Subject:
|
Re: McDonald's, LEGO and Ethics
|
Newsgroups:
|
lugnet.off-topic.debate
|
Date:
|
Mon, 13 Sep 1999 19:23:15 GMT
|
Reply-To:
|
lpieniazek@novera.ANTISPAMcom
|
Viewed:
|
405 times
|
| |
|
|
Christopher Tracey wrote:
>
> Forgive me, I don't know much about economic theory, how does cross-promotion
> lowers costs to the producer?
Two relatively weak reasons...
- economies of scale in media buys reduces ad cost which is a producer
cost
- increased volume of the underlying product reduces cost per unit
produced, typically
and one that's not usually in play
- shifting cost to someone else (the stronger partner in the cross
promotion) lowers cost for the weaker one. Since it's usually the weaker
one I am interested in, that's good (I rank TLG as weaker than McD, and
expect that I will pay less for the bricks I obtain via McD than I would
for similarly sized quantities gotten direct from TLG, after factoring
out the intrisic value of the meal I have to buy to get them)
We're not talking about huge dollar differences here...
--
Larry Pieniazek larryp@novera.com http://my.voyager.net/lar
- - - Web Application Integration! http://www.novera.com
fund Lugnet(tm): http://www.ebates.com/ Member ref: lar, 1/2 $$ to
lugnet.
NOTE: I have left CTP, effective 18 June 99, and my CTP email
will not work after then. Please switch to my Novera ID.
|
|
Message is in Reply To:
 | | Re: McDonald's, LEGO and Ethics
|
| (...) Forgive me, I don't know much about economic theory, how does cross-promotion lowers costs to the producer? (...) Government scientists are good at that. :) Actually, most government scientists are great. The project I am working on today has (...) (25 years ago, 13-Sep-99, to lugnet.off-topic.debate)
|
16 Messages in This Thread:
  
 
- Entire Thread on One Page:
- Nested:
All | Brief | Compact | Dots
Linear:
All | Brief | Compact
|
|
|
|
