Questions

The main purpose in measuring the effectiveness of any advertising campaigns is to evaluate its effect on the sales and also brand recall factor. The mathematical equation for measuring the effectiveness of an advertising campaign is:

Advertising campaign effectiveness = Revenue + Return on investment (ROI)

There are various ways to measure the effectiveness of advertising campaigns:

         - Conducting a survey after the campaign ends

         - Proportionate increase in the sales of that particular product/service

         - More customers calling to a toll-free and prescribed lines

         - Redemption of coupons and vouchers

         - Increased footfalls in the store to purchase product/service

         - Increased click on the company’s website  

In business, a takeover is the purchase of one company by another.

An advertisement campaign must comprise of the following:

      - A solid marketing plan

      - Advertising budget

      - Media buying and planning

      - Choosing the right target audience

      - Selection of relevant advertising medium

      - Consistency in campaign theme 

      - Frequency 

Life Cycle costing includes the costs from each phase of the project life cycle when the total investment costs are calculated. Answer A is incorrect because an opportunity cost is the difference between a chosen investment and the one that is passed up. Answer B is incorrect because sunk costs are costs that have been incurred and cannot be reversed. Answer C is incorrect because net present value (NPV) is the present value of cash inflows(benifits) minus the present value of cash outflows (costs).

G.V. Iyer