95TH CONGRESS SENATE
2d S&e8sion I
SOURCEBOOK ON CORPORATE IMAGE AND
CORPORATE ADVOCACY ADVERTISING
COMPILED BY THE
SUBCOMMITTEE ON ADMINISTRATIVE PRACTICE
AND PROCEDURE OF THE
COMMITTEE ON THE JUDICIARY
UNITED STATES SENATE
Printed for the use of the Committee on the Judiciary
U.S. GOVERNMENT PRINTING OFFICE 33-291 0 WASHINGTON : 1978
For sale by the Superintendent of Documents, U.S. Government Printing Office
Washington, D.C. 20402
COMMITTEE ON THE JUDICIARY JAMES 0. EASTLAND, Mississippi, Chairman
EDWARD M. KENNEDY, Massachusetts STROM THURMOND, South Carolina BIRCH BAYH, Indiana CHARLES McC. MATHIAS, JR., Maryland
ROBERT C. BYRD, West Virginia WILLIAM L. SCOTT, Virginia
JAMES ABOUREZK, South Dakota PAUL LAXALT, Nevada
JOSEPH R. BIDEN, JR., Delaware ORRIN G. HATCH, Utah
JOHN C. CULVER, Iowa MALCOLM WALLOP, Wyoming
HOWARD M. METZENBAUM, Ohio DENNIS DECONCINI, Arizona PAUL G. HATFIELD, Montana MARYON ALLEN, Alabama
FRANCIS C. ROSENBERGER, Chief Counsel and Staff Director
SUBCOMMITTEE ON ADMINISTRATIVE PRACTICE AND PROCEDURE
JAMES ABOUREZK, South Dakota, Chairman JOHN C. CULVER, Iowa PAUL LAXALT, Nevada
JOSEPH R. BIDEN, JR., Delaware STROM THURMOND, South Carolina
IRENE R. EMSELLEM, Chief Counsel and Staff Director CHUCK LUDLAM, Counsel
In tro d u ction---------------------------EXPENDITURES FOR CORPORATE ADVERTISING
Exhibit 1: "1970 Expenditures For Corporate and Association Advertising," Public Relations Journal, Novermber 1971 at 30- -- -- -- -- -- -- -----1
Exhibit 2: "1970-71 Expenditures For Corporate and Association Advertising, Public Relations Journal, Novemb~er 1972 at 26-----------4
Exhibit 3: "197 1-72 Expenditures For Corporate and Association Advertising," Public Relations Jo urnal, November 1973 at 30-----------6
Exhibit 4: "1972-73 Expenditures For Corporate and Association Advertising," Public Relations Journal, November 1974 at 2----------8 Exhibit 5: "The Price Tag on '74 Institutional Advertising," Public Relations Journal, November 1975 at 3-----------------10
Exhibit 6: "The Price of Institutional Advertising in 1975," Public Relations Journal, November 1976 at 2-----------------12
Exhibit 7: "The Cost of Corporate Advertising in 1976," Public Relations
Journal, November 1977 at 2-------------------14
CASE STUDIES ON CORPORATE ADVERTISING
Exhibit 8: "ITT's Approach To Corporate Advertising," Public Relations
Journal, November 1972 at 33-------------------17
Exhibit 9: "Tenneco Chemicals ***Raising the Level of Awareness,"
Public Relations Journal, November 1972 at 44
Exhibit 10: "Burlington Northern * Setting the Record Straight," 2
Public Relations Journal, November 1972 at 46-------------24
Exhibit 11: "Liberty MuIitual * A History of Concern," Public Relations Journal, November 1972 at 48---------------25
Exhibit 12: "Sperry Rand * Extending Man's Natural Capabilities Through Tech nology,"7 Public Relations Journal, Novemb1er 1972 at 49-. 26 Exhibit 13: "Chry-sler Motors * Building on a Heritage of Strength,"
Public Relations Journal, Nov.ember 1972 at 5-----------27
Exhibit 14: "State Farm Insurance Companies ***Responding to a
Need," Public Relations Journal, November 1972 at 52---------28 Exhibit 15: "MNetropolitan Life * Our Business' Is Life," Public
Relations Journal, 'Novemnber 1972 at 5--------------29
Exhibit 16: "Trans Union * Getting the 'Most For Communications
Dollars," Public- Relations Journal, November 1972 at 56-------30 Exhibit 17: "North American Rockwell * Identify, Identify, Identify," Public Relations Journal, Nov,,emb~er 1972 at 58---------------- 31
Exhibit 18: "Demarketing Power: Utility Companies Explain the Energy
Crisis," Public Relations Journal, November 1973 at 3--------32 Exhibit 19: "United States Steel-We're Involved," Public Relations Journal, November 1973 at 4------------------37
Exhibit 20: "RCA-The Electronic Way," Public Relations Journal,
November 1973 at 43-------------------------------------------- 40
Exhibit 21: "Texaco-Putt-ing Aesop to Work," Public Relations Journal,
November 1973 at 44---------------------44
Exhibit 22: "AT&T-We Hear You," Public Relations Journal, November
1973 at 46-------------------------48
Exhibit 23: "Alcoa-Focusing on the Issues," Public Relations Journal,
November 1974 at 33---------------------52
Exhibit 24: "Weyerhaeuser Co.: Explaining Conservation Concepts,"
Public Relations Journal, November 1974 at 34----------(Mn)
Exhibit 25: "AMC: We Back Them Better Because We Build Them ?age
Better," Public Relations Journal, November 1974 at 36 -------------- 56
Exhibit 26: "Union Pacific Railroad: We Can Handle It," Public Relations
Journal, November 1974 at 57
Exhibit 27: "Kennecott Cooper: Mining Is Beautiful," Public Relations
Journal, November 1974 t 40 ------------------------------------- 58
Exhibit 28: "AT&T's Quest For Public Understanding," Public Relations Journal, November 1976 at 60
Exhibit 29: "Trans Alaska Pipeline: Classic PR Dilemma," Public Relations Journal, March 1977 at 9 ------------------------------------ A63
Exhibit 30: "Rockwell International," Madison Avenue Magazine,
February 1978 at 66
Exhibit 31: "St. Regis," Madison Avenue Magazine, February 1978 at 48-- 69 Exhibit 32: "A.M.F.," Madison Avenue Magazine, February 1978 at 50-- 71 Exhibit 33: "Bethlehem Steel Corp.," Madison Avenue Magazine, May
1978 at 51 ------------------------------------------------------ 73
Exhibit 34: "Kellogg Co.," Madison Avenue Magazine, May 1978 at 56____ 76 Exhibit 35: "Shell Oil Co.," Madison Avenue Magazine, May 1978 at 58--_ 78 Exhibit 36: "Singer Co.," Madison Avenue Magazine, May 1978 at 59_____ 80 Exhibit 37: "American Bankers Association," Madison Avenue Magazine,
May 1978 at 83
Exhibit 38: "American Telephone & Telegraph Co.," Madison Avenue
Magazine, May 1978 at 86
ORGANIZATION AND PURPOSES OF CORPORATE ADVERTISING
Exhibit 39: "How Public Relations Executives View Their Image Advertising Roles," Public Relations Journal, November 1971 at 88
Exhibit 40: "Are Public Relations Executives Becoming More Involved
With Corporate Advertising," Public Relations Journal, November 1972
Exhibit 41: "Are Public Relations Executives Becoming More Involved
With Corporate Advertising," Public Relations Journal, November 1973
Exhibit 42: "Are Public Relations Executives Becoming More Involved
With Corporate Advertising," Public Relations Journal, November 1974
Exhibit 43: "How Companies Are Using Corporate Advertising," Public
Relations Journal, November 1975 at 26 --------------------------- 97
Exhibit 44: "How Top Executives View Corporate Advertising," Public
Relations Journal, November 1976 at 101
Exhibit 45: "How PR Executives Shape Corporate Advertising," Public
Relations Journal, November 1976 at 104
Exhibit 46: "Public Relations' Role In Corporate Advertising," Public
Relations Journal, November 1977 at 106
Exhibit 47: "How Companies Evaluate Their Corporate Advertising,"
Public Relations Journal, November 1977 at 14 --------------------- 108
PUBLICATIONS AND ARTICLES ON CORPORATE ADVERTISING
Exhibit 48: "Crosscurrents in Corporate Communications * Highlights
of the 1972 Fortune Corporate Communications Seminar," Fortune
Magazine ------------------------------------------------------ 112
The Corporate Communications 115
Structuring, Evaluating, and Controlling Corporate Communications- 117 A New Basis for Corporate Communications 120
Corporate Communications and Government 122
The Impact of Consumerism and Environmentalism --------------- 125
Communicating With the International Business Community- 127
Communicating With the Financial Community 129
The Future Environment for Corporate Communications ---------- 131 Business Needs To Do a Better Job of Explaining Itself ------------ 137
Trends in Public Attitudes Toward Business and the Free Enterprise
Exhibit 49: "Crosscurrents in Corporate Communications No. 2
Highlights of the 1973 Fortune Corporate Communications Senimar," page Fortune Magazine ----------------------------------------------- 156
Introduction -------------------------------------------------- 157
Keynote Address ---------------------------------------------- 162
Corporate Communications by a Highly Divisionalized Company ---- 168 Selling the Value of an Advertising Program to Management ------- 171 Corporate Advertising-What's Wrong With it? 175
Corporate Advertising-A Worthwhile Use of a Corporation's
Resources? ------------------------------------------------- 183
Corporate Communications in a Crisis Situation 186
How To Talk With 190
Corporate Image Advertising and the FTC ----------------------- 193
Corporate Communications in the European Business Community_ 200 Should a Company Promote Its Own Stock? ---------------------- 203
Should a Company Promote Its Own Stock? ---------------------- 205
Stockholder Communication 209
Optimistic Trends in a Disturbing 212
Exhibit 50: "Crosscurrents in Co orate Communications No. 3 Highlights of the 1974 Fortune r8orporate Communications Seminar," Fortune Magazine ----------------------------------------------- 220
New Politics and the Global Economy --------------------------- 226
Corporate Communications-The Management View 233
Advertising * An FTC 237
The Next Generations of Managers ------------------------------ 241
Business and the Press ----------------------------------------- 245
Communications in Washington: Myths vs. Real itiess 248
Financial Communications and the Analytical Haruspex------------ 252
Financial Comm unications-The Corporate View ------------------ 256
Life Style Analysis and Corporate Communications---------------- 259
Corporate Communications in a Shortage Economy ---------------- 270
We're OK-You're OK (A Post-Watergate Opportunity For Adver273
Exhibit 51: "Crosscurrents in Corporate Communications No. 4 * Highlights of the 1975 Fortune Corporate Communications Seminar," FortuLe 277
Introduction -------------------------------------------------- 278
Corporate Communications-Top Management Perspective -------- 278
Corporate Communications in Collective Bargaining --------------- 289
Corporate Communications and Public 293
Corporate Communications and the Consumer-------------------- 299
Advocacy Advertising-Act II ----------------------------------- 302
The Second Six Sins of Corporate Advertising --------------------- 305
Communicating Foreign 310
"The American 318
New Concerns About the Press ---------------------------------- 321
The Common Market-A European Perspective ------------------- 325
Doing Business in the Sunshine -------------------------------- 329
Workshop Session: Selling Management on Corporate Communications ----------------------------------------------------- 332
Exhibit 52: "Crosscurrents in Co orate Communications No. 5 * Highlights of the 1976 Fortune Torporate Communications Seminar," Fortune Magazine ----------------------------------------------- 339
Introduction -------------------------------------------------- 340
Corporate Conduct and the Bicentennial ------------------------- 345
International Communications ---------------------------------- 351
How to Change Your Name Without Losing Your Identity --------- 356 Aesthetics and Corporate Communications- 361
Re ort From No Man's Land ----------------------------------- 365
Business and 368
Accountability in Corporate Communications --------------------- 374
"Capability" and Advocacy Advertising -------------------------- 380
Exhibit 52-Continued, Page
Communications and the Cartoonist ----------------------------- 385
Does Corporate Advertising Affect Stock Prices? ------------------ 390
Narrowing the Gap with Dividend Reinvestment ------------------ 396
Communicating with the Financial Community 401
Communicating with Money Managers --------------------------- 403
Some Thoughts on Financial Communications --------------------- 406
A View of the Securities 410
Workshop Session: Group A ------------------------------------ 415
Workshop Session: Group 424
Workshop Session: Group C ------------------------------------ 428
Exhibit 53: "Crosscurrents in Co orate Communications No. 6 * *
Highlights of the 1977 Fortune r8orporate Communications Seminar,"
Fortune Magazine ----------------------------------------------- 440
Introduction ----------------------------------------------- I - 411
How to Lose $100 Million and Other Valuable Advice -------------- 448
Adversity, Hostility, and Corporate Communications 451
"Mirror, Mirror on the Wall' ----------------------------------- 456
Custer's Latest 462
Developing Objectives for Corporate Communications-------------- 468
International Trade: What's Ahead for Multinational Corporation --- 473 The Ups and D owns of Corporate Advertising 478
The I Imperative ---------------------------------------------- 484
What Are You Trying to Do to Whom? -------------------------- 488
Expanding Horizons for Corporate Communications 492
Turning Corporate Communications Failures into Success 497
Corporate Growth and Communications Challenges---------------- 502
Change and Opportunity: Tye Present and Future on Wall Street---- 508 Simple Is Smart-Changing Lingo to Language ------------------- 512
Business and the Press ----------------------------------------- 518
Workshop Session --------------------------------------------- 526
Exhibit 54: "Corporate Advertising: Its New Look," Public Relations
Journal, November 1971 at 531
Exhibit 55: "Business Faces a Change of Voice," Public Relations Journal,
November 1971 at 541
Exhibit 56: "Corporate Advertising: More Than Just A Nice Warm Feeling
All Over, Public Relations Journal, Nove mber 1971 at 19 544
Exhibit 57: "New Imperatives For An Old Device," Public Relations Journal, November 1972 at 550
Exhibit 58: "Solving the Corporate Image Problem: An Integrative
Approach," Public Relations Journal, November 19 72 at 28 555
Exhibit 59: "Facing the Issues: Corporate Advertising's Grcatest Challenge," Public Relations Journal, November 1973 at 6 559
Exhibit 60: "Corporate Advertising? Up Yours!" Public Relations Journal,
November 1973 at 18 -------------------------------------------- 563
Exhibit 61: "Corporate Advertising-Out of the Ivory Tower, Into
Marketing," Public Relations Journal, November 1974 at 567
Exhibit 62: "Advocacy Advertising Shows the Flag," Public Relations
Journal, November 1975 at 578
Exhibit 63: "A Global Look At Advocacy," Public Relations Journal,
November 1975 at 581
Exhibit 64: "Breaking the Vicious Cycle," Public Relations Journal,
November 1975 at 585
Exhibit 65: "This Man Was Made Possible By A Grant From Mobil Oil,"
Esquire, January 1978 at 589
FIRST AMENDMENT STATUS OF "COMMERCIAL SPEECH"
Exhibit 66: Bigelow v. Virginia, 421 U.S. 809 (1975) 596
Exhibit 67: Virginia State Board of Pharmacy v. Virginia Citizens Consumer
Council, 425 U.S. 748 (1976) -------------------------------------- 624
Exhibit 68: Linmark Associates v. Township of Willingboro, 431 U.S. 85 667
Exhibit 69: Bates v. State Bar of Arizona, 433 U.S. 350 (1977) 681
Exhibit 70: First National Bank of Boston v. Bellotti, attorney general of
Massachusetts, slip opinion (1978) --------------------------------- 737
PREVIOUS CONGRESSIONAL HEARINGS
Exhibit 71: Excerpts from "Energy and Environmental Objectives,"
hearings before the Subcommittee on Environment, Senate Commerce Page Committee, 1974_ -- -- -- 804
FEDERAL TRADE COMMISSION JURISDICTION
Exhibit 72: Excerpts from Federal Trade Commission Act 917
Exhibit 73: Warner-Lambert Co. v. FTC, 562 F. 2d 749 (D.C. Cir. 1977) ---- 918
Exhibit 74: FTC v. National Commission on Egg Nutrition, 517 F.2d 485
(7th Cir. 1975) ---------- 941
Exhibit 75: National Commission on Egg Nutrition v. FTC, 570 F.2d
157 (7th Cir. 1977) -948 Exhibit 76: "Abatement of Corporate Image Environmental Advertising,"
4 Ecology Law Quarterly 247 (1974) 959
Exhibit 77: "Note: The Regulation of Corporate Image Advertising,"
59 Minnesota Law Review 189 (1974) --991 Exhibit 78: "Public Service Oriented Advertising-A Regulatory Dilemma,
speech by Commissioner Mary Gardiner Jones, April 30, 1971 1025
Exhibit 79: "Advertising and the First Amendment," 33 Food Drug
Cosmetic Law Journal, 12 (1978) --------------------------------- 1051
Exhibit 80: "Yes, FTC, There Is a Virginia: The Impact of Virginia State
Board of Pharmacy versus Virginia Citizens Consumer Council Inc., on Federal Trade Commission's Regulation of Misleading Advertising,"
57 Boston University Law Review 833 (1977) ------------------------1061
Exhibit 81: Congressional petition to the Federal Trade Commission
regarding "Corporate Image Advertising," January 9, 1974 ----------- 1092
Exhibit 82: "Corporate Image Advertising: Memorandum to the Commission," Division of National Advertising, March 18, 1974_ ---------- 1149
Introduction- -- ------------------ 1154
The nature, extent and function of corporate image advertising------- 1156 The economic impact of image advertising --------------- 1158
Image advertising and the first amendment ----------------------- 1162
Statutory issues relating to image advertising---- -----------------1194
Additional considerations in selecting image ads----------------- 1202
Ads for which staff recommends action --------------- -1207
Demand letters the staff recommends be sent ---------- 1257
Evaluation of ads submitted in petition --1288
Evaluation of McIntyre, Quarles, and Train complaints ------------- 1289
The petitioners' rule proposals --- 1322
Exhibit 83: Memorandum of Richard B. Herzog, Assistant Director for
National Advertising to Federal Trade Commission, regarding "Corporate Image Advertising," March 15, 1974-- -------------------- 1338
Exhibit 84: Memorandum of J. Thomas Rosch, 1)irector, Bureau of
Consumer Protection, to Federal Trade Comrmissicn, regarding "Corporate Image Advertising," March 19, 1974_ ------- 1352
Exhibit 85; Memorandum of Richard B. Herzog, Assistant Director for
National Advertising, to tFederaln Trade C(An mission, regarding "Corporate Image Advertiing-Addendum," March 25, 1974 1353
Attachment to March 25, 1974 MAemorandium: Letter of B. Richard
1. Jncks, lice President, C.B.S., to Congressman Benjamin
Ro-enthal, MIarch 15, 1974 1356
Exhibit 8: Menoranaum of Commissioner Paul Rand Dixon to Federal
Trade Commision, regarding "Corporate Image Advertising,' March
28, 1974 .. ____ 1361
Exhibit 87: Memorandum of Richard B. lerzog, Assistant Director for
National Advertising, to Division Staff Attorneys, regarding "Corporate
Image Advertising," March 29, 1974 ..--------------1364
Exhibit 88: Mobil Oil Corp. petition to the Federal Trade Commission regarding January 9, 1974, congressional petition on corporate image advertising, April 4, 1974 -------- ..............._.... 1365
Exhibit 89: Memorandum of staff attorney, Division of National Advertising, to Federal Trade Commission, regarding "Corporate Image Advertising-Mobil Oil Corp. Memorandum," April 8, 1974_------- 1387
Exhibit 90: Minute 74-178, Federal Trade Commission, regarding "Corporate Image Advertising," April 23, 1974 1389
Exhibit 91: Memorandum of staff attorney, Division of National Advertising, to Federal Trade Commission, regarding "Commission Policy Page Statement on Corporate Image Advertising, June 12, 1974- 1390
Attachment to June 12, 1974, memorandum: draft statement of enforcement policy regarding corporate image advertising- 1399
Exhibit 92: Memorandum of Richard B. Herzog, Assistant Director for
National Advertising, to Federal Trade Commission, regarding "Corporate Image Advertising (Commission minute of April 23, 1974),"
June 12, 1441
Exhibit 93: Memorandum of J. Thomas Rosch, Director, Bureau of Consumer Protection, to Federal Trade Commission, regarding "Corporate Image Advertising (Commission minute of April 23, 1974)," June 17,
Exhibit 94: Memorandum of Commissioner Paul Rand Dixon to Federal
Trade Commission regarding "Corporate Image Advertising (Commission minute of April 23, 1974)," July 10, 1443
Exhibit 95: Minute 75-007, Federal Trade Commission, regarding "Commission Enforcement Policy Regarding Corporate Image Advertising,"
July 16, 1445
Exhibit 96: Memorandum of staff attorney, Office of General Counsel, to
Federal Trade Commission, regarding "Commission Enforcement
Policy Regarding Corporate Image Advertising," December 4, 1974---- 1447
Attachment to December 4, 1974 Memorandum: Draft statement of
enforcement policy regarding corporate image advertising- - - - - 1449 Exhibit 97: Memorandum of Commissioner Paul Rand Dixon to Federal
Trade Commission, regarding "Commission Enforcement Policy Regarding Corporate Image Advertising," December 19, 1974___________ 1474 Exhibit 98: Minute 75-061, Federal Trade Commission, regarding "Commission Enforcement Policy Regarding Corporate Image Advertising,"
January 7, 1476
Exhibit 99: Memorandum of Staff Attorney, Division of National Advertising, to Federal Trade Commission, regarding "Commission Response to Petition on Corporate Image Advertising," March 11, 1975___________ 1477
Attachment to March 11, 1975, Memorandum: Draft Letter to
Exhibit 100: Memorandum of Commissioner Paul Rand Dixon to Federal
Trade Commission regarding "Commission Response to Petition on
Corporate Image Advertising' March 14, 1483
Exhibit 101: Minute, Federal Trade Commission, regarding "Commission
Enforcement Policy Regarding Corporate Image Advertising," March
Exhibit 102: Statement of proposed enforcement policy by the Staff of the
Federal Trade Commission regarding corporate image advertising,
December 4, 1487
Exhibit 103: Press release, Federal Trade Commission regarding "FTC
Answers Petition Concerning Corporate Image Advertising," April 30,
FEDERAL COMMUNICATIONS COMMISSION JURISDICTION
Exhibit 1.04: Banzhaf v. F.C.C., 405 F. 2d 1082 (D.C. Cir 1968) --------- 1514
Exhibit 105: In re Friends of the Earth (large engine automobiles), 24
F.C.C. 2d 743 1537
Exhibit 106: Friends of the Earth v. F.C.C. (large engine automobiles),
449 F. 2d 1164 (D.C. Cir. 1553
Exhibit 107: In re Alan Neckritz (Chevron F-310), 29 F.C.C. 2d 807
(May 12, 1561
Exhibit 108: In re Alan Neckritz (Chevron F-310), 37 F.C.C. 2d 528
(October 5, 1972) ------------------------------------------------ 1574
Exhibit 109: Alan Neckritz v. F.C.C. (Chevron F-310), 502 F. 2d 411
(D.C. Cir. 1974) ------------------------------------------------- 1582
Exhibit 110: In re Wilderness Society (ESSO Alaska Pipeline), 30 F.C.C.
2d 643 (June 30, 1591
Exhibit 111: In re Wilderness Society (ESSO Alaska Pipeline) (petition for
reconsideration), 31 F.C.C. 2d 729 (September 23, 1971) -------------- 1595
Exhibit 112: In re Wilderness Society (ESSO Alaska Pipeline) (further
petition for reconsideration), 32 F.C.C. 2d 714 (December 27, 1971)--- 1610 Exhibit 113: In re Media Access Project (Georgia Power), 44 F.C.C. 2d
755 (December 1614
Exhibit 114: Georgia Power Project v. F.C.C., 559 F. 2d 237 (5th Cir. 1977) 1626 Exhibit 115: In re Peter C. Herbst (snowmobiles), 48 F.C.C. 2d 614 (1974)_ 1630 Exhibit 116: In re Peter C. Herbst (snowmo Iiles) (petition for reconsideration), 49 F.C.C. 2d 411 ----------------- 1633
Exhibit 117: Public Interest Research Group v. F.C.C. (snowmobiles),
522 F. 2d 1060 (1st Cir. 1975) -1634 Exhibit 118: "Fairness Doctrine and Public Interest Standards: Handling
of Public Issues", 44 F.C.C. 2d 1 (June 27, 1974) -------------------- 1643
Exhibit 119: "Memorandum Opinion and Order on Reconsideration of
the Fairness Report." 58 F.C.C. 2d 691 -March 19, 1976 ------------- 1663
Exhibit 120: Aational Citizens C('ommittee ,or Broadcasting and Friends of
the Earth v. Federal Communications Commission, 567 F. 2d 1095 iD.C.
Cir. 1977) -------------------------------_-- 1705
Exhibit 121: In re Public Media Center Pacific Gas & Electric Co. Nuclear
Power), 59 F.C.C. 2d 494 'May 17, 1976)- .. ..1727
Exhibit 122: In re Energy Action Committee Texaco), 64 F.C.C. 2d 787
(April 15, 1977) ----------------------------------------------- 1758
INTERNAL REVENUE SERVICE JURISDICTION
Exhibit 123: Article 143 of Treasury Regulations 33 1918)- ..... 1776
Exhibit 124: Article 562 of Treasury Regulatinn 45 1919 ----- 1778 Exhibit 125: Los Angeles and Salt Lake Railroad Co. v. Commissioner of
Internal Revenue Ser ice, 18 B.T.A. 168 1929) ------1780 Exhibit 126: Sunset ScaCnger (;. v. Commissioner of Internal Rezenue, 84 F.
2d 453 9th Cir. 1936 ------------------- -1794
Exhibit 127: Mrs. William P. Kyne v. CAommissioner of Internal Re'enue,
35 B.T.A. 202 i1936) . . . .1797
Exhibit 128: Texrtile Mills Securities ( orp. v. Commissioner of Interna
Revenue, 314 U.S. 326 1941 1800
Exhibit 129: Article 23 -2 of Treasury Regulations 86 1934-.. 1806 Exhibit 130: Article 23 q)- 1) of Treaurv Regulation 94 1936--- 1808 Exhibit 131: Luther Ely Smith v. Commissioner of Internal Retenue, 3 T.C.
696 (1944) ___ . . . . . . . . .. . 1810
Exhibit 132: Revenue ruling 8-255 reconideration of acquie -cence in decision in Luther Ely Smih) -..1820
Exhibit 133: Articles 19.23 (o)-1 and 19.23 q)-1 of Treaury Regulations
103 (1940) 1822
Exhibit 134: Articles 29.23 o)-1 and 29.23 q)-1 of Treasury Regulations
111 (1943) - - 1826
Exhibit 135: Addressograph-Multigraph Corp. v. ('ornmissioner, 4 T.C.M.
147 (1945-) ... . .. ...1829
Exhibit 136: Revere Racing Association v. Scanlon, 137 F. Supp. 293 )D.
Mass. 19 55- ..----------- 1833
Exhibit 137: Retere Racing associationn v. Scann, 232 F. 2d 816 1(st Cir.
Exhibit 138: Articles 39.23 o)-1 and 39.23 q -1 of Treasury Regulations
118 1953)-- -------------------------1839
Exhibit 139: Excerpts from House Report 83-1337 Internal Revenue
Code of 1954: Section 162) . . . . . . .. . . 1842
Exhibit 140: Excerpts from Senate Report 83-1622 Internal Revenue
Code of 1954: Section 162) -------------------1847
Exhibit 141: Excerpts from Internal Revenue Code of 1954, Public Law
83-591 - .. ... ......... . .. .. .. 1852
Exhibit 142: Internal Revenue Service, Proposed Regulations on Itemized
Deductions for Individuals and Corporations, 21 Federal Register 5091
(July 10 1956)---- ..... ..1854
Exhibit 143: Internal Revenue Service Withdrawal of July 10, 1956,
Proposed Regulations Regarding Lobbying Expenditures and Substitution of New Proposed Regulations, 24 Federal Register 7584
(September 19, 1959)---------------. _---1858
Exhibit 144: Internal Revenue Service, notice of hearings on September 19,
1959, Proposed Regulations on Lobbying Expenditures, 24 Federal
Register 8724 (October 28, 1959) _-----------1860
Exhibit 145: Internal Revenue Service, Adoption of Proposed Regulations
on Lobbying Expenditures, 24 Federal Register 10901 (December 29,
Exhibit 146: Cammarano v. United States, 358 U.S. 498 (1959) ----------- 1863
Exhibit 147: Southwestern Electric Power Co. v. United Statk, 312 F. 2d Pago
437 (Ct. Cl. 16)--------------- ------1881
Exhibit 148: Pickrick v. U.S., 16 AFTR 2d 5277 (N.D. Ga. 195----1893 Exhibit 149: Revenue Ruling 62-156----------------------------- 1897
Exhibit 150: H.R. 7123, as reported by House Ways and Means Cm
mittee on July 1, 1960----------------------------------------- 1901
Exhibit 151: House Report 86-2077 (H.R. 7123), July 1, 1960 ----------- 1904
Exhibit 152: H. R. 640 as introduced on January 3, 1961- -- -- ------1913
Exhibit 153: H.R. 925 as introduced on January 3, 1961---------------- 1915
Exhibit 154: S. 467 as introduced on January 17, 1961- -- ---------1917
Exhibit 155: Exerpts from H.R. 10650 (Revenue Act of 1962) as introduced
on March 12, 192---------------------1919
Exhibit 156: Exerpts from House Report 87-1447 (Rievenue Act of 1962). 1923 Exhibit 157: Exerpts from H.R. 10650 (Revenue Act of 1962) as adopted
by the Hue-------------------- ---1929
Exhibit 158: Exerpts from hearings before Senate Finance Committee on
H.R. 10650 (Revenue Act of 192---------------1933
Part 2: Walter A. Slowinski----------------------------------- 1934
Harold H. Scaff -------------------------------------------- 1941
Leslie Mls-------------------- ---1943
Raymond Hfmn----------------- ---1945
Stanley H. Ruttenberg--------------------------------------- 1946
R. J. Landolt ---------------------------------------------- 1952
Lincoln Anl------------------- ---1953
Part 3: William Proxmire------------------------------------- 1955
Allan P. Luh----------------------1958'
Part 4: Joseph C. Welman------------------------------------ 1960
Part 5: M. W. Armistead------------------------------------- 1964
George D. Wbtr---------------- ----1976
John J. Ryn----------------------1984
Chamber of Commerce supplemental statement----------2018 NAM supplemental sttmn----------------2022
Part 6: Randolph W. Thrower --------------------------------- 2035
Part 8: David Flower---------------------------------------- 2038
Part 10: Douglas Diln------------------2040
Exhibit 159: Exerpts from Senate Report 87-188 1 (Revenue Act of 1962) 2044 Exhibit 160: Exerpts from H.R. 10650 (Revenue Act of 1962) as reported
by Senate Finance Committee------------------------- ---------- 2056
Exhibit 161: Exerpts from Senate debate on H.R. 10650 (Revenue Act of
August 24, 192---------------------2060
August 27, 192---------------------2062
August 28, 192---------------------2083
August 30, 192---------------------2085
September 4, 192--------------------2087
September 6, 1962 ------------------------------------------ 2103
Exhibit 162: Exerpts from Public Law 87-834 (Revenue Act of 1962) - 2106 Exhibit 163: Internal Revenue Service, Proposed Rulemaking on Lobbying,
29 Federal Register 11190 (August 4, 1964)----------------------- -- 2107
Exhibit 164: Internal Revenue Service Final Regulations on Appearances
With Respect to Legislation, 30 Federal Register 5580 (April 20, 1965)-- 2111 Exhibit 165: Consumers Power Co. v. United States, 427 F. 2d 78 (6th
Exhibit 166: Revenue Ruling 74-407 (attempt to influence legislation through sokodr)----------------- ---2118
Exhibit 167: Revenue Ruling 78-111 (expenses incurred to influence
legislation through stchles----------------2119
Exhibit 168: Revenue Ruling 78-112 (expenses incurred to influence
legislation: newspaper and magazine advertising)-----------2120
Exhibit 169: Revenue Ruling 78-113 (" Grassroot" lobbying: employees
and customers of trade association mebr)-----------2122
Exhibit 170: Revenue Ruling 78-114 ("Grassroot" lobbying: communication to members and prospective m bes- -----------2123
Exhibit 171: Existing Provisions of Section 162(e) of Internal Revenue
Code of 194-----------------------2125
Exhibit 172: Excerpts from Existing Internal Revenue Service Regulations I
on Section 162(e) of IRO of 1954 (section 162- ---------2126
This Sourcebook on Corporate Image and Corporate Advocacy Advertising contains the basic documents relating to the Subcommittee s inquiry into this subject.
The Subcommittee inquiry focuses on the exercise of jurisdiction by and the degree of coordination among the Federal Trade Commission. Federal Communication Commission, and Internal Revenue Service with respect to corporate image and corporate advocacy advertising The Administrative Practice and Procedure Subcommittee is conducting this investigation pursuant to its oversight jurisdiction over federal agency practices and procedures.
The three agencies which are the focus of the Subcommittee's investigation have limited statutory jurisdiction with respect to corporate image and corporate advocacy advertising. Under 15 U.S.C. 45. for example, the Federal Trade Commission may prohibit the dissemination of advertisements held to be unfair, false or misleading. The Federal Communications Commission has the responsibility to determine whether advertisements raise a "controversial issue of public importance" under its "fairness doctrine". Under section 162(e) (2) (B) of title 26, the Internal Revenue Service must deny claims for business expense deduct ions for any advertisement dissem-iated "in connection with any attempt to influence the general public, or segments thereof, with respect to legislative matter-, elections, or referendums."
In determining the extent to which they can exercise jurisdiction over a particular advertisement, these three agencies must determine respectively whether the advertisement is protected by the First Amendment, whether it raises a controversial issue of public importance, or whether it is a business or lobbying expense. Explicitly or implicitly, each of these jurisdictional determinations is based on the First Amendment status of the advertisement. Therefore, the Subcommittee is exploring whether there should be coordination between the agencies to avoid making inconsistent determinations. For example, the I.R.S. may determine that an advertisement is part of a lobbying effort and that a business expense deduction may not be taken, while the Federal Trade Commission may consider the same advertisement as "commercial speech" with respect to which it may regulate truth and accuracy. Similarly, the I.R.S. might determine that an advertisement is not, in fact, part of a lobbying effort, and the Federal Communications Commission might find that the advertisement raises a controversial issue of public importance.
Each jurisdictional determination made with respect to a given advertisement must turn on the particular characteristics of the advertisement. Recent Supreme Court rulings on the First Amendment status of commercial speech have created some confusion about the
jurisdiction of these Federal agencies. It is clear from these documents, however, that each of these agencies still may exercise Jurisdiction with respect to some corporate image and corporate advocacy advertisements. An advertiser cannot claim that the Supreme Court's recent decisions interpreting the Constitutional status of "Commercial Speech" preclude any of these agencies from exercising jurisdiction in an appropriate case.
The documents in this Sourcebook explore the nature and extent of corporate image and corporate advocacy advertising; the First Amendment status of commercial speech; Federal Trade Commission jurisdiction; Federal Communications Commission jurisdiction; and Internal Revenue Service jurisdiction. The Sourcebook also contains excerpts from an out-of-print hearing held on this general subject in 1974 by the Senate Commerce Committee. Whenever appropriate, these materials are printed in chronological order.
EXPENDITURES FOR CORPORATE ADVERTISING
Exhibit 1: 1970 Expenditures
1970 EXPENDITURES FOR CORPORATE* AND ASSOCIATION ADVERTISING
according to National Advertising Investments, published by Leading National Advertisers Corporate Association Total
Consumer Magazines . $ 78,168,000 $25,886,300 $104,054,300 Sunday Magazines ... 1,803,700 995,000 2,798,700
Network Television .... 39,147,800 21,786,800 60,934,600 Spot Television ........ 27,884,300 15,075,800 42,960,100 Network Radio .... 1,675,100 1,548,400 3,223,500
Outdoor .............. 868,400 5,464,700 6,333,100
Six Media Total ...... $154,036,000 $68,756,400 $222.792 0
Note that since these figures are for one-time rates, and do not take discounts into consideration, they must necessarily be higher than actual expenditures. It must also be considered that often it is difficult to determine accurately which ads are corporate, and some ads that advertisers chara terize as corporate probably are not included.
*Leading National Advertisers and Publishers Information Bureau term corporate advertising, "general promotion advertising," and -define it as advertising devoted primarily to selling the corporate personality, with its first objective going beyond the direct sale of a single product or service. To be classified as general promotion, they require an ad to fulfill one or more of the following qualifications:
It must edu ate, inform, or impress the public regarding the company's policies, functions, facilities, obrjctives, ideals, and standards.
It must build favorable opinion about the company by stressing the competence of the company's management, its scientific knowhow, manufacturing skilLs, technological progress and produ ct improvements, and its contribution to s wial advancement and public welfare, and on the other hand, to offset unfavorable publicity and negative attitudes.
It must build up the investment qualities of itis securities, or improve the financial structure of the company.
It must sell the company as a good place to work (and so is often designed to appeal to college graduates or to people of certain skills).
Source Thesc data, compiled by the Public Relations Journal, are extracted from Nawional Adetiriing Inestmnents. prepared and published by leading National Advertisers (I.NA), New York, N Y Data is collected by LNA for Publishers Information Bureau (magazines and supplements), Broadcast Advertising Reporls (network and
1970 Leading General Promotion Advertisers
1. American Teleihone & Telegraph Co. $18,854.400
2. Standard Oil of New Jersey 6,777,600
3. Household Finance Corp. 4,467,000
4. Metropolitan Life Insurance Co. 3,984,500
5. Bell Telephone Systems 3,477,800
6. E. I. DuPont De Nemours 3,320,700
7. Prudential Insurance Co. 3,287,100
8. Atlantic Richfield Co. 3,007,300
9. General Electric Co. 2,667,200
10. Shell Oil Co. 2,611,500
30 PUBLIC RELATIONS JoURNAL
1970 Leading Association Advertisers
1. Florida Citrus Commission $5,427,900
2. Edison Electric Institute 3,535,600
3. Toyota Dealers Assn. Franchise 3,448,600
4. American Gas Assn. 3;206,900
5. Commonwealth of Puerto Rico 2,976,300
6. Assn. of American Railroads 2,820,300
7. Foundation for Full Service Banks 2,650,700
8. Florists Transworld Delivery Assn. 2,384,200
9. Investor Owned Electric Light
& Power Cos. 2,9346,40010. Datsun Dealers Assn. Franchise 2,330,900
First Six-Month Expenditures for Association Advertising in Six Media Categories according to
National Advertising Investinents
January- JanuaryJune June Change
Consumer Magazines $12,540,800 $10,569,500 Sunday Magazines 666,900 201,600
Network Television 6,923,300 8,311,000
Spot Television 8,108,000 10,524,300 +
Network Radio 793,400 255,500
Outdoor 2,708,300 3,879,700
Six Media Total $32,961,300 $39,397,400 +
Association ads in consumer magazines slipped a bit (from $12,540,800 to $10,569,500) the first six months of 1971 compared to the same period in 1970, but magazines still lead the other five media. Spot television came in a close second ($10,524,300), up briskly from the same period last year ($8,108,000). Both Sunday magazines and network radio show losses for the first half, while outdoor and network television gained. Association
ads in all six media showed a gain for the period.
First Six-Month Combined Expenditures for
General Promotion and Association Advertising
in Six Media Categories according to
National Advertising Investmients Figures 1970 1971
January- JanuaryJune June Change
General Promotion $79,024,500 $74,114,600
Association Advertising 32,961,400 39,397,400
Total $111,985,800 $113,512,000 ,+
Corporate advertising (general promotion plus association advertising) increased during the first six mopths of 1971 compared with the first half of 1970.
NOVEMBER 1971 31
First Six-Month Expenditures for General
Promotion Advertising in SixNMedia Categories
accordi .ig to National Advertisirig Invrestmrnents
January- Januar-June June Ch,..nge
Consumer Magazines $38,858,S00 $,30,587,000
Sunday Magazines 208,300 281,200 +
Network Television 27,705,100 295,841,400
Spot Television 6,553,200 14,201,400 +
Network Radio 358,900 480,500 +0
Outdoor 332,400 391,00
Six Media Total $79,024,500 $74,114,600
Consumer magazines garner the lion's share of corporate ad dollars ($104,054,300), with network television next (S60,934,600), followed by spot television ($42,960,100) outdoor ($6,333,100), network radio ($3,223,500), and Sunday magazines ($2,798,700). Newspapers, spot radio, and the business (trade)
press are not included.
Consumer magazine general promotion ad revenue declined the first half of 1971 compared to that period in 1970 (from $.38,858.800 to $30,587,000), but retained its lead over the other five media. Network television declined slightly during the period, but spot television gained dramatically (from '16,5.53.300 to $14,201,400). Network radio and outdoor also made significant gains. General promotion ads in all six media showed a loss
for the period.
First Half of 1971 Leading General Promotion
1. American Telephone & Telegraph Co. $11,084,100
2. Mobil Oil Corp. 4,384,400
3. Standard Oil of New Jersey 3,795,300
4. E. 1. DuPont De Nemours 3,576,100
5. Ford Motor C6' 2,S18,300
6. Metropolitan Life Insurance Co. 2,528,800
7. General Motors Corp. 2,134,200
8. Beneficial Corp. 1,982,600
9. Household Finance Corp. 1,896,200
10. Food Fair Stores Inc. 1,82-0,500
First Half of 1971 Leading Association
1. Florida Citrus Commission $ 3,141,000
2. Datsun Dealers Assn. Franchise 2,071,400
3. American Gas Assn. 1,882,800
4. Edison Electric Institute 1,314,500
5. Toyota Dealers Assn. Franchise 1,211,500
6. Saving & Loan Assns. 1.200,100
7. Blue Cross-Blue Shield Plans 1,0953,300
8. Commonwealth of Puerto Rico 1:079,000
9. Foundation for Full Service Banks 1,0.39,000
10. Investor Owned Electric Light
& Power Cos. 1,020,900
32 PUBLIC RELATIONS jOL:RN 4L
Exhibit 2:. 1971 Expenditures
1970-71 EXPENDITURES FOR
CORPORATE* AND ASSOCIATION
Corporations and associations in 1971 put 23.4% more, for a total of $230,211,300, into advertising media for their corporate campaigns than they did the previous year ($222,792,400), but the only media chalking up more corporate ad dollars were network television, spot television, and network radio. All three of these media gained higher expenditures from corporations; associations only increased their budgets to spot television.
Leading the six media categories in corporate advertising dollars was consumer magazines at $88,227,000. down 15.3% from 1970 figures. Next came network television with $70,786,600, up 13.8% over 1970, then spot TV with $62,946,800, up 31.9%. 1
Outdoor advertising was fourth with $4,366,700 (down 31.7%), then network radio with $2,890,000 (down 10.3%), and last, Sunday newspaper magazines at $994,200 (down 64.2%). Perhaps we should note that if network and spot television expenditures were lumped together, television would emerge not only as the medium garnering the increases, but also as the top corporate advertising medium, with $133,733,400. We must also point out that newspapers and business publications are not included in LNA reports.
.1970-71 EXPENDITURES FOR CORPORATE AND ASSOCIATION ADVERTISING
CORPORATE,- ASSOCIATION I TOTAL"
1971 -1910 1971 4970 1911 1970
Magazines .$64,711,900 $78,168,000 $23,515,100 $25,886,300 $88,227,000 $104,054,30
!Spot Television 39,505,800 27,884,300 23,441,000 15,075,800 62,946,800 42,960,10
-Outdoor ... 8500 868,400 3,511,200 5,464,700 4,366,700 6,333,10
~Ntor ado ~ 0 165,0 1,029,500 1,548,400 2,890,000 3,2250
'Sunday "'- .
Mgzns587,100-- 1,803,700 407,100 995,000,- 994,200 2,798,7
16 Media Totals $157,575,800- $154,036,000 $72,635,500 $68,756,400 $230,211,300 $222,792,4
Note that since these figures are for one-time rates, and Source: These data, compiled by the Public Relations do not take discounts into consideration, they must neces- Journal, are extracted from National Advertising Investments, sarily be higher than actual expenditures. It must also be prepared and published by Leading National Advertise~s considered that often it is difficult to determine accurately (INIA), New York, N. Y. Data is collected by LNA from which ads are corporate, and some ads that advertisers Publishers Information Bureau (magazines and SUP~ characterize as corporate probably are not included. ments), Broadcast Advertising Reports (network and SO~ television and network radio), and the Institute of OW
Advertising. National Advertising Investments report ShoAs
expenditures in six media by brand and is published
26 PUBLIC RELATIONS JOURNAL
GENERAL PROMOTION (Corporate) ADVERTISINGJANUARY-DECEMBER 1971
American Telephone & Telegraph ...... 19,827.2 Standard Oil of New Jersey ........... 5,972.0
Bell Telephone Systems ............. 5,5803
-E I Du Pont De Nemour and Company . 5,261.8 Metropolitan Life Insurance Company ... 4,862.8 Ford Motor Company ............... 4,613.1
Food Fair Stores Inc. . . ........... 4,160.4
Household Finance Corporation ........ 4,049.7 Beneficial Corporation ............... 3,744.3
General Electric Company ............ 3,428.1
ASSOCIATION ADVERTISINGJANUARY-DECEMBER 1971
Florida Orange Juice ........ 4,968.6
Datsun Dealers Association ..... 4,361.8 American Dairy Association . ... 3,727.4 Puerto Rican Rums ....... ... 2,763.0
American Petroleum Institute .... .... 2,711.5 Toyota Dealers Association ........ 2,606,2 Foundation for Full Service Banks ...... 2,319.8 Savings & Loan Association 2,205.0
Edison Electric Institute ... 2,174,9
Investor Owned Electric Light and Power
Companies ........ ...... 2,126.7
Leading National Advertisers and Publisher's' Information Bureau term corporate advertising, "general promotion advertising,"' and define it as advertising devoted primarily to selling the corporate personality, with its first Objective going beyond the direct sale of a single product or service. To be classified as general promotion, they require an ad to fulfill one or more of the following qualifications:
4 It must educate, inform, or impress the public regarding the company's Policies, functions, facilities, objectives, ideals, and standards.
0 It must build favorable opinion about the company by stressing the competence of the company's management, its scientific knowhow, manufacturing skills, technological I progress and product improvements, and its contribution to social advancement and public welfare, and on the Other hand, to offset unfavorable publicity and negative attitudes.
0 It must build up the investment qualities of its securities, or improve the financial structure of the company.
11 It must sell the company as a good place to work (and so is often designed to appeal to college graduates or to people of certain skills).
"'OVEMBER 1972 27
33-291 0 78 2
Exhibit 3: 1972 Expenditures
1971-72 EXPENDITURES FOR
CORPORATE* AND ASSOCIATION
Corporations and associations in 1972 put 16.2% more, for a total of $267,670,500, into advertising media for their corporate campaigns than they did the previous year ($230,211,300), with all media chalking up more corporate ad dollars. All media gained higher expenditures from corporations; associations increased their budgets to all media with the exception of consumer magazines.
Leading the six media categories in corporate advertising dollars was consumer magazines at $91,017,800, up 3.1% from 1971 figures. Next came network television with $88,184,100, up 24.4% over 1971, then spot TV with $73,573,900, up 16.8%.
Outdoor advertising was fourth with $7,397,400 (up 66.6%), then network radio with $6,048,200 (up 108%), and last Sunday newspaper magazines at $1,449,100 (up 44.7%). Perhaps we should note that if network and spot television expenditures were lumped together, television would emerge as the top corporate advertising medium with $161,758,000. We must point out that newspapers and business publications are not included in LNA reports.
S: 1371-72 EXPENDITURES FOR CORPORATE AND ASSOCIATION ADVERTISING
.. CORPORATE ASSOCIATION '~ OA
~ ~~J 171m172 1071.17
14Toelvl5Lii!# 64,074,700 50,055,000 24,109,00 0731600, 88,184,100 70,786,600
.41088,800 9,55,800 31,785,100 23,441,000. 7 3,573.900 62,946,800
Q d 240855 : 5,273,300 3,511,200, : 7-397,40 4,366,700,
,860,5 19,30 00. 6# W2,890,000
.4710 11 994
Note that since these figures are for one-time rates, and Source: These data are compiled exclusively for the Public do not take discounts Into consideration, they must neces- Relations Journal, by National Advertising Investments, pubsarily be higher than actual expenditures. It must also be lished by Leading National Advertisers (LNA), New York, N. Y. considered that often It Is difficult to determine accurately Data is collected by LNA from Publishers Information Bureau which ads are corporate, and some ads that advertisers (magazines and supplements), Broadcast Advertising Reports characterize as corporate probably are not Included. (network and spot television and network radio), and the Institute of Outdoor Advertising. National Advertising Investments report shows expenditures in six media by brand and Is published semi-annually.
30 PUBLIC RELATIONS JOURNAL
JANUARYODECEMBER 1972 -TEN L NSM COMPANIES GENERAL PROMOTION (CORPORATE) ADVERTISN ISTEO It tQLLAR RANK ORDER ,
J l. TOWday
Totaln Mags MaR
opk per -Media zines zine TV
1 American Telephoo 4 T Ieqg b 19,616.1 5,939.7 .o 13 392
2 Exxon Corporation 9 .2 798.2 3937, 1,19
3 Ford MotorCopany 5,849.7 2,085.8 292.5 139
4 General Motors Corppo 5,513.5 325.1
5 Metropolitan Life Iurance CoMpy 4889.8 ,082.1 3,807,.
6 Shell Oil Company 4,560.6- 49.4 1,455. 54*4
7 Beneficial Corporatio. 4,548.9 8.9
Texaco Inc. 3 12~.132.1 32,
9 Gulf Oil Cqorporatlon 3,9292 ~ 93 -~ 3.15
10 Prudential bnauranag ~wmAm erc~ 3,940. Z 3750 .
op10Yea 6,283 1,908M925 -41, .195.59 .
JANUARV4ECEMBER 1972TEL IN COMPANIES ASSOCIATION ADVERTISING
LISTED IN 99LAR RANK ORDER
2 Florida Citrus Commission 6,167 '2109.3 7 4,844 4
3 .General Motors Cororatio ga a geMI. 4,387.1~ 32.2 ... 374.3
.5 Blue Cross & Blue Shield 3,478. 361.5 W 11
'6 Ford Motor Co. Dealer Associations 3,45LO0- 21.6 -my940 .. 45
California Milk Producers Advisory Sag 3,38L7/ 174.1 .347 805 6
Chrysler Corp. Deler Assoiation 3,1147
9 Savigs & ioan Foundation in3,7.8 ,1. .3 -.
\American PtoIem Instin.,835 254,6 in. 1 2
* Leading National Advertisders and Pubishers Information It must build favorable opinion about the company by Bureau term corporate advertising. "general promotion stressing the competence of the company's management, advertising," and define it as advertising devoted primarily its scientific knowhow, manufacturing skills, technological to selling the corporate personality, with its first objective progress and product improvements, and its contribution going beyond the direct sale of a single product or to social advancement and public welfare, and on the service. To be classified as general promotion, they re- other hand, to offset unfavorable publicity and negative quire an ad to fulfill one or more of the following quali- attitudes. fications:
I it must build up the investment qualities of its securi8 It must educate, inform, or impress the public regard- ties, or improve the financial structure of the company. ing the company's policies, functions, facilities, objectives, ideals, and standards. I It must sell the company as a good place to work (and
so is often designed to appeal to college graduates or to people of certain skills).
NOVEMBER 1973 31
Exhibit 4: 1973 Expenditures
1972m73 Expenditures for
Corporate and Association
A report on the Public Relations Journars
annual survey of corporate advertising.
Corporations and associations spent $317,309,100 on corporate advertising campaigns In 1973, 18.5 per cent more than the year before, according to LNA Multi-Media Services, published by Leading National Advertisers, Now York. While association "image" advertising increased only .05 per cent,,lrom $85,859,800 In 1972 to $90,331,600 In 1973, corporations' media expenditures for such advertising showed a dramatic Increase: up 24.8 per cent, from $181,810,700 in 1972 to $226,977,500 in 1973. 1
Corporations Increased their budgets for consumer and Sunday magazines, network and spot television, but spent less on radio and outdoor, LNA found. Associations increased their expenditures to Sunday magazines and ,spot television, but spent less with other media. Combined corporation and association LNA figures indicate that radio and outdoor garnered less corporate advertising campaign dollars than in 1972, while all other media showed gains. It's important to note that LNA does not include newspapers (although Sunday magazines are included) and business publications in its reports.
Leading the six media categories in total corporate advertising dollars for 1973 was consumer magazines, with $109,872,800, up 20.7 per cent over the previous year. Hot on magazines' heels was network television with $1 OB. 203,900, up 22.7 per cent.
Third was spot television with $86,378,300, up 17.4 per cent. (if network and spot television figures were combined. television would lead all media. with $194,582,200.)
Fourth in the struggle for total corporate campaign dollars was outdoor, with $6,277,900, down 15.1 per cent from 1972. Corporations trimmed their corporate outdoor budgets a whopping 33.9 per cent, from $2,124,100 to $1,403,900. Associations, which generally spend more "image" dollars with outdoor than corporations do, cut outdoor expenditures only .07 per cent, from $5,273,300 to $4,874,000.
Radio showed an important loss of 26.8 per cent, from $6,048,200 in 1972 to $4,421,300 In 1973. Associations cut their radio budgets only .07 per cent, from $1,219,300 in 1972 to $1,126,5W in 1973, but corporations cut back a drastic 31.7 percent, from $4,828.900 in 1972 to $3,294,800 in 1973.
Sunday magazines, although taking in fewer corporate campaign dollars than any other LNA-reported media, showed the highest percentage gain of any in 1973.'Combined corporate and association figures Indicate that Sunday magazines gained a whopping 48.7 per cent, from $1,449,100 in 1972 to $2,154,900 in 1973. Associations Increased their expenditures 39.6 per cent, from $713,500 to $996,700. Corporations jumped their Sunday magazine budgets a dramatic 57.5 per cent, from $735,600 to $1,158,200.
1972-73 Expenditum foe Caqwraw and Anoetaitim Adverdaing
CORPORATE ASSOCIATION TOTAC
1973 1972 1973 1972 1973 1972
Consumer Magazines S 87,905,400 S 68,258,600 S 21,%7,400 $ 22,759,200 $109,872,800 5 91,017,800 Sunday Magazines 1,158,200 735,600 9%,700 713,500 2,154,900 1,449,100
Network Television 84,517,900 64.074,700 23,686,000 24.109,400 108,203,900 88,184,100 Spot Television 48,697.300 41,788,800 37,681.000 31,785,100 86,378,300 73,573,900
Radio 3.294.800 4,828,900 1,126,500 1.219,300 4,421,300 6.048.200
Outdoor 1,403.900 2,124,100 4,874,000 5,273,300 6,277.900 7,397,400
6 Media Totals S226.977,500 $181,810.700 $ 90.331,600 S 85,8S9,8W $317,309,100 $267,670,500
Note that since these figures are for one-time rates, and do not Source: These data are compiled exclusively for the Public Relations take discounts into consideration, they must necessarily be higher Journal, by LNA Multi-Media Services, published by Leading than actual expenditures. It must also be considered that often it is National Advertisers (LNA), Now York, NY. Data is collected by LNA difficult to determine accurately which ads are corporate, and some from Publishers information Bureau (magazines and supplements), ads that advertisers characterize as corporate probably are not Broadcast Advertising Reports (network and spot television and included. network radio), and the institute of Outdoor Advertising. National
Advertising Investments report Shows expenditures in six media by
brand and is published semi-annually.
28 PUBLIC RELATIONS JOURNAL
TEN LEADING COMPANIES GENERAL PROMOTION (CORPORATE) ADVERTISING LISTED IN DOLLAR RANK ORDER
6-Medla MagazIne zines Network TV Spot TV Radio Outdoor American Telephone & Telegraph Co. $19,751. $ 4,545.2 S14,528.7 8 43.3 S 834.4 Exxon Corporation 13,6N.9 1,706.8 7,934.5 4,058.8
International Business Machines Corp. 7,623.9 43.9 7,551.4 .9 27.7
General Motors Corporation 7,179.2 1,622.2 4,179.8 603.8 483.6
Texaco inc. 6,275.4 396.8 4,713.8 795.8 360.4
Mobil Oil Corporation 4,918.2 341.8 4,517.3 57.1
Beneficial Corporation 4,874.7 9.6 1,125.7 3,739.4
Ford Motor Company 4,156.8 1,882.5 341.6 1,844.4 54.6 228.7 5.0
Atlantic Richfield Company 4,093.9 1,122.9 2,971.0
E.I. Du Pont De Nemours & Co., Inc. 4,067.2 4,054.2 2.2 .8
TOTALTOP 10 $78,828.8 $11,673.7 $341.6 $60,249.6 $12,614.3 $1,743.8 $6.8
*John HowLand. AT&T maistant vice presmident, stresses that LNA's figures for AT&T corporate advertiaing are too high. probably a result of duplicatia of figures. and the addition of doIars, spent by other than the parent company He kindly provded the PR Journal *h the foI owing breakdown of parent company AT&Ts totai naton adventsing expendnures for 1973: Magazizans and rewspapers--111. 7 ,500; network telk~tr-s5,325.246; pot t rwevis o o-,&7.36,144; rado-4959,000; tA-425,2 .890.
Martin Duffy, AT&T corporate dvermuag director, nores that this expenditure breaks down as follows. sales advemrsang--4 )%, Srvic Aid adverting ale. AT&rTs *"Twty Ways to Save Moory" ad).-10%, corporate "image building adverumi-10%
TEN LEADING COMPANIES ASSOCIATION ADVERTISING LISTED IN DOLLAR RANK ORDER
Total Maga6-Media Magazins zines Network TV Spot TV Radio Outdoor
American Dairy Association $8,480.9 8 703.5 $67.4 $ 1,000.3 $ 6,550.0 $ 130.7
General Motors Corp. Dealer Assna. 7,256.9 2.7 6,985.6 268.6
Florida Citrus Commission 6,968.5 410.6 17.3 5,799.6 598.2 162.8
American Gas Assn. Irnc 5,282.1 2,303.8 2,978.8 1.7
Ford Motor Co. Dealer Assns. 5,077.4 --- 3,732 1,342.2
Blue Cross & Blue ShIleld Commissions 4,495.3 663.2 738.68 3,093.5
Savings & Loan Foundation Inc. 3,722.6 6.2 3,630 2 84.0 2.2
California Milk Producers Advisory Board 3,554.1 9S.9 842.5 1,954.8 856.9
Chrysler Corp. Dealer Assns. 3,398.5 -- 2,526.4 872.1
Toyo Kogyo Co. Ltd. Dealer Assna. 2.130.5 2,830.5
TOTALTOP 10 $61,066.8 $4,187.0 $87.4 $14,788.0 $2,367.2 $162.8 $3,474.4
Leading National Adverlisers and Publishers company's management, its scientific knowhow,
Information Bureau term corporate advertising, manufacturing skills, technological progress and "general promotion advertising," and define it as product improvements, and .Its contribution to advertising devoted primarily to selling the social advancement and public welfare, and on corporate personality, with its first objective go- the other hand, to offset unfavorable publicity
Ing beyond the direct sale of a single product or and negative attitudes.
service. To be classified as general promotion,
they require an ad to fulfill one or more of the It must build up the investment qualities of its following qualifications. securities, or improve the financial structure of
it must educate, inform or impress the public the company
regarding the company's policies, functions,
facilities, objectives, ideals and standards. It must sell the company as a good place to
It must build favorable opinion about the work (and so is often designed to appeal to
company by stressing the competence of the college graduates or to people of certain skills).
NOVEMBER 1974 29
Exhibit 5: 1974 Expenditures
The price tag on '74 Institutional advertising
Corporations and associations spent a combined total of magazines gained in corporate advertising over 1973, and $311.8 millioti on Institutional advertising In 1974, 2 that Sunday magazines and radio gained In association percent loss than In 1973, according to the Journal's fifth advertising. All other media registered losses. Note that annual survey of these expenditures based on figures LNA does not include newspapers (although Sunday provided by LNA Multi-Media Services, published by magazines are included) and business publications In its Leading National Advertisers, reports. Consumer magazines also led the other media In
Total association "image" advertising expenditures de- total corporate budget allotments for the five-year period creased 3 percent, from $90.3 million in 1973 to $87.5 from 1970-74, with $401 .3 million. Of the six media, Sunmillion In 1974. Corporate media dollars for such day magazines ranked lowest In total corporate "Image!, advertising decreased 1 percent, from some $22.7 million dollars spent over the five-year period. Radio ranked In 1973 to $224.3 million in 1974. lowest for 1974, showing a substantial loss of 81 percent
Although corporate and association figures for 1974 from 1973.
Indicate a drop from 1973, compared to the totals repor- According to the survey, associations Increased their ted by LNA In 1970 (the first year of the Journal survey), 1974 radio budgets by 69 percent over 1973, the highest corporate expenditures have increased 50 percent and as- association percentage gain of reported media. Sunday sociation expenditures 27 percent over the five-year magazines garnered 7 percent more association advertiperiod, sing dollars in 1974, while expenditures in the other cat,
The survey Indicates that last year consumer gories dropped.
-1970-74 Expenditures for Association Advertising (in S thousands)
Per- Per- Per- Percent cent cent cent
1070 1971 chg. 1072 chg. 1973 chg. 1974 chg. Totals
magazines; $25886.3 523,515.1 (9%) $22759.2 (3%) $21,967.4 (3%) $21,174.7 (4%) $115,202.7 Sunday
magazines 995.0 407.1 (59%) 713.5 75% 996.7 40% 2,060.8 7% 5,1711.1
television 21,786.8 20,731.8 (5%) 24,109.4 18% 23,886.0 (2%) 20,441.3 (14%) 110,755.1 spot
television 15,075.8 23,441.0 55% 31,785.1 36% 37,681.0 19% 37,236.5 (1 %) 145,210.4 Radio 1,548.4 1,029.5 (34%) 1,219.3 18% 1,126.5 (8%) 1,899.5 69% 6,623.2
Outdoor 5,484.7 3,511.2 (36%) 5,273.3 5% 4,874.0 (8%) 4,670.1 (4%) 23,70.3
totals $70,757.0 $72,635.5 3% $16,85611.8 18% 500,331.6 5% $87.482.9 (3%) $407,0664.6
1970.74 Expenditures for Corporate Advertising
(in S thousands)
Per- Per- Per- Percent cent cent cent
1070 1071 chg. 1072 chg. 1673 chg. 1074 chg. 'Totals
magazines $ 78,168.0 $ 64,711.9 (17%) S 68,258.6 5 $879.429% $102,231.0 16% $401,274.0
magazines 1,803.7 587.1 (67%) 735.6 25% 1,158.2 57% 719.4 (38%) 5,004.0
television 39,147.8 50,055.0 28% 64,074.7 28% 84,517.9 32% 78,903.8 (7%) 316,600.2 Spot
television 27,884.3 39,505.8 42% 41,788.8 6% 48,697.3 17% 40,708.0 (16%) 108,584.2 Radio 1,675.1 1,860.5 11% 4,828.9 160% 3,294.8 (32%) 611.2 (81%) 12,270.5
Outdoor 868.4 855.5 (1 %) 2,124.1 148% 1,403.9 (34%) 1,162.8 (17%) 6,414.7
totals $140,547.3 $157,575.6 5% $181,810.7 15% $226,f77.5 25% $224,336.2 (1%) $840,247.5
Note that since these f figures are for one-time rates, and do not Relations Journal, by LNA Multi-Media Services, published by take discounts into consideration, they must necessarily be Leading National Advertisers (LNA), New York, N.Y. Data am higher than actual expenditures. it must also be considered that collected by LNA from Publishers Information Bureau often It is difficult to determine accurately which ads are (Magazines and supplements). Broadcast Advertising Reports corporate. Some advertisements that advertisers characterize (network and spot television and network radio), and the as corporate probably are not included. Institute of Outdoor Advertising. National Advertising Investments report shows expenditures In six media by brand and IS
Source: These data are compiled exclusively for the Public published semi-annually.
36 PUBLIC RELATIONS JOURNAL
Ton Loading Companies-General Promotion (Corporate) Advertising January-December 1974-Listed In Dollar Rank Order
(in S thousands)
.6 Media Magazines Magazines Network TV Spot TV Radio Outdoor
American Telephone &
Telegraph Co. 22,565.9 $ 6,601.5 .... $15,901.7 $ 62.7 .... ....
ExxonCorp. 13,558.0 3,020.2 ---- 10,369.9 143.3 $ 24.6
General Motors Corp. 7,725.3 4,014.2 ---. 3,143.6 368.4 199.1 ....
Shell Oil Co. 6,881.4 1,899.8 .... 4,923.3 58.3 .... ....
Texaco Inc. 6,684.6 1,946.6 .... 4,259.2 446.3 32.5
Phillips Petroleum Co. 6 8,280.2 1,308.8 .... 423.6 4,547.8 .... ....
General ElectricCo. 6,172.3 1,252.5 .... 4,278.7 641.1 .... ....
Mobil Oil Corp. 5,310.1 1,610.7 .... 3,688.5 7.6 3.3 ....
E.I. DuPont De Nemours #
& Co., Inc. 4D 5,10 7 ---- .... 5,105.1 ---- .... $ .8
In te rn a tio n a l T e le p h o n e 8 . . -
& Telegraph Corp. 5,078.3 819.8 .... 3,834.9 423.6 ....
Total $22,474.1 ---- $55,928.5 $6,699.1 $259.5 $ .6
Ton Leading Companies Association Advertising January-December 1974-Listed In Dollar Rank Order
(in S thousands)
0 Media Magazine* MagazInes Network TV Spot TV Radio Outdoor
American Dairy Assn. 8,268.7 $ 411.8 $430.1 ---- $ 7,236.2 .... $ 191.6
American Gos Assn., Inc. 4,86.? 2,370.4 .... $2,496.5 .... .... 1.8
California Milk Producers r'
Advisory Board 7 4,466.0 48.2 182.4 400.0 3,198.8 .... 631 2
Ford Motor Co. Dealer
Asn. 4,381,7 9.5 .... -.- 2,961.8 .... 1,400.4
Blue Cross & Blue Shield
Commissions 4,323.t 793.8 ...534.0 2,995.2 .... 1.0
Savings & Loan
Foundation, Inc. "' 4,143.7. -... .... 3,86.2 282.8 .... 4.7
Chrysler Corp. Dealer
"""s -- .. 2,801.2 .... &U5.I
DelveryAssn. 3,S47,. 183.8 .... 2,871.9 141.4 $ 495 1.2
Commonwealth of Puerto .4
Rico '$,110.0 3,051.7 .... .... ---- ---- 59.2
InstituteofLIfeinsurance 2,764.5__ 1,282.2 .... 1,502.3 ..... ......
Total $8,149.0 $ 612.5 $11,660.9 $19,807.4 $ 49.5 $2,826.2
Leading National Advertisers and Publishers Information stressing the competence of the company's manageBureau term corporate advertising "general promotion ment, its scientific knowhow, manufacturing skills, Advertising" and define It as advertising devoted primarily technological progress and product improvements, and to selling the corporate personality, with Its first objec- Its contribution to social advancement and public weltive going beyond the direct sale of a single product or fare, and on the other hand, to offset unfavorable service. To be classified as general promotion, they re- publicity and negative attitudes. quirean ad to fulfill one or more of the following quallfl- It must build up the investment qualities of Its nations: securities, or improve the financial structure of the
It must educate, Inform or Impress the public regarding company. the company's policies, functions, facilities, objectives, It must sell the company as a good place to work (and Ideals and standards. so is often designed to appeal to college graduates or to
It must build favorable opinion about the company by people of certain skills).
NOVEMBER 1975 37
Exhibit 6: 1975 Expenditures
4% 401) o
U.S. corporations and associations consumer magazines, network TV, and Data for the survey are compiled spent a combined total of $305.4 million spot TV. The largest increase for exclusively for the journal by LNA on institutional advertising in six major associations was in network television. Multi-Media Services, published by media in 1975, 2 percent less than in In dollar outlays, corporations spent Leading National Advertisers (New 1974, according to the Journal's sixth more last year in consumer magazines. York). Data are collected by LNA from annual survey of these expenditures. followed by network TV. Association& Publishers Iqformation Bureau (magaCorporate institutional advertising spent more in spot TV, followed at a zines and supplements), Broadcast was cut by 6 percent last year, following considerable distance by network TV Advertising Reports, and the Institute a I percent decrease the previous year. and consumer magazines. of Outdoor Advertising. National
Association advertising increased 9 Over the six-year period of the survey, Advertising Investments report shows percent in 1975, following a 3 percent corporations have registered their most expenditures in six media by brand cut in 1974. dramatic increase in the use of Sunday and is published semi-annually. Ex.
Although the combined figures for magazines. This medium is showing a penditures for magazines and newspacorporate and association advertising significant comeback with a 2 percent per Sunday supplements are summarizindicate a drop of 2 percent for 1975, gain in 1975 following a 38 percent drop ed by LNA from the PIB Magazine corporate institutional advertising ex- in 1974. Associations also have had their Advertising Analysis. Spot TV expendipenditures have increased 40.5 percent sharpest increase over the six-year tures are determined from7 monitoring since 1970 (the first year of the Journal period in Sunday magazines, although 260 stations in 75 top markets. survey) and association outlays have expenditures in this medium were off Outdoor advertising expenditures repreincreased 34.6 percent during the "me last year by 23 percent. sent national poster and paint advertisperiod. Other tables below show the ing in plant operator markets of over
The survey, as recorded in the aix-media expenditures of the 10 100,000 population. Since figures are following tables, shows that corporate leading corporations and associations for one-time rates, and do not take institutional advertising was off in 1975 for 1975. Exxon has replaced American discounts into consideration, they must in consumer magazines, network Telephone & Telegraph as the top necessarily be higher than actual television, and outdoor advertising; up institutional advertising spender among expenditures. It must also be considered in Sunday magazine supplements, spot the corporations, while the American that it is often difficult to determine TV and radio (the largest increase with Dairy Association remains number one accurately which advertisements are 47 percent). Association advertising was among association spenders. institutional. Some ads that advertisers off last year in Sunday magazines, radio characterize as institutional probably
and outdoor advertising, up in are not included.
26 Public RelationsJournal
1970-75 Expenditures for Corporate Advertising in S thousands) Per- Per- Per- Per- Percent cent cent cent cent
1970 1971 chg. 1972 chg. 1973 chg. 1974 chg. 197S chg.
nagauines $78,168.0 $64,711.9 (17%) $68,258.6 5% $87,905.4 29% $102.231.0 16% $88,961.0 (13%) Sunday
magazines 1,803.7 587.1 (67%) 735.6 25% 1,158.2 57% 719.4 (38%) 735.7 2%
television 39,147.8 50,055.0 28% 64,074.7 28% 84,517.9 32% 78,903.8 (7%) 72,485.1 (8%) Spot
television 27,884.3 39,505.8 42% 41,788.8 6% 48,697.3 17% 40,706.0 (16%) 46,337.4 14%
Radio 1,6751 1,860.5 11% 4,828.9 160% 3,294.8 (32%) 611.2 (81%) 900.5 47%
Outdoor 868.4 855.5 (1%) 2,124.1 148% 1,403.9 (34%) 1,162.8 (17%) 710.9 (39%)
totals $149,547.3 $157,S78.8 5% $181,810.7 15% 8226,977.5 25% 8224,336.2 4l%) 8210,130.6 46%1
1970-75 Expenditures for Association Advertising lin 8 thousands) Per- Per- Per- Per- Percent cent cent cent cent
1970 1971 chg. 1972 chg. 1973 chg. 1974 chg. 1975 chg.
magazine* 825,886.3 823,515.1 (9%) 822,759.2 (3%) 821,967.4 (3%) 821,174.7 (4%) $22,110.4 4% Sunday
magazines 995.0 407.1 (59%) 713.5 75% 996.7 40% 2,0608 7% 1,579.7 (23%)
television 21,786.8 20,731.6 (5%) 24,109.4 16% 23,686.0 (2%) 20,441,3 (14%) 26,320.8 29% Spot
television 15,075.8 23,441.0 55% 31,785.1 36% 37,681.0 19% 37,236.5 (1%) 40,474.3 9% Radio 1,548.4 1,029.5 (34%) 1,219,3 18% 1,1265 (8%) 1,899,5 69% 1,740.1 (8%)
Outdoor 5,4647 3,511,2 (36%) 5,2733 5% 4,8740 (8%) 4,670 1 (4%) 2,996.6 (36%)
totals $70,757.0 872,635.5 3% 8845,8598 18% $90,331.6 5% 87,482.9 13%1 1195,221.9 9%
Ten Leading General Promotion ICorporatej Advertisers January-December 1975--Listed in Dollar Rank Order iin $ thousands
6 Media Consumer Sunday
Total Magazines Magazines Network TV Spot TV Radio Outdoor Exxon Corp. $18,616.5 1 4,448 3 1- 812,307,7 $1.5603 $300.2
American Telephone & Telegraph Co. 11,872.7 4,635.0 7.141.0 335 63.2
Phillips Petroleum Co. 8,143,0 1,8330 4,771.6 1,538.4
International Business Machines Corp. 5,9822.5 2,2306 112.2 3,292.6 447.1
Mobil Oil Corp. 5,612.3 2,335.1 3,269,6 7 6
Shell Oil Co. 5,268.9 119.4 5,096.0 53.5
Texaco Inc. 5,137.0 1,165,5 3,017.0 954.5
General Electric Co. 4,480.5 1,228.1 2,996.4 255.8 80.2
Standard Oil Co. of Indiana 4,2984 308.0 .. 3.9904
International Telephone & Telegraph Corp.4248 579 4 2,5290 1,1864 .
Total 873.706.6 118,8824 812.2 44,4209 830,0275 f3634 $02
Ten Leading Association Advertisers
January-December 1975-Listed in Dollar Rank Order fin 8 thousands)
6 Media Consumer Sunday
Total Magazines Magazines Network TV Spot TV Radio Outdoor American Dairy Assn. $8,825.1 $ 368.2 W433,8 S 7,8603 .. 8 162.8
Florida Citrus Commission 8,1953 .... 8 6,970.8 985.8 8237.6 1 I
Ford Motor Co. Dealer Assns. 4,645.9 ...... 3,8.5 .. 815.4
General Motors Corp. Dealer Asn. 4,557,3 4,7 .... 4,222.4 330.2
Blue Cross & Blue Shield Asans. *. 4,332.0 288.4 4,043 6
California Milk Producers Adviaory Board 4,211,1 27.2 435.6 709.3 3,039.0
Savings & Loan Foundation Inc. 4,206.9 51.8 -. 4,023.5 126.9 .. 4.7
Institute of Life Insurance 3,705.3 3250 -- 3,380.3
American Gas Assn. Inc. 3,684.1 2,305.1 1,377.0 .. .. 2.0
Commonwealth of Puerto Rico 3,088.7 3,088.7 ....
Total $49.451.7 $6,4591 88694 816,460.9 i24.108,5 $237.6 $1,316.2
Exhibit 7: 1976 Expenditures
Company "corporate" advertising in Sun- was up in 1976 in A six media. In addi- are collected by LNA from Publishers Inday supplements soared an incredible tion to Sndy magazines, association ad- formation Bureau (magazines and sup750.4 percent in 1976. continuing a pat- vertising was off in radio (down 32.7 per- plements), Broadcast Advertising Retern of dramatic fluctuations. Conversely, cent, following a 47 percent gain in 1975). ports, and the Institute of Outdoor Adverassociation advertising in this medium Sharpes~t increase for associations wan in tising. National Advertising Investme*nts continued to decline, dropping 53.9 per- spot TV. report shows expenditures in six media by
cent after falling off 23 points in 1975. In dollar outlays, corporations continue brand and is published semi-annually.
These figure are revealed by the jour- to spend the bulk of their corporate adver- Expenditures for magazines and newsnal's seventh annual survey of corporate tising funds in consumer magazines and paper Sunday supplements are Sumadvertising expenditures, which also network TV. As in 1975. associations marized by LN A from the PIB Magazine shows that U.S. corporations and associa- spent more in spot TV, followed at a con- Advertising Analysis. Spot TV expenditions spent a combined total of 5410.4 siderable distance by network TV and tures are determined from monitoring 260 million in six major media in 1976, 34.4 consumer magazines, stations in 75 top markets. Outdoor adpercent more than in 1975. Other tables show six-media expendi- vertising expenditures represent national
In addition, corporations and associa- tures of the 10 leading corporation and poster and paint advertising in plant tions separately spent considerably more association advertisers for 1976. Exxon operator markets of over 100,000 populaon corporate advertising in 1976. Survey remained the top spender among; corpora- tion. show s that corporate advertisers' expends- tions, while Florida Citrus Commission Since figures are for one-time rates, and tures were up 39.3 percent in 1976, fol- replaced American Dairy Association as do not take discounts into consideration, !owing a 6 percent cut in 1975. Associa- number one among association spenders. they must necessarily he higher than Lion expenditures increased 23.6 percent, General Motors, not on the top 10 list in actual expenditures. It must also he confollowing a 9 percent rise in 1975. 1975, ranked third in 1976. Toyota sidered that it is often difficult to deterSince 1970 (first year of the Journal Dealers Asans. is a new addition to the mine accurately which advertisements are survey), corporation expenditures have leading association advertisers list, corporate. Some ads that advertisers charjumped 95.7 percent; association ex- Data for the survey are compiled ex- acterize as corporate probably are not inpenditures have increased 66.4 percent. clusively for the Journal by LNA Multi- cluded.w
The survey, recorded in the following Media Services, published by Leading
tables, shows that corporation advertising National Advertisers (New York). Data Peg Dardenne
22 Public Relations Journal
el Ail a 'M
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24 Public Relatiom joumel
CASE STUDIES ON CORPORATE ADVERTISING
Exhibit 8: Case Study-ITT
ly?'s APPROACH TO CORPORATE ADVERTISING
BY E. J. GERRITY, JR.
O rganiza:in and standards *'
for control are as )ental
as creativity in developing i
corporate ad.,-rtising th at 1
~more than tebgbat
In the field of ade r:i ng much has been %si:: n- bout how to effeA
vell utse arn to ac>mpnieh
but in frtnding*: reise metod for Crznigteadsrkn ae
lion in such a was so ta it eil x:erk foruntnes and sues of cmies Only the n in LeffCe ad e r isn be pr nuc cd. n :h I FT h d lmed an inter n
conunl tik nts :nmsuhh facids a fo d hol1) n nu iy d blp cc, ds, in gn r. oin th peof. mertin rsprhann puH hm Munication bjct, ces o p t 1e ireputr ifrcnt in a
We are an international croa- lot of ways. Bu-t the samT-e in one.
tion s W ith 'I, :L n fi n p m n y n
93 countirA iesA aeoult in 37
diar g ntn inals, fores iothe .
mdrktsingusofa comerpbnes and industrial products n ch ilds food, hotelre, comm unrey'"o"*et, strangsportaonpulishng, eduCation, latn care, computer appliafions, insurance, fnanec, mony managcnm,,nt, m rasfoet pro- -;:: I;y; :-~: ITT
ducts, in ILustrial comnponcnts and indusril roucs ad onros.U. S. corporate ad features ITT's "Open door"
Strong central i nanagenwnI executive recruitment policies and practices,
Cooperation between li and staff especially in relation to minority groups and
management is fud 4ena to our women, to insure a continuity of skilled manoperation. One of our ground rules is agers equal in every way to the demands of
that any member of 1i1 World the future.
Headquarters management has the right to deal directly with any member of management in an operating unit on matters relating to the scope headquarters continuously monitors of his own responsibilities or assign- the operating units to help identify E J. GERRITY JR. is senior tice president ment. opportunities for improvement.
and director corporate relations and ad- Within this flexible framework, a This concept is implemented by vertising. International Telephone & Teletraph Corp., New York City. strong central management group at using several sources of review and
NOVEMBER 1972 33
33-291 0 78 3
Sample global corporate ad features ITT communications system
ilistalled in Lufthansa's new Cologne headquarters. The ad will appear in leading publications internationally in English,
Spanish, Portuguese, Italian, French, German and Chinese.
information on major issues, and by cations. proper focus does not mean, as might
maintaining a flexible staff of special- be expected, a staff of hundreds of
ists and generalists who can assist an "Management niust inanage" managers at World Headquarters.
operating unit if it is confronted with policy-One of the methods used to Instead, there is a seven-man staff a large or unusual opportunity or implement a successful advertising which supervises the global operproblem. program at ITT is to have a mini- ation.
The World Headquarters corpo- mum of red tape. At the corporate They include the director, adverrate relations and advertising depart- level the advertising director and his tising and sales promotion; deputy diment is one of a number of corporate staff know that once a program is rector, advertising and sales promostaffs which operates within this approved by my office they can start tion; manager, consumer advertising framework. working on it. and sales promotion services; manag* Global responsibilities-How Their projects seldom get bogged er, advertising and sales promotion does a company involved in so many down in time-consuming meetings or services-Latin America; manager, marketing activities and with such a stalled because of the traveling com- sales promotion services; administravariety of products and services use mitments, illness or whatever of one tor, sales promotion services; and advertising to achieve its corporate individual. Harold Geneen, ITT's manager, special projects. communications objectives? chairman and president, believes that
We have learned how to plan, "management must manage" and 9 Standards for control-The
coordinate, and control advertising that is why the day-to-day organiza- minimum amount of management functions based on the strong central tional and strategy responsibilities are manpower at the advertising manmanagement concept. The corpora- left to the headquarters advertising agement level at World Headquarters tion's worldwide advertising function section. reinforces Mr. Geneen's "managein New York has established corpo- To manage effectively, the adver- ment must manage" policy. And it rate-wide standards of quality, ac- tising man's job functions must be can., work for any size company counting procedures, graphic guide- clearly defined. For example, in ITT providing that managers have standlines, and a self-appraisal program headquarters the deputy director, ad- ards for control. that is used by our advertising people vertising and sales promotion is re- Without standards for control, adthroughout the world. The appraisal sponsible for the administration of vertising will not in a significant way standards are such that they can be the World Headquarters advertising accomplish communications objecused by any company within ITT to secti o n. He assists the director of ad- tives. Even with knowledgeable and meet its s ecial needs. vertising and sales promotion in the sophisticated advertising and marketp supervision of almost $90 million in ing men on staff and with a cooperThe New York based advertising ITT domestic and international ad- ative and innovative top managegroup directs and monitors activities vertising. ment, advertising managers and their
in Europe, the Middle East and Afri- His responsibilities include evalua- subordinates must have standards for ca, Latin America, and in the Far ting the structure and effectiveness of control. East and Pacific. It is headed by a unit advertising departments, select- Our units use the ITT Standard director of advertising and sales pro- ing ad agencies and hiring new unit Business Planning Guide to prepare motion who reports to my office. ad managers and indoctrinating them their annual advertising plan. The
The ITT headquarters advertising in ITT policies, procedures and Guide contains information about the group also monitors the efforts of standards. mission of the advertising function,
over 80 advertising agencies and is Each advertising man on the head- problems, measurable goals, strategy responsible for trade shows, graphics, quarters staff has his job function just to be used and supportive data. brochures, product and corporate ad- as clearly defined as does the deputy One section in the Guide includes vertising and other activities related director. Keeping the complexity of statements on the benefits which will to corporate and product communi- the corporation's involvements in accrue from using a certain advertisNOVEMBER 1972 35
Another global corporate ad used to communicate ITT's capabilities in its traditional business of telecommunications and electronics in Europe, the Middle East, Africa, Latin America, and the far East and Pacific.
.,FR 1 972 37
The way to a kid's head is through his stomach.
<0 mI 7t:7 rmi- 77"..A
e O +.+i i n~lSo ( 5 rti~e., hh4
t*.* fAr d d t ,C,.m te t. u d G~i. (,CJfl d & ih ef nipJo~ e I i,,~v ng Y~.hoeehdd n,,n ie U~i~g~0.i '-A cr re ad, diected to gvernmen o ia, minority
Uco.orprate adh drecDpatet goveArnmentuoficl, mineeorit
nutritious foods for children in schools, day care centers and Head Start programs, through Continental Baking subsidiary.
advertisement featuring his work. our demonstrated interest in a mem- Global Corporate Research proEach global advertisement appears ber of their artistic community, grams.
in major international publications In addition, each artist without ex- Our broad objectives for 1972 are: throughout the world in English, htal- ception has reported that his career ian, German. Spanish, Portuguese, has enjoyed a major change for the To strengthen the recognition
French and Chinese; and each better once the advertisement featur- and awareness of ITT which reaches an audience in excess of 17,- ing his work appears. presently exists among informed
500,000. Research has documented the fact Americans, and to generate this
The color global advertisements that the quantifiable goals originally same response among those not shown here are a sampling of those set down for this campaign were too yet exposed to our commnunicadeveloped and released to date. In modest. tions efforts.
addition to paintings, we have corn- oTo gain ready acceptance of,
missioned a tapestry, sculptures and U.S. Campaign-In 1972, our and appreciation for, ITT as a
a stained glass work. U.S. corporate advertising was de- valuable and beneficial business
We have commissioned artists in signed to communicate the positive enterprise.
24 countries worldwide. Without ex- values and policies of the corporation To position the corporation as a ception, members of foreign govern- in a climate of public concern, major company actively enment agencies important to us in the The objectives detailed here were gaged in meeting its cnvironmarketing of telecommunications selected in full recognition of both mental and social responsibili"
have all reacted very favorably to the events of 1971 and the insights ties. this campaign concept, particularly to received from the 1971 U.S. and
38 PUBLIC RELATIONS oNA
To establish that the manage- to both the economy and our society corporation's being a well-managed
rnent of ITT is thoroughly dedi- on one hand and, on the other, the and socially responsible corporate citcated to the systematic training role of ITT's innovative management izen wherever it operates.
and promotion of qualified ex- practices and financial resources as In addition, the campaign is meant ecutives, to insure a continuity they are applied to each of these four to increase target audience awareness of skilled managers equal in ev- basic strengths of the corporation: that ITT is the largest manufacturer cry way to the demands of the management, financial acumen, so- in Latin America of telecommunifuture, cial responsibility, economies of size cations equipment, with proper emThe broad objectives were subse- (or multi-nationality). phasis placed on quality, reliability
quently translated into specific, and modernity.
mc;surable goals. Latin America Campaign--Our Special advertising emphasis is
Our US. campaign utilizes black- Latin American corporate advertis- placed in Argentina, Brazil, Mexico, jd-white spreads and one-page ing, also handled from World Head- Peru and Venezuela. And about 80 adaptations. These run in major pub- quarters, is designed to communicate per cent of media weight is concenlications directed to the business, pro- to target audiences in certain coun- :rated in the major cities in these ssional and financial communities, tries the facts concerning lIFT's countries; featured are local or nagocrnment at all levels, educators, many, varied and sizable contribu- tional subjects that lend themselves employees, investors, and minority tions to the arca's development, to the further development of a posigroups. tie corporate image.
Wherever possible, a direct rela- The campaign is also designed to Media include four internationally tionship is established between our generate favorable attitudes toward circulated publications through which corporation's beneficial contributions IT with particular emphasis on our (Conzimed on page 42)
When they're too old to play,
will they all have a job?
-.-- -. -C..- ITT
To document the many contributions made to local economies, iTT ran this ad-one of a series-in Latin America in English, Spanish and Portuguese.
'O',V EBE 1972 39
'000~*- ~ ,
To document the many contributions made to local economies, ITT ran this ad-one of a series-in Latin America in English, Spanish and Portuguese.
' OVEMBER 1972 39
urable goals, and then uses effective creative advertising strategies to ae. complish them.
The success of the creative ap. proach used in the ITT campait featuring the art of international an. ists, for example, was based on an advertising plan in which the element of risk was reduced to a minimum through the use of guidelines.
Advertising creative guidelines are included in the ITT Graphic Stand. ards Manual and show how to es. Centuries of wisdom tablish identification systems.
Mo.re thn. onds h,.lft housandyea textile ndultry the leading forei., Some people- especially creative
ago, smIt land of monk nelered and change aIrner,
led b, Sd, .t Out to tch the Esse.1 to coomc ep.on A people-might object to the so-called
dcWtne of enhaltenmen, tlhe noble effcent, rebable commni atlon ne
trh From t .N bgg .. gather g -os As r.o h conti c -- rigidity of guidelines. But guidelines
of people i~tlna n qgesloonng, lQes nin talons bet-wleen Gonfernments sond
thtr*" rlegionetf 0, hrsmea- ed peopint wltmn Industry ad eth thd ntee ha l
...,,,,d.1-. ..ageof p ,m l market centres of the wd beoe don't mean that all communications
Omunooo ,rOns. Wcos. Ali volty nportntl The InlternrOnal Tele
in T .... te. s. dhsIo...... a on..n. ., ,, co epe Coreo- g oT should look alike. The idea to run
Ch.nghu sJ.s proudly on a n n Of manuflcue and spphes equipment to
pp,, res,,,. .... toda, o......1 1 e... comm-*.... d. the ads featuring fine art was unique
forgetrng the t.eahing of yesterday equpmen t as diver a telex slwtchIng.
A . ,ho n pedIng1. -Vy dnctror ... m.c yterls. p0otl u.aom. o to ITT yet the basic layout and style
better ho.me. e e schoos1 improved q-pument and navgali iSil Iid 1-h stendiudl of h-9. an eConomy On the Play A tNg Part hn the d.;elopmnen1 and
0" 1 i .,o,0 of .. .00.o. I' ..""". conformed to the corporation's guideWth the e'onomv entering a newv phase, Help'ng people sad nahons communlncate
d h..a ~o..n g n t.. a...r of .T s. b T lines on advertising formats.
sOae of the gob n0 on1 pro dcl a and P f Ine, G.P O Bo. 15349,
E iwlrocs are challenging the mammoth Hong Kong
What is also achieved through guidelines is flexibility and versatili.
SIRVINCPIOPI AND NATIONS EVRYWHERE ty-the essence of an effective iden.
tification system. The system must, however, express the basic attributes of the company in the time-enduring This Far East and Pacific corporate ad elements that stand for the company:
links up ITT's regional capabilities with in trademarks, nomenclature, typethe objectives of the global art campaign. faces, formats, and so forth.
It will appear in leading Asian business Our policies concerning advertising
publications, expanding on the copy leave little to chance yet do not stifle
theme in the color global ad on page 36. the creative process. Our advertising
people know they are directly responsible for a variety of communications functions and they make their own decisions based on their knowledge of their unit marketing objectives.
ads in English, Spanish and Portu- this program; and the results have ITT corporate advertising reflects
guese reach government officials, been excellent, the understanding we have garnered
business executives, communicators, The importance of recruitment is from years of experience in dealing scientists, technical leaders, educa- confirmed by our corporation's con- with diverse and complicated martors, and ITT employees and dis- stant need for superior manpower. kets. In doing so, we have been able
tributors. (Today we employ 400,000 men and to use corporate advertising coupled
women, worldwide.) Therefore, re- with a variety of other communicaSCorporate ads recruit, too- cruitment is always a considered fac- tion strategies to help achieve the
One of the most important advertis- tor in all ITT product and corporate corporation's overall communications ing challenges at ITT has to do with advertising-whether global, regional, objectives. the recruitment of new managers and national or local. Needham, Harper & Steers in NWC
other executives. York City is the advertising agency
In 1959, ITT launched what is Worldwide success-ITT's world- for four U.S. and global corporate
perhaps the most comprehensive pro- wide corporate advertising has been advertising campaigns, and Gardner gram of planned growth in the his- successful because the advertising Advertising Company, same city, tory of American business. ITT ad- function is organized, sets attainable handles our Latin America corporate vertising played an important role in communications objectives and meas- advertising.
42 PUBLIC RELATIONS JOUgR%'4
Exhibit 9: Case Study-Tenneco
The Company: of Tt-;eco Chemicals and its Maio,
Tenneco Chemicals, Inc. prodc: lines. In some additional pri.
Serving the chemical process industry vate --erviews with a number of trade with a wide variety of chemicals, rang- publi:tion editors, it was found that ing from basic raw materials to nearly they, -.o, lacked a good understanding
finished products, Tenneco Chemicals of whE the Company was, so fast had is an important producer in the areas the rrgers and acquisitions occurred. TENNECO of plastics, naval stores, coatings The C npany immediately launched an
CHEMICALS chemicals, petrochemicals, packaging infor>:itve four color corporate cam.
materials, colors and dyestuffs, and pa- palgr ,'Adressed to chemical manage. Raising per processing chemicals, men, .1d purchasing agents. The cam,
The Level paigr an for 15 months and was fol.
Qf Level lowed -y a second direct mail attitude
Of Awareness" surve
)JA The cond survey of purchasing
agent: 3nd executives recorded an in.
crease. )f over 22% in the proportion
of resinses stating that respondents
were *eniliar with company, its repute.
ion aT1 its products. Tenneco Chemi.
L cals v.-.ch placed third in recognition
A- amonF a field of five competitors in
June _"67, landed in first place among
the s ne competitors in the August
Bas,-_ on these successes, and under
the d,,--tion of Donald K. Beyer, TCI's
mana of public relations and adver.
The Problem: rising, 'he corporate advertising prOTenneco Chemicals, Inc., a division of gram vas shifted to Phase 2. "Now that Tenneco Inc. (formerly Tennessee Gas we ha: established the recognition fac. Transmission Co,), was a new corporate tor, thF next logical step was to start entity, the result of many mergers and positicning ourselves as an innovator in acquisitions among smaller and older the ch,-nical industry," he says. "That firms. Many of these mergers were car- series ;f corporate ads has also been ried out within a three year period, highly ccessful '" Mr Beyer reports. Thus the company had a fuzzy, indis- "And ve are just about to embark on tinct image. Many people confused Ten- Phase neco Chemicals with its parent compa- Comenting on his dual role as both ny, Tenneco lnc, or Tennessee Gas public -elations and advertising man Transmission Co The problem was to for Teineco Chemicals, he says ., raise the level of awareness of TCI and -'Both ?R and advertising have the its major product lines among the man- same utimate objectives: to communlagement, purchasing officials and tech- cate a -nessage to audiences ranging nical staffs of present and potential from .neral to very specific. And while customers, I'm wel aware of the believability a06
validit of PR's editorial approach. I
must :2nfess that it's comforting tO
know tat, at least in the case of an ad.
Strategy: you ca- guarantee your management
In June 1967 a direct mail, bench mark where r Nill appear, when it will appear. attitude study showed that chemical and e;:-ctly what it will say!" purchasing agents and industry execu- Tha says it for corporate advertistives had an inadequate idea of the size ing! 1)
44 PUBLIC RELATIONS JOVOAt
Exhibit 10: Case Study-oBurlington Northern
a- -: BURLINGTON NORTHERN ... "Setting the Record Sfro;ght'"
MOST AMERICANS think of their railroads in terms shipping helps keep down prices for items consume. of passenger trains. They are convinced railroads ers need and use. don't (or didn't, depending upon the individuals Tests made of consumer groups on the advertis.
familiarity with the advent of Amtrak) want pas- ing messages provided heartening evidence that the sengers to ride trains. They believe railroads are public did indeed get the message, in spite of any old-fashioned and their manage- preconceptions originally held
ments incompetent, at best, and about railroads.
quite possibly dishonest. They Burlington Northern readily
also seem to think rail manage- concedes that ads for a highly
ments are not overly concerned Z.. complex subject such as freight
with the best interests of the transportation cannot be ex.
public. Wetake pected to make a professional
The facts tell otherwise. Rail- asmalcut. traffic manager reach for his
roads are pretty much divorced telephone to route his next ship.
from the passenger business; ment via BN, but the company
their ability to carry enormous believes advertising may assist
volumes of freight with just a few its sales and marketing reprediesel locomotives on a very nar- Woradomsthke rs ,,ther youre sentatives to the extent a shipper
heapl eaa or shipping -toks or bram
row roadbed contributes to the "I Upffl. c,,.l lnkxf..you6.0 is likely to welcome a salesman
B;!SL, wo em qe tyoursl twfind out hol
cause of clean air and p rovident t ,,9 5s ,, ,.Ch o merfna ,o by com m enting- favorably, they
w m keti fo r ho t 2 a l~ A im d w th e li on c l strib ut o n
land use; that the goods they 1~ wa- trust,---on BN advertising he
carry (foodstuffs, clothing, etc.) ... may have seen the previous eve.
cost often only a fraction that of U ning.
sending a letter the same dis- Realizing that sales are untance is another plus for the industry, likely to result from advertising (although there are.
Railroads really are on the side of the angels! exceptions) BN focuses its advertising effort on the Yet the industry has a bad image, and it's need to achieve public understanding of why a railsteadily worsening. road exists. The company sees education and under.
If most of the nation sees railroading as an amor- standing as the primary goal of its advertising.
phous Penn Central, what should the healthy roads While Burlington Northern's communications do to set the record straight? goals reflect a desire for corporate identificationBurlington Northern, which was formed in 1970 and indeed survival-there is a broader interest inby the merger of four western railroads, conducts volved. For if because of lack of public confidence a public communications program using advertis- the railroads of the U.S. are denied necessary SUP* ing and conventional public relations disciplines, port, and as a result are nationalized by forces that
BN's current television and print advertising see government ownership as a panacea to all prolb represents the results of more than a decade of lems, the causes of private enterprise in a nation experimenting with the receptivity of the public famed for entrepreneurs will suffer a grievous blow. to messages concerning basic freight information. Its passing will be far more significant than the
The theme of the ads go to the heart of what loss of the steam locomotive whistle in the night. railroading really is about: the low cost-per-unit for 0
46 PUBLIC RELATIONS jOURNAL
Exhibit 11: Case Study-Liberty Mutual
LIBERTY MUTUAL .."A Hisfory of Concern"
IN 1971, AFTER eight years of primarily using tele- that teaches people how to handle deadly skids are vision commercials, Liberty Mutual Insurance Com- illustrated in two others. The fifth ad points out the pany expanded its advertising to a print media pro- extensive work the company has been doing since gram. 1934 in environmental health and industrial air pol.
At that time, the insurance industry, as did other lution. It now has
businesses, came under increasing criticism. Con- one of the largest
sumers, regulatory authorities and the general pub- env i ronmental
lic were beginning to seriously question what insur- health services faance companies were doing to fulfill their social cilities of any cornresponsibility to their policyholders and society as a pany in the U.S.
whole. Could they justify their existence solely on the The objective of
basis of collecting premiums and settling losses? Liberty's corporate
Liberty felt not, and wanted to express its history of advertising cam.
concern with people and commitment to solving paign s to demonhuman problems. strate its history of
The company wanted its corporate image to social commitment,
reflect its pioneering efforts in the fields of automo- not to sell insurtive safety, industrial hygiene, pollution and noise ance. To reach
control, rehabilitation and driver education .Things L: opinion makers,
the company had been doing for years, before it busines leaders
became fashionable to do so. According to James F. and concerted conLynn, assistant vice president and director of adver- summers the company has run the campaign in natising, "Rather than talking about new programs or tional magazines since last September, including ones we plan to do in the future, we wanted to tell the New Yorker, U. S. News & World Report, Forpeople what we have already done in safety and acci- tune, Newsweek, Sports Illustrated and Time. dent control. We'd already been there and felt it was
time to tell our story,"
'The theme for that story-"We're fighting for Liberty shared top honors with State Farm Insuryour life"-was developed in conjunction with the ance for corporate advertising awarded this year by company's advertising agency, Batten, Barton, Dur- the Insurance Advertising Conference. "But," says stine & Osborne, Inc. A series of five ads highlights Lynn, "the feedback we are getting from our policythe company's contributions to "helping people live holders and the geneal public means even more safer more secure lives." To indicate its rehabilita- to us." The ads have generated interest in the com tion services, one ad displays the mechanical arm pany's programs and requests to participate in they helped develop-the first of its kind for above them. Individuals have contacted the company seek, elbow amputees. Another one indicates its continu- ing help for their personal problems. Government ing research geared to making automobiles them- agencies, regulatory authorities, and national and selves safer, which they began in 1951. The nation- local publications have asked for information for rewide use of a mobile classroom to teach people portsstudies and articles. All of which, of course. decision driving tactics and its skid control school helps portray Liberty's corporate image.'
PUBLIC RELATIONS JOLRAL
Exhibit 12: Case Study-Sperry Rand
SPERRY RAN D ... SPERRY RAND CORPORATION was ence in the application of electronic,
founded in 1955 when the Sperry Cor- electrical, electromechanical and hyporation and Remington Rand were draulic technologies that lets Sperry merged. Sperry's first corporate ad take an original and practical engineer vertising program started late in 1967. ir.g and service approach to problem The basis for the program, and its di- solving. reaction, came from the results of a The corporate program is intended series of attitude and awareness studies to serve as a sort of "umbrella' for conducted among audiences important divisional advertising on a worldwide "Exf ending Man's to the corporation. scale.
Nat ural Capabilities These studies, continued at regular To better relate the corporation and
intervals, have given shape and direc- the division in the advertising, a numThrough Technology" tion to two phases of Sperry's continu- ber of changes are being made in the
ing corporate communications pro- corporate identity program. gram. Although we are still officially the
One important objective of the first Sperry Rand Corporation, many people advertising program was to establish have always called us simply "Sperry." stronger identification for the compa- We're going along with this common usny's major corporate divisions and the age and calling ourselves Sperry. diverse businesses in which they are
Research showed that our Phase One
advertising was solving the general
familiarity problem. It was making the In thilaga's public schwft
andmaeolevers are adtieving mom
corporation's diversity and types of with the hetp nt a mw teaRim
business more familiar to the public. 7 7 7 7But the success of one campaign
created motivation for another. Because that same research showed that
the corporation was obliged not only to
display all its divisions, but was also
obliged to show the relationship among
the divisions, and between the divisions
and the parent company. In effect, to
show that Sperry was indeed more than
merely the sum of many parts.
The objective then became to show
Sperry as it-in fact is: a unified, wellmanaged and far-seeing manufacturer
of industrial and commercial products,
each of which shares the common ob- The advertising program has been jective of dramatically extending man's implemented both in print and televi.natural capabilities through technolo- sion. A group of general audience and gy- business magazines which are read
Our advertising is intended to show regularly, or often, by businessmen is how each of our divisions in its own spe- used. cial way contributes to a single corpo- Television programs that statistically rate purpose: Making machines do are very popular with businessmen are more, so man can do more. also used.
Sperry's corporate advertising is By learning more about ourselves, marketing oriented: The principal audi. and especially by learning what we look ences for the advertising are present like from the outside, we have been and prospective customers and inves- able to generate corporate advertising tors. A major objective of the program that seems to work both ways-to add is to communicate the existence of total luster to the corporation through its corporate capabilities-to demonstrate products, to enhance products by esthat Sperry is a unique corporation-in tablishing their corporate origins, and the extraordinary range of highest cali. to make our target audience think well .ber engineering expertise and expert. of us in both respects. 11
NOVEMBER 1972 49
Exhibit 13: Case Study-Chrysler Motors
CHRYSLER MOTORS . "Building on a Heritage of Strength"
THERE ARE THREE basic directions Magazines supplemented the radio
for corporate advertising: to tell what the effort.
company has done for the consumer; to By April 1971 our research showed
project the image, size and diversity of that the association of "Extra Care in
the company, and to verbalize the com- Engineering" and Chrysler had increased
panys social conscience. 126 per cent over our August benchWe choose to follow the first course mark.
for a variety of reasons. As the ads ran we continued our conConsumers were becoming more so- sumer measurements. More and more
phisticated. They sought help in deter- people identified Chrysler Corporation as
mining the difference between brands, the firm which takes "Extra Care in Enand why they should choose one over gering." We were building on a herianother. tage of strength, but even we were surWe believed (and still do) that the prised by the new awareness and interest
most effective advertising is that which which were recorded
limits itself to a :single message Reader- We feel that the job of corprate adattention, or the time span of a adio or verb\!rrg is really more nportant than it
TV commercial, is too short to sell/ex- was only two years ago. We must conplain both a product and an engineering tnue to assert that there is a difference
story. We split our campaigns: corporate in
The corporate ads were designed to strong difference: "Extra Care in Engibuild an umbrella image of engineering neng It Makes a Difference." Preexcellence, while the division ads would testing showed that the new banner line concentrate on brand identity, was preferred by 73 percent of the reThe campaign banner for corporal spondents.
was "Extra Care in Engineering". It was Ours is not a typical. institutional, adbased on the concrete facts of our engi- vertising campaign It is the strong supnering developments, not on sague porting cast which helps our individual
promises, or generalities, brand advertising be more effective. It
The print ads and radio spots were builds on our heritage of engineering
pre-tested for concept acceptance and leadership, and bespeaks our commitment
post-tested for readership and awareness to a continuing excellence which we call
levels. This is standard pro-cedure with "Extra Care in Engineering l
us, The ads communicated well.
As our budget would not allow d minance in all media, nor special messages to each public, yet demanded national coverage, we targLetd our publics quite
specifically. We concentrated on major I
markets and upon multi-car households.
The bulk of the budget was assigned
to spot radio in the top 25 markets. V
The opening month of saturation radio raised the public level of awareness by
Exhibit 14: Case Study-State Farm
STATE FARM INSURANCE COMPANIES. . "Responding fo a Need"
DRUG DEATHS. Prison reform. of countermeasures are being cial workers and judges. And We Wiretapping Street crime. Gun demonstrated, measured and eval- came away impressed that some. control. Urbandecay. Busing. Abor- uated. thing very important is indeed
tion. We are bombarded with an T h e s e countermeasures a r e being done. endless parade of social problems aimed at identifying and appre- Out of this firsthand experience, in need of solving, causes crying hending the problem drinker, mak- an advertising campaign was for attention. They push and shove ing sure his case is handled prop- created that dramatically cOmmuni. for headlines only to be replaced erly by the courts, seeing that he is cates that (1) drunk drivers kill, by newer, more urgent problems. brought into treatment, and keep- (2) the government has a program The trouble is that the old prob- ing him off the road until that treat- to keep them off the road, (3) it's lems don't go away. At least not ment is effective. working, and (4) State Farm is be.
many of them. State Farm Mutual Automobile hind it. It invites concerned people
Now there's an organized at- Insurance Company, the nation's to ask Washington how they can get tempt to solve one of our most largest auto insurer, supports this a program like this in their town. lethal social problems, one which program because if every drunk These ads are appearing in Time, has long since failed to excite the driver were taken off the road, the U. S. News and World Rep6rt, Read. headline writers and the public. number of highway deaths and in- er's Digest and Forbes this year. Messages that call attention to juries would be dramatically re- Each of the A.S.A.P.'s demon. drunk driving have never been very duced. That could mean lower in- strates a number of counter. effective in reaching those who take surface rates. But mostly, the measures. We've chosen not to cata civilized social drink once in a waste of human resources would be alogue them in our ads but rather while before getting behind the stopped. to focus on one measure which dra.
wheel. In constructing a public service matically personifies the program.
But drunk drivers aren't civi- advertising campaign in support of This summer the Department of lized. Every year they kill close to the DOT program, State Farm and Transportation issued a report eval30,000 people. When the U. S. our advertising agency, Needham, uating the -effectiveness of.the first Department of Transportation at- Harper & Steers Advertising, Inc., eight of the thirty-five A.S.A.P.'s tacked the problem in a serious decided to see firsthand what was currently funded by the governway, they found that the killers can being- done in the places where ment. The report concluded that be identified-and rather precise- A.S A.P.'s are being conducted. ". . if with the catalytic effect of an ly. Some of them are social drink- We talked to the project direc- ASAP, every state could implement ers who don't have the good sense tors, law enforcement officers, so- a comprehensive alcohol counterto know when they've had too much. measure program throughout its
But most are problem drinkers. Vermont is tossing a party territory as effective as the first People with a chronic need for alco- for drunk drivers. eight appear to have been then we
hol. They've probably been ar- might look forward to achieving an
rested before for DWI (driving annual national savings of neadY
while intoxicated), Drunk and Disor- 5,000 lives."
derly or the like. Their problem The ads are aimed primarily at
may be known to local social agen- state and local officials and con,
cies. Or they may have been corned citizens who can influence
treated in local hospitals. the establishment of such Pro',
The Department of Transporta- 1'k X,, :-- grams in their communities.
tion is targeting an attack on State Farm hopes that our SPO'
the problem drinker through its worship of this campaign will help
Alcohol Safety Action Program. ohput an end to the senseless SIM
A.S.A.P. is government shorthand ter on the highways. It's advertising
for doing something now. The some- that we feel is responsive to SOO'
thing is a string of action programs ety's needs and we're proud to Play
across the country where a variety 11
52 PUBLIC RELATIONS JOURgAL
Exhibit 15: Case Study-Metropolitan Life
METROPOLITAN LIFE . "Our Business Is Life"
THE METROPOLITAN LIFE Insur- as no Johnny-come-lately in matters pany has a scatter plan of 30sec. ance Company's new ad campaign of social concern. The initial TV ond TV spot messages on top-rated for national TV and consumer mag- messages and print ads featured prime time NBC-TV shows, includ. azines continues to use the theme the company's active concern with ing "Sunday Mystery Movie" adopted in 1970: We sell life insur- high infant mortality, diphtheria, "Nght Gallery," "The Wednesday ance. But our business is life. Obvi- the need for visiting nurse pro- Night Movie," "Search," and ously, it works, grams, etc Now the company's "Emergency."
According to the company's ad magazine ads and TV messages
people, the new campaign projects have addressed themselves to Magazines on the consumer ad Metropolitan Life as a top leader in "new concerns facing communities schedule are: Life, Time, Newsweek, life and health insurance, and an- today: Drug Education, V D Learn- Sports Illustrated, Reader's Digest, nuities. In other words, it's the ing Dsabi ties, and Day Care. U.S. News and World Report, and "company to buy from" and con- Metroolitan Life mp events it's National Geographic. sumers couldn't do better than to adertisng messages by sele ing To measure the campaign's deal with one of the more than 27.- effecteness, the company is using
000 people in its field sales force ts on ad research people, Young
across the United States and in & Rubcam's public attitude and
Canada. mareng study programs, and
As a result, Metropolitan reports studes conducted by independent
that its sales force is already get- spec lists. So far, very good!
ting a greater feeling of selfawareness, one of the campaign's A feedback device that's proving
chief objectives. On a series of TV to be a major plus for Metropolitan
messagesmembers of the sales in more ways than one is the offerforce are depicted as fu l time, well- ng of special booklets in their so.
trained, reliable life insurance ad- -" cal concern print ads. For exam
visors who, in addition to doing a ple, the ad on drug education offers
thorough, professional job of sell.- 'To Parents/About Drugs To
ing insurance, heip people while off date more than one million copies
the job in (actual) community activ- have been distributed free to con.
ities. The messages say, in effect. sumers on request The company's
that people come first with a Metro- n*. magazne ads on V D, and Learning
politan representative, he is a good Dates, also offering fre
person to do business with because, bookl ets, have received strong reto him, helping people is more than media wth audierces whose charac sponse, too. a job. teristics coincide wth the compaSo the over-all impression con- ny's major marketing obectves, Such yardsticks, together with sumers get is that Metropolitan such as reaching a large number of the close liaison between Metropoli" Life is a company vitally interested heads of households, ages 18 34, tan s advertising department and in individuals and families when it who are better educated, higher- its marketing and field managecomes to assuring their financial income prospects. The company ment, corporate communications, future on the one hand, anid a com- also selects media which Metropo- and other key departments, fosters pany of professionals who substan- litan representatives themselves a flexible approach toward the nltially contribute to the needs of feel will help make a favorable im- tional advertising program. With their respective communities on pression on prospects. such flexibility, Metropolitan and
the other. At present, Metropolitan's TV Young & Rubicam are sensitive to
Initially, the "our business is messages appear each week on any signs that might call for life" theme (developed with Young ABC-TV's NFL Monday Night Foot- change. So far Metropolitan Life & Rubicam) projected the company ball program. In addition, the corn- reports no changes anticipated.
54 PUBLIC RELATIONS JOUR'At
Exhibit 16: Case Study-Trans Union
TRANS UNION "Getting the Mosi for
AFTER 77 YEARS established rec- recognition and reputations f03.rm-ed the ognition as Union Tank Car Company, foundation of the new "imae- building the corporation created a new name, eff ort. Trans Union Corporation, in 1969. Drawing on the affiliates' technologiRecognizing that our affiliates' prod- cal leadership and long list of satisfied ucts and services enjoyed excellent customers, an intensive technical fearecognition and reputation, however, we ture and case history article program enlisted their support in our "image"~ was begun. Within 18 months, this campaign. Advertising, sales promo- publicity effort produced over 100 tion, public relations and marketing major placements. In every case, the managers at each member company articles built recognition for Ecodyne were briefed on how they could help the while promoting affiliate products. corporate effort by incorporating strong These traditional public relations Trans Union identification into their techniques were augmented by a proads, publicity, labels, sales literature, gram to acquaint key editors with trade show exhibits and products. A de- Ecodyne and its major role in the fast tailed corporate identity, manual was growing water pollution control field. prepared to facilitate uniformity in their Corporate advertising support for individual efforts. Ecodyne included two distinct proOn the other side of the coin, the grams. First, was the inclusion of corporate campaign was structured to Ecodyne products and customers in the provide marketing support for the affil- Trans Union Wall Street Journal camiates while building "image" for Trans paign. Second, the theme from the Union. Trans Union advertising was adapted to
The advertising campaign developed a series of Ecodyne advertisements in by Marsteller documented the new horizontal and selected vertical trade diversified image of Trans Union by media to complement affiliate space featuring at least three separate divi- programs. sions per ad. Marketing support for the Further corporate support for the tofeatured affiliates was provided by copy tal communication effort on behalf of and illustrations describing products .-Ecodyne also was provided in the Trans and services that were most important Union annual report. to their individual sales objectives. The 18-month Ecodyne total commuPublicity provided another simple, nications effort culminated with a public but effective, means of adapting affili- offering of the water pollution control ate marketing communications to cor- company's stock. Ecodyne has
pc-(ate "image" building. The same re- The third phase of Trans Union's on- 12,389 installatins 1_ dses announcing significant product going total communication program in- hepnmauctrs an, technological improvements to volves the simultaneous effort to create igethe watee affiliate's vertical markets were corporate identities and strengthen the adapted for Trans Union announcement marketing efforts of emerging affiliate to horizontal and financial media. groups such Trans Union Land DePhase Two of our total communica- velopment, Trans Union Leasing and__tions effort also involved the establish, the Transportation Group. ment of another new corporate name. Using the same techniques that ~~fY. Selected to unify Trans Union's eight proved successful in earlier phases, water and waste treatment affiliates un- the current total communication proder a single corporate umbrella, gram is coordinating advertising and EE w~ Ecodyne Corporation was established as public relations support from Trans ~a wholly owned subsidiary. Union with the marketing, sales promo-
Since each Ecodyne affiliate ranked tion and advertising efforts of the in- Ed ECOMYE CORPORATKI as a leader in its specific market, their dividual affiliates.
56 PUBLIC RELATIONS JiOURN~AL,
Exhibit 17: Case Study-North American Rockwell
NORTH AMERICAN ROCKWELL.. identifyy, Identify, Identify"
ON SEPTEMBER 22, 1967 North Amer- -m Ass on deve opng our corporate
can Aviation inc a gant in aero- image
pace, and Rocke l Standard Corpora- The st step was to fad a theme, a
ton, a major automotve and ndustral s'gan thit ned he strengths of
products company, merged to form North Ameican Rcckel.
North American Rrckwelt Corporation Snce NR's prn al thrust from the
(NR). beg no ng ~s the t*ster of technoloHere was a new company with a new gy from tercsface and electronics to
:ame. the commercial ac tes o' the automotive and industrial products mar. On that day in 1967, NR's public kets, we had a natural starting point.
'r ahions and adertising staff was After months of discussion and refaced with a probm-n of monumental viewing hundreds of suggestons we
proportions We had to inform the pub and our advert sing agency arrived at Iic that there was no t anger a North the sgan which s the focal point of American Aviaton nor a Rockwell our 972 ca ;n North Amerncan
aour ) u a97 nimag rot Amrn Standard. But, more impoartrty, we Rockwel Where Sc ene Gets Down to
had to tell the story of a now corpora sr5
tion, North Amerian Rockl
We needed a cor orate advertising
and identity program addressed to our
principal pubhics. R a L Z i'We embarked upon a three year cor. -
porate advertising campaign to identi-
fy, identify, identify.
An initial campaign used the "pos.
oon" approach of a positive inferential, nonstatement. That was 'When North Amer can Rockwell Does Something . North AmIerican Rockwell
Does It Well."
In keeping with the identity approach, a new corporate symbol was designed, and used prominently in the
signature of each ad.
To complement these "posinon" ads
which ran in major news and financial While continuing with our print magazines, we initiated a "scatter" ad schedule, we initiated a series of televiprogram in the Wall Street Journal. sion commercials in July which run durThese identified NR and its primary ca- ing evening news programs in twelve pabilities in three ads. major markets from New York to Los
In late 1971, as we found that our Angeles These emphasize the compaidentity campaign was succeeding, we ny's broad range of capabilities centerdetermined it was time to place more ing around our new slogan j
58 PUBLIC RELATIONS JOURNAL
Exhibit 18: Case Study-Utilities
Utility Companies Explain
the Energy Crisis
BY ROBERT M. SPRINGER, JR.
S MUCH TO DO, So little time," public for increased rates. Since these
"Is anybody listening?," "To rate increases are normally subject to have or to have not," '"The approval by regulatory commissions, Gap." Do any of these ad which, in turn, are at least partially
headlines sound familiar? They should, responsive to the public will, gaining because they are just a few of the public understanding of the underlymany energy shortage-related corpo. ing reasons for the increases is of rate advertisements appearing in the paramount importance. A second maNew York Times and other leading jor theme is power conservation. newspapers in tne past year. The na- Most utility companies now have at tion's major energy producers are in- least some power conservation provesting heavily in corporate advertis- grams, and a few have very effective ing to awaken public interest in the large-scale campaigns designed to enpower shortage, as the shadows of courage the public to conserve power. the crisis begin to lengthen. The third theme is the publicity given
Analysis of the public relations to the development of new sources Ih.Khhls..t, and publicity efforts of thirty of the 'of power. Of these new sources of
am toPtalms leading power utility companies dis- power, nuclear power appears to be
t_ closes that the majority of these com- getting the most coverage, particulmhamyou? panies are engaged in extensive pro- larly the nuclear "breeder" reactor,
grams to alert their publics to prob- which may be the most promising lems which can be expected as fuel long-range development. Many utility supplies become less plentiful. These companies also have made extensive programs appear to be built around progress in educating their customers three major themes, all interrelated, on environmental matters; and enand all designed, in various ways, to vironmental aspects are often inease the burden of expected short- cluded in discussions of other prob. -ages. Of the 30 companies investi- lems, for example, the adverse engated, there were none which had not vironmental aspects of high sulphur taken action in at least one of these coal as a reason for using low sulphur three major areas, and most had been coal, which, in turn, affects consumer involved in all three. rates.
The first of the major programs With regard to rate increases, it is advanced by the privately-owned expected that power costs to the conpower utilities is one to prepare the sumer will go up at the rate of from 5 to 10 per cent a year, for at least
ROsF~aT M SPUNGER JL is a uolae pro -* the nlext ftfteen e r~ e OL teaor-nwkeling. Loyoe Vala he n yers. The reasons
Orle,,u. Lo,,uik,,. are simple and basic. The first, and
(TIrntO page 34)
32 PUBLIC REL .ATIONS JOURNAL
D& Fbs& march o
The second reason for cost Increases grows out of concern ak amc&ebctrkiyp
for the environment. The Inexpensive oil and coal ut.is p. AkhtUoak=*
fuels used by the power utilities in the past were often imtaeumptn.
high In sulphur content and other pollutants. Reduction
of the volume of undesirable gases discharged
Into the atmosphere may necessitate the use
of higher grad., and thus more expensive fuels.
DEMARKETING POWER (Comnbusd from pag 32)
probably most important, is that the ing a cautious, well-reasoned ap- means increases in electric rates. We nation is beginning to run short of eas- proach in explaining the need for rate ask for your understanding of this ily and inexpensively obtainable fossil increases. Rate increases are, of inescapable fact." An article in an fuels. Although there are still large re- course, a very unpopular subject with earlier issue of the Reader's Digest serves of fuel remaining in this coun- the consuming public, particularly by Ralph Kinney Bennett said it antry, they are either harder to recover, when the increases are made by a other way, ". the immediate prosor are low-grade and require more monopoly, and there is no alternative pects in the power crisis are for less costly processing. The second reason source of supply. A typical explana- reliable service, higher bills, and posfor cost increases grows out of con- tion of the requirement for increases sible rationing in some areas."' cern for the environment. The inex- was given in a pamphlet distributed One of the most innovative methpensive oil and coal fuels used by the in 1972 by the Pacific Gas and Elec- ods for obtaining public understandpower utilities in the past were often tric Company. In this pamphlet, John ing of the reasons for higher rates high in sulphur content and other F. Bonner, company president, is was a TV series of commercials sponpollutants. Reduction of the volume quoted as saying, "Higher energy sored by the Philadelphia Electric of undesirable gases discharged into rates are inevitable. There is no other Company in 1972. According to T. H. the atmosphere may necessitate the way the job can be done. . The Mooney, Manager of the Public Inuse of higher grade, and thus more piper must be paid, and the dancers formation Department, the series was expensive fuels. Other methods of to his tune in this context are the con- designed to "open a line of commutreating gases, such as air-cleaning sumers---everybody at home, on the nications between ourselves and our filers, precipitators, and scrubbers, farm, in labor, in the schoolhouse, customers." The series, put on in May, are also expensive. Strip-mining, an laboratory, and library." 1972, starred TV actor Leslie Nieleconomical way to obtain coal, but sen, and customers of the company.
damaging to the environment, has The series covered not only rate inbeen restricted in a number of areas. AUOIATIONS ACTIVE creases, but blackouts, nuclear power,
Limitations on urip-mining will in- and pollution as well.
crease coal prices, since other sources, Utility trade associations also have The technique used in the twosuch as deep mines, are more expen- been active in explaining the need for minute commercials sponsored by sive. Coal prices have been further higher rates. The Investor-Owned Philadelphia Electric was about 20 pushed up by costly mining safety Electric and Power Companies, a seconds of critical comment by the measures required by recent laws, loose association of utility companies, coqipany's customers, followed by and by miners' pension funds. Fi- sponsored a two-page ad in a recent 149 seconds of explanation of what nally, the overall inflation in our issue of Reader's Digest with the cap- the company was doing about each economy is reflected in higher costs tion, "Do electric rates have to keep problem. Leslie Nielsen did most of of labor and materials. The costs of going up?' The question was an- the explaining in an informal, objecbuilding new power plants, for ex- swered in the affirmative, of course, tive, and frank manner, not attemptample, has gone up more than 35 per "Electric rates must go up. . It is ing to hide or cover up, but admitting cent since 1966.' obvious . that our coso will con- that problems did exist. Typical cusMost of the power utilities are tak- tinue to climb... This inevitably (Continued on page 39)
34 PUBLIC RELATIONS JOURNAL
33-291 0 78 4
nu**lMr* power plants?"
Same Ameiscaiu am s t" movincesd g 1 N pes as pureohed ates ls.i i drm
we ned to buti m.rar pm plans. Pl F Fuirsnaty her hc an nates u'se Thes ee mear and fnaate
Mayl ha bsum they re nusA fuJiyi t eny f d ee.rts uspet can rely IIt etsto thr Lnety uc alpppoable.
aware wd the msai.n enter preem on for in pai uIlo f ulur na m r a d ai We min the noe etccrm m cue
It- S iiad fs htn i Setine sin th sus n. b pn
I thnm- dt #tanhei in the US *pnhtLaAll uranihusm re lhmated
tuknl Satt e5uSth fud t. hea their b as rteas h and de ,vpnqml dit. ate Uff e ts~e ue dal a plesful Fhand
hu adns asely Fe shIuiags d d already undr wia -e methudof a tenrraus i el ls pan f s atinwer EqllI iaI halk to st A r ut h iii eIngtur vsi fnrum ni reer fuels whia-b ptunants sa ret 0 e s1 f Now matd r foo
s weat her 4A 1n- wa. tuinglt, mi ne would ctesnd iw islI A knuwn uranium in l kiad o nltar w1 pf i s Inim
of thei unag nesA rip hits h a ervei, *. t by hindeids t year. and Wenutunal plants nom andl brnderand
IIf Iue fud cer,, e n o uns.Mer astsee to n-clear Furi sW her hopedully lusuin plans in the future
u sme pen s the Isisntw had to hmn than urinm Tny n ear p e pas are
duwns s pletsey for a tie hThe an s eaer re already ti perassi Bu msn sne are
Mv~~~~t~~o ~~~~~Thetnn i r nutu tr, m rr he'ym* e~~ 'ry wr
sst4 tes w m crl assuwr and Itin s h further lui aturet naileld That why m ire thian i
Dhe nats.. e yuppl ins. fsssroplans. -iner isss intad adIisl sinu4ear power plant art row
t Ahkey toum pnts wdichise o aw siy s in w strar fus s a san und e passestisn t pianud
aoeral s uonr lau r del "Iue don want polsusin miai Pwer pladi 1 a ct.r
to p a iM o e ,, Le e So a tt t d n i i e a illy as N m ar i lc n t ar u than U N,9 7 t ok m air ssie n foti dtrmgand
leos l eae usodpmdet arneponse fcallyd yWitei tob unkged sue of eertsin rfrmorige t n
oneyand nssI rse ue si g dengsw nerrat-orgewis une of electreicphty A
snust deped inirsinad na sin impsril Iidr 51t-imIune lhsi- sasssifastsrsng ftS isif ntssai sin hpnt e hapt id
DEllaMARiKETINiG POWERses .as. .is(Continuedesapsfromapstagewl34)w
tm ier cets wi cn ed oeffthe-impo, rtn i s r incre lantass abasndone pirmotio aderdsing
commercialso incfl udedssti "Idntwn pluin n nuclear upowinerTsst hsits aie dietl a t tlhe utoe, n
t paey anie no I tter attl i un -d oatu c a wss onid pns. in 1971 unertiook a win ratial nos Ise somtdetng mre f mi t htiglysn Nu i-d ea-tis, program dd to enDEMARKETING POWER ."l (Condinued from page 34)
tomer comments which led off the important issues as rate increafss abandoned promotional advertising commercials included, "I don't want pollution, and nuclear power. This aimed directly at the customer, and to pay any more, no matter what, un- degree of attitude change was consid- in 1971 undertook an informational less I see something more for my ered by Wittreich to be highly suc- advertising program designed to enmoney," and "I'll be using candles cessful in comparison with other at- courage wise use of electricity. Acafter this (latest rate increase)." Ex- titude change campaigns.* cording to E. F. Sturgeon, an official
planations by Nielsen pointed out of the company, advertising expendithat the company was facing a 45 per tures amounted to approximately
cent increase in construction costs in $500,000 in 1971, $900,000 in 1972,
Philadelphia, higher interest rates, and CONSERVATION ACTIVITIES and will be approximately $500,000
a higher cost of low-pollution fuels. in 1973. This effort has been largely
How effective was the campaign? devoted to communicating to conThe total cost amounted to approxi- At least eighty-one investor-owned sumers, shareholders, opinion leadmately $350,000---$250,000 for air electrical utility companies have be- ers, and others through a large-scale time and $100,000 for the cost of gun power conservation activities of institutional advertising campaign. the show. Two research studies were one kind or other, according to a list Unfortunately, there has been some done to evaluate effectiveness--one compiled by the Edison Electrical In- criticism of the extent of this public by Behavior Systems, Inc., (BSI), stitute early in 1973. Others in the relations effort and the state legislaand the other by Wittreich Associ- energy field, including a number of ture currently is considering measures ates, Inc. The results of these re- the major oil companies and appli- to limit such expenditures.s search efforts- were overwhelmingly ance manufacturers, are encouraging The magnitude and scope of the positive. The BSI study showed that conservation. Many state regulatory Consolidated Edison conservation nearly two-thirds of the 1.2 million commissions have joined the Federal program in New York is truly imfamilies in the five county marketing Government in calling for strong pressive. At the end of 1970, Conarea saw one or more of the TV mes- energy conservation measures. solidated Edison cancelled its sales sages, and that 84 per cent of those In terms of dollars spent and re- promotion efforts and disbanded its who responded to questions regard- sults achieved, public relations cam- sales force. In 1971 it began a viging the commercials agreed with the paignas conducted by Northeast Util- orous "Save-A-Watt" program, which steps Philadelphia Electric is taking ities in New England and Consoli- involved expenditure of $485,000 in to solve its problems. The Wittreich dated Edison in New York are among 1971 and $270,000 in 1972, acstudy, which evaluated attitude the most impressive. Both these com- cording to Charles Wagner, manager change, indicated that 24 per cent of panies early realized the implications of corporate communications. The all customers moved from a negative of the squeeze brought about by in- "Save-A-Watt" campaign has been to positive attitude regarding Phila- creasing demand and reduced re- in many respects a model public redelphia Electric's position on such sources. In 1969 Northeast Utilities (Please turn page)
NOVEMBER 1973 39
latons program. it was well-planned. suits of the program, but it is ex- lic understanding of the potential of and used each communications me. pected to have at least some residual power research and development. dium to its best advantage. The pro- effect. Consolidated Edison has been Typical ads sponsored by these corngram was launched by Mayor Lind- cited for its conservation efforts by a parties are tied, "What's being done say in May 1971 at a City Hall press number of organizations, including by the electric companies to help with conference, in which the mayor the Sierra Club, Consumer Action the fuel shortage?," "We're trying to praised the program, calling it "a Now, and the Department of the In- take the smoke out of smokestacks" precedent-setting initiative by a ma- tecioO "Liquid . .Gas ... or Solid.
*o utility." The mayor, the county Which is the coal of the future?"
executive, and many other New York "Why should any more nuclear power
City and Westchester officials taped ENERGY RESEARCH plants be built now?" and the comn-USaw-A-Watt" messages which were panies' two page ad in a recent Readlater broadcast by radio and TV sta- er's Digest, "Do electrical rates have
dos as public Service announce- The third major area emphasized to keep going up?" This Reader's Diments. by many power utility companies in gest ad warned, "Research and deother methods used to spread the their public relations programs is velopme-n: in these new methods of conservation message in the "Save-A- progress in new developments in (power) generation will require bilWatt" campaign were advertisements energy research. They generally tend lions of dollars in the years directly in English and Spanish newspapers, to be somewhat cautious in predict- ahead of us."', TV spot announcements, press kits, ing the impact of new sources of Much of the public relations work buttons, posters, stickers for light energy, probably to avoid creating done in connection with nuclear switches, and mailed bill enclosures, false optimism, and unwarranted power plants, which are probably the One of the most effective techniques hopes. The new developments include most promising of( the energy reemployed was the appearance of comn- coal gasification, "breeder" nuclear search and development possibilities, pany representatives at informal talk reactors, nuclear fusion, tidal energy, is designed to counteract fears of the shows. "Save-A-Watt" cartoons ap- wind power, solar energy, and geo- danger of nuclear explosion or dampeared in the New Yorker and other thermal power In addition, of course, age to the environment. A recent magazines, '100,000 copies of a there are experiments in obtaining mailing to all customers of the Loui"Save-A-Wart Game" were disu.i b- conventional fuels from new sources, siana Power and Light Company ut4d' and customers were asked to such as oil shale and tars. Although points out that nuclear energy is a pass a "Save-A-Wart Test." some of these developments look very safe method of generating power, as
The "Save-A-Watt" campaign geai- promising, none appear to offer any demonstrated by experience with operated widespread interest throughout short-range hope of averting power rating nuclear power plants, both the United States and abroad. Thk Shortages. commercial and US Navy: "It's a
company has provided advice and as- Investor-owned Electric light and fact: there has never been a radiation sistance to other utility organizations Power Companies,, the previously accident affecting the public in, the interested in mounting similar cam- mentioned association of utility comn- entire history of our U.S. nuclear paigns. In 1971 and 1972 thousands panics, has engaged in extensive pub- power generating plants or our nuof posters, leaflets, stickers, buttons, lic relations advertising to create pub- clear navy . (this includes) 23 press kits, and other material were nuclear generating plaifs and 106
distributed to individuals and groups nuclear powered ships. . .
who wrote or telephoned from around The Tennessee Valley Authority
the nation. (TVA), one of the nation's largest
How effective was the "Save-A- power producers, is pioneering the
Watt" campaign as an energy con- construction of the first full-scale
servation effort? Were its effects, if "breeder" nuclear reactor in the
any, temporary, or were there long- United States. The project, which is
range benefits? Consolidated Edison scheduled for completion in 1980, is
considers that the program was ef- An a v#*w1Ad% being accomplished in conjunction
fective, and the expenditure of re- with the Commonwealth Edison Comnsources was worth the result. In a ZAt orpany, and in cooperation with the
summary statement, the company re- ~ --. .Atomic Energy Commission and the
ported that peak demand for power -- national electric utility industry. The
during and after the program was successful completion of this project
lowered markedly-by about 400j. will be a major breakthrough in power
000 klowatts--and that summertime development, since the "breeder" reconsumption was reduced by about actor actually manufactures more
300 million kilowatt hours. It is too fuel than it uses as it produces energy.
early to evaluate the long-tem re- (Continued on page 64)
40 PUBLIC RELATIONS JOURNAL
DEMARKETING POWER (Conimnued from page 40) without explanation. It will be the responsibility of the public relations
It is of great importance that this 'There is a myth circulating that the practitioner to insure that consumers project have full public support, and location of power plants along the fully understand all factors involved.
the TVA has distributed literature coast would require a plant every six An informed public can be of great describing the "breeder" reactor. This to eight miles by 1990... this is non- assistance in solving the energy prob. literature emphxsizes the advantages sense, but the fable continues. . ." lem; an ignorant public, on the other of the "breeder" reactor, including its There are, of course, many other hand, could hamper and delay progsafety and environmental protection examples of active public relations ress toward overcoming the averse features.' work by the power utility companies. effects of the situation. "
The Pacific Gas and Electric Com- Only a few of the many utility public
pany, faced with criticism of pro- relations campaigns conducted in re- I. Ralph Kinney en "Why We Havea
posed new nuclear power plants from cent years have been discussed. Many Fuel and Power Shortase," Readr's lae.
January 1971, p. 77.
environmentalists and others, has dis- of the smaller companies with limited 2. lnvefttor-wned Electric Light and Power tributed a pamphlet by Sherman L. budgets, in particular, have presented Compani "Do Electric Rae Have to Keep
Going Up." Readrea D&, May 1973, pp.
Sibley, chairman of the board and highly effective and imaginative pro- 220-2.
3. n Op. CU.. p. 77.
chief executive designed to grams. 4. Letter. T. H. Money, Manager,
counteract thee arguments. The What does the future hold for the Public Relations Depattment, Philadelphia
pamphlet also attempts to correct public relations practitioner in the Ecrk Company, to the author, March 16, 1972.
false Information and rumors regard- power utility business? The next few 5. Personal letter, E. F. Stumeon, Northeast
ing nuclear power plants: "Some crit- years are certain to bring him great Utilitie Service Company, Hartord, Cor necticut, to the author, March 19, 1973.
ics contend that the thermal effect of challenges. As the demand for energy 6. Personal letter, Charles H. Wer, Jr., returning condenser cooling water increases, and the inexpensive energy Manager of Corporate Communications, Cowsolidated Edison Company of New York, to
(from the nuclear reactor) to the sources decrease, the public in many the author. March 13, 1973. ocean is always harmful. Don't you places will suffer from either higher 7. Personal letter, Mr. Roen, N. W. Ayer
& Sons, Incorported, New York, New York,
believe it . cooling systems can energy rates or curtailed service, or to the author. be designed so that they do not sig- both. The American public has never of Personal er, Paul L Evan% Director be designed softat they Inforation, Tenemee Valley Au tho
nificantly affect the marine life," and, been known to suffer in silence, and to the author, Aprd 9. 1973.
Exhibit 19: Case Study-U.S. Steel
U.S. STEEL-"We're Involved"
BY WILAM W. COOK
T miaB tAnS ago, those re- ferences were held among r.presenta- provides useful and socially beneficial
sponsible for U.S. Steel's cot- ties of U.S. Steel's commercial ad- products and services, and that it is porate advertising program vertising department, public relations, determined to meet its responsibilities wrestled with the sticky prob- the finance chairman's office, and the to the people who depend upon it as lem of how to get across the fact that company's advertising agency, Comp- a supplier, employer, financial investthe nation's largest steel producer is ton Advertising. From these sessions meant, and neighbor in the cities where concerned with issues that go far be- emerged the slogan that was to be- it has plants. yond merely making and selling steel, come the theme of U.S. Steel's cur- The results on the whole have been Granted, U.S. Steel must never for- rent corporate advertising program: gratifying. So much so, in fact, that get that it's in business to produce "We're Involved." when it was decided earlier this year
and sell goods and services in a way that the new thrust of U.S. Steel's corthat will yield a reasonable return on Since then, ads in national maga- porate advertising in 1973-74 would its shareholders' investment. Recog- zines, in newspapers, and on televi- be on the broad theme of productivnizing this, how can it convey the sion and radio in U.S. Steel's plant ity, it was agreed that the messages idea that at the same time it's made cities have featured such themes as would continue to feature "We're Inup of people who care about other the company's contribution to medi- volved." people, on and off the job, and tell of cine by an affiliate helping to de- The theme of productivity was the contribution that U.S. Steel's velop a titanium heart valve, to sci- chosen after much soul-searching. products and services make toward ence by using its million-volt electron The qompany and agency are keenly improving the quality of life in microscope to study moon rocks, and aware that it's a controversial issue America? to agriculture through its farm prod- requiring delicate handling. To most
ucts and services. Ads featuring the people, productivity means using In pursuit of that elusive goal, con- "We're Involved" theme have helped manpower and machines more effecto drive home to customers, employ- tively and eliminating inefficient work WILiaU W. Coot. PRSA Accredited to ees, thought leaders, the financial habits--in short, working "smarter." direcior- ublic Communilcationt Services,
UVahld Stia Steel Corporation, Pltts community, and plant city residents But to some it carries the negative bahr, Penamylvanim that US. Steel is progressive, that it (Continued on page 48)
42 PUBLIC RELATIONS JOURNAL
and by individuals at all levels inside
(Continued from pae 42) it, to improve U.S. Steel's own productivity. They will also show how
connotation of the sweatshop, of lay- America's economic survival. It was its products and services help others,
ing off people--concepts which the felt that in this situation, U.S. Steel particularly customers, to improve
ads must help to dispel. has a unique opportunity to assume a theirs. Some ads will seek to explain
Those who guide U.S. Steel's ad- position of leadership on an issue in readily understandable terms the
vertising program are convinced that which will not only help its own elements that go to make up producthe theme of productivity far tran- cause, but also serve the interests of tivity. In terms of industry, these will
sends the interest of a single com- labor, government, education--all the include not only the vital element of
pany or industry--that, in fact, it institutions that make up our indus- labor's input, but also the important
may well be the most crucial issue trial democracy. roles played by management efforts
facing the nation. Confronted by In U.S. Steel's new campaign, cer- and capital investment.
fierce competition from overseas, in- tain messages on television and radio, Other messages will deal with proflation, and erosion of the traditional and in newspapers reaching large ductivity in broader terms and show
work ethic, business and industry are, numbers of employees, will describe how the concept is by no means Jimin a very real sense, fighting for efforts by the company as a whole, ited to industrial output.
Another element of the campaign
will be a series of two-page ads in
national magazines such as Time,
Newsweek, U.S. News & World Report, Fortune and Sports Illustrated.
These will feature statements by national figures who are recognized
leaders in such fields as industry,
labor and banking. The final paragraph or two of each ad will carry a
By cooking at them as markets brief message telling how U.S. Steel
for Proben-sot ing ieas. is working to improve its own productivity.
"Hoe tm x we the ones that get talked about MteMa The national TV campaign is to
mnt. At U.S Steel, the idea is to do something Recently U.S. Steel mtroduced the USS about them. Along the way, there are productsand ROLL-A-WASTE system,a new and efficient idea run0 from October through Decemservices to be sold that can solve many of the pr in solid waste collection. The system consists of a er with a series of spots in evening [am otheusjitalk abou Here's as lin off tough. high-density polyethylene wheeled the tn container with aca cty of 82 gallons, combiti programs hosted by leading news
A t woa hyric that speeds truck loading and commentators on the three major netUS. Steel desn% make cars but does make total elminates manual lifting
useful suggestions One of te latest is a new gas t makes tesidental =a collection easia, works. On completion of the natank design that increases safety on impact, and imre om al and more sanitary than eve be- tional schedule, TV will continue to reduces fuel tank emissions to zero. Another is a fore, for both municipal governments and private bumper design using steel cablethat substantially co m be utilized through messages on local
exceeds Federal impact guidelines. Ideas Eaensr
like these are available for use by automotive lnhelpingtorelievetheenergycrisis, a factor neS and sports programs through custoese will be the importation of liquid natural gas and June in selected cities. Also, in many
EAvimarmet crude oil. In thisarea, U.S Steel isactive inmarket- areas where plants are located, parin the past 6 yeas. U.S. Steel has spent ar ing technology and materials for cyogenic tanks
authorized over $300 million for facilities to pre- for shipboard and land based facilites as well as ticularly those with heavy concentravent the discharge of pollutants into the air and materiasforthesuper-tankersand LNcarrier tions of customers, locally oriented water Included are the complex control facilities At Walt Disney World. a fleet of special land needed to remove over 995% of the particulates and water vehides is powered by compressed radio spots are to begin in October generated by the Q. BOP steelmaking furnace (a naturalgascontaid'in USS cylinder's over 8 feet and continue through June. Ads in European steelmakin developedforlarge long. and made hrmasingle pieceof steel without ndw onie trog Jne as il
scale production by US. Steel). Continuing efforts welds or seams.
are being undertaken to control coke oven emis- U.S Steel is devoting considerable attention sons (the imustrys dnim ot oically ffiil to the impending energy crisis in other areas as also tell the productivity story from pollution abatement probee. Much of these new well, and can contribute to the solution by greater the local angle. technologies, among others, are bei marketed utilization of its extensive coal reserves, and by t h a U.S. Steel subsidiary, U g. changigthe aern of enaerg cosumption i In addition to messages in national
an consultant. nc. steel ig. ogram isamed at the develop and local media, mailings, audio-visTWs mernt of a process that can convert previously inTlere is little any one company can do about usable coals having high sulphur and ash content. ual presentations, and other avenues thetaxburdenother than to suggest waystoallevi to usable coke. of communication are being used to
ate it. One of U.S. Steel's ideas is the use of USS Sumed up, no other steel ormiany oi COR-TEN Steel in sho-span bridge& COR-TEN more application development experience to the bring the productivity story home to can be used bare, unpainted, because it p marketplace. Particulari when there are prob. telf against coosion. if the th hands of cty, lems to be solved. UniteStates tee P rb customers, employees, thought leadcounty, state and federal sho.sian brides being Pa. z5230. ers and others whose support is
built these days were all bare R-TW, not a needed.
taxpayer dollar would be required for
'paintenance."AA key element in U.S. Steel's deiusaicoM. .... sion to feature productivity in its new
(Continued on page 51)
48 PUBUC RELATIONS JOURNAL
receptive to messages about produc,( )(Contined from page 48) tvty, nor able to perceive their own
@_____________________ enlightened self-interest reflected. in
communications program was the ex- tided, "Where's joe?". The missing them more clearly. perimental negotiating agreement Joe symbolized the men whose chances reached earlier this year between ten for a job in American steel vanished So it would seem that the time is major steel companies and the United because of foreign competition stim- right for the productivity messages to Steelworkers of America under which ulated in part by the chaotic feast- which U.S. Steel is currently cornthere will be no general strike in the and-famine conditions brought about mnitted. There remains, of course, the industry when the current contract by hedge-buying. The film suggested question of how effectively this sensiexpires in mid-1974 and for at least that the way to fight back was to tive, complex subject can be dealt the next three years. It was the last think and act more competitively- with through the medium of corpogeneral steel strike in 1959 which again, to work "smarter." rate advertising and what the net imenabled foreign producers to gain a Efforts to increase productivity en- pact of this ambitious undertaking firm foothold in domestic markets, compass far more than mere commu- will be. and hedge-buying against periodic nications, of course. The investment The answer won't be known until strike threw has permitted further of $3.7 billion over the past seven next year. Meanwhile, those responinroads since then. years to build more productive facil- sible for U.S. Steel's communications
Earlier this year, thousands of em- ilities has put U.S. Steel in a better have set themselves a challenging ployees of U.S. Steel and of other position than ever before to provide goal, and the progress of their efforts domestic producers saw a movie en- leadership in this field. Employees is sure to be watched with gathering and customers have never been more interest across the nation. 1
Exhibit 20: Case Study-RCA
RCA-"The Electronic Way",
BY D. L ALUIGOOD
I N A SPAN Of just 10 years, RCA positioned at the approaches of a plement existing TV service, and
has doubled in size with an- new electronics age--an age when new solid-state circuitry for use in
nual revenues of $4 billion, electronics will solve problems and cars, watches, and automatic conDuring this period, its busi- perform services it has never been trols.
ness activities have extended into able to do before. "'his means an evolutionary exnew areas, in part, through the ac- RCA built its reputation as a pio- tension of electronics into virquisition of Hertz, Banquet Foods, neer by creating large new industries tually every aspect of life at home Coronet Industries, Cushman & and markets--radio in the 1920's and at work. It means a multitude
Wakefield and Random House. And and 30's, black-and-white television of new businesses for the elecalthough the RCA name has always in the 1930's and 40's, and color TV tronics industry, and the addition been synonymous with electronics, in the 1950's and 60'.. What about of new products and applications the very success of this diversifica- the future? to maturing businesses that have
tion has alerted us to the need for In his address to shareholders at provided much of its volume and clarifying our corporate image. the 1973 annual meeting, Robert W. profit in the past.
o What Is RCA and where is it 80 Sarnoff, RCA chairyxan and chief "In the vernacular, RCA is where ing?-Despite the changes introduced executive officer, said: the action is. Major innovations
to broaden the company's business are now on the way in our conbase thereby extending its range of "Leadership today is achieved sumer operations, our solid-state
products ar~d markets, the fundamen- through advancing by steps that business, our global and domestic tal character of RCA remains the generate new uses of electronics, communications services, and our
same-a world leader in electronics, replace outmoded technologies, government and commercial syscontinuing to pioneer in the devel- and create 'sub-industries' that al- tems." opment of new frontiers in electronics ter or build upon existing systems and communications. RCA is uniquely and services. The important ad- The domestic market for eecD. Auooo Isdircto, crpoatead- vances are represented by such ex- tronic goods and services was apD.tsig CAU~o isrC rcorporatNe Yor amples as home video recording proximately $33 billion in 1972. Proceity. CACrorto, e and playback systems that sup- (Continued on page 51)
NOVamniRI 1973 43
RUED (Conulnued trons pace 43)
jecting current growth razes and tech- cleaner and more rewarding for all strating how trends in the electroninological trends, it is expected to Americans, and what this may pre- cally-based information industry toexceed $44 billion by 1975, and to sage for tomorrow. For example, one day point to steady and rapid develreach nearly $63 billion by 1980. ad in the series highlights the grow opment of large new markets--in
All this served to guide us in the ing contributions of electronic sys- precisely those areas of business and development of our major new cor- temos in the automotive industry and technology where RCA excels. porate advertising campaign for shows how electronics can help make The advertisements are planned 1973-a campaign created for and the automobile of tomorrow safer on a year-round basis, in major busidirected to the nation's opinion and more efficient through such in- ness magazines, plus a select group leaders with special emphasis on in- provements as electronic anti-skid of special audience publications. All fluential members of the business/ systems and electronic fuel control. media are selected on the basis of financial community. It comprises how effective they are in delivering
the basic and major portion of our OTE UJCSadvertising messages to our target corporate advertising program. We OTE UJCSaudience and the degree of receptivdo have a supplemental community ity to the RCA corporate message
affairs campaign that will be covered Other subj~ts covered in the cam- generated through their editorial enlater. paign deal with our building manage- vironment.
General Ba&iness-"The Elec- ment system for skyscrapers, hospi- The magazine schedule is augtronic Way--"RCA-T1he Elec- tals and other building complexes; mented by periodic insertions in
tronic Way" is the theme adopted for "Videovoice" (a device that trans- major business and financial newspaour major corporate advertising cam- mits pictures on ordinary telephone pers. These full page black-andpaign. Created by J. Walter Thomp- lines) and its applications in medi- white ads are usually keyed to sigson Co. in New York, the campaign cine, education and business; plus nificant business accomplishments, utilizes a combination of handsome others dealing with the impact of scientific breakthroughs, and other four-color spreads and single pages high technology developments in newsworthy events. For example, one in national magazines, weather, communications and earth ad in this series dealt with our sale
The advertisements in this new resources management satellites, la- of earth station satellite communicaseries provide examples of how new sers, and solid-state technology. tions equipment to The People's Reelectronic systems and products pro- Several different ad subjects are public of China last year, while duced by RCA today are helping to scheduled simultaneously in order to another reproduced the letter to make fle more enjoyable, safer, generte a cumulative effect demon- (Please turn page)
Novemaza 1973 51
ning 1973. UniWorld was chosen ROMA____________________pages____ because it had demonstrated its marketing insight into all levls of the shareholders from our 1972 Annual RCA's efforts to open economic op. black market. Report, reflecting RCA's growth in portunities to black people and to UniWorld is totally responsible to sales and profits and the favorable Spanish-speaking Americans and rep- the corporation for its programs outlook for the future. resents what we feel to be a most (copy, production, media placement,
While it is too soon to ascertain original approach to planning, de- etc.) on a direct basis-not subject the results of this year's campaign veloping and implementing programs to review by other RCA agencies as through research, initial reaction specifically directed to these groups. is the case in some other advertiser/ both inside and outside the company Three factors set this effort apart black agency relationships. has been positive. Nevertheless, we from all others: Secondly, the current campaign
will continue to monitor our program First, the campaign is handled by mirrors the broad-gauge nature of with an eye to keeping it fresh, in- UniWorld Group, Inc., a black- the corporation's goals as related to formative and above all, consistent owned and operated advertising minority group people. with our corporate communications agency in New York City. In the past, our minority markets
goals. UniWorld was selected from a advertising carried one message only:
0 Community Afairs Campaign- group of eight black advertising "We are an equal opportunity emMost Unusual-Our current com- firms to create and place community ployer." Today, we are still an equal
unity affairs campaign reflects affairs advertising for RCA begin- opportunity employer, of course, but we interpret the spirit of that pledge to go beyond fair employment practices. We want minority group peopie to know what kind of company YixRCA is.-a business institution concerned with the significant issues and problems of minority communities.
aAnd we want minority group people to know what RCA is doing to help
alleviate some of the most pressing problems in these communities.
Thus through UniWorld, we instituted a print and broadcast effort tailored to the black and Hispanic communities that encourages growth and development of minority group business enterprise, and invites minority group supplier involvement with RCA.
And this brings us to the third factor that establishes our program as unique-the advertising itself.
In print, ethnic appeal magazines and newspapers are utilized for the presentation of special copy addressed to businessmen and suppliers. In these ads we offer a booklet, "Doing Business With RCA" to help minority vendors learn about RCA's supplier needs and how to go about making their own products and hwe gto RC a ot services known to us. The ads headaafommM uy ieootiM m w xlw toaffcsm~pMs lind,"You'd Be Surprised At What We Buy," are unusual in that they Youl haw a bm duv d who wm tm contain a straightforward copy apemdm mm Doingmw ft preach with no attempt to label them
as "black" ads. Of course in Span. 112 ish-language newspapers they are in
New YodL. New York ID0
M&A*u.mm do bu(Continued on page 54)
2 do amUBIm ELATeO NS JOR
52 PUBLIC RELATIONS JOURNAL
civic leaders, and at this writing,a
RI (comuua tram ~ae52) major airline is considering use of the
series as a feature of its cross country
Spanish, but the copy approach and economic potetial and in-fih entertinmt.so omnt
iltrations remain the same. In recognition of the varied and new Atlis andvertisncesize andmscope other words, in this instance, the me- economic philosophies in minority ofateirog aes rhelaiel anaop dium becomes the message. These communities. At RCA new ideas comheparoovram srllteffortsmdil ads become black or Hispanic be- arm just as important as new prod- ctmed to enr busiess.l Hfowever,cause they appear in black and His-. ucts. And meeting the challenge incterm tof teqalbuine Howetpuran panic media. of tomorrow is what we are doing results to date, the program is provTo date, we have received almost today. We do more than just make igt eams fiin a opb
200 responses from coast to coast. color TV. RCA. icy do e mosteffcmient a theub
Allthemor enourgin invie of The programs feature the actual area of corporate social responsiRCA's internal efforts to expand o9- voce of ousadn black and His- bility. portunities for women, a bout one- panic leaders offering their views on The two campaigns, one directed third of these can be identified as minority business development, edu- to general business and the other to coming from women. cation and social progress. community affairs, constitute the
For radio, UniWorld produces the Indications that the series has bulk of our corporate advertising "RCA Minority Forum," a series of struck a responsive chord, particu- program for RCA. They are the re3-mnue wSp ailanpgua onlarly in the black community, is evi- suits of the combined efforts of many black and Spns-agaestations denced by the extensive coverage in talented and experienced people all
during the summer months in eleven black newspapers quoting some of working together to produce effective key markets. As our announcer says: the comments made by our guest advertising-advertising that gives
This program was brought to you speakers. vivid expression to the realities that
by RCA in the interest of the need In addition to the press coverage, RCA's policies and prospects reprefor ewvy American, to achieve full the program has been praised by sent.
Exhibit 21: Case Study-Texaco
TEXACO-"Putting Aesop to Work"
BY KERRYN KING
W HZN1 TEXACO WAS founded age of unpredictable duration. It is by millions of television viewers of
by a group of enterprising, perhaps the oue problem that those golf, tens, and football events.
forward-looking men back forward-looking founders of Texaco Moreover, on November 27, at 8:00 when our century was did not foresee. p.m. (EST), Texaco will present on
only two years old, their objective They foresaw very clearly a rising the ABC television network a onewas certainly not to urge the com demand for petroleum products (to- hour special inaugurating the Texaco pany's customers to restrict their use day crude oil and natural gas supply American Heritage Series which comiof petroleum products. almost 78 per cent of our nation's memorates the nation's bicentennial.
But urging customers to use less energy requirements, and in a single During this program, three specially of its principal product-gasoline-is hour the United States consumes prepared television commercials will exactly what Texaco is doing in 1973, more than 30 million gallons of off). deliver important messages on the in print media and on radio and tele- But they didn't foresee that certain energy situation. vision. The company believes that trends would converge nearly three These television messages on gasothese efforts at persuasion are in the quarters of a century later to bring line conservation were created for public interest and are mandated by about unprecedented conditions that Texaco by Benton & Bowles. One is an insufficiency of crude oil on the would make it extremely difficult- an inspired adaptation of Aesop's one hand and an insufficiency of re- and perhaps at times impossible--to fable about the tortoise and the hare fining capacity on the other. satisfy that demand. (see photo sequences on page 57). It
These two scarcities, which in their Those conditions are present today, drives home the point that the motorcauses are interlinked, are part of a and they explain why Texaco is try- ist who drives at high speed and broader problem that is sometimes ing to foster an economical use of its makes jackrabbit starts wastes gasotoo dramatically termed an energy Product, especially gasoline, by the line. The actors are a 140-year-old crisis but is definitely an energy short- Public. Peruvian tortoise and a wild hare.
KERAYNq Km, PRtSA Accredited, issno We have produced and aired six The Chicago Swi-Times called this vice president for Public A541. of Teac corporate television messages on con- television commercial one of the Inc.. New York, New York. aervation that have so far been seen (Continued on page 54)
44 PUBLIC RELATIONS JOURNAL
are on the road--and, on the average,
"cleverest, most ingratiating commer- ing fuel During the summer-the the new ones are getting lower milecials ever produced for TV .. a peak motoring season--the product age than any new cars in years. beautifully photographed parable. in short supply was gasoline. Second, the supply has been unable
S. ." On one hand, the public was told to keep up with demand due mainly
Other television messages by Tex- by critics of the oil industry that the to dwindling reserves of crude oil and aco have given specific tips on saving shortage had been contrived by the to a shortage of refining capacity in gasoline under varying conditions. oil companies, and, on the other, they the United States. One characterizes the driver himself saw or heard statements by those Why is there not enough refining
-meaning his own sound judgment same companies showing pretty con- capaciy?-A major factor delaying
---as an economy factor, and "you vincingly that the shortage was in- new refinery construction has been don't cost a penny extra." deed real. the uncertainty about supplies of
In July and August we ran two People have been told by industry crude oil from abroad as U.S. profour-color pages--'Texaco introduces critics that the shortage is practically duction of crude oil was leveling off. a fantastic new mileage ingredient. over and yet many have seen evidence Construction of new refining capacity You" and "The Texaco Gasoline at their local service stations that it was halted in large part because of Economy Test"-in The Atlantic is not over, the uncertain long-range availability
Harper's. National Review, News- To questions raised both by the of crude oil stocks in either adequate week, The New Yorker, Sports Il- consumers and by the independent quantity or acceptable quality When lustrated, Time, and U.S. News & businessmen who operate service sta- the Government adopted new import World Report. These print messages, tions, Texaco can give some straight, policies in April,'1973, it was possible too, give specific suggestions on how factual answers. Let me summarize a to plan for new refining capacity. to reduce comumption of gasoline, few of the questions and answers. However, there is a serious question recommending such measures as of the availability of adequate lowavoiding jackrabbit starts, warming Why is there a gasoline shortage? sulphur crude oil commencing in the up slowly, and anticipating stops. -Principally, for two basic reasons: latter part of this year.
For fall and winter Texaco is con- First, gasoline consumption in the At Texaco, our refineries have centrating on television and print United States has gone up faster than been running at full available capacmessages on the conservation of heat- anyone predicted because more cars (Continued on page 57)
54 PUBLIC RELATIONS JOURNAL
reduced coal consumption by utilities
(Continued from page 54) and industry. Certainly, no one questions the need to work for cleaner air.
ity. And we've been able to keep de- months. People have been buying Since 1970, Texaco has included enliveries of gasoline generally at the new cars at unprecedented rates. And vironmental messages in its corporate same high levels as last year, to the automobile manufacturers have been advertising program. Appearing both thousands of independent business- required to install more and more in print and on television, they acmen who operate Texaco stations, gasoline-consuming equipment. quaint the public with Texaco's
We are planning to increase the ca- To illustrate: In 1964, the United conscientious efforts to protect the
pacity of our Louisiana refinery from States used 4.4 million barrels of air, water, and land wherever it con145,000 to 345,000 barrels a day, gasoline a day. By 1972, we were ducts its operations, anywhere in the
and studying additional refinery ex- using 6.4 million barrels a day. That's world. "We're here to help clean up pansions elsewhere, an increase in consumption of almost America's air" and "We look at every
50 per cent in less than 10 years. ship we build from the ocean's point
Did anyone foresee the extent of of view" express typical themes.
gasoline shortages and energy de- Why is so much oil being used
mands?-It was not possible to fore- instead of coal to generate electric Isn't there also a shortage of
see the sudden and sweeping changes power? Wouldn't there be more oil natural gas in addition to gasoline and
in our way of life or the huge in- for home heating if the nation's coal heating oil?-Yes, there is a very creases in energy consumption that supplies were used more?-Programs real shortage of natural gas-perhaps
have occurred in the last 18 to 24 to improve air quality have severely even greater than the shortage of gasoline and home heating oil.
c oNatural gas is just one part of the complicated energy supply picture.
Since hydrocarbon fuels, gas, coal,
and oil are interchangeable in varying
degrees, shortages in one fuel may
ia.~lead to use of substitute fuels. If this
1. ANNCR: (VO) Once 2. One got terrific 3. While the other 4. For empl eIn hd upon time, there gasoline mileage be. one got terrible mle make ;ackrsbut increased demand cannot be satisfied rew dri..er... he a age. by increased supply, new shortages
PUBLIC GOT THE STORY
LA In 1954, the price of natural gas
S. Flashy. 6. But they wasted 7. And instead of 8 He'd race along at produced for interstate shipments was
gasoline, driving at 50, 70 controlled, and has been held to low
and unrealistic levels ever since. As a
result, consumers used up natural gas
and turned away from other fuels,
such as coal. Eventually artificial
price control seriously damaged the
so uc gs-stopng o efe.h..tre. searchng fo n e suppdstr wa d taie
9. Using about 25% 10 Naturally, he 11. he was forever 12. But he n earnings of the industry and the more l~ae. wasted so m stopng to m.e. c his trs search for new supplies was curtailed.
Reserves began todeclineasdmn
continued to soar and not enough new
sources could be discovered or developed. The regulated price also
encouraged wasteful use when other
13. Never slowed 14. Never had tune- 15. When he 1t 16. While our other less valuable fuels could have served down gradually at ups-el of which home, he was Lo driver had saved better. stop signs. would give him more tired to do anYhng enough money...
miles to the gallon. but hit the It would appear that Texaco's corporate advertising on the subject of
energy shortages-along with similar
ATEXACO messages from other companies-did
get the story to the public, inasmuch
as July and August, the peak motor17. to ta"e his family 18. The moral of our 19. And Texaco thInkS 20. during the enerw ing season, saw a less-than-expected out to dinner. storZ-at makes thats Important to shortage.
wasV'r e increase in gasoline consumption.
(Please turn page)
NOVEMBER 1973 57
There was a slower rate of increase last April and mom recently, for the not be a restoration of pre-cfisis conthan in previous summers while at development of what he termed a ditions, but a new accommodation to
the same time there was a great in- national energy conservation ethic. the realities of the availability and the crease in the number of automobiles As an undeniable national prob- true costs of energy. on the road. This would seem to indi- lem, the energy shortage can and In the meantime, it is necessary
cate the effectiveness of our efforts in indeed must be solved. But as an for all Americans to be sensitive to the media to alert the public to the event unique in the history of the the exigencies of the energy problem, problem. Such efforts, incidentally, nation's production of energy, it is and sensible in their use of the naare consonant with the President's not only a problem but a turning don's limited energy reserves. 0 call, in his messages to the Congress point. The long-term solution will
Exhibit 22: Case Study-A. T. & T.
CASE HISTODR IE S
AT&T-"We Hear You"
BY WALT CANNON
AFEW YEA1S AGO, AT&T pub- a serious concern for individuals and meet the expectations of our consumlished a series of advertise- an awareness of our responsibilities, era. So we set out to let them know ments with the theme line, beyond telephone service, that no effort would be spared to
"To communicate is the be- The campaign was well received bring service back to accustomed ginning of understanding." It would and reprinted widely, and it helped standards. be a mild overstatement to say that personalize and humanize our corn- Our costs had risen sharply, creatthis phrase crowded "The real thing" pany. But during that period and the ing a need for increased rates in some or "Pepsi's got a lot to give" out of period immediately following, some of the Bell System Associated Coinpublic consciousness. But in its realm influences were at work in the U.S. panies. So we tried to help consumers of corporate advertising, it made a that caused us to shift to corporate understand the relation between our mark. advertising that would help solve costs and their rates.
At the time, the primary purpose some of our specific business prob- The volume of investment money of the campaign was to try to bring lems. We would still be seeking "un- needed for a capital-intensive business the Bell System and the public-par- derstanding" but in a totally different like ours was extremely high and was ticuiarly the younger public-closer sense. increasing substantially year by year.
together. By suggesting gently that the The influences I'm referring to are Fqr example, in 1972 the Bell System reader "Reach out for someone- or painfully familiar to anyone involved spent about 8.3 billion dollars to ex"At least talk to each other", we were in public relations, because they are pand, improve, replace or relocate trying to say that AT&T wasn't a similar in kind to problem many facilities. This year, that figure is in
heartless, soul-less, totally self -cen- businesses face today. excess of nine billion. We wanted
tered corporation, but a company with The quality of our service had consumers to be aware of that fact.
WAL CNNO i ASi~antVie pesden ,slipped in some area. Understand- And while all of these factors were Wfor Aetsng, FIs astn CCiV, AT&sT.n ably, this created some severe public at work, consumerism was on the New York Cit. criticism, because we had failed to (Contnued on page 58)
46 PUBLIC RELATIONS JOURNAL
@ (Cominam,, from page 46)
rise. Consumers were becoming in- the quality of the company's products, We developed hundreds of procreasingly frustrated by what they good value in the company's products spective lines, finally shortening the considered to be a corporation's un- or service, honesty in advertising and list to five: willingness to listen to consumer re- a sincere concern about customers, inactions and respond positively to eluding how customers could make "Person to person."
them. their feelings known to the company. "Keeping in touch."
In the early 70s, of course, con- While AT&T, in most cases, proved "Providing the service you're due." sumerism wasn't new. And it certainly to be well above the average of other "Were answering." wasn't a new influence in our busi- companies studied, we still fell far "We hear you." ness. We had always been conscious short of ideal performance in the After testing the lines in eight Bell of the need to pay attention to con- judgment of consumers. This research System cities, we selected "We hear sumers' opinions and desires and had helped us establish priorities in sub- you" as the fine that best met our conducted attitude studies for years to jets to be treated in our corporate objectives and registered most clearly keep us informe&. From the earliest advertising in magazines in the early with the public. days of our business, it had been a 1970s.
basic principle that every consumer High on the list was a review of We bn t ne eine rishad the right to the best possible serv- our record treatment of employees of nently in a new series of advertisements of a page-plus-a-colurm forice at the lowest possible price. We all race, and both sexes. had been especially conscious of tis mat that played the themes of good
right, perhaps, because of our priv- value, good service and positive reilege of providing telephone service TALKED QUALITY sponse to consumer needs.
exclusively in our service areas. Now And in one of the advertisements,
it was time in our corporate advertis- We also began to talk about rising we were very specific about who in ing once again to establish a dialog costs and their inevitable effect on the Bell System "hears" you. We with consumers that would remind rates. But at the same tme we re- pointed out that more than 37,000 them of all these things. minded consumers that telephone service representatives have that as
Historically we have attempted in service was still a far better value than their primary responsibility. They are the Bell System--both in Associated most things they had to buy. the chaanel through which consumers
Company advertising and AT&"V-- We talked about quality, reliability make their feelings known to our
to treat current corporate concerns in and innovation in our products and company in more than 12 milion our informative advertising. Subjects services. calls a month.
and manner of presentation have We talked about our continuing AT&T messages like these have
varied, depending on immediate need to grow so we could continue to been appearing in print throughout needs. By 1970, it was apparent the serve consumers in the superior man- 1972 and 1973. They make up a naneed was for detailed, straightforward ner they had come to take for granted. tional backdrop of advertising in supmessages on subjects in which con- And we tried to find new ways to port -of the Associated Company efiners had expressed the greatest in- reassure our customers that we were forts in their own service areas. And terest and concern, really in tune with their desires and many of the Associated Companies
Research conducted at the time needs and doing everything we could schedule corporate advertising on sealed those attributes of a corpora- to respond to them constructively, some of these same themes. For extion thought to be most important by To this end, in 1972, we searched ample, several stress value by remindthe general public. They were reliabi- for a phrase that would state this aim ing consumers of the biggest bargains ity, fairness to employees of all rces, simply and memorably.
38 PUBLIC RELATIONS JOURNAL
33-291 0 78 5
available in telephone service. In make a contribution to the quality of able to establish has brought us a some areas with large Spanish-speak- programming itself by sponsoring large audience for our commercial ing populations, even bilingual me- shows of taste and enduring merit, as messages over a broad demographic sages are distributed, well as many of broad popular appeal. range. Sole sponsorship has given us
We also "hear" and respond to In recent or current television pro- greater impact and sponsor identificaconsumer needs that go beyond the grams on the Bell System Family tion. And the overall quality of our mechanics and cost of phone service. Theatre, we have featured concerts programming has earned for us extra We have attempted, for example, to by distinguished musical artists, such public relations benefits. show how parents can teach their as Jascha Heifetz. We have scheduled Our own programs have also perchildren to use the telephone in emer- original drama, such as "Jane Eyre" minted us to use commercials of any gencies. and "The Red Pony." In October, we length. Given the complexity of some
Many of the messages we treat in featured "Peggy Fleming in Russia", of the stories we wish to tell, this is our corporate advertising in print are the first television entertainment spe- a decided plus. For example, this also covered in broadcast media. cial to be produced in the Soviet year in "The Red Pony" show, John Since the early days of radio, then Union. deButts, chairman of the board of
later in television, we have tried to The program mix we have been AT&T, delivered a four-minute message explaining in a graphic way
-: / where the consumer's dollar for teleTlr, phone service goes. This is informaT~ametL L~m to dPial WfV tion consumers have a right to know,
each hi 11 11 1 because their dollars provide the faand he 1al a facilities we need to serve them.
"It's very simple," Mr. deButts r,..%ewmisawa,, said. "To serve, we must build. And
k *n E.d ,.ks, B to build, we must earn. We know that
*w* &W. wh o a. kw ,,tt you want service that's there and
% ,,prtook; Io ready when you are. And that's the
vw kind of service we are determined to
UN ,y- o. OA provide. In short, 'We Hear You'."
W helaif wrg"" cat Is w
'A procuc*",,. W ftWAYS TO SAVE
Ow o,.rater eatwaft town hw t, And our hearing and the consum*Vg. .t, .I.., era's understanding of our response is
Of co se a exra"tme ood troh*W *essential if we are to provide the D &extra .k *0).% IE% t 4 quality of service Mr. deButts is talkA m yd ing about. It's obvious that a consumer who understands a company's offer and its problems can be served more efficiently. And if he can be served more efficiently, he can be served more cheaply, and this can be a factor in keeping his rates as low as possible.
For example, it is in the consumer's
interest to understand he will save money if he dials direct rather than go through an operator. That lowers our costs, so we can afford to give Nhim a lower rate.
Similarly, he can save money if he
understands about low-rate periods for long distance calls. Leveling out the peaks and valleys of demand on the network lets us use the network more efficiently.
He will ultimately save money if
he and other consumers limit calls to (Continued on page 65)
NOVEMBEi 1973 59
@ (Con tinted from page 59)
directory assistance; because the lower we can keep our costs, the lower we can keep our rates.
He may ultimately save moneyand he will certainly enjoy better service-if he knows whom to call in the phone company to get the kind of service be wants. The more satisfied the consumer, the more smoothly we can run our business.
Finally, it is in the consumer's interest if be understands why we must raise rates in some areas and why we must conduct busLness in certain ways for the benefit of everyone. Consumers have every right to question what we do, and should have every opportunity to make their feelings known. But the more readily we can help them understand, the lower we can keep our costs and their rates.
Thus AT&T continues in its present corporate advertising, as it has for many years, to communicate information about itself in an effort to achieve understanding. Because through understanding comes better service.
We'll continue to let the consumer know "we bear you." We'll continue to let him know, in words and actions) A twe Vre answering." We're determined to serve him well. 0
Exhibit 23: Case Study-Alcoa
to Alcoa: "Focusing on The Issues"
A D V E U TI SIN 0 and public characteristics. Against this need. weight/strength ratio makes it vital in
relations are among the advertising objectives and a airplanes and essential in the
many resources used by communications strategy were transportation of goods; how less
Alcoa to help accomplish prepared by the advertising and public weight in a car means better gas
specific company objectives, relations departments and approved mileage; and how the high scrap value
While most of Alcoa's advertising by management late last year. These and ease of recycling permits us to falls into the industrial or consumer are the objectives: product category, corporate
advertising does account for a A. Establish and reinforce in the (Please Turn Page]
significant portion of the advertising minds of America's most influential budget. The underlying purpose for publics that aluminum products are Alcoa's present corporate program is vital to our economy and way of life. .. to focus on issues or attitudes which B. Develop a sharp sense of can have a significant influence upon awrns mn hs ulics that Jthe company. Right now, we are all these very uses of aluminum also hying in an energy-sensitive contribute to the conservation of
Attitude studies have indicated that
1hk above-average American has little To accomplish these objectives, the Yornxcaofbwmyhv e
knowledge of the aluminum industry, advertisements talk about and show a Coors can that was a Flstaf While he may identify the industry as applications of aluminum which can that was a Carling can. 'relatively large consumer of energy,, people are interested in and can iden- s ~
~I receptive to thelpremise that tify with their lives in a meaningful
tany aluminum applications can, way. They communicate the deede. save energy. He is simply not fundamental role of aluminum in our : :. ; tlowledgeable about them. Given this life style and the many ways in which it ':L ~ Situation, a clear opportunity emerges helps save energy and conserve our reWDrelate the positive advantages and sources. They illustrate the insulative, Otessential nature of aluminum reflective and conductive properties of 4119 with its energy-saving aluminum; show i ow its unique M ALCOA
0VEMBER 1974 33
muse it again and again and again. D. Written to an elected official? some people might be more active
The audience for Alcoa*s program E. Taken an active part in a local than others and that this would likely was to be small enough to be civic issue? be a function of income and
effectively reached with the budget F. Addressed a public meeting? education. although not necessarily. available for this purpose. If had to be G. Written a letter to an editor?- Based on this arbitrary assumption, a defined by characteristics which could screen was applied to determine how
also be used in selecting media which With the exception of the claim of many of the 24 million also resided in provided the most efficient coverage of having voted in an election, the rest of households with annual income this audience. Information from both these characteristics or exceeding $15,000. This numbers
the Simmons and TG I readership psychographics described an audience approximately I I million. The studies provided the basis for the that is mom active than the average. audience was then further refined to audience definition. In addition to Alcoa's audience was then defined to determine, of the I I million, how many other questions about magazine include all adults who claim to have many also attended or graduated from reading habits. they ask their done two or more of the s6ove things college and this numbers about 6 respondents about their involvement within the past two years. excluding million. It was then concluded that in extracurricular activities. The voting in an election. The research while the target audience remained 24 question goes something like this: data indicates that the size of this million, irrespective of demographics,
-Have you within the past year- audience is approximately 24 million the inner segments of that audience
A. Voted in an election? adults. Cross checks with other were perhaps even more important as
B. Written something that was sources suggest that the indicated size a target group and the highest possible
published? of the audience is correct. While this reach and frequency should be
C. A c i i v ely worked for a political constituted the target audience. it was
parly? felt that within the target audience (comaxaod on per 44)
[continued from page 341
achieved in this area with the available frame is the correct one. it is our best budget. judgment that based on our reach and
Making use of an agonizing number frequency. we should achieve tangible of computer runs with different results within this period of time. magazine combinations. a media mix
was produced which provided an 85 ALSO USING TV percent coverage of the prime target
audience with a frequency of 10 In addition to the use of print media
impressions; a reach of % percent of to carry on this campaign, Alcoa is the I I million with a frequency of 12.4 also using television. For the most part impressions; and 98.7 percent of the 6 television. while an extremely effective million with a frequency of IS.2 medium, delivers large and diverse impressions. audiences which makes it very
Having now defined the audience expensive if your target is mom
and determined the best media mix to, selective. Them are exceptions to this, reach it with an effective frequency however, in the area of special level, we then turned to the question programming. Programs like "Meet how do we measure the
accomplishment of our objective. An the Press," "Face the Nation" and attitude and awareness study was -Issues and Answers" attract small clearly needed. But to be useful, this but loyal audiences of 2-3 million had to be an attitude and awareness adults at a very low cost per thousand. study made soley within the target -Issues and Answers" was selected to audience. Original research in this augment the print schedule because it area proved to be the only acceptable has a high percentage of viewers who answer. A research firm was hired to precisely fit our audience identify and interview a nationally characteristics. In subsequent projectable sample of adult Americans research to measure changes in who precisely fit the target audience attitudes and awareness within the characteristics. They made 2277 long target audience, additional questions distance telephone screening will be introduced to determine to
interviews to identify qualified what extent the use of television respondents and conducted 400 commercials may have helped in,
full-length interviews. In addition to achieving the communications these interviews, they also conducted objective. This can be done through 100 interviews with adults who had separate tabulations for heavy viewers, none of the target audience light viewers and nonviewers.
psychographic characteristics. The The final point with respect to latter group was designed to serve as a Alcoa's program or any other control group and to help determine corporate program would be to stress attitudinal differences between the the importance of presenting the target audience and the public at communication in terms that can be large. In both groups, the interviews perceived as meaningful and were divided equally between male important to the individual within any and female. Since this study was given audience. As with any other ad completed prior to the appearance of on any other subject, to be effective, any of the ads in the corporate series, the ad must offer information which a follow-up study after a period of the reader or viewer regards as some IS- 18 months can measure any important or significant to him. C3 change in attitudes and awareness as a result of the advertising program. -Blair R. Getft
Although there is little data to support M" er of
the premise that a IS-18 month time Advoidiing
Exhibit 24: Case Study-Weyerhaeuser
A Weyerhaeuser Company:
Explaining Conservation Concepts
T HIS CAMPAIG has not interest was certainly behind this
only aided conservation and highly successful communicationsI
the efficient use of our effort. By the 1950's. lack of
timberlands, but has unesadn a becoming a serious
dramatized the importance of threat to private forest management.
scientifically planted and harvested, timber cutting in the hands ofth thus protecting this country against government-or at least have all
any future exhaustion of its invaluable forestry and logging practicesMA
timber resources." prescribed by the Forest Service.
That's what Saturday Reiew oj Realizing that the public didn't
Literature said in judging a Weyer- know what private industry was doing MONILzwwc
haeuser ad to be the most in the way of modern forestry ad hwasiob
distinguished public-interest improved wood utilization.
advertisement of 1956. By that time. Weyerhaeuser Com pa ny took the lead
the campaign was in its fifth year. a in telling the public hat was really
result of Weyerhaeuser public affairs happening on privately owned forests.
department in Tacoma working with The aggressive communication ""0
Cole & Weber, a Pacific Northwest program featuring the "wildlife"
advertising agency. A
Self-interest as well as public [ Tur" To Pat* 361
34 PUBLIC RELAT110t45 30"
WEYER14AEUSEA company. It also served as a base for advertised on NCAA football. ABC'.s
1connidfioinPW 341 product advertising, but, most Wide World of Sports. NBC's First
importantly. established Tuesday. a special called The
paintings was inaugurated in 1952. Weyerhaeuser Company as Unexplained, the 1972 Summer
Some of America's top wildlife artists conservation minded and undoubtedly Olympics. now back with NCAA such as Fred badekens, Stan Galli added to its recognition and stature. football and NFL Monday Night and Jack Dumas illustrated the ads. By the 1960's. Weyerhaeuser's football. First magazines used were the emphasis had shifted from a once As the 14 Weyerhaeuser
Saturday Evening Post. Farm. Journal wood products oriented organization commercials are shown throughout and U.S. News. Others later included to an integrated forest products this football season, the theme and Look. Tinitc Sprts Illustnused, industry that also manufactured and objectives parallel the "wildlife" ads Newsweek. Reader's Digesi. Atlantic, marketed pulp, paper and consumer started more than two decades ago: Harper's. and Saturday Review. A packaging and was engaged in real that the company is a good steward of newspaper advertising campaign in estate and insurance activities, its 5.7 million acres of land while plant communities also followed this A "capabilities" campaign in the providing leadership in forestry "wildlife" theme at one stage. And Wall Street Journal and other research, regeneration and utilization
the illustrations were adapted for publicatiions told of this diversification programs. Just as in the early 1950's, calendars, playing cards and other as it related to the forest base. the messages depict the many benefits collateral materials and helped Then research indicated that the of the forest, including how private
convince people that private industry Weyerhaeuser story could be told forests are a habitat for wildlife and a was concerned about American effectively by way of national place for recreation.
forests. In addition, the ads television, so the company changed And, like the ads of the earlier era,
communicated to the public that emphasis freom print to television, these commercials have won praise
logging does not destroy wildlife, but First commercials showed its from viewers and awards from judges works in partnership with nature as -capabilities" in forestry and for successfully conveying concepts most wildlife flourishes on modern products, through a medium best known for
tree farms. Since then the company has selling products and services. 0
-Rchad E. Londgm.
Thsies of ads continued unti Mlamap of Adverthbilm as
1967 atad made many friends for the CWO
Exhibit 25: Case Study-AMC
AMC: "We back them better
because we build them better."
C OMROATZ ADVU3TnSiG? Some advertising. you must start with aAm rcnM t s
call it an expensive exercise basic recognition of consumer needs. wat yo tojug
in introspection; others a And it was just such basic recognition
valuable addition to a corpo- of an unmet need on the part of the w ihoeo hs
ration's total communications objec- car-buying consumer that led to the M pm shs
tives. development of the AMC Buyer
Like many useful tools, it's all in Protection Plan, along with theIMbetnwci how you use it. corporate advertising that has gaate
American Motors' corporate efforts successfully promoted it.k
represent more than just an addition Back in early 1971, AMC was faded to its product advertising. For AMC with a declining penetration in a z_ Z
corporate advertising is the central growing car market. Its management ---focus of the total advertising program. decided the answer was to create aThanks to the company's exclusive unique consumer-oriented point of Z VAMC
Buyer Protection Plan. difference that would serve to switch
AMC believes that before you can loyal owners from GM, Ford or _create truly effective corporate Chrysler to AMC. [continued ons page 38)136 PUBLIC RELATIONS JOURNAL
AMC: WE BACK THEM BETTER... improved product quality and back it study of owner attitudes by Boston
(continuedtfrom page 361 with a l2-nwnth. 12.000 mile College tound more American Motors
unconditional guarantee. Make customers reporting satisfaction with
available a loaner car for the customer their warranty protection and service A tall order. Especially since the to drive when his car had to be left at than buyers of any other make.
task force assigned to the project had the dealer's for overnight warranty According to the survey, 68 per cent of just noine months to comec up with a service. And create a direct hot line to AMC buyers said that the Buyer program~ and get it before the Detroit to assist in customer- factory Protection Plan was either very or consumer. comimu nicat ions. extremely important in their purchase
The first step was to sit down and This was and is the basis of AMC's decision. really talk with consumers to find out successful Buyer Protection Plan. what bugged them the most. Not which has been the cornerstone of the The responsibility for creating surprisingly, the playback showed company's strong resurgence. For the believable advertising to promote the people wanted a really reliable. 1974 model year. AMC passenger car plan falls to AMC's agency. trouble-free, quality automobile. sales were up 4.5 per cent compared Cunningham & Walsh. The They wanted this car to be backed by with Ithe general industry decline of 20 commercial with the four cars on lifts an unconditional guarantee, with percent. More important, the is a good example of how the Buyer
better servicing. loaner car availability -conquest" rate-the acquisition of Protection Plan is merchandised on and a means of resolving problems new customers-is the highest in the TV. The print advertising program quickly. But they also had serious industry for the subcompact Gremlin, also underscores buyer benefits doubt that Detroit either would not or closely followed by the Hornet in the measured against competition. This is could not provide such an automobile. compact category. corporate advertising AMC-style, nt
This credibility gap played a large The feedback from AMC car buyers an addition to the basic program, but part in the program AMC developed, shows the corporate commitment to a consumer-oriented approach The components of the plan were customer satisfaction is working at the relecting the total philosophy of simple: Manufacture a car with retail level. A recent independent American Motors management. 0
Exhibit 26: Case Study-Union Pacific Railroad
Union Pacific Railroad:
"We Can Handle It"
Wer UR ce ow am
public relations techniques causing the dislocation of jobs and -p 00 &
combined with a sound ad- operating runs of train crews were
vertising program haepro- lengthened which meant that families
vided an effective program were moved and whole communities for Union Pacific Railroad-motiva- with historic railroad backgrounds tion and productivity is the result. were being dislocated.
The underlying theme stresses Change and training was the order
people and performance. of the day for many employes and all
Two years ago the railroad suffered of this brought about a malaise and an 18-day work stoppage. the worst unsettled feeling in every level of the strike in its history. Amtrak had taken company structure. We knew our over the passenger service and railroad was one of the leaders in employment was declining because of profitability, that we had a 9
modernization and centralization of management team of transportation work forces brought about by professionals. Also that the motive L awl
computer-induced work flow.I1 Mechanical facilities were changing, Icontin wed opge401 4il1" P
39 PUBLIC RELATIONS JOUROL
UNON PACIFIC tipped into the company publication, Whether it was a busy job or a lonely
[oontinuwal fm ~ 391 to our knowledge the first time this job. it made good copy and the
power and rolling stock was the best had ever been done. employes enjoyed seeing themselves
and most modern in the Our reasoning for expecting this and their fellow workmen in print.
industry-what was needed was a campaign to provide motivation to our rallying cry. a polishing to that old employes goes as follows. We made a We produced an extravagant family spirit the railroad enjoyed positive statement from management five-wreen multi-media production decades ago. about our employes. We selected the based on the efforts of the railroad
mayor hometown communications and the people that do the work and
The slogan came through "We can media to carry the message to the showed it al! over the system, wherever handle it" offered to us by Bozcll & employes, their families, their peers we could get the employes together. Jacobs. the new ad agency we had just and leaders of their business Along with the rousing tune which we brought on to handle our program. community. The reason tr going into included in the production, it really With the slogan came a catchy tune general circulation media with this gets the adrenaline flowing and has "A Great Big Rollin' Railroad" which program was to let the employee know never failed to win applause and we decided to use as part of our how important we consider him to be, plaudits from the employes. It is also commercials. but at the same time to let his family, a good vehicle for addresses before
The jingle moved our ad campaign friends and business acquaintances civic groups in the towns along our into television where we had never know too. This was expected to build line. Officers' speeches are keyed to been before. his pride in himself and his association presenting the efforts of the employes
The format is built around ads with the company, and in a subtle in the job the railroad is doing.
showing one or more workers on the way, to set a standard of performance What about results? We have had job. relating the significance of their for him to work to. requests for thousands of the records
work to the whole function of the It wasn't long before the "We can of the tune. ..many of them from company. Newspapers. radio and handle it" stickers showed up on people outside the railroad. Our lunch boxes, forklift trucks and other program has been adopted for study in television were selected to maintain
the effort in on-line communities pieces of equipment. The slogan communication schools at several where the largest concentration of became a catch phrase amongst universities in the West. weretheplrges oRere of employes on the telephone and on the It is difficult to measure morale, but medium each ad is signed with railroad yard radio-it was spoken as from communication with our
"WE CAN HANDLE IT-the Union a matter of pride. employes and letters from shippers we
Pacific Railroad people." To support the ad campaign, our know the program is working.
public relations efforts were directed Motivation and productivity is more The campaign was kicked off by a toward featuring working people in easily recognized.
letter mailed from our president to magazine and newspaper articles. Our Union Pacific ended 1973 with the each employee enclosing badges and people worked with newspaper highest net income of any railroad in
bumper stickers which were reinforced editors along the line to feature train the United States... last year we by banners and posters in work area. crews, in the locomotives and on the hauled 58.5 billion ton-miles of A flexible record of the song was caboose, as well as track workers. freight, the highest mark in history. C
-Edwin C. Wink
Gemenl Dkvde(~ 1Pubbe ReI.S
Exhibit 27: Case Study-Kennecott
K Kennecott Copper:
"Mining is Beautiful"
he status quo is no longer ac- he qualified those remarks by "change" and bowing to apathy would
ceptable." said B.B. Smith stressing that any standard operating impair the division's needs to be
upon taking over the reins as practice or procedure in existence for productive and competitive.
general manager of Kenne- five years would be evaluated before The operation had been taking its cott's Utah Copper Division two years being continued. The time was at lumps from environmentalists and ago. hand for management and line em- preservationists who would like to shut
Addressing his first staff meeting, ployees to recognize that ignoring continuedon pWe42
40 PUBLIC RELATIONS JOURNAL
Beauty is in the eye of the beholder. On July 30, the first -Mviining is We are often too involved, too en- Beautiful" advertisement appeared in Akni A trenched in our own thinking, too the'state's five dailies and 52 weeklies.
Ink s+*shortsighted to see, to understand, to The ad. in four colors, portrayed an
% e...feel what makes activities worthwhile, oil painting of the Bingham Canyon
=6ioama A natural resource industry is basic to Mine, circa 1910, in contrast to an
~ -- ----- the material welfare of the country; actual photograph of the mine as it is
and its people, who provide meaning- today and offered free copies of the ~ fu I ser-vice, deserve recognition. In ad- reproductions. Within 10 days over
dition to producing copper, company 600 written requests came in (and
-..--~- management has been proving by they're still coming). Much to our
deed that it is fulfilling social re- surprise, there were but seven negative ~ .,it\ sponsibilities, especially environmen- responses, two critical letters to the
k, tlas a priority objective, editor (in The Salt Lake Tribune) and
"Mining is Beautiful" presented a three nasty (who ya k iddin'l) editorials bold challenge and once my staff and intesuntewperoth
agency got thinking about it, they University of Utah. In short, we miscaught the spirit and grasped the calculated our pro-con ratio reaction potential for conveying a multitude of by some 43%. Needless to say, we messages to change concepts and didn't mind making that bad a judgWM apwAsMopinions to the contrary, while rein- met
KENNECOTT COPPER... forcing those supporting this Since the initial ad, four additional
I continued from Pogo 40 operation. Here was a theme that "Mining is Beautiful" productions
us down. The environmental impact could achieve a new understanding of have appeared (through September). was generating negativism at an this, the largest private enterprise in Reaction to date continues most alarming rate and the frequency of Utah; a thrust that would appeal to favorable, and not wishing to prejudge related news reports and editorials was the emotions as contrasted to the nuts the merit of this campaign, I will close inexorably forcing the public relations and bolts approach which has some- this report with some excerpts from a function into a defensive position, times in the past been used. Under- recent front-page editorial by This impact was obscuring the lying the emotional appeal is a sub- PlublIis her J im Cornwell in the Eagleeconomic, civic and social contribu- liminal level that lingers long after the Advertiser, which serves some of our tions the division had been making to Impactive shock of the blatant head- largest suburban communities: the community for more than a half- line. "*After nearly 30 years of newsOur ublc rlatonspostre Minng s Bautiul"wasplanedpapering, we've sometimes felt century. Ou ulcrltospsue "iigi euiu"wspandnothing people could say or do
and communications credibility were to pay off in job enrichment. Sup- would surprise us. Take, for becoming shaky. Indeed, something portive copy and visuals were designed instance, the case of Kennecott was needed to offset derogatory at. to provoke thought and generate Copper. It's currently engaged in
titudes and expression from media, movements. We had a virgin a public relations campaign built
the public and, to some extent, our opportunity to awaken our internal around 'Mining is Beautiful.' A own employees, and external publics, particularly recent release described the
Public relations had to get off the those who were polarized against our beauty of the 'melting pot' of
defensive. We were in no position to business as anything but "beautiful." racial backgrounds evident in the compromise with management or the Here were three words that were thousands who comprise Kennepublic; rather, we needed a new, ag- indeed provocative. They were -cott's labor force. The beauty, of gressive thrust. calculated to generate that most im- course, is that this is so typical of
Smith's "challenge" induced a re- portant element of any advertising or our country itself--diverse races examination of our basic assets, which communications campaign--atten- and creeds brought together by a often escape one's mind, much like tion! common goal and enjoying to'"being too close to the forest to see the I had the opportunity to present the gether the blessings of this great trees." Looking "within ourselves," theme in late 1973 at a meeting of my nation. If it were possible to we found inspiration in two old fellow public relations associatesof transfer that mountain of copper adages: "Accentuate the positive, Kennecott, followed by a presentation elsewhere, dozens of areas would eliminate the negative" "The best of proposed newspaper ads. TV story be vying to have Kennecott defense is a good offense." The values boards and radio commerical audition Copper in their backyards, conwere there and they were real. But, tapes to Smith and his staff in early tributing to their betterment .. .a11 where was imagination? 1974. Collectively, my staff and -in-all we're fortunate such a firi
It was beautiful. It was inspiring, It agency prefaced the presentation with: exists in our midst." (Beautiful1) was also shocking. So, we said it: "Mr. Smith. this is our answer to your K,.K Cue
"Mining is Beautiful!" challenge of change." ComuicEin DtfreciM
42 PUBLIC RELATIONS JOURNAL
Exhibit 28: Case Study-A. T. & T.
I I Aa
Noel L. Griew
In 1908 American Telephone & Telegraph Company Measuirable suce"s
commissioned N.W. Ayer & Son advertising agency to Insofar as public opinion can be measured by newspaper launch what has become the oldest continuous corporate comment, Mr. Fish apparently had some success. James D. advertising program in America. That program, which Ellsworth, who handled the AT&T account for the Publicity began with five pioneering ads, continues without Bureau from 1903 to 1907, says he saw newspaper clippings interruption to the present, and Ayer and AT&T have one of gathered from around the nation change from 90 percent the oldest agency-client relationships in the nation. unfavorable to AT&T in 1903 to only 20 percent in 1907.
The man who authorized the beginning of AT&T's In 1906-1907, J.P. Morgan captured control of AT&T
corporate advertising was Theodore N. Vail, a pioneer from the Boston financiers who had owned it since the 187011. American industrialist unique in his time for having a sense In April 1907, two Boston directors of AT&T resigned from of social responsibility. the company's executive committee and were replaced by
Born in I W, the son of an ironworker turned Iowa farmer, Morgan men. A few weeks later, Mr. Fish resigned as Mr. Vail built his first successful career helping to improve president and was replaced by Mr. Vail, then 61, who had the U.S. Postal Service after the Civil War. Starting as a been representing Morgan on the AT&T board. railroad mail clerk with the Union Pacific on the western Mr. Vail moved quickly to strengthen the public relations frontier, he quickly showed a genius for providing improved policies that his predecessor had begun. His first annual service to users of the mail. By his early thirties, he had risen report, published in March 1908, was entitled "Public to the number two position in the Postal Service. Relations." He fired the Publicity Bureau for dishonesty, but
In 1878, dissatisfied with political pressures on the Post hired AT&T Account Executive Ellsworth as a "special Office. the 33-year-old Vail resigned to become general agent" to help Bell licensees refine their advertising. manager of the fledging Bell Telephone Company, a In the early summer of 1908, Mr. Vail authorized N.W.
predecessor of AT&T. In the next nine years, he helped fend Ayer, then the nation's oldest and largest advertising agency, off attempts by Western Union and others to infringe on the to launch a national campaign to persuade the American Bell patents, organized a number of Bell licensees in cities public that AT&T provided excellent service, that its rates around the country, and supervised early development of were fair, and above all, that the telephone industry could long distance telephony. serve the public best if it was a monopoly.
Having been passed over for the presidency of the Mr. Vail dreamed of AT&T controlling the telephone and
American Bell Telephone Company, which had become telegraph industries in America-of a system in which any
parent company of the Bell System, Mr. Vail resigned in telephone could be connected with any other, nearby or 1887. By then, however, he had made a fortune investing in distant, and in which the telegraph office was no further Bell System securities, which he lost in a scheme to warm away than the nearest telephone. homes and offices with superheated water. Subsequently, he To accomplish his dream, Mr. Vail knew he had to change made a new fortune developing public utilities in Argentina. public opinion. Although Americans accepted the Post Office
In 1889-1900, AT&T, incorporated in New York, absorbed and utilities, such as natural gas distribution and street the assets of American Bell and became parent company of traction companies, as monopolies, many favored the Bell System, and in 1902, Mr. Vail returned to the Bell competition in the telephone business. System as a director of AT&T. According to George Griswold Jr. of AT&T, it was S.A.
By 1903, then President Frederick P. Fish was working on Conover of N.W. Ayer who convinced Mr. Vail that mass the problem of public relations. He initiated a policy of circulation magazines were the best platform for the sort of peacefully absorbing competitors into the Bell System persuasive advertising effort Mr. Vail had in mind, and that instead of destroying them. He sought to build good will Ayer was the best agency to handle the job. through continuous wooing of the public through employee Ayer decided to try a series of advertisements "that would courtesy and efficiency and rapid response to complaints. In sink deep into the hearts of all classes of people who use the addition, he hired what was probably America's first public telephone- giving them facts, and explaining all the relations agency. the Publicity Bureau of Boston, to problems that are experienced in running a big telephone represent AT&T in the court of public opinion. company in any part of the country."
34 Public Relations Journal
First ad ina 1906 Figure2
The first of the five ads prepared and placed by Ayer for AT&T, "Twenty Million Voice&" Ifigasae 11, appeared from late June to August. 1908. The institutional nature of the ad t Cis immediately apparent. Copy clearly says the purpose of the ad and others to follow "is not to get more subscribers," and makes a strong plea for the public to accept the telephone Tl p ,
While the first ad was running, Mr. Vail made a trip west.
There, probably in Denver, he appears to have becomeM miffed because someone at a party did not know what AT&T E ... .,zz'z..
was. He returned with orders that future ads prominently *
display the AT&T name and "bell in a circle" logo. ...4,.,
The second ad in the AT&T series, "The Telephone's po" -- -- od
Burden" figure 2], reproduced from the Ayer copy books, did not appear in magazines quite as depicted. The telephone ~.
pole artwork was deleted to make room at the top of the ad for W-~ -4,d V"' '. a Bell seal and the AT&T name-the same clumsy art that Z. Son
appears at the top of the third ad, "Fair Rates" figuree 3). 6--.d-o Z --_k7%o
By insisting on more prominent display of the AT&T name,
Mr. Vail deserves some credit for development of the 2.'' ----------1
corporate identity ad. -o,'.0oo 1"-1
The fourth ad in the series, "One Policy, One System, ~~'~
Universal Service" Lfigure 4]. was slated to appear at the l y
time of a national presidential election. Trust busting was W...- --j.-.
popular in 1908, and some AT&T executives feared the ad z z '
might be used by politicians to argue against the AT&T trust.AmrcnTlpoerTlgah w ay
Mr. Ellsworth laid the objections before the AT&T A eia sehr eerp opn
president who asked, "Are the statements in the AMIAaW A ..h 0&yU
advertisement true?" Mr. Ellsworth replied that they were.ad OPA svrwSv
"Very well, then," Mr. Vail ordered, "let's print it and beat Nw
them to it." [coiu .ed on page 361
Figure 1 figure 3
LS Amkwdmw Irsh. & T*#sWupb
/, voices '1400.000~' Fair Rates
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J fib Tmo a. V-. .6 -6 md$I.ft P*4-k.N A nd.-.o
yoI. '* ~ P. a-, po boo. -w r 14141 do 414*14P. 0 1 A4 1. -P.1,._ $ -W p-A-d A"' 1. b -14... foo
ad4I.y'5U a 44 11k 4494 1 r44.-a ~ j r.~A.' - .. 1414 ton. pb .4 14..om h.A..iMh .w, ..hw51
A. .4w~ -Ipo -or d- 0od 'I-b- Fo
T-4, Wake4 od pop" 6-,, -hv 4411 14.9 14'. ."4,sa Lh ....o -monpob w h.
= ,W - 4 14o, Z Z.41. -, h.1. - "a4 fl. .,q 4f W -W .
hU~m .. .14 0. luo 4 -14- ~ ,~ .- F..,0-lo f h __~ 'b1*.4 a 0 1ko e.. . b gw, 4. ton b1. 4,d
o'P14, &4~ -' .11 !s=4T Woo- 1 kk roo14 S. *ot '..q... 45. by 1.~ 64,' o0 6 s pqoomm?
-~~~~~~~ -0 14 61.1 W- &. a d11 ,h4 14d .1 a..l -ho .' f ~571111, y44
p.1414- .14 ~ W* ~ 4.. 144-774. =="1 a,4 W 11411 % ( .. a, ...'... m414 orm ..0
141414441 dP_ W1 1 1 11 1111 -po ~,,5 5,41 as "d14 a111 W14 4 b.1 0 4.14
.. ~ o -i o ,I'.. sod .4-y.r. 4 .4 h .'ho .A.. 14, d ~ .-. p.
American -th Telehon Teegap 6- man 6-,.a 1414 1..41 W11 5... yo. 'nf.,4 4,..,4 4 1..M,.
Amo446 ~44 4 74 4.4 foo 4=411144 14 d o 141.4... 4.4
A.l kt q-c~b 0-. PolcyOn ..uA. doo of 4,- b.".
In=1 CompVai .-v~a. Serviceb b 1
Noebe17 yo35 _t~ M Jdt v h
Figu re 4
T HAT the American public requires in the development of the art, i origa telephone service that is univet- inmates, tests, improves and protects new sat is becoming plainer every day appliances and secures economies in
No. while people are learning that it purchase of supplieS.
the Bell secse has a broad snoat Ional provides a clearing house o( scope and the flexibbily to meet the standardization and thus insures econever varpng needs of telephone users. omy in the construction of equipment, they know hlttle of how these results lines and conduits, as well as in operhave been bought about The key- ating methods and legal work-in fact, note i5 Iund itn the moto--One policy, in all the functions of the associated one system, universal service.- companies which are held in common.
Behnd this mo,:to may e I"nd the Universal, comprehensive service is
American Telephone and Telegraph obtained because the American TeteCompan,--the so-c
eAn1ercanTey ,,.ne. sdTelegraph assoialedcompanesintoa unifiedand The ad headline became a frequently repeated slogan in
Company has tsr One ot tts fuvtIton5 hatmoo.s whole.
hao ahodingcrpa.~ hchede- t elablshes a singi.le, instead of a Bell System advertising until 1926, by which time AT&T
rates the associated companies and divided responsibilty in inter-sate
make a.ilable for all w aI is accom- conectons, and a olortn system o dominated the telephone business in America and the slogan
psn b t sockholder operating and a coming; and secures was dropped by the company and nearly all its subsidiaries.
As in important stockholder is the a degree ot efficiency in both local and
associated Bell companies. i.. assets ong distanceservice that noassociaton By the time the "One Policy" ad appeared, Ayer artists
them in financing their extensions, and of independent neighboring companies
it helps insure a sound and uniform couldobtain, had refined the Bell seal at the top so that it was graphically
.* Henceicanbeseen thattheAmerican more pleasing and less distracting. By the time the fifth ad
A unified system is obtained because Telephone and Telegraph Company is
theAmericanTelephoneandTelegraph theactiveagencyforsecuringonepolicy. appeared, Ayer artists had incorporated the Bell seal into
Company has for one of its functions one system, and universal service-the
the ownership and maintenance of the three factors which have made the headline art in most pleasing and least distracting manner.
telephones used by the 4,(X),000 sub- telephone service of the United States B
scnbers of the associated companies, superior to that of any other country The fifth ad, "From Door-knocker Days to thle Bell" [figure
American Telephone & Telegraph Company 5], appeared in December 1908.
Readership poll conducted
Figure 5 In 1929, AT&T commissioned the J. David Houser
organization to conduct a poll in Pittsburgh aimed at finding
out if people read the ads, and if those who read them
developed more favorable attitudes toward AT&T. Arthur
Page, who became AT&T public relations vice president in
1927 (and probably the first true corporate public relations vice president in America), was pleased with the results;
..readership was much higher than he had expected.
In 1940, AT&T corporate advertising was extended from
magazines to radio when AT&T authorized N.W. Ayer to
begin production of the Bell Telephone Hour, a weekly
r L 1v network broadcast featuring music inclined toward the
ELL Y5TEM semiclassical. In 1948, Ayer began experimenting with
--television for AT&T and by the 1950s, the Telephone Hour
T HE od nthed aters, .and he dJor- e... ha.nge .pe r.o all m.a.. re to a was being "simulcast" on radio and television.
T ok .... *, .o... a nr-,d- AT&T today ranks as one of the nation's largest investors
noty the dsan. ot ears ne e ass a There toll be sme tarts braghser than
,n, afi.. s s y.. the e loa .be Thet. sme qoap.r p.rcpoo ., in corporate advertising. In 1975, AT&T spent $12,388,000 .d he,it. o dh.,renfede oha ohcrb onmee (not including buys by Western Electric and other Bell
A-1l ith -f o~e.1 the- -w firsdes, If You had '. Os b.b to "s lephoor
eor v5-* ... -i .4*,*dpchup rs.. sntmyortay-no srder soor System subsidiaries) on the genre.
t rlepnhooes they do n o look don the the field as it a now co.er.ed by the one
the -.r s rh- h,--aock .. I B....... l s."-a..m. Yim...gn. Of the $12.4 million spent by AT&T on corporate
-I'" Z, o', h"',1 ,m,s.. advertising in 1975, $7,106,100 was spent on broadcast buys
.', itr nI, h e, for a Bell obt.,erad.. .p- ($121,900 for radio, the rest for television, especially for
We 11 n'ell a nohet oWe do a rhnk ot rhe ,pecr bt b-h e 1, to rhi.:
... ..ea~s...sdaT r p.,,;,,,,r ,.,,,orA. production of the Bell System Family Theater and
ea...tas ..ro....rt..,,t.- ,t,.~,... nr y..,t.......a commercials on it), and $5,281,900 was spent on advertising
5helhr, l mbteop.at.rtonzootrge ]. en.le, her io lso pot re qohtly
0,,S ...*d -,oe. nrigigtly -aod oneq etly in magazines and nationally distributed newspapers.
rho tooder-hy ncr., rietn the hetl or corer rot tint.
p,.r.. d ...... o ,--, mt-et Tl.,phn.i i...... ro....,uh What began as a modest, pioneering effort in 1908 has
o, han.e undorgnt a port what ha. mtorso obliganont The mainrenance of,
nt...ar. s ..ne,, e. . .s. ro e .ca.complete.ws-r .0,el become a multi-million dollar program. And, thanks largely
d -t .o"ee d phoe r. h., bs.... eo va.- to Mr. Vail, AT&T's program has made significant
E.n in the to o imp.t-r rho equ. plbh rtolree Ik motoal obhrgirath
he. *b 0 ."..... ui, ,...,... i ,-..we.W. A.r.-.es.l..p contributions to the development of corporate advertising.
St* can he. The nssertrng ndeavor ef and Teletgraph Company d the aoerridaed
tho m..agemntS of rhe Amertas Telephone Bell ompanies to let he pMblic know and
d 1 I .4traPh c . an tm .p .. h. ,tet by .t nd ho. Mr. Griese is an assistant professor ofpublic relations, University of Bl1 eon a rn -ob t.adcifd t tt .tp eenmd Georgia School of Journalism. Previously, he worked for Illinois Bell
American Telephone s Telegraph Company Telephone.
36 Public Relations Journal
Exhibit 29: Case Study-Trans Alaska Pipeline
TRANS ALASKA PIPELINE:
CLASSIC) PR DILEMMA
Jack R. Nowling
By George Bernard Shaw's reckoning, there are two Congressional testimony and public statements to shed light
tragedies in life. One is not getting your heart's desire. The on his company's side of the story. The press, of course, other is getting it. On those terms, how would you rate Bob followed the matter in exquisite detail, covering every charge Miller's state of mind these days? He directs public relations no matter how frivolous or unsubstantiated. for the trans Alaska pipeline.
You could say, not without justifiable envy, that handling How Miller sees his job
public relations for history's biggest privately financed Bob Miller, who learned the hard lessons of media relations construction project, and one of the most talked-about and as press secretary to a former governor of Alaska, following a controversial, must be just about the most exciting job of its stint as a political writer, sees his job this way: kind anywhere. "Every reporter who hits town these days is looking for the
In the next breath, radiating honest relief, you could say story nobody else has covered. In the past 18 months or so, you wouldn't have that guy's headaches for all the, well, oil we have been visited by upwards of 1,300 working in Alaska. newsmen-and still they come looking for a scoop. All right,
As chief public relations man for a project that ranks maybe that's the nature of the business.
among the biggest running business and energy news stories "But you've got to scratch your head when a prominent of them all, Nebraska-born Robert L. Miller finds himself columnist goes on nationwide TV to report the theft of 10 split right down the middle. It's a full-time job just keeping a miles of 48-inch-diameter steel pipe, and only hours after the rein on the legion of contractors and suppliers who naturally whole thing was carefully explained to him. It was simply a want to promote their own part in the $7.7 billion job. But it paperwork mixup, but it was made to appear that someone also takes a full measure of time and wits to encourage had pirated a few hundred truckloads of steel pipe. balanced, fair-minded press coverage of the nation's most "Then somebody in the Justice Department leaks a memo dramatic energy development in generations. to the effect that theft and fraudulent billings on the project
If you spend any time at all browsing through trade were costing Alyeska up to $1 billion. You could steal all 800 journals serving the construction industry and allied fields, miles of pipe, and toss in our 30 construction camps, and you may already have concluded that just about everybody in you'd still fall short of a billion dollars. the business has a piece of the Alaska pipeline action. In a -T consider myself a professional journalist; I've spent glut of advertisements and four-color annual report covers, most of my working life as a newsman. Perhaps that's why scores of companies are extolling their contributions to the I'm shocked by the way that much of the press covers the project-participation that runs the gamut from highly trans Alaska pipeline story." sophisticated heavy machinery to nutritious meals for Bob Miller and his boss, E.L. Patton, president of Alyeska, pipeline workers, concede without hesitation that the massive project means
That's one side of Bob Miller's dilemma-riding herd on Alaska will never be the same again. There have been social self-promoting activities of a sizable slice of the U.S. and economic disruptions- inevitable when you plunk down industrial community, with everyone patting himself on the a transient population of more than 20,000 in the middle of a back fur doing what he gets paid to do. state with only 375,000 established residents. That is
But the other side, in many ways, is even more worrisome comparable to introducing, in a single stroke, a new to the tall, urbane, and generally unfappable director of population element exceeding half a million into New York or public affairs for the Alytska Pipeline Service Co., the California. It cannot be done without hassles. company responsible for designing, building and operating But now the pipeline is virtually completed, with startup the 800-mile pipeline span:ning the nation's largest state. of operations due by August. The pipeliners will soon be Every time he turns around, his employer is getting hit with gone, leaving only a handful to operate the highly automated another sensational accusation--despoiling the environment, system that will pump at least 1.2 million barrels of oil every attracting criminal elements, ripping off Alaska's taxpayers. day into the American economic mainstream. You name it and Alyeska gets blamed for it. That's when the real fun begins for the state of Alaska and
Much of 1976 was devoted to picking up the pieces flung its communities and the newly created regional native asunder in a running battle on welding practices. Several corporations. When the oil starts flowing, so do the taxes and Federal departments, and a gaggle of Congressional sleuths, royalties: hundreds of millions of dollars for schools, threw themselves into the fray, forcing Mr. Miller to spend hospitals, parks, roads, and whatever else Alaska's leaders much of his time preparing special press portfolios, decide to spend it on.
March 1977 9
The Tanana River bridge for the trans Alaska pipeline was corn-~pleted in 1976. The 48-inch-diam eter pipeline is supported by cables suspended from the 170-foot-high towers on either side of the river. The crossing, about 75 miles south of Fairbanks, spans 1,200 feet.
The gravel and insulation workpad underlying the pipeline on Alaska's North Slope near Pump Station 3 prevents degradation of subsurface permafrost.
Meanwhile, Mr. Miller and his small-but expert staff are coping simultaneously with the tide of ballyhoo flowing from vendors and contractors and the hyped-up headlines emanating from a skeptical press. And sometimes the press is hostile, insisting on treating the pipeline as something more than a massive construction project.
In the case of contractors and others seeking to piggyback the pipeline's prominence, Mr. Miller has set up guidelines aimed at assuring that ads and other materials-including pipeline-related news releases-are accurate, complete and timely. To achieve this, he insists on approving in advance all pipeline information issued by contractors, subcontractors and suppliers, who number in the hundreds.
Ads and news releases must be submitted for review 30 days in advance. For technical papers to be published or given verbally to professional societies, 60-days advance approval is required.
In return, Alyeska's public affairs office pulls out all stops to cooperate when contractors send their public relations people, photographers, and camera crews to construction camps and work sites for on-the-spot coverage.
Mr. Miller also opens his own voluminous photo and film 14 11files to the visiting public relations person, arranges briefings and interviews with management, and assigns members of his staff to make sure the visitor sees what he came to see.
It's not a fool-proof system, of course; some companies have simply ignored the clearance procedures. Mr. Miller realizes it is virtually impossible to monitor everything that everybody with a pipeline connection wants to say in their own behalf. His comment, "We couldn't keep up with it if we bad twice the staff."
However, those who play fast mind loose with the rules soon learn notto expect continued VIP treatment from Alyeska's public affairs department. And members of the press soon discover that they cannot satisfactorily cover the story of th~e pipeline on their own.
"This is, first and foremost, a construction project," Bob Miller explains. "Nobody, newsmen or otherwise, ever gets unlimited access to a construction project; it just isn't done. For one thing, the insurance companies wouldn't permit it. A construction job is hard-hat country; you can't just stroll around seeing the sights."
Personal escort for newsmen Still, some reporters raise objections when they learn that visits to pipeline property are -not permitted unless someone from Alyeska's public affairs office goes along. This chore
10 Public Relations Journal
usually falls to Beverly Ward, a former journalism teacher, who logs up to 4,000 air miles a week escorting the visiting press to points along the pipeline route.
Normally, Ms. Ward has four writers in tow on one-day jaunts-but not always. She recalls spending weeks preparing a complicated itinerary and precise schedule for a group of 114 journalists. After a few stops, however, it became a case of "if you've seen one pipeline, you've seei, Miller: "Every reporter who hits town these days is looking for the lem all." The entire body of newsmen turned tail and fled to story nobody else has covered ... they still come lookingfor a scoop. Point Barrow to talk to the Eskimos.
Bob Miller describes the pipeline's basic press relations workers and a project that runs from one end of America's this way: "If a working journalist shows up in Anchorage and largest state to the other. wants to see the pipeline, we will make sure he does." That "True, we have created unavoidable problems for Alaska, goes for anyone carrying a press card, from the unknown and we regret it. But during a difficult economic period we free-lancer digging up a yarn for Iron and Steel Engineer to have also created many job opportunities for Alaskans, some the network TV anchorman. of them from impoverished native villages. And we are
Having accumulated some 25,000 hours of media relations creating for the entire state of Alaska an unprecedented time in 1976, the Alyeska public affairs office is already resource from which it will derive untold revenues to help geared up for another long season. Now that the construction every Alaskan achieve a better life-revenues that will job is virtually over and oil will soon be flowing, the rush for a continue rolling in long after those who built the pipeline look at the finished product is likely to start in April when have packed and gone. the harsh Alaskan winter subsides. "We'd like to think that someday the pipeline project will
Besides seeing to the needs of visiting newsmen, the public be evaluated in terms of the long-range benefits it produced, affairs staff also generates a heavy outflow of news and public and not on the basis of temporary problems and information materials. As of the end of 1976, Miller's office dislocations." Mr. Miller concluded, "When the pipeline is had produced nearly 700 press releases, I I editions of a basic completed, America will be stronger-and I can't think of a press portfolio, 10 issues of a slick, four-color quarterly better epilogue." a journal, two half-hour films with a third nearly ready, almost 30 newsclips for TV, half a dozen film strips, and a regularly Since this article was prepared, Mr. Miller resigned to devote his updated 30-minute slide presentation with script. time to other interests. He has been succeeded by E.F. [Manny]
And none of this output reflects the work of public relations Livaudais, a 20-year veteran of the ad industry and a specialist in representatives employed by the eight oil companies taking government affairs. part in the Alyeska consortium, nor public relations activities undertaken by the project's contractors and vendors, nor the programs undertaken individually by the news bureaus. Bob Miller figures that someday, when the shouting is over, he may sit down and try to determine just how much public relations work was mobilized by the pipeline project.
There remains, meanwhile, his slippery dilemma: holding the ardor of enthusiastic associates to tolerable levels, while achieving a realistic public understanding of the project through the news media.
Pondering this formidable mission, he recently offered
these observations: "Perhaps it's only human nature to use Mr. Nowling, APR, is president of Nowling & Co., Inc., New York, the pipeline project as a scapegoat for everything that and a senior associate of Carlson, Rockey & Associates, Inc., part of anybody thinks is wrong in Alaska today. As targets go, we the Rockey Companies. are a sitting duck; you can't exactly camouflage 20,000
March 1977 11
33-291 0 78 6
Exhibit 30: Case Study-Rockwell International
How does a company with 120,000 cm- restricting growth, so we changed it to
ployces, $5 billion in sales, and prod- Science gets down Rockwell International. (Today, a fifth
ucts ranging from home workshop to business with of the company's said is outside North
Pwrtools to Space vehicles commu- America.) Of course, this meant benicate a clear, but simple, corporate a new campaign. ginning all over again with our corporidentity? Rockwell International's an- ate communications. "
swer can be found, in pant, in six words, form North American Rockwell. As Well, not quite all over again. Rock"...where science gets down to business." Jack Laffin, Rockwell's director of cor- well had entered the television adverActually, the Rockwell corporate story porate communications, tells it, "We tising arena in the summer of 1972 began in 1968 when North American had a big lob in seating the North with spokesman E.G. Marshall. When Aviation and Rockwell Standard, two American Rockwell name. And in the name chatige was made, Rockwell
major companies that go back to the 1973, just as we got the momentum maintained four connecting links:
early part of the century, merged to going, we realized that our name was "We kept our symbol, type face,
Madison Avenue Magazine 43
we at Rtxkwell International are in the vision, 'we reach all of! those publics and science of transportation. We use that the consumer auineas well.' For Ag- a, a base to talk about our advances and over three 'erxRk lIsT"V xholhe Wlu.%%'all follows this, theme with cwmmunv has been the T i "You mig-ht pwty b i cu w atw i'1,,i ele,, trni an ur other major saxxtx ikn'ntl.drhp sfr
treas of you.llat And rut i o 'e7 z'
-4 a"1\rLtt b)t h ~~d n ete t~ utrx r
F C, Marhal as he onxcx r ~tthe Impttan u'..n xxe ge a t -te0 R~xv~el essge M( xariedsileoe hx trm t I .~iin~n R~ xThel Fxh ol edig sai rdhlr ux Ii ~eett.ri ir i~xrLt
pitar h in tn7omo ebtmpa e tt~S b~~tr ts xh
7ak rmpol h a ente v~r edt xa hn 1h
in mn tls entire ht t h x e imp rixa I taes amol xite, T 1ap spokesman nd ~ur sloan Reler- s Mr Latiri -eAil tsudda t po~ p.t~ .n~~i:n nng tothelast Mr aiinadd x iri x iten er t. sllPep~e..id I sn. I~ ~ A iiif~ L
s~1t-xokn c11h~sas i~t ix ~n ~ I(~M .rxah ie.,.st r ri ns e~i Iho 4.beci n tin~st5t eslu
xxsaJitefr xi u rrp tr iesl~ \hnIt M ~ 4i ~ 'r n lxur .rd
agirx m nl-xad D ti t ~ ~ xm tti 1h 'ti itot ci' x itis I
tisee hn krte r rlx'l 11 r inei ~ j tt -t z ~ r \ t't
pie undrstad i.~ x ar i te lt t tO Ili
fr r i n s rilpne It r, thni~ m A xcgt ~ii~ i.i x ~ ',t t.iiis .
>ipl tatd RA-t. s u tI pil 4S it Il t't~i-iiit ~ t'- -1~ toltpi uI
r.lt It tita~ i l -- I i f -~ t~i Irs .
in rn-te s a. 111x Kx
tut tea hri Ix Ai h x ~ h, -, t0 1 i~ t
Sixes~ ~~~~~~~~~ 1tA'~ VtI. At~t uradI t~- s
spelrea's s aJa .1It ix tt~C dg' I ii t ma wh ttcc(, Fx't, '~til
aurtoerot ieaet ndnwlo iherete i e l-a ts a ItolS .sts A .:-o vt'- mcsg getsi acros t 't O I
44 II[~A u tt4i t rt Mdson A0 nu M0 iht-
want. But it's only one element of a business voice understood. "There are given adequate attention to communibroad communications program which organizations such as the Chamber of citing the benefits and role of busiincludes well planned publicity; cor- Commerce based in Washington. the ness. That is most definitely one of the porate newspapers, magazines and Business Council, etc., which do present objectives of our new campaign. We're films; annual reports; trade shows, etc. the business viewpoint. We, as a corn- using the corporate advertising format The key is to coordinate." Coordina- pany, participate in all of them, and to play a-role in communicating some tion is also the key to making maxci- support them with funds, people and of the benfits of business and we enmum use of those precious media dol- time. This begins at the chairman of the courage other companies to do the same. lars. "We use three different ad agen- board level and works on down. I'm I compliment Textron on the leadership cies throughout the company but I re- involved in at least half a dozen com- they've taken in this are." He 'oncludles quire all divisions to coordinate adver- munications organizations worldwide, almost incredulously. "A lot of people tising schedules with Campbell-Ewald, It's kind of like a doctor giving time don't respect the tremendous job busiour master' agency. At any moment I at a clinic." As far as "misunderstand- ness has in just working with and motican see what each division is doing. ings" about business, Mr. Laffin takes vating people. At Rockwell we have Jack Laffin displays a deep concern re- a strong stand. "We, in the business 120,000 employees. When you think garding the importance of making the world, have not taken enough time or about it, it's almost a big city."
Exhibit 31: Case Study-St. Regis
It's 8:30 a m. on a rainy winter morn- regarded differently. People said,
ing, Mickey Biondo, St. Regis Paper The image shifts: 'Hey, what are you doing cutting down
Company's vice President- -marketing, From forest guardian trees?' St. Regis made the shift to
lights a cigar, sips his coffee and settles what Mr. Biondo terms their advocacycy
back ''To understand where St. Regis to product leadership. period. '" We got out of Bambi's foris* today '' he says, ''let mnc give -you st which was lovely' and nice, into tellsome background," Mr. Biondo. a about us but, more important, thevs ing the story that we are 'professionals.
(ompclling Istoryteller, launches a Precis caet soiaetenm St Regi s We talked about what islike to manof St Regis's past with those fellows who really love trees, age a forest, We tackled a lot Of Volatie
''It all heganl f si Regis about 10 In the late 1960s an environmental subjects, but our apprfoach %as low key, years ago We had jut-uethogh a inncosesbegan to emerge. 'The not a )a 'Mobil where they tome right
decade ofepo~egui rmthe 0cloit, traWled not of the woodwork out and it's war," '' Menw i ack at
mid-S~~~~~~~~~~~~s! it(h"nd 0 h pas n udel ,h fact that wec were the tecmay hr eesm hne
tripled in size 'X' ur t t oebot ctxiflf ii0 cft ws akin place 'i hgtglerit Every Mondas io-rr rig w' d tome atze mrs ofo business beantatk
i n to thbe off'i(e arid .,s 'Who di we a--------" shp in a : maeig c-nse W \e did
quire over the wkend bK t th some reerh 0fhothw ewr
nmid-60s we cam 4to th Celir~ h1Atr1- r (sed aid, oiad beho:dl, we diswe didn't haf,.itisS edd dta u -eral knew us.'
what msttpaisdo, we b'rought t ei e t' nataiinoto
in the pcfsinas5' went to- Li x ea-Jh f "r-~ teie peterption.
pirnoit Mru Ies henc the St: Re- Abu etad ahl go, we degis logo So, we paid 11250,000 o r 't Jed the nar ftegm s survival.
whterr anid we ha a w' imT ge Rerhwst lln u that we were
But we really didn' br-as nrb h, id krk4 leaer tew lrgst proknew us Fially, the board f iecors r fmliwl b'.laigpo
tising1' (Im ingii faetou but it Wa4 uiyoOn i t esn aclos secon
damn ne(ar that ba.d F' r Bioido toerig~n ae ie Hre we
pauses to reliht, the gar 'AX'!lI, w4hat i wer wtnu r uric itane oio
was the obvious t1, hii foi a pper iom- it n r ars ar we re no beig
pa ny to d,3o, but resr to t ihe fre-s t '' S t. A~ :,,ee asa ede e i to
Regis tame out with th Man 'and Na- move fora, ard mege t markei
ture printl tapinwic ran for 5 or McaiBuooueSt oPae tS ldrinurbsns
6 years. and used sorle of ther finest bo- 1&Dr~t rtt ~r ihtw~~o tanical a 1rt es rcomiss ioed Bet, ause t'-cy and 1i 965 h -a' ap "I d r~ol f Wah.S Rgidelodan itr
rising, the repri deatid. ptirulaPl ei to K's mps ~en h mzigsntgh inherent in the
from schls, is still in th mllon t? M, Bind ce' d hss, BAfmAi c payspptrdpakgngMaterOn with the story ''he First imer pro- Cent ac .....t.n I-ntni t if mne tais ''Our cUr rnt caigni targeted ptsaw our logo thyr lear;1ed a little ton. N j at the buying irnuerkes ou cutomers.
48 MacilSon A~6t1U@ M49AZifle
much more technical discourse. "The the way. To us, it's that good. letters we get show that people really As in the past two years, St. Regis will read what we're saying. It says some- go the sports route in '77 with ABC's thing for advertising not being a totally Wide World of Sports. In print they'll useless ingredient in our lifestyle. Good stick with NewsweeA E, Time B, Foradvertising can be beneficial as a learn- bey, Business Week, and there's a new ing experience and in effecting change." addition, Sports Illustrated. "We think Mr. Biondo stresses the import nce of sports is a great vehicle. the creative product. "We have one of According to Mr. Biondo, the total the most outstanding creative teams in budget (I including all communications the business working on our account. efforts ft m advertising to sales promoipaigns have won award after tion to annual reports, coupled with the financial and business com- award but, more importantly, we've the divisions' expenditures) amounts to munitles, to develop a total ap- been able to make the transition from between $34 million. "We scrutinize
precaution for what the commitment at the early d2vs while maintaining cre. these expenditures very carefully and if St, Regis is in terms of our ability to ative excellence, That's been a vital we weren't getting the payback in terms relate technology to market needs." part of our success. We've been out of awareness perception and recogThe advertising employs excitement, a front all the way, We were talking nition of what we're all about, we touch of humor and... expensive pro- about the forest and the importance of wouldn't be spending the money." And duction. In one commercial and 4- our ecology long before everyone start- he continues with a look of delight: "The
color, double-page print ad (there are ed screaming about it, One of the rea- awareness curve as a result of this camfive in the series) a 21/2 -ton Rolls Royce sons we abandoned the total tree- paign is almost a vertical line-straight Corniche is shown driving over a bridge oriented mood was because we began up. We diligently research what we're made entirely of St, Regis Corrugated to see every forest products company doing, in terms of awareness and the paper. In another, a charging bull at- doing what we were doing." But St. effectiveness of the creative strategy. tempts (without success) to break Regis hasn't entirely left the tree be- Before our conversation ends, Mickey
through two thin sheets of St, Regis hind. "Tunnel," a beau" y executed Biondo reemphasizes the importance of plastic film. Mr. Biondo's enthusiasm 60-second spot, documents the com- the educational value of the campaign. for the campaign is unrestrained. pany*s environmental concerns. "We want people to learn something
to the general public via tele- The all-important tag-line is the es- as a result of our advertising. I think it vision and then targeting our buying sence of the St. Regis message: "Serv- is essential for corporate advertising to influences in print has been a designed Ing man and nature to the benefit of be a learning experience as well as a strategy, Someone sees our commercials both." Mr. Biondo explains, "It's a marketing message. We're seeking to and they're full of sex, brimstone and statement of corporate purpose. It con- be unique in a marketing sense within fire and then picks up a magazine with veys responsibility. It says the tree Is our industry, therefore our advertising the print version of 'the same ad and going to serve you. too, and that's what has to be, too, And the net result, we they reinforce each other beautifully." out products are all about. We're going hope, will be to sell more of our prodOn the print end, St. Regis gets into a to hang in on it, and strengthen it all ucts and be better understood.
Exhibit 32: Case Study-AMF
AMF could hardly pick a better spokes.- Fox outlines the reasons behind this deman than Eldon Fox. He has the f The leisure leader cision. "Through research we dishealthy outdoor look of someone who Icovered that business people didn't unspends his leisure time actively. (In Iactivates' its derstand our industrial side. (AMF
point of fact, he's a golfing enthusiast corporate image. manufactures automated machinery,
who shoots in the high 80's,) From his electronic/ electrical and other indussunny office in the AMF WXhite PlaI ns trial and governmental Products,) We
headquarters, the company's corporate sembled a roster of quality leisure felt that if we could perk up people's vice president-public affairs, reflects product names including: Harley- consciousness through our leisure time on the development of the AMF image. Davidson, Head. Hatteras. V'oit, Ben products, the quality image would "In 1968 when Rodney Gott became Hogan and Alcoi-t. carry over to their estimation of our inchairman, he knew we had a bad im- Although AMF's business is now di- dlustrial area. age, Security analysts had told us that vided 65%/35%, leisurei industrial, Launched in March 19-7, the camwe were known for bowling and for and despite management's long-range paign was conceived and executed by bombs, so he decided to get out of the desire to achieve a 50/ 50 balance AIMF's agency (since Nov. 19-5), Benordnance business." WXith AMF bowl- through beefing up the industrial end, ton & Bowles. The objective is doubleing as a starting point, through years, of their current corporate campaign fo- edged- First, to establish awareness of careful acquisition, the company as- cuse, on. their leisure strength only, Mr. AMtF as a leisure company in a leader50 Madison Avenue Magazine
"In the past our efforts were more in with sports ever since, the only differ- -the nature of trying to find ourselves in ence being that now instead of sponsorthe medium and we were never too ship, they buy spots. Mr. Fox expresses
happy with the results. Benton & pleasure with both the quality and the
S. 4... -- .... Bowles clarified our message consider- numbers of the sports audience. "It's
." .... .- ably." Satisfied with the current cam- given us a major boost."
I . .... [ .. paign, Ms. Reid adds with an eye to the Although each double-page ad carries future, "We'll keep freshening the the AMF 4-color rainbow and logo plus
commercials with additions to the pool the "We make weekends" tag, the and doing research to see how well they print campaign takes a different tack, f are wearing. But certainly we'll run another area where AMF doesn't follow these commercials through 1977." the hard-and-fast ground rules of corThe bulk of AMF's corporate adver- porate advertising. Well-known pership position; and second, to encourage tising budget goes into television. Don sonalities, such as Malcolm Forbes, people to participate in some form of Fox reviews their shaky beginnings in James. Mitchener and Charles Schulz, recreation, paving the way for AMF the medium. "In 1971 at the recom- are pictured pursuing their favorite
sales. Mr. Fox elaborates. "In 1973 Mr. mendation of both our agency (Fuller, forms of recreation (to wit: Malcom Gott made a speech in Hawaii about Smith & Ross, at that time) and our Forbes on his AMF Harley-Davidson
the 'leisure ethic' concept. We believe chairman, we made our television motorcycle), and touting such endorsethat active leisure has become an in- debut on a one-time special, aired in 10 ments of active leisure as Mitchener's creasingly important aspect of people's cities and targeted at the business com- "A man who drops out of recreation afdaily lives; that leisure time should be munity." Mr. Fox shakes his head. ter an active youth is committing slow
as well spent as work time. From that "Frankly, I thought it was a lousy idea. suicide." AMF's media choices include base, Benton & Bowles developed the We weren't ready to spend that kind of Newsweek, Forbes, Black Enterprise and
AMF theme: 'We make weekends.' money and nothing really happened as Sports Ilustrated.
Mr. Fox stresses the importance of the a result. Our chairman, however, was The TV/print ratio at the corporate
chief executive's role in setting the tone enamoured with the idea of TV and level is about 80%/20%. And the total for the company's image, an aspect thought we should go into full spon- corporate communications effort, inthat sets corporate advertising apart sorship." From there, AMF took a eluding a corporate rrewspaper which
from its product advertising cousin. "A giant leap and sponsored two Bob goes to their 30,000 domestic employlot of people don't recognize the fact Hope specials (1972-73) and Of Thee I ees, annual reports, exhibit coorthat corporate advertising basically re- Sing, starring Caroll O'Connor, which dination, press acitivites and sales proflects the attitudes of the chief execu- was tied into the 1972 elections, motion as well as advertising, is backed tive of the company. After all, he is the "Some of us were convinced, however, by a budget of over $3 million. Mr. Fox one ultimately responsible for the cor- that our natural audience was the sports feels it provides adequate support.
porate image. You can't delegate that. viewer. And in 1973, through FS&R, "We cut back in 1975, increased in
Our advertising wouldn't be out there we bought the first half-hour of ABC's 1976 and we'll hold at this level."
if he didn't think this was the way to go." Wide World of Sports. "AMF has stuck AMF's over-all advertising budget, enCreative decisions are difficult to compassing product advertising for all
come by. And AMF made an unusual divisions, is $21 million.
choice for corporate advertising by em- Ms. Reid talks about intensifying the
ploying vivid animation and a light- company's research activities. "Once
hearted, entertaining tone. The AMF we've achieved a certain level of awarecommercials playfully nudge the viewer ness, we'll get into measuring the rubout of his armchair saying, "Don't sit off that our corporate advertising has
around on your leisure time. Recreate, on our brand names." But Mr. Fox
exhilerate!" Lorraine Reid, recently concludes with a satisfied smile, "Since
appointed staff vice president-public we began researchin& awareness in
relations and advertising, is, herself, an 1971, the figures have jumped from
active sports participant whose two sons 40% to over 70%.
are introducing her to the thrills of From a small print campaign in 1969
motorcross. She explains the reasons to major budget and media use in
behind the ani.nation choice. "The 1977, AMF's corporate image-building
agency felt it was the best technique > efforts have taken a sometimes unsure
to exhibit the sunny, happy feeling we but always innovative path. Combining
wanted to get across. One of the big trend-bucking techniques and a defiproblems of corporate advertising is Asv.p.-public affairs, Eldon Fox directsAMFs ance of the stuffy corporate atmosphere,
that it gathers unto itself a pompous corporate public and government relations, ad- AMF's current campaign also provides air. We wanted to avoid that. Also, it's vertising, promotion and creative services. He is the plus of laying the groundwork for a technique designed to really stop the also president of the AMF Foudation. Before its divisions' sales. It sees clear that the joining AMF in 1969, Mr, Fox worked on both
viewer." It is clear in talking with Mr. the client and agency side for Young & Rubicam, people at AMF take the "leisure ethic"
Fox that AMF had felt some dissatis- Honeywell. the Ford Motor Co.'s Edsel Division seriously. They're not sitting around on faction in getting their intent, their ad- where he was advertising and sales promotion their leisure time, in fact, they're not manager of the Edsel ine), BBDO and the Bendix
vertising and their product to mesh. Corp. Mr. Fox fives with his wife in Chappaqua. NY sitting around at all.
Madison Avenue Magazine 51
Exhibit 33: Case Study-Bethlehem Steel
Bethlehem Steel Corp.
a 7-3- '7 e ,e__,
7. 1 tee 11 7- 3 1 3
e 7 3 '7 3
2_,.er" -r4 e7,
e": e, 3 -t r T.- r 7 2
'-e.- 2__ u 7 e 7- --- 7 t
T- e t ', t -e- L -3 2
M.3 p t, 7 1
tlo e o:- a. 117 t, t., t It: camp3:g-- 3re
i i:a im L a a ma -1 e 7 .)f ,3J eTts 'or Steel
tne Fort -e CorF-,,73te Cor--, -cal:or, Sem inar '13- e 3 r 2
or t r e re 0 L rt g":r 3 t I It f 2.
roa e t ,,j e T e Be- Ie c.r
ore ot e
most able aderncrI Arid
M& -SCI A.e-,e LAA,;a.Z le
corn ition tikes ___ _______jobs fom American
intense and the costs of reinvest- steelworkers' professionals and are either politicment in this capital-and-labor- ally active or otherwise involved in
intensive indi'stry are formidable. 5F-their communities. And another
Bethlehem Steel, until recently, thing, if I'm advertising in a Sports
suffered one disastrous quarter after ge =1L_1r1 Illustrated, a Time or a Smithsonian to
another, Facilities were closed reach these people, I'm-not excluddown, workers laid off *and the ~ '~ing the others who read those company's financial position put in amgzns owieIptm oe
doub. Behlehm lot nerly 500against my desired target, IIIl also million in revenues last year,' get a better return on my money."
topping the list of Fortune "500" But, the affable executive admits,
a ilers. money is not the test of advocacy
Because so much of the steel efforts. "Most of this advertising is
industry's problems are related to non-deductible. So, if it's costing us
tax, capital formation, federal _______________________ a million dollars, then on top of that
regulatory and foreign trade mat- -it's costing us another 48% in taxes.
ters, these are the lifeline issues for readerships and reader awareness But we feel so strongly about this* Bethlehem Steel. "Our primary goal of and attitudes toward the steel that it's Worth the extra costs." And, in our advocacy campaign," explains firm. Initially, Mr. Cronin reports, he adds somberly, with Bethlehem's Mr. Cronin, "is to establish a awareness was low. "Sometimes the cost-consciousness, even holding a leadership position in the steel figures shook us up a bit. For media budget steady is a huge industry by coming out pro or con example, if you get figures that say victory. on these questions. At the same 14% of the audience knows that Mr. Cronin is quick to point out
time, we want to impact Washing- you're advertising- that's my audi- that his company never professes to ton. Today, Washington is it. But, ence, not the total magazine have all the answers to these thorny even there, we're not simply trying auditence-you get shook up a bit. economic and foreign trade issues. to reach and influence Congress- But we did a study after our ads on "All we're saying is that our point of men, we're also interested in the foreign imports ran and the per- view ought to be considered. And influential audience that conceiv- centages went up into the fifties. our problems are not unique. Other ably might react favorably to the Then we did some other measure-* corporations face the task of raising issues we've defined." It is a lean ments prior to and after our pieces huge amounts of capital for reincampaign that he is describing. One on plant closings and layoffs. vestment." with a budget in the neighborhood Awareness was still up, which Does he feel that media treatment of $2 million. One that is carefully means that people were reading it." of the steel industry has become targeted and methodically re- Mr. Cronin tells us, with obvious fairer because of the public comsearched. And one that Mr. Cronin delight, that when the media munications campaign? "Unquesbelieves has added some needed department (the company prepares tionably. For instance, we had the perspective to some of the unilateral all its advertising in-house) ran a editors of Time in a while back to talk judgments emanating from the series on the energy crisis that to them about the issues. You could nation's capital. included a blank space for readers to see when they walked into the room
What Bethlehem Steel has been write down their own ideas and that they felt they were going to get able to do is identify i ts interests and send them to the President, the the Bethlehem Steel party line. But mobilize its executive and creative response was overwhelming..' 't they were quite changed when they talent behind those interests. Six projected out to about 20.0,000 left. The meeting must have had a issue areas are of principal concern: letters," he relates. "According to great effect upon them because capital formation, environment, our measures, of the 7% who agreed, when the ax fell-when we anenergy supply, 'foreign trade, over- "with our point of view, about 5% nounced our closings-they called regulation of business and business *wrote to Carter. The first week us up on the phone for comments concentration. These core themes alone there were 5,000 letters." and said, in effect, 'Jesus! You guys are the grist for its print campaign, Hie also stresses the importance of weren't kidding!"" The upshot, Mr. which runs in The New York Times, .advocacy advertising as an effective Cronin notes, is that "they realize The Wall Street Journal, Newsweek, Sports means of corporate speech. "Corp- we don't have two heads." Illustrated, Time, Smithsonian, U.S. Newos orations don't vote. And even Mr. Cronin also has some straight& World Report, Atlantic and others. though we employ over 90,000 talking reactions to the U.S. Senate
Once the formats for discussion pitople, even those figures are Subcommittee's move against corp-' were decided upon, the company insignificant. Putting all our budget, orate advertising. "Suppose they do felt it should establish critical behind lobbying wouldn't do it' cut it off. Then how are we ever benchmarks to determine the either. It's simply a matter of going to communicate our views to
efficacy of the ads. To do this, reaching the people who count. the public? This is no slap at the Bethlehem Steel turned to its We've narrowed that down for our media, but an ad can go anywhere agency, Van Brunt and Company, purposes to an audience of about and frequently. You'd have to run and the agency's associate, Richard two million. My estimates are that an article four or five times in a Manville Research. They helped they have incomes between $24,000 magazine before people would read study a host of publications, their and $64,000, some college, are job it once."
52 Madison Avenue Magaiine
When asked what he would do if the outdoor coup of 1977. "When energy conservation, environmenhe had a bigger budget to work with, we were running our ads dealing tal protection and fair play to steel Mr. Cronin replies: "I wouldn't run with imported steel, we began trade are presented as individual more space, Right now I'm sitting looking for outdoor spots in pieces of a puzzle. Each issue area with a 6-time or7-time frequency to Washington, D.C. Well, we finally receives separate ad treatment and the audience I want to reach. That found one. Purely by happenstance, is illustrated as one segment of the gives me about 98% saturation. But it was right across from the guys puzzle. A fifth consummatory ad if I had my wishes, I'd possibly go considering this issue. The copy puts them all in perspective. The more into radio, because TV costs read: 'Foreign steel steals jobs,' clever, eye-catching graphics cetoo much and the Fairness Doctrine How's that for those government ment the through-line theme and is an obstacle, You could probably officials' thought for the day?" Now may well garner yet another "most buy more radio without having to that's effective advertising! Per- read" award. Inm Age recently worry much about Fairness Doc- haps even Mr, Marker would agree. bestowed upon the company just trine problems. Direct mail is In May, Bethlehem Steel's new such an award for its 1977 camanother interesting approach that advocacy campaign broke. The paign. Though honors of this sort we use now on a modest scale." double-page series of ads is an are certainly not part of the goal He also comments that outdoor integrated effort keyed into the plan, they serve as reassuring has proven to be a useful approach. concept of interlocking problems. validation of a campaign I s strategy Here, he mentions what may well be Questions of over-regulation, and execution. AW: ON:
Exhibit 34: Case Study-Kellogg Company
Beset by critics on several fronts, the company stands firm on its nutrition education platform.
Just ask the millions of kids who between product advertising and
devour them. Yes indeed, Fruit issue advertising. These are product
Loops are good. They're colorful, ads, but they serve a dual purpose.
crunchy and sweet, so what else First, to sell product. Second, to
could a kid want from his breakfast? point out the nutritional value our
Not much. But the Kellogg Com- products have."
pany of Battle Creek, Michigan In addition to its media advertiswants to convey a selling message ing, in 1975 the company launched a
that's even more vital to its own A. rather unique activity that, to
continued good health in the age of management's surprise, provoked
consumerism: Fruit Loops and other some questions concerning Kelready-to-eat cereals, when served logg's motives. This effort, "Stick
with milk, dish up a goodly portion Up For Breakfast," was an educaof vitamins and minerals. tonal program conducted in the
In .1884, Will Kellogg and his Washington, D.C. public schools.
brother invented the corn flake in Working with local teachers, the
an attempt to develop healthy, easy- intent was to make nutrition
to-digest foods for patients at the education more interesting. "Unforfamed Battle Creek Sanitarium. In tunately," recalls Dr. Costley, "we
1906, Will Kellogg launched his own were criticized by a W4shington Post
cereal company. Dr. Gary Costley, Dr. Gary Costley is vice president and reporter who happened to believe assistant to the president of Kellogg
vice president and assistant to the Company He joined the firm as nutrition that the Kellogg Company couldn't president of Kellogg, tells us that director in 1970 and was promoted to vice do anything that wasn't sinister. the company has stressed the president of public affairs in 1975 Dr. Most of the criticism said that our
Costley graduated from Oregon State
importance of good eating habits University, whee he received a BS. and products weren't any good-the ever since its inception 72 years ago. M S in nutrition /physiology and a Ph D in teaching module or techniques, But in the early Seventies, con sum_ nutrition /biochem isirv themselves, weren't the object of er advocates began voicing concern criticism." But three years after the
about the sugar levels in pre- ment the wholesome qualities of fact, Dr. Costley believes the sweetened cereals and other chil- ready-to-eat cereals. Dr. Costley, headaches of the original Washingdren's foods. In response to these who joined Kellogg as director of ton program were worthwhile. A complaints, cereal companies, in nutrition in 1970, calls this aspect of teaching module titled "Energize at 1973, commenced media cam- Kellogg's total advertising package Sunrise" has since been developed
paigns-largely in print-to docu- "as close to the line as you can get and encompasses much of the
56 Madison Avenue Magazine
A good breakfast
doent have to
behigh in cholst rol.
information from the original"Stick be high .. relates to us, it makes no sense. The
Up For Breakf3st" program."It's not ",' government has come very close to
an attackable program," says Dr. ,. conceding that in their draft.
Costley of the games, worksheets They've carved out this nifty little
and other tools which comprise the exception to get around products
project. "In fact, there's so little >"- A that are relatively high in sugar
Kellogg identification in the mater- content but do not cause tooth
ial that our marketing people look at decay. That's really a hidden way to
it and say, 'What are we doing?" say ready-to-eat breakfast cereals.
Also, the program is being promot- They know, or I think they know,
ed on a school-by-school basis, thus that we have very good data to show
deflecting any possible opposition to that these products do not promote
school board participation. tooth decay in children. If they've
Does the low profile in the listened to what we've told them, the
teaching program evoke complaints government should know that the
from stockholders who may wonder _J sugar content in one serving of one
why Kellogg should involve itself in of these products is no higher than
educational campaigns? "Not at all," their positions with any data." that of an orange. The sugar in says Dr. Costley "If we could get While that issue ad was a one-shot cereals is not inferior or sup rior to every kid in America to eat arrow aimed at a narrowly defined the sugar in an orange--it's just the
breakfast, we would be expanding target, the current consumer print same That refined sugar is any the existing market. This is a major campaign strongly emphasizes different from natural sugar is effort, but in the scope of a one-and- Kellogg's long history of nutritional biochemical nonsense created by one-half-billion-dollar company, it's involvement. Eleven newspapers lawyers and the Congress." It's that not that major And it fits in fine and six magazines including Natinal disputed biochemistry question that with the broad mix of advertising Geographic, Nutrition Today and Time is at the (ore of the controversy, we do. In the long run, all carry the four color ads prepared by Kellogg believes
advertising is done to sell product, Kellogg's agency, Leo Burnett Dr. Costley declares that, from While some people may flinch U S.A All detail the vitamin and Kellogg's point of view, "the FTC is
because our almost singular goal is mineral story and sport such in for one very long fight" on the to make a profit, until someone tells headlines as: "We made health food ad.ertsing-to-children issue He us there's something wrong with long before it became a fad; "A concedes that the agency has the being successful, that will continue good breakfast doesn't have to be necessary authority to act against to be our goal." high in cholesterol;" and "'If any ad tertising that it finds is false,
Over several years of being hundreds of American kids didn't misle'ading or unfair So, in the involved in the nutrition contro- get a decent breakfast, it would be a I I( fs retnce to impeach the versy, Kellogg has generally opted serious thing Actually theie are dreal companies. he sniffs a weak not to confront their critics with millions Case Why don't they just move in
head-on advertising A notable While buffeting the slings and against us It's interesting that exception occurred in November arrows of oc iferous nutritionalists throughout all of this, they've 1977 when a double-truck ad ran in and finding the right strategy, Iontinually referred to 10 or 12 ads The Neu, York Times, The Wall Stret exeC ution and media to convey the a examples of hideous behavior So Journal and seven major metropoli- Kellogg message, more threatening why haven't they filed a complaint? tan newspapers Headlined, "A clouds have been gathering on the Under the new Moss-Magnuson Statement From Kellogg Company advertising horizon -namely, the Amendment to the FTC Act, they'd On The Nutritional Value Of federal government's proposed ban establish a precedent that would
Ready Sweetened Cereals," the ad on advertising to children Al- have the same effect as a rule The aggressively answered Kellogg's though it will not affect the largely whole issue touches the very heart critics by presenting thorough data print corporatelproduct ads, this of the First Amendment, because about children's eating habits, sugar company-- as well as all those whose what the government is really consumption and similar issues, market target is children- will have sa,, ing is that they're going todecide What provoked the unprecedented to do some heavy revamping of ,la.i ian be communicated to ,hom.
maneuver? As Dr Costley sees it, strategies To all this Dr Costley And, he adds, "Do we really want "A number of issues were coming gives this forthright response: "We to set a prei c-dent like that?" Yet, together on advertising to children think the whole thing is silly On its the controversy remains If the and the nutritional value of cereals. face, the government's proposal is government tan' regulate advertisMany things were being said by the ridiculous. Its premise is that ing content, why n6t those ads media and the government about products advertised to children are aimed at its most sus ceptible audiour products that weren't true, so bad As far as children's cereals are ence? Kellogg, certainly, with its we decided to go public with our involved, it's not an advertising strong leadership in this area will facts, Quite frankly, we had grown issue, it's a product issue, It help clarify this matter in its weary of everybody taking what we concerns the question, 'Is consump- presentations to the government as considered cheap shots at our tion of the product by children good well as to the consumer public, products without having to defend or bad?' That's the real issue As it fMA)ON
Madison Avenue Magazine 57
Exhibit 35: Case Study-Shell Oil
Shell Oil Company
The long-range plan: Go to the public to shine a tarnished iMdge.
In that slippery business of drilling quality brand name. Its theme is
for and delivering oil, petroleum "Come to Shell for Answers." Its
giants these days-eight of the top mode is direct and immediate
'78 Fortune "500" are oil com- contact with the consumer (and
panies-find themselves in the voting) public. Its spirit is positive
precarious position of having to roll
huge rocks up tall hills, Capitol Hill and upbeat.
John Haines, the engaging and
in Washington, D.C., for one. The earnest manager of consumer
consumer and public conscience is relations at Shell, doesn't dissimuanother. To make things worse, late. He knows that the oil comyears of indifference to these panies have a lot of explaining to do.
governmental and voting audiences But he doesn't shrink from the
have all but obliterated the natural challenge. "Shell has made a
footholds. "Big Oil" (if there is such commitment to being a consumera shibboleth) has created its own oriented company. We're not at war
devilishly intractable slippery slope. with the consume -rs. In fact, we
The verities and presumptions know many of these groups and
accorded other businesses no their leaders, and we're trying to
longer seem to apply. Divestiture understand what their desires are
has been in the air-a seasonal and how best to accommodate their
squall-for a number of years. The concerns about big business, big oil
congressional corridors feel its John Haines is a i 9-year veteran at the Shell and other related issues. Shell is mercurial pressures, Houston its Oil Company The current manage( of really trying to be responsive to the cold, harsh winds. Furthermore, the consumer advertising spent the last seven consumer's needs and demands."
years as advertising manager and, previousbusiness community itself can no ly held executive positions in the retail The mechanics, alone, of this longer be regarded as a hip-pocket marketing area Mr Haines holds a 8 S in campaign are staggering. Devise, Business Administration from Memphis
ally. Business people cannot easily State University He and his wife, Fran liven write, print and distribute over forgive the industry that caused the Houston. and are the parents of two 460,000,000 eight-page booklets profit motive to be tarnished with daughters that deal with the practical problems
the term "obscene." of car ownership. The series, he
Perhaps no industry in modern Shell Oil suggests another path. If notes, "has created an unprecedentmemory has faced a more desperate Exxon wishes to be known as the ed opportunity for Shell to interact public relations or communications Perry and Amundsen of oil explora- directly with the public, consumer problem. Clarity has been rubbed tion, and Mobil the Thomas Aqui- groups, government bodies (some clean of its distinct edges. Who nas of industry gospel, Shell has pamphlets were prepared in cooperknows what fact or fantasy lies staked out its solid claim as the ation with federal agencies) and behind public-interest complaints or democratic companion of the educators. We have set ourselves on proposed legislative remedies? common man, defined as the vast a course of trying to convince the Which way to go if you're an oil auto-driving public. It is the public that we want to help them company with an urgent story to tell company that is always on hand for spend their money in a wise manner and little time to tell it in? help and guidance; whose messages so that they can get the most out of
One route is evidently that of are portable, compact and can go their automobiles."
Mobil, which has cleverly leased a along with you in your glove There is a sense of logical pulpit voice on the editorial pages of compartment. For Shell, number 14 completeness and elegance to the the Sunday supplements, The Neu) on the Fortune ".500" list with company's approach. "The automoYork Times and The Wall Street Journal. revenues exceeding $10 billion, bile is the common denominator," Its almost theological dissents on answers to pragmatic consumer says Mr. Haines. "Almost all voters matters of public policy and law add problems speak louder than japes drive cars, and we'd like to make this excitement and true partisanship to and gibes. field an area of perceived expertise
the national energy debate. At the Since 1976, the Houston-based oil by Shell." That accounts for the same time, Mobil shrewdly pours oil firm-ably assisted by Ogilvy & massiveness of the undertaking. on the troubled waters of its right to Mather, has been running a re- The booklets have been promoted exist by playing Medici to public markable corporate campaign aimed via network and spot television as television and the cultured, deci- at seeding the great grass-roots well as radio and national magasion-making establishment. Who with good reasons for seeing in zines. The broadcast media create can hate an aesthete? Shell a good corporate citizen and a awareness and solicit inquiries. The
58 Madison Avenue Magazine
national magazines are used as schedule, Mr. Haines informs us,
carrier vehicles. Booklets have been will be reduced slightly,"This year
advertised or bound into such weIre only using network TV, some
publications as: Readers' Digest, Time, spot and national magazines."
U.S. News & World Report, Psychology Determihation of the magazine
Today. Book Digest, People, Ebony Better schedules is a joint, Shell/Ogilvy &
Homes & Gardens, Family Circle, Ladies'". Mather task. "We work it on an
Home Journal and Good Housekeeping. "If efficiency basis, trying to reach as
you wanted to lay all the books many people as we can with as few
we've distributed end to end, they Car Thief dollars as possible. We eliminate
would circle the world eight times. some magazines we'd like to be in
We have probably printed and issue comes up, there aren't any simply because they physically disseminated more books than built-in hatreds or biases toward the cannot carry our eight-page insert Random House." company. We think if we wait until books. And some others have
The object has been never to the issue gets to Washington, it's specific policies against inserts." promise without delivering: "Our too late The people in Washington While Mr Haines admits that he has research showed us initially, that respond to their constituents' no guarantees beyond next year's the lack of esteem and credibility of desires And if those people are budget to ensure the continuance of the oil companies was so low that saying, 'Don't let those oil com- the current campaign, he believes the public would not believe panies do anything,' legislators will strongly that it has helped Shell's
anything we'd say. The most respond to that. If we, at least, have image enormously. "Our plan here
interesting part about our campaign people who will listen to us, then we is to recommend to management is that the reader is immediately have a chance to accomplish what that we keep it going at least benefited." The advertising, in fact, we want to do" through '79."
is inseparable from the goodwilland There's a carry-over effect upon Necessarily, changing the minds information the reader finds when the Shell dealers, "Mr Haines of the public is a slow and he opens his magazine, adds "When the campaign first painstaking process Dispelling
Response has been gratifying, started, some of our 18,000 dealers myths takes conscientious and Mr. Haines relates. "We've only thought it would be short-lived But patient attention And Shell has, in a received about 25 negative letters after two years,, the dealers-like sense, taken the hard route By not out of a total of over 500,000. In the public are now convinced that simply targeting the influentials, addition, research indicates that we are serious about providing and going to the mat daily with the there's high awareness of the information And they, too, have automotive problems of car-owning program--55% on an unaided been feeding back to us helpful hints America, Shell is counting on a
basis." Correlatively, there has been and consumer comments In the last growing political and economic a noticeable improvement in public six months, they've warmed to the payoff The premise is that the attitudes toward Shell, for which series and have consequently company that is no stranger to the Mr. Haines gives part of the credit become more actively invoIved with public can be no enemy It's to the "Answer Book" series "Our it" gambling on change through going
method is to create a favorable Last year's media expenditures out into the fields and lending a climate among the broad base of the for television and magazines totaled hand It's the apolitical advertising population so that when a specific in excess of $11 million Thecurrent of a good citizen. )Ak
Exhibit 36: Case Study-Singer
The "spacey" campaign that repositions the sewing mach ihne company as a broad-based galaxy.
The Singer Company may well purchased at Sears. Thus, Singer's the assignment at hand is of
possess one of the most valuable immediate task is to tell consumers sizable magnitude. properties in the corporate world: a that the venerable sewing machine MADISON AVENUE visited Larry good name. But here's the rub: The manufacturer is a widely diversified Mihlon, vice president of corporate vast majority of people associate the and technology-oriented corpora- relations, to discover* the story name "Singer" solely with sewing tion. And considering that air behind Singer's newly evolving machines. But the truth is that the conditioning/heating equipment, corporate image. The rangy, affable new couch your neighbor just educational tools and aerospace and executive begins by filling us in on bought might well be Singer-made, marine systems are all products of the company's origins and developor maybe the last power tool you Singer's three operating divisions, mernt. Precious few are unaware
Madison Avenue Magazine 5
to find an advertising agency to help
spread the corporate word. After
running ehminaticii heats for the
account t, ou ng K Rubica rn emer ;
A as the tcp choice They wor
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irekgate wMa! the comnr%
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Pren.,ion and Eqwprriept C arripin, iged pc yl ah tr- P't"tz v.Knrt ma"tl "c nl.,! rnp;-3- it, a Radmin high te0nokgv &L"on- anout A hit :PC -;, 7 C pnyl ou - n r "%i ,, :" all, Ks and onnols overarkr, wr the that the\ kno, 3ri veL04P,:i! 5 wher cwt,,wc bL j v Kc4 rolet aerospxe industry This "a, one Ung Our icb t"WeT that car th" rc niko bavnq Kv v general
of the most important and inteHi- W%0 4 to a ornpipi that rruh %1''tcr' tl 'it 'tani, n'ch -Ij it gent ai:qui i tions the company e% er more than a mardanurer of .- ; 30 The
made:' observes Mr. NWon se"irg m ji-i n e, AW "ahnn 000 a re a n, the 12
Unforturate1v nat A of the empkis ees x% eking tnex nunk, pLHudrony to F-u- 1-nor ads in diernifiiation efort, were as improved interra: -)mmunications 19-S APUN %earvend %W Mihion successful 13v 1074 the i,.ompany is a prioritv toil hoipe to be c\tcn., r4 ir er reach
had ov"Uversawd and found it Last year Singer a top manage- by AM, zeZ smn ro the mix,
difficult to manage some of the ment agreed Oat fe time was right Soget's ivierxi Au"-mg exMadison Avenue Magazine
33-291 0 78 7
t 0 communicate information about pertinent issues in the public domain. Yet, he reminds us: "Those companies who use corporate advertising to discuss issues are obliged to look at both sides. If a company truly believes its point of view is right, it shouldn't be afraid to reveal any information that's important." In his opinion, the print and broadcast media should devise j:' ways to provide a means of response for groups who oppose certain corporate messages.In an optimistic tone, he concludes that, "I can't SINGERR,
believe that in a country like ours there is not a solution to this penditures reached $60 million last getting high corporate marks and problem that does not require year, but details for the corporate the budget will be bolstered legislation." Meanwhile, Singer will campaign budget are guarded. commensurately. continue to ply its own efforts
However, given the proposed The Singer vice president clearly directed at communicating the
venture into TV, one would have to believes that every corporation has golden thread that links its proteap conclude that the project, thus far, is not only the right but the obligation operating structure.
Exhibit 37: Case Study-American Bankers Association
American Bankers Association
Institutional advertising that takes the "institution" out of banking.
It's the first or fifteenth of the money. Kenneth DeCesare, namonth, and usually that means it's tional advertising manager for the
payday for millions of Americans.A group, details the association's
On this happy occasion, commercial position: "In reality, we are in the
banks are crowded during lunch- public sector as a service organizatime hours. Impatient people, tion because we invest money in
repeating a familiar routine, wait on communities to build houses and
line to deposit checks and withdraw parks and support other projects.
cash for the weekend ahead. But is Unfortunately, many people aren't
that all there is to commercial .~aware of this. Consumers think of
banking? Of course not, but that's banks on a retail level, but often
how millions of people perceive the don't realize other ways in which
sphere of its activities. The Ameri- banks affect their lives."
can Bankers Association, a non- Based in Washington, DC, the
profit organization, is determined to American Bankers Association is a
broaden that limited picture by, 102-year-old organization working
illustrating the far wider scope of to "enhance the image of bankers
the financial community's social and banks so that they can serve the
involvement, And in its latest public effectively," defines Mr.
television campaign, the ABA takes DeCesare. Ranging in size from the
to the air with its most high- smallest bank in Anytown, USA to
powered promotion to date of this the mammoth Bank of America, the
message. ABA's 13,000 member banks supAided by their agency of five port association lobbying, advertisyears, Leo Burnett US A, the "ing and other united efforts
American Bankers Association is i through assessed dues, paid on a
making its money-conscious audi- '~~~' ~ .~ sliding-scale basis. Regardless of
ence cognizant that bankers do AMsize, Mr. DeCesare emphasizes that
more than count other people's ~n. ~ ,'~~ every bank tends its public image
62 Madison Avenue Magazine
meticulously, and it seems they've features real people relating true
all done an impressive job of it. stre bu o terlclbn
According -to a recent survey helped them fulfill a goal. In one
sponsored by U.S. News & World case, a Vermont man recounts that
Report, banks are runners-up in a his bank helped him finance the
ppai andnstutong COhMb- invention of a heart resuscitator. In
ppaity cod nsttosi h i another, a young couple informs
business world. viewers that, with the aid of their
Titled -The Study of American bank, they started a small but
Opinion," the survey is based on -Premix" thriving chain of retail stores. .
responses from nearly 5,900 house-Thsgopfcmerilwa hold heads. The study concludes exists on this point either way. But launched early this year, replacing that, while business fares well in if people believe that the average similar ones that were three years some areas, it "still hasn't convinced banker is like Bert Lance, it will old. As a rule, the ABA has no rigid the public it cares about the show up sooner or later." Interest- schedule as towhen it'stime toretire
consumer, the environment or ingly, "These feelings haven't been old ads and develop new ones. Mr.
pollution." Over-all, the report indicated in the U.S. News & World DeCesare states this is "because it's adds, "Another area where business Report study or in others, where very difficult to tell when ads are has not rated well is in communicat- bankers always rate very well." worn-out as institutional commering with customers, the general Aiming to inform bank customers cials. It's not like selling a product,
public, employees and stockhold- between the ages of 2.5 and 49 about where, if it doesn't move off the ers." The clear exceptions were the full-service concept, the associa- shelf you figure there might be banks, which won the second tion will spend more than $4,000,000 something wrong with your adverhighest approval rating (39%) from on television advertising this year. tising." those queried. (Placing first were The medium is favored by associa- Taking the pulse of bank customthe airlines with a 52% score). tion executives and the membership ers for the association is the job of Commercial banks again ranked alike for its obvious cost efficiencies. Communicus, Inc., a Californiasecond to the airlines in the category This concerted campaign supple- based research firm. Early in the entitled "provides enough product ments the $465,000,000 spent year, they conduct 20-minute
information." Savings-and-loan annually on advertising by indivi- interviews with 800 customers to associations, banks' major competi- dual commercial banks. The Ameri- learn their opinions and attitudes tors, placed third in both categories, can Bankers Association exerts little about banks. At year's end, the same That neck-and-neck positioning is effort to reach business and group is re-interviewed. At that
significant, since the American government. Rather, clarifies Mr. time, researchers show the first Bankers Association is aggressively DeCesare, "that's the job of the eight seconds of the commercials, lobbying on several competitive banks themselves. When I look the most generic part. After it's
questions between banks and other through an issue of Fortune, it determined how many people have financial institutions including sometimes seems that half the seen the TV ads, explains Mr.
savings-and-loan associations, mu- advertising is from banks." DeCesare, "we determine how the
tual savings banks and credit Running on CBS, the campaign is commercials have affected their
unions. For example: savings and geared toward a dual audience. The feelings about banking, whether it's loan associations, by law, can offer association believes that football positive or negative." After four five-and-one-quarter percent in- (including sponsorship of the years of using this technique, the
terest on passbook savings, while Superbowl) is the surest way to American Bankers Association is commercial banks are restricted to reach 'men, primetime to target pleased with both the method and five percent. women and specials to lure the the results. Significantly, claims
At a time when millions are upper-demographic viewers. "Ba- Ken DeCesare, "between 80% and
skeptical of big business, why have sically, we're just trying to employ 90% of those surveyed believe that banks maintained such a high good television," summarizes Ken the banking industry is investing
degree Of trust and respect? Most DeCesare. And because the 'cam- money in the community, and significantly, Mr. DeCesare points paign strives to portray banking in a therefore, should be considered as out, is that people tend to relate to wholesome, family light, "we're not private industry-not subject to their branch banks on a personal, by any means involved in any of the government control." one-to-one level. If a man goes to action or violent shows." .The Like its fellow institutional the same bank for 10 years, he's significant message in each of the advertisers, the association wrestles likely to see it as "his" bank, not as four commercials is that full-service with an elusive penetration probpart of a huge banking brigade. It's banks help people. Ed Gilbert of the lem. As Mr. DeCesare explains: uncertain whether the Bert Lance successful ABC series "The Hardy "Education is a much more difficult episode has diminished the cred- Boys" is spokesman. As narratorr, he job than product-selling. If it takes ibility of the industry. Understand- is first heard while speaking from three exposures to motivate someably, many bankers feared for their inside a bank vault. As the camera one to buy a specific brand of soap, public posture, but Mr. DeCesare shoots into the vault, a community for example, it takes six exposures maintains there's no evidence of scene is depicted and one of four for the institutional message to consumer cynicism: "No research stories is told. Each commercial penetrate and be understood." But
"401son Avenue magazine 63
to the association's advantage, he off. We feel that our commercials since people relate to other people." asserts, a historical approach is are more personal and easier to And when it comes to the indivinever used. "Many institutional relate to since ordinary people are dual's relationship with the local
advertisers take a 'Thomas Jeffer- featured. Consumers can easily bank, that's the most fertile
son' tack, and that can turn people identify with these commercials, interest,
Exhibit 38: Case Study-A. T. &T.
and Telegraph Company
Where building upon the solid foundation of qUdlitygets communication priority.
AT&T's public messages. "We've always based our corporate advertising on the earliest philosophy of the corporation, and we've always tried to avoid overcomplicating the issues. However, dedication to simplicity and demonstration of excellence may be insufficient insulation from an increasingly tangled web of regulatory pressures. For now, though, confront tations-at least in the company's advertising efforts-are on the back burner.
Top-of -mind today for AT&T and its able corporate marketing navigator is to further embellish its image as the supplier of good service. But how does one define service? Eager to cite a classic case, Mr. Westfall A shows us a picture of a telephone
Emery Westfall joined the Bell System in 1957 as an advertising assistant for Ohio Bell company employee trudging across Telephone Company, and served in variety of positions before hewas appointed director the countryside during the blizzard of corporate advertising for AT&T in 1976 A graduate of Bowlinq Green State University, Mr Westfall lives with his wife and two daughters in Chatham, New Jersey, of 1888, checking to make sure all phone lines were intact and in service-quite an effort. But disIf ever there was a time for the practically invented it) and dedicat- counting natural disasters, how cumulative effects of 70 years of ed service to its customers. Emery does the public, today, judge its corporate advertising to pay off for Westfall, the company's energetic phone service? Efficiency is the key the American Telephone and Tele- director of corporate advertising, criterion, according to Emery graph Company, the time is now. tackles the task with self-assurance. Westfall. "Our objective is to Troubled by governmental and The American Telephone and achieve zero defects. It's an impossicompetitive challenges, the omni- Telegraph Company placed its first ble goal, but a good one to strive present utility is counting on its corporate ad in 1908, yet the for." While he admits most people highly visible corporate com- message has changed little through don't think of the phone system
munications efforts to soften any the years. The company's raison detre except when their monthly bill challenges to its right to lead the is best summarized by its descriptive arrives, he believes that, "when telecommunications industry. Es- slogan: "The Bell System. People pressed to the wall, most people chewing an advocacy posture, the using technology to help keep down don't think Bell is pretty good; they company has chosen to reinforce costs and improve service-keeping think it's damn good." consumer loyalty and trust by your phone system the best in the Thus assured that AT&T cusfocusing on its undisputed contribu- world." Mr. Westfall explains that tomers appear to be content with tion to modern technology (they this is the historic thread of all of the utility's performance, we turn to
64 Madison Avenue Magazine