Economics, Advertising and Wool

Farmers are showing increasing interest in promotion and advertising. Public statements by various farm groups calling for increased expenditure on advertising are all characterized by the certainty with which a desirable return from advertising is anticipated. In view of this it seems opportune to consider some of the broader aspects involved in the successful advertising of primary products. The purpose of this discussion is not to attempt to prove or disprove the value of advertising, but rather to review thc factors which may determine the succes, or failure of advertising a particular product; to indicate the nature of the information necessary to enable an evaluation of the return from different types of advertising; and to discuss possible techniques for estimating the desirable amount of advertising in various situations. The discussion is relevant to most agricultural products which may be advertised, but particular emphasis is given to wool in view of the large programme planned for that product. It is not intended to discuss the competition between wool and other fibres, except as it relates to the proposition to advertise wool. Also it is recognized that advertising cannot solve problems of price stability, though it may have some indirect effects on prices, and that this must remain a separate problem.