>> american history tv's future in the original series "first ladies" of p.m. eastern time throat -- leader -- throughout the year. this is american history tv all weekend every weekend on c-span3. >> what many of us first families take vacation time. and like presidents and first ladies a good read could be the companion for a summer journey. what better book than one that peers into the personal life of every first lady earmarking

history. "-- in american history. "first ladies. a great summertime read available as a hardcover or evoke through your favorite bookstore or online bookseller. >> each week, american history tv's "reel america" brings you archival films that provide context for policy in the 20th century. "challenge to america" was produced, predicting economic growth in the united states to the year 1965. the argue that the american economy is poised to expand but knew strategies are needed to influence consumers and stimulate 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 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 $555 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 1/3 better right now. it means more jobs and better security and comfort. >> it means raising the income to $7,000 a year before taxes without inflation. >> means new horizons and expansion possibilities for every business and every individual in the united states. >> it means greater support to institutions colleges and universities and churches and welfare and civic organizations. >> if it can happen there is no limit to the opportunities for us. and it can be made to happen. an unbelievable expansion beyond what we already know, the substantial betterment for the nation can be achieved. the answer lies in the factors that 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 the latest models make ice, preserved food, and he things cold. which one would you rather have in your kitchen? >> this one, naturally. it is better, of course. >> we won't do it better so we make it better. >> it is not just true of refrigerators. >> -- want it better so we make it better. >> it is not just refrigerators. look at what is happened to the rest of the house. attractive bright bathroom fixtures. our tools. -- power tools.

the car is two tone with power steering an automatic transmission. this will be a two-car family before long. obviously these joneses are a well-equipped and up to the minute household but are they so unusual? like millions of middle-income americans, mr. jones dresses well, owned life insurance watches baseball on tv, and plans a vacation in the family car. like many housewives, mrs. jones gets her hair done every two weeks. she likes the same time products like frozen juices. the kids are difficult. sally has a brand-new bike. davey is discarded his cowboy

suit in favor of his birthday camera. if they are so typical why talk about them? for that very reason. there are millions of jones's keeping up with these drums is the same craving for better living. more efficient things and economic 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. this democratic heritage is ridiculously belief that america

-- has bred in austin belief that any reasonable goal is within reach -- in us the belief that any reasonable goal is within reach. we have achieved a new kind of economic system that offers more benefits to more people than any yet devised. we are not where we are only because of desires. we are there because of the miracles which have made it possible for us to realize those desires. what are they? america's inventive genius. our mac for finding new ways to make things anyways -- knack for finding new ways to make things and new ways. lower costs. >> competition where the public is caring and business fast during the public's favor, has to offer a better mousetrap. >> we have learned that the better mousetrap by itself is not enough. human wants not automatically translated into action. merchandise must move in volume to give americans the better way of life they keep seeking in

which they can realize. pas oau puts it,l "not purchasing power book purchases and that production but consumption of the ruling factors of our economy." a new miracle of creative marketing. a unique 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't have the things they dream of having. it is a basic principle that income is not an index of living standards but as people grow up the ladder they will not necessarily eat better or dressed better or live in better surroundings. the heart of modern creative marketing is informing and

stimulating people to achieve the comforts and 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, it's packaging, its price. marketing also concerns the matter in which the product is sold. the place in which it is purchased. the convenience. the integration of purchases. it has to do with the way that the product is bought. shortening the time that people must wait to afford the product by the extension of credit, easier terms of payment longer-term mortgages. marketing includes the people who sell the product. not only the army of local

retail salespeople who meet and service the consumer at point-of-sale but that other army vet the consumer never meets. -- that the consumer never meets. the natural forces that make the local sale possible. and finally -- national forces that make the local sale possible. and finally the most dynamic public relations and merchandising methods for educating the public to new products and services and standards. merchandising to move goods and people, advertising to move people towards goods. our advertising departments and advertising agencies with emphasis on creative selling our highly integrated structure of communications magazines, and business publications. newspaper, outdoor car radio and television, and the

direct-mail medium. the concept of public relations, the point-of-sale display. these combined forms are unequaled anywhere. yet none of them stands alone. as walter has said, "if we tried 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 any 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 customer's 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, and the president of general motors. >> under the leadership of such men, truly creative marketing springs from the 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. we can find the proofing best in industry after industry we can find the proof. time is precious in a housewife's life. recognizing this, the food industry has developed instant rice, frozen foods and juices, quick makes 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 built-in 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 1952 to $1.5 billion today. >> it took more than babies to make today's boom in baby food. well bruce have grown since 1959, joseph mccartin: -- while births have grown since 1959, there is no special secret except the industries modern marketing techniques. more variety, new packaging, public relations work with pediatricians, and imaginative direct mail to mothers. >> result?

90% of today's babies use baby food compared to less than 50% before the war. >> alertness to the new demand for convenience is part of the clothing industries marketing story. research and miracle fabrics has created a clothing revolution. lightweight suits have captured 25% of the markets. astute firms have seized on the trends toward casual living and found that it pays. >> in the past six years sports jacket sales have doubled. sports shirts sales have tripled. >> the building industry has had the imagination to find out and meet 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. today's builders are packaging whole villages designed to meet

these needs. low interest, long-term mortgages put these homes within the reach of the millions who want them. >> the result? the biggest building boom in our nation's 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 public's growing taste for bright colors, they created the two-tone car and look what happened to sales. larger families and the trend toward outdoor living sparked the development of the all metal 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 fair plan. airlines marketing has taken the form of faster planes, better schedules, tourist rates, the cross reservation system, and 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 trend almost entirely created by marketing. today, there are more than 12 million home workshops in the land. >> and a $12 billion volume in the industry where there was 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 and aluminum, going directly to the public to create a market for the items fabricated. 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 today's high spending level. >> 60% of the new variety stores, 70% of 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 the 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, it's difficult to imagine there cumulative effect. >> we are headed toward 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 decades to come. >> productivity is rising. with better equipment and machinery and the cause of ever

greater incentives, americans are working many fewer hours producing 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 today's 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 dollars 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 at 20 to 40 million people, and the rate is stepping up. >> there's a continuing trend to more time off some 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 outdrwaing baseball, and finally, as a solidifying elements release changes, there is a renewed 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 another 5 million should undergo -- houses and another 5 million should undergo major modernization. think what this means -- at least 12 million new kitchen units, bath units, more baby carriages, more of everything that makes up a household. we should be spending some $4 billion the 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 determine this 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 the year or 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 some 20 million more by 1965. a 35 cent gain. -- 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 will 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 of 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. that credit on some items is overextended that profits are too low in related to buying. let's 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 and an almost unlimited capacity to consume. we need to raise our actual consumption so that it matches our capacity to produce. we know this does not happen automatically, but we know that better integrated, truly creative marketing can make it happen. in fact, it's the only way to make it happen. but like every thing else, it easier said than done. how many of us realize marketing

has become the keystone of our entire economic structure? although some 47% of employees are engaged in the payloads and industry has only begun to solve basic marketing problems. yet these basic problems will require increasing attention in the days ahead. marketing strategy will become more and more important in determining success or failure. by the same token, the company that applies marketing and all of its phases will enjoy the opportunities that lie ahead. but here's a point that there much emphasis and much repetition -- there is no guarantee every industry and the economy will benefit equally nor that each company or even the most prosperous industry will benefit directly. consumer reviews of some products will actually decline

posing a challenge to some industries to diversify or two >> -- to introduce important product innovations. for all industries, competition is going to be tougher. investment means larger and breakeven points will be higher. factors like these for they >> -- these pose a challenge for better and more integrated markets. for more creative and farsighted markets. in meeting the challenge shouldn't every company be asking these questions? >> what is our company doing to realize the opportunities ahead? does it 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 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 long-term plan in which all departments share to develop more and better customers, as we have developed 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