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A Reinstatement of Magnavox Policy
and the Philosophy Behind It
factory price cut and distress mer-
chandise go hand in hand. The past
results have been instability and cus-
tomer dissatisfaction for the merchants
not inclined or prepared to engage in
Admitting that perhaps a perfect Magnavox phonographs prevailed up- this type of operation.
merchandising plan has never been on Magnavox to introduce a line of
"Magnavox has chosen the second
devised. Frank Freimann^ executive fine radio-phonographs." In turn it course. Its advertising is constructive-
vice president of the Magnavox Co., gives the Magnavox formula for profit ly conservative, its product is designed
I* ort Wayne, Ind.. states in the intro- and customer good will, the non com- to give the buyer many years of pride
duction to a new brochure just issued petitive, selective distribution through and satisfaction. Magnavox requires
honest, intelligent presentation at the
by the company, entitled the '"Magna- America's fine stores and price pro- point of sale by trained personnel to
vox Formula." "However, inasmuch tection which assures equitable profits bring out its true and lasting values."
"It's a product which must be sold
as all Magnavox dealers conduct their and continuous goodwill.
business on an equally high principle
In defining the philosophy behind through a demonstration of its superi-
or qualities, and an exposition of the
and under comparable conditions, we this product it is stated:
long term service it is capable of ren-
dering.
"Magnavox is dedicated to a policy
of developing and manufacturing in-
struments of fine quality—measured in
terms of the enduring pride and satis-
faction they render. To protect the
customer's investment, Magnavox shall
continue to strive for improvement in
performance without, however, resort-
ing to frequent model changes designed
to promote obsolescence. Magnavox
will incorporate all basically good im-
provements, but avoid questionable in-
novations or style changes to create
'sales appeal'."
It is also explained that Magnavox
designs will not be frozen and where
improvement can be made it will be
Prank Freimann, Executive Vice President of the Magnavox Company at his desk
made. It is also stated that FM serv-
"Radio merchandising and distribu- ice will not obsolete previous good
believe we have approached the "per-
fect plan'—one that meets the prim- tion can be classified in two categories. AM sets but that the company will
ary needs of every Magnavox fran- The one most commonly used offers integrate FM in all console models
manufacturers large potential distri-
chise holder." The brochure, as Mr. bution through thousands of nonde- and that they will participate in the
Freimann states in his opening para- script outlets, ranging from the radio manufacture and sale of television re-
graph, contains "a summary of the service shops to large chain outlets, receivers at such time in the future
Magnavox position in radio. It is a the other, distribution restricted as the numerous problems obstructing
reinstatement of our merchandising through a relatively few quality in- the practical application of television
stitutions of established integrity and
policy, and an explanation of the responsibility.
arc salved. Recording by wire will
philosophy supporting that policy, as
"In the first instance, the manufac- be optionally available in the Mag-
well as an outline of our post-war turer's problem is one of mass distri- navox line. Styling will always be in
bution and advertising that sells a keeping with furniture trend. Adver-
planning and preparation."
product through the printed word. In tising will be regularly inserted in
A brief history of the company the second instance, the manufactur-
such national publications as Time,
tells of its founding in 1911 and its er's problem is one of choosing mer-
House Beautiful, House and Garden,
being organized under its present chants who enjoy continuous trade
with a large segment of a community, National Geographic, Atlantic Month-
name in 1917. How in the pioneering
and with facilities and sales personnel ly..Fortune. Liberty, Red Book, Etude,
days Magnavox was one of the first that can be trained to sell a product
and Parent's Magazine.
radio set manufacturers developing that attains public acceptance through
•--
the first single dial radio set in 1923 conservative national advertising, the
Zellman's Branch in
and the first electronic radio-phono- word of mouth consumer promotion.
Wallingford, Conn.
"In
the
mass
distribution
method
a
graph combination in 1922. It dwells
manufacturer is almost forced to re-
Zellman's Music Shop, Meriden,
on how the Magnavox speaker output sort to the more tangible gadget adver- Conn., has opened a branch store locat-
went to radio manufacturers, its ac- tising and loose promises to overcome ed at 150 Center Street, Wallingford,
tivities in sound equipment for public the inherent weakness at the point of Conn., carrying a complete stock of
auditoriums, theatres and stadia as sale. An 'order taker' can point to records, popular and classical, (all
makes) MirrApianos, musical instru-
well as industrial sound equipment, the gadget, and trade to make a sale. ments and accessories, sheet music,
High pressure promotions, yearly mod-
and how in 1937 "dealers handling el changes that promote obsolescence, popular and classical.
22
THE MUSIC TRADE REVIEW, MARCH, 1945