Scenario 12-2 When Advertisers Consider Running Ads in American Life Magazine, They

question 21

Multiple Choice

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 number of 2,847,600 nationwide readers with a single-column, black-and-white ad is $31,300. 
-(Scenario 12-2) Each medium under consideration in a media plan must be scrutinized for the efficiency with which it performs.In other words,an advertiser might select American Life because it delivers messages to the largest target audiences at the lowest cost.Which of the following helps measure this? 

• A) Net volume 
• B) Price/cost transparency 
• C) Cost per thousand 
• D) Net promoter score

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Definitions:

Oligopoly

A form of industry (market) structure characterized by a few dominant firms. Products may be homogeneous or differentiated.

Differentiated Products

Goods or services that are distinct from others based on quality, features, and branding to compete in the market.

Industry Entry

The process by which new companies or businesses begin to compete in an existing market.

Oligopoly

A market structure characterized by a few companies controlling the majority of market share, which can lead to limited competition.