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Scenario 12-2
When advertisers consider running ads in American Life magazine, they have the option of buying geographic and demographic editions as well as the national edition.For instance, they can choose from editions targeted at professionals and managers, homeowners, working women, and people aged 50 and older.In addition, they are offered editions for 8 geographical regions and for the top 20 metropolitan areas.American Life also offers multiple-page discounts for advertisers buying four or more consecutive pages in any one edition, as well as other volume discounts.The basic rate to reach 2,847,600 readers in its national edition with a full-page, four-color advertisement is $91,300.The basic rate to reach the same 2,847,600 nationwide readers with a single-column, black-and-white ad is $31,300.
-(Scenario 12-2) A media planner working for a high-end clothing retailer looks at its figures and discovers that a vast majority of its sales are in large cities.So she decides to buy space in American Life editions that reach the top 10 metropolitan markets.This media strategy is referred to as
Midpoint Formula
A method used in economics and mathematics to calculate the average of two points on a line, often employed to find the elasticity of demand.
Chocolate-Covered Peanuts
Peanuts that have been coated in chocolate, serving as a sweet and crunchy snack.
Total Revenue
The total value of sales of a good or service (the price of the good or service multiplied by the quantity sold).
Table: Price Elasticity
A table that shows the responsiveness of the quantity demanded or supplied of a good to a change in its price, often used to analyze consumer behavior.
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