Prices of Ads on ‘Seinfeld’

Reader Rick Rofman writes, “Watch for higher prices at the market on products of those companies that advertise in ‘Seinfeld’ ” (Calendar Letters, Aug. 23). Many people share the erroneous belief that advertising and other marketing costs are simply added on to the cost of goods and services, thus increasing the price to the consumer.

In our free enterprise system the key factors influencing consumer goods prices are sales volume and competition. All positive activities in the marketing spectrum increase sales volume, and without them there would be no goods to buy, no economy and no jobs.

Regarding what appear to be rising advertising costs on “Seinfeld,” actually the reverse is true. Television advertisers buy Target Rating Points (rating points that reach a desired target audience), and more viewers-per-dollar are reached on the TV shows with the highest ratings. This translates into lower, not higher, per-unit marketing costs for the advertiser; and, because of competitive activities, lower prices to the consumer.

GORDON HEARNE, Hearne & Spector, Venice