Which of the Following Is a Key Hallmark of Advertising

question 48

Multiple Choice

Which of the following is a key hallmark of advertising?

• A) It is more effective in reaching consumers than other forms of promotion.
• B) It is almost always used in conjunction with consumer satisfaction surveys.
• C) It is a paid form of marketing communication.
• D) It is designed to remind,rather than persuade consumers.
• E) It is designed for small,targeted audiences only.

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Definitions:

Contribution Margin

The amount of revenue remaining after variable costs have been deducted, which contributes to covering fixed costs and generating profit.

Opportunity Cost

The expense associated with missing out on the second-best option when a choice is made.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue is available to cover fixed costs and generate profit.

Variable Cost

Costs that change in proportion to the level of activity or volume of production, such as materials and labor.