Each week, American History america does could brings you archival films. Challenge to america is a 1955 film predicting economic growth. N the United States advertising associations say that new Marketing Strategies are needed to stimulate more production. Ladies and gentlemen, the president of the United States. President eisenhower if we, as a people, act wisely, our annual National Output can rise within a decade from its present level of about 360 billion to 550 billion. The joint committee on the economic report has gone even further. They say our economy can yield a potential Gross National product by 1965 of about 535 billion. Think what this can mean. It means a 155 billion increase in our economy in just 10 years. It means that within this 10 year period, all of us have the possibility of living one third better than we do right now. It means better jobs, better security, greater comforts for more of our people. It means the opportunity of raising the average Family Income to at least 7,000 a year before taxes without inflation. It means new horizons. New expansion possibilities for every business, large or small. And for every individual in the United States. It means greater support to our institutions, our colleges and universities, our churches, to our welfare and civic organizations. If they can happen, there is no limit to the opportunities ahead for all of us. It can be made to happen. An unbelievable extension beyond what we already know. A substantial betterment for the whole nation can be achieved. The answer lies in the factors which make the American Economy tick. We can begin with a simple comparison. This is one of the best refrigerators made in 1930. Both it and todays latest model make ice, preserve food, and keep things cold. Which one would you rather have in your kitchen . This one, naturally. Why . Why, its better, of course. We want it better, so we make it better. Thats not just true of refrigerators, either. Designs in harmonious colors and pleasant and appealing arrangements. And look what happens to the rest of the house. Television, airconditioning, attractive, bright bathroom fixtures, power tools. The house itself is fireproof and insulated, built for modern suburban living. A power mower, modern lawn furniture, and outdoor grill. The car is twotoned, new with power steering, power brakes, and automatic transmission. This will be a twocar family before long. Obviously, these joneses are wellequipped, uptotheminute households, but are they so unusual . Like millions of middle income americans, mr. Jones dresses well, owns life insurance, watches baseball on tv, and plans a vacation trip in the family car. Like millions of other housewives, mrs. Jones gets her hair done every two weeks, uses the drivein bank, and she buys branded merchandise at the supermarket. She especially likes of the time and work saving products, like frozen juices and cake mixes. The kids are typical, too. Sally has a brandnew bike. Davey has discarded his cowboy suit in favor of his birthday camera. If the joneses are so typical, why talk about them . For that very reason. There are millions of joneses keeping up with these joneses, having the same craving for Better Living, wanting better things, more efficient things, more economical things. Why . Part of the answer lies in our nature as a people. Centuries of freedom have taught us to think in terms of continuous improvement, of an always better future. This democratic heritage has bred in as the belief that america is the land of opportunity and a man can be anything within his capabilities, that any reasonable goal is within reach. Armed with this boundless optimism, we have achieved a new kind of Economic System which offers more benefits to more people than any yet devised. But we are not where we are only because of our desires. We are there because of the miracles of the american Economic System, which have made it possible to realize those desires. What are they . Americas inventive genius. Our knack for finding new ways to make things and new things to make. Mass production, the assembly line, our skill in making more things faster. Finding new ways to make things at lower cost. Competition, where the public is king and business has to earn the publics favor. Has to offer a better mouse trap or the public just will not buy. We have learned the better mousetrap by itself is not enough. Human wants are not automatically translated into action. Merchandise must move in volume to give americans a better way of life they keep seeking and which they can realize. As paul mazer of Lehman Brothers puts it not purchasing power but purchases and not production but consumption are the ruling factors of our country. We are a nation who consumes its way to the asperity, security, and freedom. To move goods in volume, a new miracle is needed. The miracle of Creative Marketing. A unique american concept, designed to help the American Public into achieving the Living Standards they want to enjoy. Most people find it hard to realize they can have the things they dream of having. Its a basic principle that income is not a true index of Living Standards. But as people go up the income ladder, they will not necessarily eat better, dress better, or live in better surroundings. The heart of modern Creative Marketing is informing, educating, and stimulating people to achieve the comforts, conveniences, advantages that will give them the Better Living they can have and can afford. It is a highly developed system of many interrelated forces, beginning with the product itself. The need for the product, its acceptability, its design, its packaging, its price. Marketing also concerns the manner in which the public is sold, the places in which it is purchased, the convenience of purchase, the integration of purchases. It has to do with the way the product is bought. Shortening the time people must wait to afford the product by the extension of credit, easier terms of payment, longerterm mortgages. Marketing includes the people who sell the product. Not only the army of local retail sales people who meet and service the consumer at pointofsale, but that other army the consumer never meets the National Sales and Sales Promotion forces which make the local sale possible. And finally, perhaps the most dynamic force, our modern Advertising Public Relations and merchandising methods for continuously educating the public as to new products, new services, new standards. Merchandising to move goods toward people, advertising to move people toward goods. Our Advertising Department and their advertising agencies, with their emphasis on creative selling, are a highly integrated structure of communications, magazines and business publications, newspapers, outdoor, car park, radio and television, and the direct mail medium. Our concept of Public Relations, our pointofsale display, these combined forms of promotion are unequaled anywhere. Yet none of them stands alone. As walter r. Berry, Vice President of general mills, has said if we try to think of advertising separately from research, production, and merchandising, it would be like trying to think of blood as separate from the human body. Yes, Creative Marketing is the sum of many forces. It begins with the planning of the product, whether it be a cake of soap, a machine, or an insurance policy. The designers, since he designs with his eye on the eventual consumer, is a marketing man. Marketing includes all the values put against the product or service in its course from the Research Laboratory to the production line through the channels of distribution to the ultimate user. It encompasses every factor involved in getting products to the counter, on the counter, across the counter, and into the customers hands. Thus, it cannot be something delegated to a few individuals. Every member of the company is involved in marketing in one way or another. And to be effective, it starts at the top. It is significant that 5000 businessmen, recently polled to choose the marketing man of the year, selected as the top three the president of the ford motor company. The president of the chrysler corporation. The president of general motors. Under the leadership of such men, truly Creative Marketing springs from the dynamic interrelation of all these functions. Marketing research. Product research. Product testing. Design. Pricing. Servicing. Packaging. Handling. Credit and financing. Storage and transportation. Sales. Sales promotion. Retail selling. Accounting and billing. Advertising. Public relations. Integrated marketing such as this pays off. In industry, we can find the proof. The Food Industry has developed instant rice, frozen foods and juices, quick mix desserts, easy to serve cheeses, and even complete precooked, frozen dinners. This is Creative Marketing. As charles g. Mortimer, president of general foods, expresses it the food dollar now buys something very different from what it used to buy. One of my associates calls it the builtin maid service that go with products that are ready to serve or nearly so. Result . Frozen food sales alone have soared from 785 million in 1950 to 1. 5 billion today. It took more than babies to make todays boom in baby food. Baby food sales have risen 1000 . No special secret, except the industrys modern marketing techniques. More variety, new packaging, Public Relations work with pediatricians, and imaginative direct mail to new mothers. Result . 90 of todays babies use baby food compared to less than 50 before the war. Alertness to the new demand for convenience is part of the clothing industrys marketing story. Research and miracle fabrics has created a clothing revolution. Lightweight suits have captured 25 of the market. Astute firms have also seized upon the trend toward casual living and found a phase. In the past six years, sports jacket sales have doubled. Sports shirts sales have tripled. The building industry has had the amazing imagination to find the wants of its customers. Americans want their own homes today and some ground around them. They want as few stairs as possible and all the modern conveniences. They want nearby shopping centers, recreation facilities, schools, and on terms that are easy to finance. Todays builders are packaging whole villages designed to meet these needs. Low interest, longterm mortgages put these homes within the reach of the millions who want them. Result . The biggest building boom in our nations history. The Automotive Industry is one of our most dramatic examples of Creative Marketing. It responded to the move to suburban living and the increase in disposable income with the idea of the second car. Seizing on the American Publics growing taste for bright colors, they created the twotone car, and look what happened to sales. Larger families and the trend toward Outdoor Living sparked the development of the allmetal station wagon. Sales of this type of car are now 15 times the level of nine years ago. Recent transportation history holds many examples of dynamic marketing thought. Piggyback flat cars carrying loaded truck trailers on Long Distance hauls. A new lightweight dream train, 60 less expensive to build, 60 less expensive to operate. The family fare plan. Airlines marketing has taken the form of faster planes, better schedules, tourist rates, the cross reservation system, and the pay later plan. On the pay later plan, one airline added 5 million gross revenue, all of it new business. Designing programs to meet current trends, Insurance Companies have developed convenient package plans covering many different needs at a single band created by dynamic marketing. Today, there are more than 12 million home workshops in the land. And a 12 billion volume in the industry where there was but 3. 5 billion just a few years ago. Look at the Paper Industry creating a wide variety of new products. Dishes, cups, containers and napkins. One company alone increased their sales to nearly 300 million today. Integrated marketing is no less successful in the basic industries. Steel, copper, aluminum. Going directly to the public. We are in the midst of a revolution in retailing, brought about by the city traffic problems, the shift to the suburbs, the huge volume of goods move that todays high spending level. 60 of the new variety stores, 70 of the new drugstores, 95 of the new food stores are being built in suburban shopping centers. Up to now, we have talked only about today. About the need for integrated marketing to give americans the standard of living they desire. About the opportunities it offers american business. In the next 10 years, both the need and opportunities will be greater than ever before. Basic changes are taking place in our economy. They promise an almost unlimited capacity to consume. Even though we may be aware as individuals of many of these basic changes, its difficult to grasp their immense too much of a fact. Tremendous cumulative effect. We are climbing towards a population of over 200 million by 1975. Over 37 million babies have been born in the last 10 years. In the next 10, we can expect 42 million more. People are living longer. By 1960, there will be an estimated 15. 5 Million People over 65. Between 1947 and 1953, the number of households increased 18 . The increase will be even greater in the decade to come. Productivity is rising. With better equipment and machinery and because of ever greater incentives, and american today working many fewer hours produces three times what his grandfather did. Most americans are moving into a new middle class. By 1965, the average family should have an income of 7,000 a year in todays dollars. The general leveling up of income is taking place in all regions of the country. And there is more spendable money. In 1953, the disposable income per household after taxes was 5,321. In 1965, it is expected to be 6,785. Savings have risen to a record peak. 285 billion in 1955. A 20 fold increase since 1940. At the same time, Consumer Debt has stayed relatively low. Short term credit in 1955 is running at 11 of savings. It was 12 in 1940. This huge reservoir of savings, bolstered by a healthy Credit Conditions the migration to the suburbs, estimated around 40 to 80 Million People and the wait is stepping up. Theres a continuing trend to more time off, which means more time to consume. There is an awakening interest in culture among all americans today. We are reading more good books than ever before. Classical concerts are outgrowing baseball, and finally, as a solidifying element for all these changes, there is a burgeoning religious consciousness of the american people. Out of these changes, new needs are continually developed. Between now and 1965, we will need about 12 million new houses and another 5 million should undergo major modernization. Think what this means. At least 12 million new kitchen units, bathroom units, washing machines, insurance policies, baby carriages. More of everything that makes up a household equipments. We should be spending some 4 billion a year on school construction. Right now, we need 370,000 more classrooms. Between now and 1965, we will need nearly a million more to take care of both replacement needs and the tremendous increase in enrollment. Some 25 to 30 of american Industry Needs remodeling or replacing. By 1965, business expenditures on plant and equipment should be 60 million a year or about 20 million more than today. Much of our highway system needs to be rebuilt. Today, there are 72 more vehicles on the road than 13 years ago. And we will have 20 million more by 1965. A 35 gain. Our highways just cannot handle the load and are deteriorating badly. Unless we act, we run the risk of defeating the whole purpose of the automobile. To go with all this expansion, we also need more recreation centers, more water systems, more sewage plants, and all the other things that go with expanding communities. This in turn means huge amounts of electric power, lumber, glass, asphalt, steel, concrete, aluminum, and other materials. Overall, by 1965, we as a people can consume 47 more nondurable goods, 37 more services, and 45 more durable goods. All this is food for great optimism, but there will be problems, too. Right now, for example, some people worry the inflation spiral may start up again. The credit on some items is overextended, the profits are too low in related to volume. Lets not minimize it. These are problems. But perhaps the best way to meet them is to capitalize fully on the Growth Opportunities that lie ahead. We have the means of almost unlimited production. We have an almost unlimited capacity to consume. We need to raise our actual consumption so that it matches our capacity to produce. We know that this does not happen automatically, but we know that better integrated, truly Creative Marketing can make it happen. In fact, its the only way to make it happen. But, like everything else, this is easier said than done. How many of us realize marketing has become the keystone of our entire economic structure . Although some 47 of all employees are engaged in the payloads and industry has only begun to solve basic marketing problems. Yet these basic problems require increasing attention in the highly competitive days ahead. Marketing strategy will become more and more important in determining success or failure. By the same token, the company that applies marketing in all of its phases will enjoy the opportunities that lie ahead. But heres a point that bears much emphasis and much repetition. There is no guarantee every industry in the economy will benefit equally, nor that each company or even the prosperous industry will benefit equally. Consumer reviews of some products will decline, posing a challenge to some industries to diversify or two introduce important Product Innovations to recoup their losses. For all industries, competition is going to be tougher. Investment needs larger. Rate even points higher. Factors like these pose a challenge for a better and more integrated market. For more creative and farsighted marketing. In meeting the challenge, shouldnt every company be asking these questions . What is our company doing to realize the opportunities ahead . Is production in our company keyed directly to marketing . Does it actually begin with the product itself . Is our company concerned with all the functions of marketing . Are the top men actively concerned with marketing . Including the president and the board of directors. What are the marketing innovations in our industry . Are we alert to the latest techniques of distribution and marketing of our type of merchandise . Is our company aggressive enough in advertising . Is our appropriation adequate to hold and expand our share of the market . Do we have a program of expansion . In writing . Do we have a longterm plan in which all departments share to develop more and better customers as we develop more and better products . In the answers to these questions is the key to Creative Marketing. This is the way to further growth and advancement. This is the way to greater opportunity and Better Living for all of us. This is the key to an ever stronger American Economy. If we, as a people, act wisely, our annual National Output can rise within a decade from its present level of about 360 billion to 500 billion. This is the challenge to america. With live coverage of the u. S. House on the senate and we complement that coverage by showing you the most relevant congressional hearings and public events. On weekends, its home to includingistory tv, six unique series. The civil wars 100 50th anniversary, visiting battlefields and key events. American artifacts, touring museums and Historic Sites and discovering what artifacts reveal about americas past. History bookshelf with americas best known history writers, the presidency, looking at the policies and legacies of our nations commanderinchief, lectures and history with top College Professors delving into americas past, and our new series featuring archival government and educational films from the 1930s through the 1970s. By the cable tv industry and funded by your local cable and satellite provider. Watch us on tv, like us on facebook, and follow us on twitter. The formeright, emergency manager of detroit talks about detroits Financial Issues and his job overseeing the largest municipal bankruptcy in u. S. History. Of detroit had taken the 1. 5 billion it borrowed in 2005 and 2006 when the stock market went down to 6700 and just invested the stockund market is now trading at 18,000, almost three times what it was. They not only would have tripled their money, they could have paid the pensions in full and got back to the business of declaring what was called the 13th check, used to be the practice of giving pensioners what was called a 13th check at the end of the year in addition to the 12 they are due. They could have asked them selves if there had been some sort of sober manager. Anagement Going Forward if you hadif you have some strog leadership and focused leadership, you can resolve these problems, but it takes a lot of effort. Sunday night on cspans q a. Coming up next on our weekly series the civil war, a panel of civil war scholars discussed the life of John Singleton mosby and his involvement in the american civil war. Hecknamed the gray ghost, t cavalry commander left his rangers in central and northern virginia. Disrupteds supply lines and communications cured after the war, he became a republican and supported the campaign of ulysses s. Grant. Onehour, 10 Minute Program was hosted by the bull run civil war roundtable. [applause] thank you, mark. Goodve