OPERANNG OPPORTUNITIES

WALLY LYNCH

Builders Express, Inc.

11550 Plano Rd.

Daf las, Tx' 75243 of the public especially by pard announcement."

ANY COMPANIES spend money on advertising and point to their operating statements as proof positive. More often than not, the expenditures prove to be accounting entries lumped into advertising. A look at the books reveals outlays for entertainment, travel, sponsoring a Little League baseball tearn, etc., but nothing for advertising. The word, which has become a catchall for all kinds of expenses, needs to be taken from the accountant and returned to the merchant.

The American Marketing Association defines advertising as: "Any paid form of non personal presentation and promotion of ideas, goods or services by an identified sponsor."

A dictionary defines advertising as: "The action of calling something to the attention

Another source says advertising is: "A paid presentation of the merits of products or ideas of commercial significance to a mass audience by an identihed sponsor via such media ars newspapers, television, radio, magazines, billboards and direct mail."

Within these three statements we can identify meanings applicable to any overview of advertising, but as generalities, they won't apply specifically in each and every instance. For our purposes, we want to view advertising as the one who sells prducts to the final user doesas a retailer.

The realities of advertising begin with establishing a one-way communication system to the inhabitants of your trading area. Granted it can be very sophisticated and expensive, but fundamentally advertising is purely and simply one-way com- munication between rller and buyer.

If asked to write a letter to a customer or to several customers, few executives would have any res€rvations and would do it without a second thought. Other kinds of one-way communication are tape recording, either audio or video, pictures and paintings.

In advertising parlance, the letter is classified as print media, as is a brochure or statement stuffer. The tape recording translates into radio when audio and television when video. Pictures and paintings communicate as advertising in newspapers, magazines, billboards, direct mail and catalogs.

The second reality of advertising is that one-way communication is substantially more difficult to use effectively than personal selling. Whenever there is give and take in communication, its chance of imparting the correct message increases drastically. Hence, one-way communication s€rves to bring the customer into the place of business so that the externally begun dialogue can be completed internally.

The third reality of advertising is that what is communicated initidly better be what it is said to be. This doesn't mean technically. It means that in the eyes of the customer the message must be discernibleas representd.

The fourth reality of advertising is that

Our reputation is sealed on euerl Gan of Gny Seal Faint.

We back our products with factory-trained personnel and a strong product warranty. lf you have a special application or problem, call our chemists on our toll-free number. We'll help however we can.

We work hard to protect our product's reputation so you don't have to worry about yours.

Gray Seal, the Paint Pro's Paint. Painting's iust too much work to use anything else.

For Inlormation contact: n.||rJ fr|n JGny M. 91ES$1t15. Imlqd. il nfq frrrfre Ralplt Shc9hc'd. {F721-7{e9. Orhfin City. 0l(. Roc ilooc. 501-ffi'16. UIt|r Rocr. An,.Ert l(rlr, 501-56$283. Ln[c Rod. AR, lm C.ry. 31;263-aam. wrdrib. Ks Pn .ah lr|r lik? Pbn. t{I}6:lffiall7, Louisville. KY one must have something to say in a oneway communique. The author can't write a book without a story to tell. The merchant must give the customer a reason to get into an on site dialogue in his store.

The fifth reality is that advertising is the tip of an ice berg. It lets everyone know that it's there because a little bit shows above the water line. The foundation under water is not visible, but without it the visible part could not exist. The store is the business end of whatever the advertising claims and it had better be capable of coping with those attracted and their needs.

Like anything else that appe€us complicated, advertising can and should be broken down into its simplest parts. Certainly there is a creative segment to advertising that few managers know the "how" of doing. On the other hand few artists know the "why" of advertising. Combining the two talents is neither difficult nor expensive if managedeach basic part in its timeand place.

Tuft

(Continued from page 9) changes in the tax code and a favorable affordability picture.

Renovation continues to be a growth sector in the construction market particularly in the northeast where premium location considerations favor rehab. This segment offers opportunity to all sectors of the building industry because of the wide variety of projects undertaken from residential work to major urban development tracts. Although a l59o gain is anticipated in this sector, a possible change in the tax code, the removal of the Investment Tax Credit, will delete a major underpin in the current renovation market and result in declines in activity from current levels.

The d-i-y market is also expected to remain strong. With 8090 of d-i-y projects undertaken within two years of a house purchase and sales of existing homes at a record level 3.4 million, the foundation has been set for a continuation of the l2slo annual gowth of the d-i-y market that has been occurring for the past decade.

Compared to the past year of stability, 1986 will be the apogee of the current construction cycle and the beginnings of decline. As the economy continues its slowdown, the construction industry will be challenged by declining conditions. To grow and prosper, the building industry must adapt to the changing needs of the market and align itself with the growing challenge presented by new technology that will transform the construction industry as we know it today.