question

Database marketers communicate with customers using various media that ranges from personal contact to mass media.

answer

TRUE

question

The print ads for Fitness X exercise equipment asks readers to call them in order to place orders for the equipment. The print ads used by Fitness X is an example of direct-response advertising.

answer

TRUE

question

The customer lifetime value (LTV) model is based on historical and potential share of business.

answer

TRUE

question

The two processes required to work with a marketing database are data storage and data retrieval.

answer

FALSE

question

Another name for behavioristics data is lifestyle data.

answer

FALSE

question

Direct marketing is the best way to develop a good database.

answer

TRUE

question

One of the drawbacks of direct marketing is that it does not offer precision to cost-sensitive marketers.

answer

FALSE

question

In a direct-sales strategy, marketers' representatives sell to customers through a retail establishment.

answer

FALSE

question

Direct mail has a higher cost per thousand than personal selling.

answer

FALSE

question

Rented lists can be used without limit, for several mailings.

answer

FALSE

question

Letter shops stuff and seal envelopes, affix labels, and calculate postage on a cost-per-thousand basis.

answer

TRUE

question

In an IMC program, the objective of personal selling is solely to make a sale.

answer

FALSE

question

While advertising helps build market volume, sales promotion helps build long-term market value.

answer

FALSE

question

Consumer sales promotions are an example of a push strategy.

answer

FALSE

question

Trade concentration refers to lesser products going through fewer retailers.

answer

FALSE

question

Excessive trade deals build brand loyalty because they encourage customers to buy whatever brand is on sale.

answer

FALSE

question

The trend toward self-service retailing is decreasing the importance of P-O-P materials.

answer

FALSE

question

A broadside is a certificate with a stated value presented to the retail store for a price reduction on a specified item.

answer

FALSE

question

A continuity premium is given weekly to customers who frequent the same store.

answer

TRUE

question

Combination offers are the most costly of all sales promotions.

answer

FALSE

question

For combination offers to be effective, items should be unrelated.

answer

FALSE

question

A contest offers prizes based on a chance drawing of entrants' names.

answer

FALSE

question

Contests are easier to enter and take lesser time than sweepstakes.

answer

FALSE

question

_____ is defined as an "interactive process of addressable communication that uses one or more advertising media to effect, at any location, a measurable sale, lead, retail purchase or charitable donation, with this activity analyzed on a database for the development of ongoing mutually beneficial relationships between marketers and customers, prospects or donors."

answer

Direct marketing

question

Which of the following terms is defined as "a measurable system of marketing that uses one of more advertising media to effect a measurable response and/or transaction at any location, with this activity stored in a database?"

answer

Direct marketing

question

Which of the following is true of database marketing?

answer

It helps maintain a pool of data on current and prospective customers.

question

Which of the following statements about direct marketing is true?

answer

It involves a measurable response.

question

Sierra Miller Inc. is a travel company that sells whitewater rafting and kayaking travel packages. The company has a telemarketing team which regularly gathers information about travel needs from potential customers. This information is entered into the company's electronic system to help segment customer groups based on their needs and requirements. Sierra Miller is using:

answer

Database Marketing

question

Allen Hall Inc. makes redwood furniture for gardens. The company places ads in newspapers to encourage potential customers to place orders for its furniture catalogs. When these requests are received by the company, prospects' names and product details are entered into the company's electronic system to segment and grade prospective customers. In this scenario, Allen Hall is using:

answer

Database Marketing

question

The kind of advertising direct marketers use is called direct-response advertising. This is because:

answer

direct marketing efforts are aimed at stimulating action from the customer.

question

Bennett and Wood Inc. an interior designing firm, uses its print ads to help customers connect with them. The ads provide the company's e-mail and Web site details for customers to inquire about their services. In such a scenario, which of the following is Bennett and Wood Inc. using?

answer

Linkage media

question

_____ is the process of gathering, consolidating, updating, and enhancing the information about customers that resides in an organization's database.

answer

Data Management.

question

_____ allows marketers to get a snapshot of what their customers look like at any given time by identifying common characteristics and ranking their relative importance in different segments.

answer

Customer Profiling

question

Direct marketing experts Stone and Jacobs use an RFM formula to identify the best customers. "RFM" is an acronym for:

answer

recency, frequency, and monetary

question

The three types of data that are typically available for purchase by companies are:

answer

demographics, lifestyle, and behavioristics.

question

Which of the following statements about direct marketing is true?

answer

It offers accountability by providing a tangible response

question

Which of the following is a reason why an advertiser would decide against using direct marketing?

answer

It is more costly than mass media to build an image for a product.

question

A drawback of direct marketing is that it

answer

can deprive customers of their privacy.

question

All direct marketers must make two basic strategy decisions. The first is the extent to which they will use direct sales. The second is:

answer

C. the extent to which they will use direct-response advertising.

question

Which of the following statements about telemarketing is true?

answer

It is a direct-sales strategy.

question

_____ is defined as face-to-face selling away from a fixed retail location.

answer

Personal direct selling

question

Which of the following is true of personal direct selling?

answer

It is a process in which a representative convinces the customer of a product's value.

question

What are the two primary forms of personal selling?

answer

Person-to-person sales and group sales.

question

_____ includes selling and prospecting by telephone, answering phone inquires, and providing sales-related services to callers.

answer

Merchandising

question

Which of the following is a difference between telemarketing and personal selling?

answer

Telemarketing costs lesser money than personal selling.

question

Advertising that asks the reader, viewer, or listener to provide feedback to the sender is called:

answer

direct-response advertising.

question

Forever Young, a brand of cosmetics, places print ads in fashion magazines. Through these ads, the company asks customers to get in touch with company representatives to provide feedback on the quality of their products. This strategy helps the company understand customer needs and implement innovative changes. In this example, Forever Young is using:

answer

direct-response advertising.

question

The most common form of direct-mail format is a _____.

answer

sales letter

question

Which of the following is true of postcards, a direct-mail format?

answer

They are used to generate customer traffic.

question

Which of the following is a type of direct-mail format?

answer

Broadsides

question

To increase the number of orders it receives from recipients of its direct-mail advertising campaign, Red, a furniture manufacturing company, encloses a special envelope. This envelope is used by customers to mail their order details without paying postage. This is an example of a _____.

answer

business reply

question

_____ are any form of direct mail that can travel without an envelope.

answer

Self-mailers

question

Which of the following is a drawback of direct mails?

answer

It has a junk mail image.

question

_____ is one of the three basic costs of direct mail.

answer

Creative production expenses

question

Direct-mail advertisers use three types of lists: house, mail-response, and _____.

answer

compiled

question

_____ lists are the house lists of other direct-mail advertisers and they can be rented with a wide variety of demographic breakdowns.

answer

Mail-response

question

Which of the following is true of compiled lists?

answer

They are purchased from list vendors.

question

Which of the following is an example of direct-response broadcast advertising?

answer

A television infomercial for exercise equipment

question

_____ is the best marketing communication tool for relationship building.

answer

Personal selling

question

The objective of personal selling in an IMC program is to:

answer

build a relationship that will provide long-term benefits to both buyers and sellers.

question

What is the biggest strength of personal selling?

answer

It is persuasive and personal in nature.

question

The single biggest weakness of personal selling is that it:

answer

is the most costly way to communicate with prospects.

question

Personal selling is the most costly way to communicate with prospects because:

answer

it is labor intensive in nature.

question

_____ is defined as a direct inducement offering extra incentives anywhere along the marketing route to enhance the product's movement from producer to consumer.

answer

Sales promotion

question

Which of the following statements about sales promotion is true?

answer

It is known as a value-added tool.

question

Orbit Bank is organizing a public marathon event for its customers, employees, and prospects to participate in. For the event, the company is developing posters, displays, and banners. These will be displayed along the run course to help publicize the bank. Which of the following is Orbit bank using to promote its brand?

answer

Sales promotion

question

Which of the following is an advantage of using sales promotions?

answer

It maximizes sales volume by adding immediate value.

question

A disadvantage of sales promotion is that:

answer

it can draw competitors into a price war if overly aggressive sales promotions are used.

question

A push strategy is:

answer

designed to gain shelf space.

question

A sales promotion aimed at members of the distribution channel is called a _____.

answer

trade promotion

question

Trade advertising refers to:

answer

advertising targeted at members of the trade.

question

Which of the following is an example of a trade promotion?

answer

A manufacturer offers a department store a buyback allowance for a line of cosmetic products that it hasn't sold.

question

Soles, a brand of footwear, has recently opened its store in London. The company uses attractive window displays and wall racks to showcase its products in an appealing way to customers. What strategy is Soles using?

answer

Pull strategy

question

A _____ is paid by a manufacturer for the privilege of obtaining shelf space for a new product.

answer

slotting allowance

question

The practice of charging a slotting allowance is controversial because:

answer

some manufacturers feel they're being forced to subsidize the retailer's cost of doing business.

question

The maker of Quality Paints is offering a one-month deal to retail stores to purchase its paints at 25 percent off the regular price. Rainbow Paints, a retailer, avails the offer by stocking up on these discounted products. By doing this, it plans to sell these products to customers at the listed price and thus, generating a higher profit margin. Rainbow paints is engaging in _____.

answer

forward buying

question

_____ is the use of promotional discounts to purchase large quantities of an item in one region, then shipping portions of the buy to areas where the discount is not offered.

answer

Diverting

question

Yoko, a manufacturer of cell phones, has lately noticed that its new Y-Series line of phones is not selling as much as it had estimated. To tackle the problem, the company decides to have its new line of phones showcased at prominent locations in retail stores. However to do this, the company will have to pay its retailers a special fee. Which of the following does Yoko need to pay?

answer

Display allowance

question

Estillo is a manufacturer of sports helmets. To publicize its products, it has offered to reimburse its dealers 100 percent of the ad expenses they entail when they run print advertisements for Estillo products. This practice is an example of:

answer

cooperative advertising.

question

With the christmas season around the corner, Yoko, a brand of watches, wants to generate more traffic to its stores. To do this, the company decides to use P-O-P materials. Which of the following should Yoko use to implement this?

answer

Window displays to showcase its most popular line of watches

question

Which of the following are delivered to customers through freestanding inserts?

answer

Coupons

question

_____ refers to short-term reductions in the price of a product.

answer

Cents-off promotion

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