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Practice Reading: Fill in The Blanks (Drag & Drop)
ID: #5428
Cosmetics 1
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Does advertising increase the cost of things? Well, the answer is ‘maybe'. A top actress can be paid as much as 20 million euros to become the face of a top cosmetics brand. Let’s say a company spends six million euros on a marketing to achieve total sales of 20 million euros. That’s a third of total sales spent on someone to buy the product. That figure’s even higher once the sales assistant at the department store has been paid her commission. But that oversimplifies the issue. If a large cosmetics company has fixed costs (for their factories and staff) of 100 million euros and variable costs (for ingredients and transport) of another 100 million euros, it needs to sell ten million jars of face cream at 20 euros each just to get back their costs. If a famous actress appears in a which sells 20 million face creams, the fixed costs per jar go down and those savings might be passed on to the in the form of price or two-for-one deals.
overloading
campaign
commercial
country
consumer
persuading
fans
promotion
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