Subject:
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Re: McDonald's, LEGO and Ethics
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Newsgroups:
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lugnet.off-topic.debate
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Date:
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Mon, 13 Sep 1999 19:23:15 GMT
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Reply-To:
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[lpieniazek@]spamcake[novera.com]
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Viewed:
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281 times
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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.
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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)
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