By Neil Hopper Borden
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Extra info for Advertising, text and cases
Different combinations of methods, may be profitably em ployed by competing manufacturers. Digitized by Google Original from UNIVERSITY OF MICHIGAN ADVERTISING DEFINED AND CLASSIFIED • 17 Broad generalizations as to whether advertising will or will not be a profitable tool for a manufacturing enterprise become self-evident. They may be stated as follows: 1. There must be a correct appraisal of what advertising is likely to accomplish in a particular operating formula. Alternative methods must be appraised.
The increase in sales of a product may come (1) from individual consumers being induced to use more of it for the purposes to which they were already putting it, (2) from present users being induced to buy more of the product for new uses featured in selling appeals, or (3) from former nonusers having their desire for the product raised to the point where they become buyers. The seller attempts to change the marginal utility of the product among individuals in the market. One of the important problems faced by sellers when considering the possible profitability of advertising to expand demand is that of fore casting its expansibility, or its responsiveness to appeals.
S. Bureau of the Census, as reproduced in The Economic Almanac for 1949 (New York: National Industrial Conference Board, 1948), p. 7. This means the U. S. can count on a growing population for a longer period. 1 Age of Population Age is an important determinant in the markets of many products, and our population is subject to a gradual change in its composition by age groups. As population growth slows down, the distribution of population by age groups changes, with consequent change in the mar ket outlook for products sold for use by various age classes.