When Developing an Advertising Campaign, Benchmarks Need to Be Included

question 54

Multiple Choice

When developing an advertising campaign, benchmarks need to be included in the

• A) campaign platform.
• B) evaluation of the advertising effectiveness.
• C) statement of advertising objectives.
• D) media plan.
• E) budget.

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Definitions:

Income From Operations

Income From Operations is the profit realized from a business's operational activities, excluding any investment income or taxes.

Contribution Margin Ratio

The contribution margin ratio is a financial metric that shows what percentage of sales revenue is not consumed by variable costs and thus contributes to covering fixed costs.

Fixed Costs

Costs that remain constant regardless of a company's level of activity, including expenses like lease payments, wages, and premiums.

Break-even Point

The point at which total costs and total revenue are equal, meaning no net loss or gain, and the business has "broken even."