familiar with it, and soon its use becomes a fixed habit. In the case of the automatic telephone system a number of electricians wired up the system in such a way that whenever a dial is manipulated on a sending phone the desired receiving phone answers or the signal is given that the line is busy. The hundredth call is made no more quickly or easily than the first. But in a human being the connection has to be learned. This means that with every repetition there is a diminution in the time required to make the connection, and an increase in ease. For instance, 2 X 2 can be responded to more quickly than 6 X 7 because it has been reacted to more often. If asked to A CUSTOMER, NOT A SALE, THE OBJECTIVE OF SELLING 95 name a kind of corn flakes or toilet soap, Kellogg's or Ivory will be named by from two-thirds to three-fourths of people, and if the reaction time is recorded it will be found that not only are these names given more frequently than all others put together but in less time. These advertisers have built up habit’ struc- tures in Americans that are very well developed. They have done so by causing Americans to repeat these trade names and the reasons why the products are good many, many times. Development of a Habit Means a Genuine Change in the Individual.—When a person has formed any habit he has become a different individual from what he was formerly. Certain nerve cells in his brain have been modified and they will never be the same again. This fact is recognized in the drunkard or drug addict, but it is not emphasized in many other cases. An interesting and significant illustration comes from a recent survey by a privately owned public utility. Using a clever method of rating interviews, the investigators rated the attitude of housewives toward the utility. In one district 64 per cent of the women were hostile because of the manner in which their complaints had been handled; in the district served by another branch office only 25 per cent were disgruntled. The first district voted strongly in the last election for the city to take over the company; the second district voted against the bond issue. Of course, many factors are involved here. But the data suggest that change of procedure in the first branch office may result in time in the development of a friendly attitude toward the company, replacing the present one of hostility, and that this change in the habitual way of thinking of these people will be reflected in their voting. It is because of changes in the nerve cells that a salesman and a buyer view matters in a different way, as pointed out in Chap. [. They start out in life with, presumably, their nerve cells in the same condition. But their past experiences have caused different modifications in those nerve cells. Lippman’s recent book, ‘Public Opinion,” is devoted to making this point clear; and to showing how many social and political problems arise because of the different brain patterns which exist in different groups and which prevent them from getting the same point of view. omg Sn srs = neg ss iiss Tomer . coisas ee a = i ET ats Ee cate ams PT EE —— er - RS Sem eben mre eee iia iESlu' en I — a ar eee a 96 PSYCHOLOGY OF SELLING AND ADVERTISING Not only the salesmen, but also the sales manager, the adver- tising manager, and the officials of the company have different points of view from the man who has never bought their product. Because this is true it is necessary to obtain, as clearly as possible, the point of view of the possible customer, also the point of view of the established customer. The recognition of this necessity has led to all manner of consumer and dealer analyses and to the policy that, at least, the officials connected with selling shall come in personal contact with buyers every so often. vv FOUR THINGS TO BE ACCOMPLISHED IN SELLING The aim of a selling organization is to make customers, to form in the minds of thousands of people the habit of buying a given commodity at a certain place. To do this there are four fairly distinct things to be accomplished. First, some prospec tive customers must be led to buy the commodity for the first tvme. Second, some prospective customers must be led fo buy the seller’s brand for the first time, instead of a competitor’s brand. Third, those who have bought the seller's brand must be led to buy it again and again. And, fourth, those customers who are influenced by competitors must be led to buy despite the competition. 0 | If it were necessary to run entirely different advertisements to accomplish these four aims, then each advertisement would only be one-fourth as efficient as it might be if each Advertise. ment could accomplish all four at the same time. The same thing holds true in selling. If the salesman must employ four different sales procedures it will take him longer to acquire them, and he will be less efficient for a long time than if he can employ one general sales procedure. ; : Frankly, it is often impossible to accomplish all four aims at the same time. There are occasions when one aim must be J » J. ; : emphasized even to the extent of ignoring the other three. The more, however, an advertisement can secure entirely new cus- tomers for the commodity, switch customers from another intai : 1 § om- brand, maintain old customers, and prevent inroads from $ petitors, the more efficient it is, since, among the readers of any medium there are some who belong to each of these four groups. A CUSTOMER, NOT A SALE, THE OBJECTIVE OF SELLING 97 And in the same way the salesman who can sell a prospect in such a way as to make a permanent customer is a more efficient salesman than one who has repeatedly to sell the man before securing him permanently. The prospective customer who has never used the commodity at all must be made to feel some want and to see that the seller’s commodity will satisfy it. Emphasis must be placed upon the elements on the central line of the buying formula (Fig. 1), but particularly upon Want, Commodity, Trade Name, Purchase, and Satisfaction. As it is also necessary to show this new cus- tomer how the commodity will satisfy his want, some emphasis must also be put upon Establishing the Adequacy of the commod- ity and upon Pleasant Feelings associated with the commodity and trade name. The prospective customer who has been buying a competitor’s goods must be led to see that the seller's goods will more thor- oughly satisfy his wants than do the goods he is buying. Here emphasis must be put upon Adequacy and Pleasant Feelings asso- ciated with Trade Name, for the new customer must have reasons why the seller’s commodity is better and he must come to feel more pleasantly toward it than toward the old brand. The established customer is one who, when he feels his want, satisfies it by buying the trade-named commodity which he has bought before. He does not think of reasons for so acting, nor does he have any particular feeling in the matter, any more than one does in the case of shaving, or starting his auto. He has a well-established habit and when the occasion occurs the act is performed. From the standpoint of maintaining the habit the most important element is that of satisfaction resulting from the use of the commodity. So long as each use of the trade-named article brings satisfaction the tendency is for the habit to continue in force. Forgetting in such a case is guarded against by general pub- licity, by reminder advertising. And in reminder advertising the emphasis is upon the items on the main line of the buying formula and particularly upon Trade Name and Purchase. The hesitating customer is one who is confronted by a com- petitor’s claims. A salesman in the store, or at the door, or in the office, or in an advertisement suggests a new trade-marked rer SnAg —na—- BS A MU - . ap a SC “ ee er pl al amas ses er Te rs re” = Da TRN— ee 08 PSYCHOLOGY OF SELLING AND ADVERTISING commodity. Whether the new substitute will be bought or not depends upon the salesman or advertisement, and upon the strength of the old habit. In a real sense the habit within the old customer must fight the battle for the company. Whether the old habit will win or lose depends very largely upon its strength and the elements that compose it. The strength of an established habit depends largely upon the number of times it has been performed, ¢.e., upon the strength of the associations connecting Want, Commodity, Trade Name, Action, and Satisfaction. But its strength to resist the inter- ference of a competing seller is largely in terms of the Reasons and Feelings that will come to mind at the moment. For these reasons and feelings actually function as would a salesman if he were present to defend the old habit of buying. All Four Aims Can Be Accomplished When a Complete Adver- tisement or Sales Presentation Is Employed.— The seller who has in mind the ideal represented by the buying formula will shift emphasis from one element to another of this formula according as specific circumstances warrant. But such modifications will not produce radically new presentations; each will be a portion of the whole campaign. Because each will breathe the spirit of a complete presentation, regardless of the details emphasized, it will appeal to all four classes of prospects. Questions 1. What is the essential difference between “making a sale” and “making a customer?” Explain. 2. What five aspects of a habit are described in the text? Illustrate each of them in terms of the habit: (a) of taking one’s hat off when meeting a woman acquaintance; or (b) of writing one’s signature. 3. Suppose in a very close election you were delegated to go and get Mr. Smith's support and you knew that all of Mr. Smith’s neighbors were strongly on the opposite side. What would you aim to impress on his mind in your interview? Why? 4. Is there any difference between what you would aim to do in “selling” Mr. Smith and in selling a customer a particular make of shoes? Should there be any difference? Explain. 5. Name several things that storekeepers have done for you which have materially helped make you a regular customer. 6. Illustrate and explain the last paragraph of the text. A CUSTOMER, NOT A SALE, THE OBJECTIVE OF SELLING 99 References Dickinson, Z. C.: “Economic Motives,” chaps. XI, XII, 1922. Harr, S. R.: “Writing an Advertisement,” chap. XVI, 1915. James, W.: “Psychology,” vol. I, chap. IV, 1908. — ——: “Talks to Teachers,” 1899. Scorr, W. D.: “Increasing Human Efficiency i I C reas dfficiency in Business,” chaps. X, X or i y 1siness,”’ chaps. X, XII, : “Psychology of Advertising,” chaps. IX, X, 1908. WoobpworrH, R. S.: “Psychology,” chaps. II-1V, XIII-XVI, 1921. CHAPTER VII THE SALESMAN To understand selling it is necessary not only to comprehend the processes involved but also to know salesmen and their varied duties. No General Class of Salesmen.—It is quite appropriate to speak of stenographers or carpenters as belonging to a class. Although all stenographers are not alike and though they are not all able to do exactly the same work, yet they have a common basic knowledge and perform fundamentally common duties. But this is not the case with “salesmen.” Recent investigations demonstrate that salesmen differ very greatly; that because a man can sell one commodity it does not follow he can sell another, or that because he can sell over the counter he can be successful in selling to the trade, or in house-to-house canvass. The evidence all goes to show that there is no class of men who can be called salesmen in the sense that they can sell anything. Instead of this condition, there are found to be many different kinds of salesmen varying in all manner of ways from each other. Many men are called to selling; a few are chosen to become sellers. Many companies have found that 80 per cent of their sales are made by 20 per cent of the salesmen; and not a few com- panies, that 90 per cent of their entire business is placed by only 10 per cent of the force. Yet no one has drawn up specifications which will adequately differentiate the men who are truly suc- cessful salesmen from the men who sell enough to make a bare living or from those who do not sell at all. The fitness of a man for many special occupations can be gaged to some extent by testing his general intelligence. Unless, for example, he has a certain amount of intelligence, it is useless for him to attempt to learn stenography. Or if he has more than a certain other amount of intelligence there is little use in placing 100 THE SALESMAN: Te 101 him as a file elerk for the very good reason. thai he wilt fins the work too easy and monotonous and so lose interest amd quit. But there seems to be no definite amount of intelligence required of every salesman. Among a thousand successful salesmen will be found some who can scarcely answer a single question in an intelligence test, some who can answer practically every question and many at every step between these two extremes. In Fig. 27 are presented the general intelligence ratings of four groups of salesmen—counter salespeople, wholesale sales- D ~ Per Cent of Cases O—MPPOIS 00 © yo | | 0 Scale of Test Frag. 27.— Distribution of intelligence ratings of four groups of salesmen. A. Counter salespeople. B. Wholesale salesmen selling to retail stores. C. Insurance salesmen. D. Salesmen requiring training at a technical college. (From J. B. Miner, ‘Standardizing Tests for Vocational Guidance,” School and Society, 1921, p. 631.) O o ro men to local retail stores, life insurance salesmen, and salesmen of such technical goods as power-plant equipment. The data show that these four groups as a whole do differ as far as general intelli- gence is concerned. The medians for the four groups are approxi- mately 50, 90, 110, and 140. But when the wide distribution of these data is taken into account the differences in the medians lose nearly all their significance: Seven per cent of counter sales- people obtain a score of only 15, while three per cent obtain as high a score as 125; five per cent of salesmen of highly tech- nical goods obtain scores as low as 85, while eight per cent obtain scores as high as 175. These two groups are as a whole fairly distinct. But life insurance salesmen range from zero to 190, 102 b3YCHOLOGY OF SELLING AND ADVERTISING and wholesale salesmen have almost as great a range. Knowing that a man had an intelligence score of 100 would not help very much in deciding whether to hire him as a salesman or not, or whether to hire him to sell one commodity or another. The same situation is true with respect to other personal qualifications besides general intelligence. Superior height and weight, possession of a pleasant smile, honesty, perseverance, tact, good health, all seem obviously desirable qualities. They are, of course, advantageous in any walk of life. But there are good salesmen who lack any one or even several of them. Selling depends upon a great many factors. Under one combi- nation of factors certain men can sell satisfactorily, under another combination they are not successful. Many Ford salesmen cannot sell Packards or trucks; many salesmen on cominission fail when put on salary, and vice versa; many succeed under a “driving” salesmanager, who “treats them rough,” when they would fail under a kindly disposed leader; and vice versa. In selecting salesmen the problem is not to hire men who are “salesmen’’; it is rather to fit men into one’s sales organization. That organization must be viewed as a very peculiarly shaped hole, and the task is to find men who will best fit such a hole. And every sales organization must be thought of as a differently shaped hole from every other. Even two agencies of the same company require different qualifications in their salesmen for the two agencies differ at least in territory, living conditions, characteristics of the agency managers, and of the personnel in the office and among the salesmen themselves. This situation makes it very difficult, if not impossible, to describe salesmen as a class and to outline their duties. But it is possible to describe the salesman of a certain company and to ascertain his particular duties. Importance of Analyzing the Needs and the Characteristics of a Specific Company before Selecting Its Salesmen.—A vast amount of research work remains to be done before it will be possible for a company to select men who will become truly successful salesmen. Until such selection is possible there must continue to be the very great economic waste of ill-directed effort. Without question the next step to be taken in this direction is the analysis of the duties of a company’s salesmen. Coupled THE SALESMAN 103 with it may well go a study of the personality of its successful salesmen. When such analyses are completed a sales manager will be in a much better position to know just what he wants; and candidates will be able to see what will be required of them and to decide whether they will like to do the work or not. Even though a sales manager has himself held the position of salesman he very quickly loses sight of many of the details of the job and fails to take them into account in hiring. And each sales manager is most likely to stress certain points which made a particular impression on him. All this results in his hiring men to fit certain conditions which he has in mind rather than to fit the conditions which the salesman will actually find. Many an applicant for a selling position has a very hazy notion of what will be required of him; frequently he has a very erroneous conception. Unless his ideas agree with the actual requirements he is not likely to be a success. For example, one company found it impossible to obtain the business it knew must exist in certain counties in Pennsylvania until they secured repre- sentatives who did not feel it essential to go to a movie every night. Their old salesmen viewed their job as one that gave them this privilege and so refused to stop in small villages far removed from the railroad. The method of securing complete information about a job is called job analysis. All students of selling should be familiar with this method and employ it as one of their tools in mastering the subject of selling. JOB ANALYSIS “Job analysis is a method of scientifically dissecting a job in order to determine the component elements and their influence upon the length of learning period of the worker, production, and labor turnover.”’! Job analysis may be viewed as the search for habits necessarily used by a worker on the job. So an auto salesman spends one day a week on the sales floor meeting prospects who come in; keeps a complete card index of all prospects; reports all pros- pects to office; etc. When extreme care has been exercised a 1 STRONG, JR., E. K. and UnrBrock, R. S., “Job Analysis and the Cur- riculum,” p. 22, 1923. 104 PSYCHOLOGY OF SELLING AND ADVERTISI NG surprising number of such habits can be listed, each representing a more or less routine performance for the old salesman but something that each new salesman must learn. Once these habits are spotted it is usually not difficult to describe them clearly. But it is surprising how difficult it is to discover many of the routine performances of a worker. Tor example, an employee who pays off the men every Saturday noon will practically never think of this item unless interviewed on Saturday morning. It is accordingly necessary for the job analyst to resort to all sorts of methods in order to obtain a complete list. He may interview the worker, also the worker’s superior and frequently those working around the worker; he may observe the worker; and he may take the job himself, perform the duties and opera- tions involved, and analyze the activities and record the results. If there are several persons working at the same job, he may very profitably interview as many as thirty of them. Irom experience it has been found that after thirty have been inter- viewed not enough new information is ordinarily obtained to pay for the extra time spent. In addition to the above methods it is always worth while to secure all of the forms used by the company and to follow each one from its place of origin to the file where it is finally deposited. By so doing many activities of workers are discovered that are overlooked in interviews. Most of the time spent by a worker or executive is devoted to performing more or less routine activities. But some of the time is spent in handling difficulties, in thinking out what to do next, in solving perplexing questions. These elements of a job are difficult to describe. For example, the item adjusts complaints” describes what many a salesman does. But if the attempt is made to analyze this item into its elements one will encounter a great many difficulties just because so many complaints must be handled upon their own merits and the solution obtained after some thought. Nevertheless even here much of routine is found to exist. It is frequently worth while to divide job analysis into two separate parts—duty analysis and difficulty analysis. Under duty analysis will be listed all of the routine duties of the worker; THE SALESMAN 105 under difficulty analysis will be listed all of the difficulties that arise on the job, all the perplexing problems that worry the worker. To know all of such difficulties is of great help in train- ing the worker to perform his work properly. When the duties and difficulties of a job are listed it is possible to proceed in a systematic manner to ascertain what the worker must know in order to perform his work. Upon such a basis a real training course can be established. Procedure in Making a Job Analysis of a Sales Organization.— After conference with the sales manager the job analyst should make sure that all the senior executives under the sales manager are aware of the survey he is to make. This can best be accom- plished by having the sales manager explain the whole matter to them. Similarly, the junior executives under each senior executive must be acquainted, in turn, with the whole program. In other words, the job analyst must never interview an employee until that employee’s superior thoroughly understands why the employee is being interviewed. Otherwise there will be con- siderable likelihood of misunderstanding and friction. Successful job analysis can only be made through cooperation: each person to be interviewed must be “sold” the idea that it is to his interest to have all the facts about his job recorded. The job analyst should make a rough survey of the whole department, draw up a working organization chart, and make sure that every employee is accounted for upon the chart. When the various executives have O.K.d the chart the analyst may proceed with his more detailed studies knowing that he has all of the employees grouped under their appro- priate superiors. It is best to start the detailed work by interviewing the lowest subordinates in the division that is headed by the senior executive most favorable to the whole enterprise. The interviewing may proceed step by step until all the workers in that division have been studied. Then the process must be repeated starting again at the bottom of a second division and working up to its senior executive. Before interviewing an employee the job analyst should spend considerable time preparing as complete a list of questions as he can covering the duties of the employee. After the interview I SB A FES: coor: 106 PSYCHOLOGY OF SELLING AND ADVERTISING he should reduce to writing the duties of that worker. This should be submitted to the worker for his O.K. When his approval has been obtained the list should be submitted to the worker’s executive for his O.K. By so doing many mistakes are corrected and new items are added. And finally a state- ment is secured that both the worker and his executive have endorsed. When this is done they cannot complain later on that the specification is inaccurate. When a considerable number of workers are all engaged in the same work, as, for example, salesmen under one executive, then the check list method may be employed. The first inter- view may be based, as has been seen, upon a series of questions prepared by the job analyst, who may know possibly very little about the job. After the interview the original series of ques- tions will be materially revised in the light of the information obtained during the interview. Similarly, after each successive interview the questions are revised because of the new informa- tion that has been acquired. When the analyst finds that he is no longer obtaining fundamentally new material from his inter- views, he discards the questions, and lists what he considers are the duties of the worker. Such a list is called a “check list.” The check list may then be submitted to the remaining workers to be interviewed with the request that each item be checked that he does perform, each item be crossed out that he does not perform, and each item be reworded which does not accurately record what he does. Ordinarily, these lists should be checked by the worker in the interviewer's presence so that the worker’s comments can be noted. The check list has certain advantages and disadvantages over interviewing based on a comprehensive list of questions. It requires less time to obtain the same information. And the information that is obtained is expressed in about the same way. (It is very difficult sometimes to summarize the duties of several men holding the same position because each one has expressed his activities in different phraseology.) A third advantage is that information can be obtained very satisfactorily by mail since about all that is required is to check and cross out statements. The disadvantages are twofold. An individual tends to include among his functions the duties that are suggested by the list, if he does perform even once in a while some- thing similar to them. On the other hand, he is quite prone to overlook other duties not listed. The success of the check-list method depends accordingly upon the interviewer's having a truly comprehensive knowledge of the job THE SALESMAN 107 before he draws up the list and also upon having some means of checking up on what the worker claims he does and doesn’t do.! Job Specification. Many writers have used almost inter- changeably the terms ‘job analysis” and “ job specification.” Recently a number of authorities have recorded a distinction between them. Job analysis is essentially a method of studying men and their work, whereas job specification is the record of results obtained. The job analysis is the means: the job specification is the end. A check list may be thought of as a provisional job specifica- tion. It is as good a job specification as the analyst can draw up at a given time. But its use is primarily for the purpose of improving upon itself. When a check list has been finally O.K.’d by all concerned it then becomes the official job specification for that job. Procedure in Making a Job Analysis of a Salesman by a Student.— The student of selling can obtain a surprising grasp of the duties of the salesmen of a particular company by interview- ing a number of them and drawing up a job specification. If the student goes at it in the right way he will find that most salesmen will try to give him the information he desires. Before interviewing a salesman the student must do just what a job analyst has to do before interviewing each new employee; he must spend considerable time preparing as complete a list of questions as he can covering the duties of the salesman. Follow- ing are several questions from among nearly a hundred that one student so prepared: 1. Is it good practice to plan an interview? To what extent? 2. In your opinion, is a standard method of introduction, selling talk, and close to be preferred toa flexible or impromptu one? Why? 3. What is the best method of introducing yourself to a prospect? What is your first remark? 4. Should the selling talk be begun immediately? Why? 5. In constructing a selling talk, what particular phase do you think should be emphasized? 6. What have you found to be the most fruitful motives to appeal to? 1 SrroNG and UHRBROCK, op. cit., p. 33. 108 PSYCHOLOGY OF SELLING AND ADVERTISING Questions should be prepared covering not only the process of selling, but regarding the finding of prospects, the following up of sales, the training of salesmen, the performance of routine duties, the relationship with the sales manager, the credit depart- ment and all officials in the salesman’s office. After the interview the student should tabulate the duties of the salesman. Before interviewing the second salesman he should also revise his list of questions in the light of his recent interview. After several interviews have been secured the student should reduce the results to a systematic outline. By so doing he will be forced to get a clear and comprehensive view of the subject, and to note which duties are performed by all the salesmen he has interviewed and which are performed by only one or two. In order to get a complete picture of a salesman’s job, it 18 necessary to do more than interview salesmen. Try as hard and as enthusiastically as they can, salesmen cannot describe accu- rately just what they do. Consequently, it is important to inter- view the immediate superior of the salesmen in order to get his ideas about the job and the best methods of doing it. Third, and most important of all, the investigator must study the sales- man at his work, observe his methods carefully, and make a complete record of just what he does and how he does it. Job Specification of an Auto Salesman.—As has been seen, it is impossible to describe the work of salesmen in general. The only descriptions of salesmen’s work that are possible are those of a single salesman, or of the work performed by a number of salesmen all selling the sanie goods and working for the same executive. Two such job specifications are recorded here. They are based upon the separate studies of several students. They are far from complete statements of what salesmen do. But they are comprehensive enough to illustrate job specifica- tions and to show some of the similarities and differences between two selling positions. The first of these job specifications is that of an auto salesman selling the Studebaker automobile in a small city. The items follow: 1. Attempts to secure a large number of friends and acquaintances, and to get them to report to him prospective buyers. THE SALESMAN 109 2. Gets names of prospects from customers. 3. Watches all papers and journals for second-hand car wants and for all new arrivals who may possibly desire a car. 4. Spends one day a week on the sales floor meeting prospects who come in. (If possible, gives demonstration and sells at this time, as delay is dangerous. Usually, however, gets name, address, phone number, and an appointment, because the family must see and ride in the car and the prospect wants time to think it over and see other cars.) 5. Attempts to get as much of the following information concerning prospects as possible: (a) Hobbies and avocations. (To make interview interesting from the prospect’s point of view.) (b) Financial status. (In order to determine what priced car to sell the man as prospect is usually undecided.) (c) Make of car prospect drives, his experience with it and his attitude toward it; also what qualities prospect desires most in a car. 6. Has used car of prospect appraised; secures statement of condition of prospect’s old car. (After appraisal has been made, should not try to raise it by attempting to “sell” old car to his firm, but should convince prospect that allowance for old car is fair and adequate. If necessary, uses appraisal sheet.) 7. Keeps complete card index of all prospects, plus information known about prospects and calls made, at his desk, and also keeps up-to-date list of prospects, addresses, and telephone numbers in loose-leaf notebook, which he carries with him. 8. Reports all prospects to office, entering a card for each one; makes report on prospect at office every ten days thereafter for one month, or until prospect has purchased. 9. Makes mental plan of attack rather completely before entering into interview with prospect, but allows for unexpected happenings. 10. Introduces himself to start interview and is careful to make no uninteresting or negative statements until prospect’s interest has been obtained. (Does not give card or make move to shake hands unless pros- pect offers to.) 11. Attempts to make prospect like him by impressing him with the idea of his sincerity and honesty. 12. Does not usually start selling talk immediately, but allows prospect to wander a little on things purely to his own interest, thereby causing prospect to become interested in the interview. a. If prospect is a woman, emphasizes finish, body lines, comfort, ease of control, also pride of ownership, popularity of car, distinction. b. If prospect is a man, emphasizes superior performance and above arguments in a lesser degree; also wearing qualities, business organization, policy of house, firm's standing, service, guarantees. 13. Takes prospect (and family) for short ride to demonstrate car. Lets prospect drive, if possible. Gives acceleration demonstration but not a power demonstration unless asked for—too hazardous. 14. Appeals at all times to superior judgment of prospect, at same time maintains his own position, never appearing small in eye of prospect. a Fn Te pn Freer Ein Sh a NEE Ar pics i Te oe Sa rs Sheasa——_SS x eo: 110 PSYCHOLOGY OF SELLING AND ADVERTISING 15. Does not argue with prospect concerning his objections. May present proof, but prospect is always right. Attempts to pass over objections drawing attention to something else. 16. Takes initiative in making close in most cases. Studies prospect to determine psychological moment for determining close. Presents his strongest selling point at this time and when prospect seems swayed, takes tentative order blank out of his pocket, making statement such as the following in order to give prospect a ‘“push:” “This is the form of our con- tract, Mr .‘X.” I think you will agree that it is a very fair one. How much would you care to pay down as an initial payment on the car?” 17. If at this point the prospect balks, the salesman enlists the service of the sales manager, getting the prospect in the closing room, if possible, offering him a chair, a smoke, etc. 18. After prospect’s order has been obtained, congratulates him on his good selection and taste. 19. Follows order through, gets necessary signatures on both tentative and final contract, sees that buyer’s car is serviced properly with tools, acces- sories, ete., and delivers car in person on time, giving at this time advice as to its operation, and sends buyer off with a smile, inviting him to visit his service department as often as he can. 20. Continuously keeps in touch with buyer by use of telephone and good- will calls, stressing service, keeping buyer satisfied, and a booster, and inci- dentally obtaining names of new prospects. 21. Makes appointments for buyer with service department if driving lessons are necessary for him or members of his family. 22. Occasionally sends out goodwill correspondence and catalogues. 23. Keeps himself well posted on the used-car stock of his firm, knowing about each car individually, so that he can mention a particular car to a prospect as one that he thinks would fit his needs, or is in his judgment a good buy for the following reasons, etc. (Should not have to refer to used- car list for price, year model, etc.) 24. Should be able to operate skilfully all makes of cars, and should be able to recognize make of car, its year model, body model, etc., at a glance, and should be able to tell roughly the general condition of a used car, its approximate value, etc. 25. Checks over price list whenever changes are announced by factory. 26. Should know as much about his product as possible, including the arguments used by competitors against it, the mechanical points in its favor, all mechanical and body specifications. 27. Should know something about the factory at which his product is manufactured and should know considerable concerning the organization, past record, policy, personnel, and methods of his own firm. 28. Should acquire as complete a knowledge of his competitors’ products as possible, especially their weak points; should never knock his competitors’ goods; should mention them only when the prospect brings them up and then only use comparative statements. 29. Should cooperate with sales manager and all departments at all times. THE SALESMAN 111 30. Should attend all sales meetings and present all complaints, offer suggestions, new ideas, etc. Should talk particularly of service. Should at this time discuss with others any new product appearing on market, etc. 31. Should advertise himself in an unassuming way by impressing all persons with whom he comes in contact with his good nature, neatness (not overdressiness), pleasant personality, honesty, sincerity, knowledge of his “stuff.” 32. Should, in case of a “slump”, work harder on the outside, circulate more among friends and acquaintances and never show signs of loss of confidence or downheartedness. 33. Should never be away from office more than 3 hours during the day on account of phone calls, ete. 34. Should not attempt to handle too many prospects, but should stay with the “warm ones’ until he is through with them before going to the next one. 35. Should obtain some technical training whenever possible concerning the latest developments in salesmanship theory. 36. Should at all times be punctual and should be careful to cultivate no obnoxious habit. Job Specification of a Retail Saleswoman.—The following specification outlines the work of a particular salewoman, a mature woman of ten years’ selling experience, five of them in the present position of selling lingerie in a small department store in a city of 5,000 population. She is essentially in charge of a separate department reporting only to the buyer and the owner-manager. 1. Goes over the stock every morning, seeing that it is well pressed, in place, and ticketed. 2. Fills in forward stock from reserve stock. 3. Replaces stock between sales and cleans up her department each night before leaving. 4. Constantly studies her goods as to styles, prices, quality, manufac- ture; reads trade papers and magazines in order to keep posted on these points. 5. Watches changes in the market and sees that the buyer anticipates calls that the store will have. 6. Sees to it that stock is not overloaded. 7. Shops in other stores to learn the quality and prices of her co mpetitor’s merchandise. 8. Holds a conference with her superior at certain periods to discuss prices and quality and the general condition of the stock. 9. Arranges the counter display every morning. 10. Notices her customers as soon as they approach her counter and greets them pleasantly, by name if possible. (She makes a point of learning names.) se Sr FP J eA SR Ya — ed SR Ea ne Ee BT a PE Ee Ss —- ~ kA re SR SI = iE To a a 112 PSYCHOLOGY OF SELLING AND ADVERTISING 11. Observes customers for “hunches” as to tastes and prejudices, needs, bases for appeal, type of decision. 12. Uses an original, impromptu selling talk to make her customer feel her interest. 13. Shows her line, taking into consideration: (a) her customer’s price limit; and (b) the class of merchandise desired. 14. Takes customer’s objections into consideration and considers whether observance of them will help or not. 15. Sells articles specifically asked for. 16. Suggests other articles that the buyer might be interested in, but does not insist upon them. 17. Brings sales to close as quickly as possible. 18. Handles special orders. 19. Notifies customers of arrival of new stock in which they are interested. 20. Checks up on credit conditions. 21. Introduces new customers who desire credit to the credit department. 22. Adjusts complaints due to defective goods, unfulfilled guarantee, general dissatisfaction. (Most of such cases are handled in terms of definitely established policies of the store.) 23. Makes out sales tag for each purchase neatly and completely. (Dif- ferent tags are used for charge and cash sales.) Records her sales on her own index. Sends tags through to the cashier. 24. Makes out a daily and monthly report of sales. 25. Makes a daily and monthly report as to condition of stock. 26. Reports goods that are not selling and why. 27. Makes out “want” slips for new lines of goods. 98. Maintains pleasant relations with the public by little courtesies not a necessary part of the usual sale. 29. Keeps posted on store’s window display and newspaper advertising. 30. Helps take inventory. Although the above two specifications have to do with selling positions, it is clear that the two jobs differ in many respects. And no one would expect that if the two salesmen were inter- changed they would make good in their new positions, certainly not until they had had considerable experience. Yet they are alike in many things. Both require memory of names and faces, subordination of self to prospect, tact, courtesy, accuracy in figures and reports, interest in market conditions, comparing of values, etc. Time Study.—It is important to know what duties constitute a selling job. It is possibly more important to know which duties are most important, also how the minutes in a working day are to be distributed among the various duties. Relatively little has been done so far along these lines. Certain results can, THE SALESMAN 113 however, be given which throw light on the situation and suggest other problems to be studied. Kenagy and Lange! report that it is not an easy task to hold a stop-watch on a salesman because most salesmen are upset and do not act normally. Accordingly, they recommend that the real purpose of such a study be concealed and that the salesmen be informed the analyst is interested in sizing up the customers. They suggest the use of a wrist-watch or small watch carried in the palm of the hand which holds the notebook, rather than a stop-watch. In their studies they noted the following: time of entering the customer’s place of business, time spent waiting, time for each operation connected with selling, time taken going from one customer to another and time wasted. TaBLE I.—How A SaLesmMaAN SpeENps His TiMmE Company A C Reaching prospective buyer........ 28.0% 49.49, 41. Sales interview. ...................| 36. 34.5 19. Goodwill * B. . 5.8 6. Routine duties ; ilies “x 15. Collections... } : Walting. . c.covrvvsvirnsrsnnsarens 3. 10.3 17. * Goodwill —conversation other than sales conversation, service, adjust- ments, ete. t Routine duties—Posting advertising matter, filling out call books, care of equipment, catalogue changes, correspondence. Salesmen for companies B and C certainly have some routine duties but these were not segregated in the time study. It is probable that the routine work is included under “sales interview.” Table I presents data from four companies. Company A “manufactures a line of specialty products sold to retail dealers for household consumption. Each salesman of this company 1 Kpnagy, H. G. and Lance, W. E., “ Holding the Stop-watch on Specialty Salesmen,” Bureau of Personnel Research, Carnegie Institute of Technol- ogy, April, 1923; reprinted in Printers’ Ink Monthly, May, 1923. See also, Kenaay, H. G., “The Sales Plan for 1922,” Administration, vol. III, p. 469, April, 1922; reprinted in Printers’ Ink, Apr. 13, 1922. 114 PSYCHOLOGY OF SELLING AND ADVERTISING has a territory approximating 1,000 dealers and is supposed to call on at least twenty of these dealers each day. Company B manufactures a high-grade line of food products and its salesmen likewise call on retail dealers. Company C manufactures an office speciality.” Each salesman is supposed to discover his own prospects within his territory and must often make a number of calls before making a sale. ‘Company D manufactures a large line of office supplies and its salesmen have definite lists of customers, but these customers are not necessarily called on at regular intervals.” “The salesmen of Company B spend the smallest amount of time in reaching their dealers. This is due to the fact that the salesmen considered are city salesmen working in sections where their customers are relatively close together. The group of salesmen for Company A is composed of some city salesmen, but the majority of them were working country territory. Com- pany C salesmen jump about their territories a great deal. . Company D salesmen work on foot but, because they specialize each day on a particular line of business, do not have the advan- tage of working each possible prospect in a given section of the city. “The amount of time spent in waiting is extremely important for it represents a complete loss and reduces by so much the salesman’s possible production. It is interesting to note that the percentage of time lost by the salesmen of the four companies is more nearly the same than is the case with any other division of the total time. The salesmen of Company C lose less time in waiting than the others, probably because they do not follow any regular route and can make back calls on days when they happen to be in the same district.” But they spend far more time than the others traveling between customers. “The percentages shown for goodwill are very similar except in the case of Company B. . In some cases the salesmen of this company actually take charge of a part of the dealer’s display shelves and keep them in order. This means that when the salesman comes into the store he may often go into the stockroom, open up cases of new goods, carry them out to the shelves, cleanup the old stock, and completely rearrange the shelf display. This” is mere manual labor but the salesmen feel that it is an THE SALESMAN 115 important aid in securing the goodwill and confidence of the dealers. In the other three companies goodwill work takes the form of adjustments, dealer helps of various sorts, and general conversation intended to increase the friendly attitude of the dealer toward the company and the salesmen. It may be that the salesman spends five minutes just talking to the dealer about some pet hobby.” The salesmen of Companies A and C spend practically the same amount of time in actual selling. But it is distributed among customers in a very different manner. Salesmen of Company C must call a number of times before securing permis- sion to demonstrate their machine and they must make other calls in order to discover the needs of their prospects. In any one day they may actually demonstrate and try to sell only two or three prospective buyers and in addition make twelve or fifteen short calls. On the other hand, salesmen of Company A are expected to call and sell twenty customers each day, which means that the interviews will average about ten minutes. “Detailed examination of the time studies of the salesmen in any particular company does not reveal any evidence to support the view that the longer sales interview is the more effective one. . In general, for the selling of a staple line of commodities to retail dealers, there is probably a limit to the amount of time which can be profitably spent and this limit is rather low, probably between five and ten minutes.” The successful salesman of a staple line is clearly one who finds a way to reduce the time spent on traveling about and in waiting, and uses the time thus saved in calling on more customers. He also knows what are the points to emphasize and presents thom in a very few minutes. PERSONALITY OF SUCCESSFUL SALESMEN Because salesmen differ so greatly, depending upon the various factors which affect their jobs, it is impossible to present any picture of their personality, just as it is impossile to list the duties they have to perform. Many persons honestly believe they can spot salesmen and can describe their personality. But as far as the writer has been able to discover no such general descrip- tions will stand the test of cold statistical treatment. 116 PSYCHOLOGY OF SELLING AND ADVERTISING More money has probably been spent in investigating the char- acteristics of life insurance salesmen than in investigating any other group of salesmen. Yet today little is known of an author- {tative nature on the subject. The Life Insurance Sales Research Bureau summarizes the situation by stating, “No ‘rating scheme’ or ‘scientific scoring method’ is given by the Bureau at the present time because it feels that any plan which could be devised on the basis of available data would be of questionable value.” A number of attempts have been made of late to formulate a general law, but the results obtained are not revealing. A few investigations may be mentioned as examples of what data has been obtained. With regard to the relationship between the age of a man applying for a selling position and his subsequent success in selling life insurance, Richmond? reports the following figures: AGE OF INDEX OF SALESMAN PRroDUCTION Below 26 years. ............ouvvennnreaaennno. 59 26-30 years 105 31-35 years 158 36-40 years 124 Over 40 years 79 Data from another company show: FAIiLUurg, PER Svccess, PER YEARS CENT CENT Below 23 51 49 M3)... iii aarp 42 58 36 64 47 53 50 50 These figures make clear that an applicant thirty-four years old, other things being equal, is more likely to succeed than an applicant of twenty-three or forty-seven. But many young and many old men do succeed. And since other things are never equal, selection cannot be based upon age alone. 1 Life Insurance Sales Research Bureau, Manager's Manual, sec. I, p. 76, 1923. 2 Ricamonp, H. A., “Determining Factors in Selection of Salesmen,’”’ Administration, vol. V, no. 1, pp. 49-58. THE SALESMAN 117 Kenagy! reports that “only 5 per cent of insurance salesmen become big producers before they are thirty, whereas 22 per cent of salesmen selling to dealers and 40 per cent of house-to- house salesmen gain superior rating before they reach that age. Again, 34 per cent of the insurance salesmen continue high production after forty-five, while only 13 per cent of the sales- men to dealers and 10 per cent of the house-to-house salesmen are able to maintain the pace.” Richmond also reports data showing the relationship between production and the amount of insurance the applicant himself carries. AMOUNT OF INDEX OF INSURANCE PRODUCTION 25 $1-$4,999 79 B5,000-80.000. ouvert ii 138 $10,000 and over 171 Several studies indicate that good salesmen average about two inches taller than the average man. Miss Manson? gives data to show the relationship between the height of 2,712 success- ful insurance salesmen and one million recruits in the United States Army: Lire INSURANCE UNITED STATES SALESMEN, PER ARMY RECRUITS, Hergur CENT Per CENT Below 5 feet 4 inches. ................ 2 7 5 feet 4 inches and 5 feet 5 inches... . 6 15 5 feet 6 inches and 5 feet 7 inches... . 20 27 5 feet 8 inches and 5 feet 9 inches. ... 30 28 5 feet 10 inches and 5 feet 11 inches. . .. 27 16 6 feet and over ; 14 6 As to education, there is no unanimity of opinion as to whether a college education is an advantage or not. But apparently an increasing percentage of college men are entering the insur- ance business. : Factors such as appearance, health, ambition, industry, perseverance, initiative, attitude of wife, desire for social service, 1 Kenagy, H. G., “Characteristics of Successful Salesmen,” Bureau of Personnel Research, Carnegie Institute of Technology, January, 1923. 2 Manson, G. E., unpublished thesis, Bureau of Personnel Research, Carnegie Institute of Technology, 1923. 118 PSYCHOLOGY OF SELLING AND ADVERTISING and the like are all viewed as factors to be considered. But until there is some way of actually measuring these traits it 1s questionable if they can be taken into account except as they are today in the ordinary interview. As an aid in deciding whether to hire an applicant or not Miss Goldsmith,! recommends the following method of scoring certain of the items on the application blank. The weighting is based on data similar to that given above. AGE OF APPLICANT SCORE EDUCATION 8-2... ceva aaa —2 MDD... vin rrrrnraane —-1 10 years OBL werner 0 12 years PBI snes aa +1 16 years ORI). ihrer +2 I REPELS EE +3 MARITAL STATUS A1=D0.. coi varanasi +1 0 —1 SCORE INSURANCE Carried. .............oontt +1 Not carried Non-social —1 Type oF CONTRACT Full-time Part-time CruB MEMBERSHIP Belongs to clubs. .......... +1 Does not belong —1 EXPERIENCE Previous life insurance experience +1 CONFIDENCE Replies to question: “What amount of insurance are you confident of placing each month?” Does Not PePIY.....cvivvrricrnrrenns According to this scoring method, an applicant may score all the way from _9 to +14 in “personal history.” The “critical score,” or passing mark (not reported) will not set off failures from successes with 100 per cent accuracy, but it can be fixed at a point which will eliminate a large per cent of failures and retain a high percentage of successes. There will be several borderline or doubtful cases which this procedure will not accurately place. 41 i The devices used by some companies in selecting salesmen are: a personal history blank (its use has just been described); a general intelligence test; letters from previous employers; an « A Study of Five Hundred Perso nal History Blanks,” privately published pamphlet, The Guardian Life Insurance Co., 1922. 1 GoLpsMITH, D. B,, See also RusseLn, W., “ How One Firm Picks Its Go-Getters.” The Nation's Business, September, 1924. THE SALESMAN 119 outside investigative report about the man; a photograph, and a rating by the local manager and his associates. When i rating scale is used the interviewers are more apt to consider all the important factors than is otherwise the case. The writer well remembers one applicant who would never have been hired if only ordinary interview methods had been used, because of his outlandish dress and orange necktie, but whom the total score of the rating scale indicated to be an exceptional man, as indeed his employment proved. : Investigations have shown that the rating of one interviewer is not very accurate. Consequently, the average of the ratings of at least three interviewers should be utilized. Johnson! describes the ‘ideal’ applicant for a particular company selling an “intangible” as follows: He has an attractive, commanding figure, between 5 feet 10 inches and 6 feet tall. He tips the balance in the neighborhood of 185 pounds His age lies somewhere in the thirties, and he is married and has one ohild. Preferably he should have had a high-school or college training, though aot necessarily a graduate of either. He should have had considerable business experience, but if he has had more than five years of sales experience we should investigate his record thoroughly to determine why he has not been able to establish himself in one of his previous connections. Johnson tells this company to shun an applicant who is between twenty and thirty years old, single, of grammar-school education, about 5 feet 7 inches tall and weighing about 140 pounds. Also to shun a jaunty, old man, who claims loudly that “we old fellows can show them youngsters what selling is.” Either of these may be a good salesman but the company can’t afford to prove it. Johnson adds to the above summary of his investigation the following: So far the discussion has been confined to demonstrable facts. There is, in addition, one point upon which all experienced sales managers will agree as essential to success in any form of sales work. If an applicant can show that he is a worker, the chances are decidedly in favor of his success. Noth- ing, we will say rashly, is impossible to the salesman who puts in full hours 1 Jounson, O. R., “Basing Selection of Salesmen on Analysis of Company Experience,” Bureau of Personnel Research, Carnegie Institute of Tech- nology, June, 1923. C—O EA eee tS AST cs sa ddan Sa A Se Pn SAS 120 PSYCHOLOGY OF SELLING AND ADVERTISING every day, every week, and every month. The man who does this may not start off like a wildfire, but his annual production climbs and climbs until he is perched close to, if not at, the top of the list. This particular quality would doubtless be of value to any salesman of any commodity. But so far we have developed no test to enable us to recognize its possessor with any degree of infallibility. Questions 1. What is job analysis? Distinguish between it and job specification; also between it and difficulty analysis. 2. To what uses can job analysis be put? 3. What general precautions must be taken into account when drawing up job specifications? 4. What are the advantages and disadvantages of (a) a check list, and (b) a definite list of questions to be asked the employee? 5. Suppose your first assignment on joining a sales organization was to draw up job specifications of all the employees in that department. List the steps you would take up to the time you had completed your first job specification. 6. List all the duties that you believe a salesman of a certain company performs. 7. Prepare a list of questions to ask this salesman in an interview so that you will secure the maximum amount of information from him about his work. 8. Present the results of your interview in the form of a job specification. In connection with this report record: (a) name of salesman; (b) name of firm; (¢) name of article sold; (d) whether salesman sells to jobbers, dealers, purchasing agents, or consumers; (¢) whether salesman sells to initial or habitual buyers; (f) experience of salesman in selling present line, in selling other lines. References On selling and advertising as a career: ALLEN, F. J.: “Advertising as a Vocation,” 1919. Harr, S. R.: “Handbook of Sales Management,” 1924. Hawkins, N.: “The Selling Process,” chaps. II-1V, 1918. Kenaay, H. G. and Yoakum, C. S.: “The Selection and Training of Salesmen,”” 1925. RusserL, F. A.: “Management of the Sales Organization,” 1924, Russerr, T.: “Commercial Advertising,” pp. 235-256, 1920. SuLLIvAaN, J.: “The Man Who Never Is,” Printers’ Ink, Mar. 6, 1924. Tierer, H., HoLLiNaworTH, H. L., Horcukiss, G. B., Parsons, F. A.: “Advertising,” chap. XXIX, 1915. WuiteaeaD, H.: “Principles of Salesmanship,” chaps. XXVI-X XXII, XXXVII, XXXVIII, 1917. THE SALESMAN Woops, E. A.: “Life Underwriting as a Career,” 1923. On job analysis: CHARTERS, W. W.: “How to Sell at Retail,” 1922, Life Insurance Sales Research Bureau, Manager's Manual, parts I, II, 1923. Scorr, W. D. and Crotuier, R. C.: * Personnel Management,” chap. IX, 1923. StroNG, Jr., E. K. and UngrBrock, R. S., “Job Analysis and the Curriculum,” pp. 19-49, 54-56, 66-67, 135-138, 1923. Trap, O. and Mercanr, H. C.: “Personnel Administration,” chaps. XVIII-XIX, 1920. Sroan, C. A., Moongy, J. D.: “Advertising the Technical Product,” chaps. XVIII-XX, 1920. CHAPTER VIII THE COMMODITY OR SERVICE Although today relatively few companies instruct their sales- men regarding the wants, needs, interests, and problems of their prospects, practically all give some sort of instruction regarding the commodity or service that is to be sold. Companies, however, differ greatly with regard to the amount of knowledge of their respective commodities which they demand of their salesmen. Some companies require extensive experience and training, including working at a variety of jobs before they send a man out to sell; others start a salesman after more or less informal instruction of only a day or two. Then, again, some companies require a broad basis of knowledge concerning their product, whereas others ignore many phases but insist on certain features being thoroughly mastered. Knowledge of the commodity to be sold is viewed as essential for three reasons: first, it enables a salesman to explain his proposition and to answer satisfactorily questions which the prospect may ask; second, it prepares the salesman thoroughly to present to the prospect just what he needs; and, third, it tends to build up the salesman’s confidence in himself through making him feel his ability to cope with any prospect he may meet, and to be able actually to serve him. If the prospective salesman does not acquire confidence and enthusiasm for his line after he has come to know about it, this fact should be indicative of his lack of fitness to sell the goods. He should then seek some other line, about which he can come to be enthusiastic. SUMMARY OF KNOWLEDGE ABOUT COMMODITY Just how much knowledge one sales manager believes a sales- man should have concerning his commodity and company is 122 THE COMMODITY OR SERVICE 123 indicated by the outline below taken from Norval Hawkins, ’ 11 \ 3 “Selling Process. Primal knowledge: 1. History of goods. 2. Utensils used. 3. Production methods. 4. Industrial conditions under which goods are made. 5. Social-industrial conditions under which goods are made. . Policies of house producing goods: 1. In creating product. . In manufacturing product. 3. In financing. . In man-organization. . In distribution: a. Selling force and selling contracts: (1) Type of sales manager. (2) Type of fellow-salesmen. (3) Aids to salesmen. (4) Advertising. (5) Training of salesmen. (6) Compensation of salesmen. b. Goods: (1) Type of contract given to purchaser. (2) Transportation of goods to purchaser. (3) Deliveries. B. Secondary knowledge: B I. Production of goods: I. Type of line: 1. Staples. 2. Novelty. 3. Single. 4. Multiple. II. Value of goods: 1. In money: a. Cost to house. b. Selling price. ¢. Money value to customer. 2. In service: a. Primary uses. b. Secondary uses. c. Efficiency. d. Equipment. 1 Hawkins, N., “The Selling Process,” p. 98ff., 1918. (His outline goes into far more detail than is reproduced here.) i nt ba eT pa SE fren - comm as ne A i A >, i ——————— 124 PSYCHOLOGY OF SELLING AND ADVERTISING e. Pleasure values. f. Service opinions of others, from their actual experience with the goods. III. Details of goods (minute study): 1. Sizes. . Colors. . Shapes. . Styles. . Qualities. C. Similar knowledge of goods of principal competitors. WHAT KNOWLEDGE IS REQUIRED OF SALESMEN Consideration of several typical selling organizations will give a better idea as to what knowledge of the commodity is expected of salesmen than any general statement can give. Cosmopolitan Distributing Corporation.—In 1920, a manual for salesmen was prepared by Paul H. Nystrom, sales manager. This manual explains the publishing concern in detail and may be outlined as follows: 1. Product and company. Hearst organization (8 pages); Hearst and his policies (19 pages); the six magazines (30 pages); other products (7 pages).................... . Planning selling campaign. General introduction (9 pages); study of territory (10 pages) 19 pages 3. Selling retailer 10 pages . Selling wholesaler 10 pages . Common objections. ..............c. iii 10 pages . Miscellaneous. Advertising (5 pages); helping dealer with unsold copies (2 pages); cooperation with American News Jompany (2 pages); competitors (3 pages) 12 pages 64 pages 125 pages This sales manual does not contain all the information given salesmen by this company, for they are continually receiving letters, data, and many other helps. But the outline above indicates what is considered important in training a salesman for this particular company. It is interesting to note that there is not even a subtopic devoted to the interests of the dealer to whom the sales are made. Here and there scattered through the man- ual are a few paragraphs relating to the subject. Apparently, all the dealer is considered to want is profit; and that one appeal is all that ‘the salesman is warned to consider. THE COMMODITY OR SERVICE 125 Wear-Ever—the Aluminum Cooking Utensil Company.— In a manual for salesmen prepared in 1917, 12 out of 225 pages are devoted to a description of aluminum, the process of manu- facturing the Wear-Ever goods, and the Wear-Ever Co. Much of the remaining space is devoted to detailed explanations of the various utensils. The manual may be outlined as follows: _ Aluminum; Wear-Ever food utensils; the company.......... 12 pages _ General introduction and preparation for canvass........... 19 pages 3. Sample demonstration before a group of women 27 pages 4. Gaining an audience 7 pages 8 Ml OR ENO SEL. vive vines vases simian nninn rasan ees nny 33 pages 5. Closing 23 pages , Meeting oDJections. . ....convvrrrarssersrueitsvasrnr rane 16 pages . Reserve material 24 pages 9. Helps and hints, sermons for salesmen 28 pages 10. Delivering utensils. ..... 0. v uetoi charms rvrvvinasoannss 5 pages 11. Relations of salesman to the company 17 pages No one could study this manual withcut gaining a very clear idea of just what to do in almost every situation that might occur in a sale of Wear-Ever. The use of every utensil for sale is described, particularly in connection with demonstrating its use actually or by explaining just how it could be used. Carnegie Steel Company.—Certain selected salesmen of this company are given an eight weeks’ intensive study of the company’s text— Making, Shaping, and Treating of Steel.” In addition to the study of the text the students are taken on inspection trips to the various works in the Pittsburgh district. Only eight men take the course at one time. Altogether about 250 salesmen have completed the course during the thirteen years since this work began. More recently a four weeks’ review course has been instituted for those who had already taken the eight weeks’ course. Westinghouse Electric and Manufacturing Company.— This company is typical of a number that are selling highly technical products in that it hires a large number of graduates of engineer- ing schools and gives these young men an intensive course in its own plant. The course of training naturally depends upon just what functions are to be performed by the student. One exam- ple is sufficient to indicate the nature and scope of such training. 126 PSYCHOLOGY OF SELLING AND ADVERTISING The prospective salesmen assigned, for example, to the Stoker Section of the Power Department are given thirteen months of experience working in various shops and one month in the com- mercial school, a total of fourteen months, as follows: 1. Turbine blading; governors, valves, and thrust bearings; turbine erecting; turbine testing; pump assembling; con- denser testing 3 months . Industrial motors; transformers; switchboard and automatic control; power-apparatus testing 5 months . Boiler-house operations; turbine-room operation............. 1 month . Stoker assembly 1 month . Stoker erecting . Commercial school 1 month The program of the Commercial School includes four classes a day for a month in which time the following topics are con- sidered, arranged in the order of emphasis: interrelations and functions of departments; proposal orders and contracts; salesmanship; business English; advertising; character anal- ysis; sales manual; commercial law; and claims, credits, and collections. Life Insurance.— Until very recently life insurance salesmen, or agents, as they prefer to be called, were given no training at all beyond one or more conferences with their managers. Whatever information they ever acquired was picked up in the school of hard knocks, in agency meetings and conventions and through study of the rate book. The majority who started failed, others hung on but earned very little, and only a small percentage became successes. The antagonism toward, and ridi- cule of, insurance agents is without question very largely due to the fact that a prospect seldom came in contact with a sales- man who really had a thorough grasp of his business. In the last few years a very great change has taken place and today there is an increasing emphasis upon training life insurance salesmen. Intensive courses have been established in a number of colleges and universities, and in 1923 shorter courses were given in Y.M.C.As in many cities sponsored by local life underwriters’ associations. Due to the activity of the Educational Committee of the National Life Underwriters Association and to the interest at Carnegie Institute of Tech- nology in research in salesmanship and personnel work, an eleven THE COMMODITY OR SERVICE 127 weeks’ intensive curriculum was established at that institution in the fall of 1919. Five courses were given: Functions of Life Insurance (the services insurance may render); Principles (study of contract and ratebook); Psychology of Selling; Practice of Selling; and Field Work, to which the students were expected to devote their afternoons. This school is of interest because it exemplified five policies seldom made use of in educational work. First, men and women already engaged in a profession or about to enter it were brought to a college for specific training in that profession. School teach- ers have been having such training for years, but men in business have not. Second, the school has been moved about the country, going to students instead of requiring the students to come to it. (It has been held in San Francisco, Los Angeles, and Seattle as well as in Pittsburgh, and a similar school at New York University has been held in St. Louis and Buffalo.) Third, students have been required to sell while in attendance. Fourth, the diploma is not awarded until a year after graduation and then only if the graduate is still in life insurance work and has suc- ceeded in selling a certain minimum amount. The diploma accordingly does not merely indicate success in doing class work but in addition genuine success in the work for which the student was trained. Fifth, the tuition was set high enough to meet all expenses and to secure the service of competent instructors. Burroughs Adding Machine Company.—In 1921 this company issued an eighty-nine-page booklet (814 by 11) entitled, “A Simplified Accounting Plan.” In it is explained very simply how to carry on the accounting work for a small store. Other booklets cover the accounting necessary in a garage, etc. Natu- rally, these booklets explain the necessary work as it is perf ormed on Burroughs machines. Nevertheless, the spirit of these book- lets is one of service to the small merchant who knows very little about keeping his accounts and frequently fails in business just because of his ignorance. The introduction of manuals of this sort puts the emphasis in selling upon the buyer’s point of view. The buyer wants to succeed in his business; he wants to and must keep books. The Burroughs salesman shows him how to do the latter and so aids him to succeed. Note in such a selling program that the sales- RETR TEE : erie BE ns a Sil ¥ re ot Se £23 A fr ry Low = Mma a é pa rah i “ a - — i. 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