THE SIGNAGE FOUNDATION FOR COMMUNICATION EXCELLENCE, INC.

Advertising occurs as a by-product of the commercial process in a highly competitive retail environment.In accordance with supply/demand marketplace dynamics, advertising reflects derived demand, i.e., it is based upon expected short run consumption of goods and services by a defined population. In theory, demand and targeted consumer populations remain relatively constant. And even if a shift occurs, a decline in revenues in one market may be accompanied by a comparable increase in another market, so that total available gross sales volume throughout the retail economy generally remains the same, i.e., the total market is engaged in a "zero sum game". However, as with most theories in American retailing, zero sum game dynamics do not always hold true. Consumption within discrete markets can be increased when "intervening opportunities" are provided along customary travel paths.^[25] This is especially so in highly discretionary areas, such as quick service foods. Money is spent on a quick meal with much less thought than when someone is setting out to purchase a washer/dryer.

Complicating attempts to generalize about zero sum game and the overall market is the nature of the North American retail system, which adjusts to marketplace forces and economic trends. Some products are regularly consumed regardless of overall business and economic conditions, e.g., food, beverages, cosmetics/personal hygiene products, durable/non-durable household goods. Such consumables are considered "non-cyclical". Those market categories subject to consumption decreases or increases in response to economic factors are considered "cyclical", e.g., autos/auto parts, toys, designer apparel and accessories, out-of-home entertainment.

Cyclical/non-cyclical dynamics were easier to predict and adjust to when trade areas were more or less immutable.^[26] Once "flattops" or manufacturing/industrial sites brought in the jobs, which generated "rooftops" or housing, with predictable household income, which in turn generated "parking lots" or retail space, which was filled based on predictable buying power. Today, this pattern no longer holds true. With the growth of the retail economy, retail and service jobs have replaced manufacturing or industry as the driving force behind housing and employment patterns. Concurrently, both discretionary income and impulse purchasing has increased. Because of these factors, market segmentation has also increased. Often, very specialized categories take in large amounts of money. Clearly, traditional trade area analysis is no longer valid for many urban communities; neither can one apply zero sum game theory with impunity.^[27]

Regardless of zero sum game variables, however, in today's competitive economic system, market share per retail category certainly fluctuates and is centrally dependent upon the effectiveness of one's advertising/marketing programs and access to commercial communication or speech. Additionally, commercial communication properly placed and truly noticeable or readable by the consumer will often increase daily volume for every business in the category. Americans tend to consume both by habit and impulse.^[28] Because of this, questions as to the real impact of sign regulation on any given market on any given day are very difficult to answer in advance of regulation.