Discuss the Strengths and Weaknesses of Radio Advertising

question 16

Essay

Discuss the strengths and weaknesses of radio advertising.Make recommendations for the types of products and situations in which radio advertising should be used.

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Definitions:

Common Fixed Cost

A fixed cost that supports more than one business segment, but is not traceable in whole or in part to any one of the business segments.

Corporate Advertising

Advertising aimed at establishing a favorable attitude toward a company as a whole, rather than promoting a specific product or service.

Contribution Margin Ratio

The percentage of each sales dollar remaining after variable expenses are deducted, indicating the proportion available to cover fixed costs and generate profit.

Net Operating Income

An accounting term that refers to the profit realized from a business's operations, after subtracting operating expenses from revenue, excluding tax and interest.