By Philip Hanson
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Extra resources for Advertising and Socialism: The Nature and Extent of Consumer Advertising in the Soviet Union, Poland, Hungary and Yugoslavia
107. (31), p. 55. The Soviet economy and advertising 25 subordination, to IDCA and to internal trade ministries: STR to the All-Union (National) Ministry, RTR to the Russian Republic Ministry and UTR to the Ukraine Republic Ministry. These are ministries that administer almost all the urban retail and consumer wholesale trade of the country. Trade in rural areas is run by the consumer co-operative organisation. These three are the largest domestic advertising organisations in the Soviet Union, and they are the nearest Soviet institutions (apart from Vneshtorgreklama) to Western advertising agencies.
Retail and wholesale organisations, finding excess stocks on their hands, carry out some advertising, usually in local press, radio and television and usually at their own expense. Sometimes the producing enterprise is induced to share advertising costs. Soviet writers on advertising press for preliminary marketing of new products by producers, but in conditions of general excess demand, and with some (varying, and not unlimited) scope for unloading output on the distributive system regardless of the latter's preferences, producers are not easily persuaded to incur marketing expenses, or at least not before they face the prospect of definite refusals of consignments on the part of trading organisations already holding excess stocks.
According to him, available supplies of advertising materials and equipment were only 10 to 40 per cent of applications. STR received probably for 1969 -only 5 per cent of its application for printing paper (and only four out of the fifty mobile towers for installing neon signs that it put in for - capital equipment supplies are discussed below). He said the planners were increasing supplies by about 10 per cent a year without realising that this meant a growing shortfall. In general, applications for material supplies to advertising were being met only to the extent of about one-third.