IMC Chapter 11 – Flashcards
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Successful database marketing emphasizes two things: A) sales and contribution margin. B) identifying customers and building relationships. C) lifetime value of customers and data mining. D) data mining and data coding.
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identifying customers and building relationships
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The primary benefit of database marketing is: A) the enhancement of customer loyalty. B) higher sales. C) greater profits. D) greater brand parity.
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the enhancement of customer loyalty
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An operational database contains: A) transactions and interactions individuals have with a firm. B) information about current customers and customers of the competition. C) customer transactions and follows accounting principles. D) information about current customers, former customers, and prospects.
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customer transactions and follows accounting principles
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A marketing database contains: A) transactions and interactions individuals have with a firm. B) information about current customers and customers of the competition. C) customer transactions and follows accounting principles. D) information about current customers, former customers, and prospects.
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information about current customers, former customers, and prospects
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The easiest part of building a data warehouse is: A) data coding through customer cluster analysis and lifetime value calculations. B) the appended demographic and psychographic information. C) obtaining the history of customer interactions and contact with a firm. D) collecting customer names and addresses.
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collecting customer names and addresses
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The most cost-effective means of communicating with customers is: A) the telephone. B) through computer cookies. C) the mail. D) the internet and email.
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the internet and email
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An effective database contains: A) every transaction a customer has with a firm and interactions that resulted in purchases. B) all transactions and all interactions a customer has with a firm. C) transactions and interactions of customers that have a high lifetime value. D) only the transactions of customers.
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all transactions and all interactions a customer has with a firm
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Many times demographic and psychographic information about customers is not available through internal company records. In these situations: A) the information can be purchased from external marketing research firms. B) a company can offer customers an incentive to provide the necessary information. C) the database can be appended with interaction and history information. D) geocoding can be appended to each customer's record.
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the information can be purchased from external marketing research firms
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Adding geographic codes to customer records to plot them on a map is called: A) geoidentification. B) geocoding. C) finding neighborhood lifestyle clusters. D) commercial database service analysis.
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geocoding
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Using geocoding, a company's marketing department can add which of the following to each customer's record? A) Demographic information and lifestyle data as well as the geographical codes B) Total purchases made at each retail outlet in the area C) Demographic and political information D) A composite analysis of his or her neighbors
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demographic information and lifestyle data as well as geographical codes
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Common forms of database coding are: A) data mining and cluster customer analysis. B) lifetime value analysis, customer cluster analysis, and location-data tracking. C) lifetime value analysis and data mining. D) geocoding, data mining and location-data tracking.
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lifetime value analysis, customer analysis, and location data tracking
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A lifetime value analysis creates a figure that represents the: A) sales revenue generated by a customer throughout his or her lifetime with a brand or company. B) present value of the profit revenue generated by a customer in a particular product category. C) present value of the profit revenue of a customer throughout the lifetime of a relationship with a brand or company. D) profit revenue of a customer throughout his or her lifetime.
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present value of the profit revenue of a customer throughout the lifetime of a relationship with a brand or company
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Many marketing experts believe calculating the lifetime value of a market segment is superior to calculating the value for a single individual because it: A) is a larger number. B) is more stable than an individual. C) adds costs that cannot be allocated per individual. D) sums costs across a market segment.
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sums costs across a market segment
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In calculating the lifetime value of a market segment, the figures that are the most difficult to obtain are: A) retention rates. B) fixed and variable costs. C) database costs and acquisition costs. D) marketing and advertising costs.
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retention rates
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In determining lifetime value for individual customers, customer acquisition costs are determined by dividing: A) advertising costs by the number of customer transactions. B) total marketing and advertising costs by the number of new customers. C) total marketing and advertising costs by the number of total customers. D) advertising costs associated with acquiring new customers by the number of new customers.
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total marketing and advertising costs by the number of new customers
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Customer clustering is attractive to marketers because it: A) creates clusters from names purchased from a direct marketing vendor. B) allows marketers to identify external data lists that match the firm's target customers. C) creates clusters of a firm's actual customers along an important purchase criteria. D) creates clusters based on the profile of a firm's best customers.
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creates clusters of a firm's actual customers along an important purchase criteria
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With location-data tracking, the term "hashing" refers to the process of: A) making the data anonymous so that specific individuals cannot be identified. B) locating individuals within a specific distance of a specified location. C) purging names from a list of individuals who live within a specified area that do not meet a target profile. D) identifying individuals within a specified location that meet a firm's target audience for a mobile campaign.
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making the data anonymous so that specific individuals cannot be identified
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The newest form of data analytics is location-data tracking, which is the process of: A) making the data anonymous so that specific individuals cannot be identified. B) analyzing data provided by mobile phone GPS technology and combining it with consumer profile information. C) purging names from a list of individuals who live within a specified area that do not meet a target profile. D) identifying individuals within a specified location that meet a firm's target audience for a mobile campaign.
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analyzing data provided by mobile phone GPS technology and combining it with customer profile information
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A digital marketing firm tracked the movement of individuals in downtown Chicago just prior and just after a Chicago Cub's baseball game to determine movement, restaurants visited, and stores visited. This illustrates the data analytics of: A) data mining. B) customer clustering. C) location-data tracking. D) geocoding.
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location data tracking
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The process of building profiles of customers from a firm's database is: A) data warehousing. B) direct marketing. C) location-data tracking. D) data mining.
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data mining
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Data mining is: A) collecting addresses and zip codes of customers. B) reviewing past purchases of a product by customers. C) building profiles of customer segments and preparing models that predict their future purchase behavior. D) selecting cities for data analysis.
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building profiles of customer segments and preparing models that predict their future purchase behavior
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All of the following are examples of data mining except: A) American Eagle studying how consumers respond to price markdowns. B) Goody's analyzing baskets of merchandise purchased by individual consumers. C) Target identifying the other retail stores customers use for particular products. D) First Horizon Bank expanding its wealth management business by studying profiles of its best customers.
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target identifying the other retail stores customers use for particular products
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Data mining can be used for each of the following purposes except: A) develop profiles of a firm's best customers. B) develop profiles of customers who tend to purchase competing brands. C) identify current customers who fit the profile of a firm's best customers. D) identify current customers who would be good prospects for cross-selling other products.
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develop profiles of customers who tend to purchase competing brands
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The primary reason for building a database, coding the information, and mining the data is to use the output to: A) develop marketing programs customized for each customer. B) place customers into segments for the purpose of data-driven marketing programs. C) customize marketing programs to fit each market segment's profile. D) establish one-on-one communications with each customer.
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establish one on one communications with each customer
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A database-driven marketing program starts with assigning IDs and passwords to individual internet customers that: A) allow them to access components of the company's website that are not available to those who are simply browsing the website. B) engage cookies to record personal information from the customer's computer. C) allow a firm to customize the products it sells to fit the profile of each customer. D) permit a company to engage in an email marketing campaign. Answer: A
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allow them to access components of the company's website that are not available to those who are simply browsing the website
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Using identification IDs and passwords on a website for customers allows for each of the following customer benefits except: A) the customer can be greeted personally, by name. B) provides data for a customer cluster analysis. C) the content of the web pages can be customized to fit the customer's past browsing behavior. D) when an order is placed, the customer doesn't have to type in his/her address and credit card information.
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provides data for a customer cluster analysis
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Many companies that sell clothes over the internet will email messages or an email newsletter to customers who are interested in keeping up with the latest fashion news. This strategy is most successful if it is based on: A) lifetime value and customer cluster analysis. B) data mining. C) customer profile information the customer has provided to the company. D) customer profile information obtained through cookies.
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customer profile information the customer has provided to the company
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The process of searching a database for a specific piece of information, such as a birthday, for marketing purposes is: A) data mining. B) customer cluster analysis. C) data coding. D) trawling.
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trawling
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Haley often purchases clothes from the VF Corporation online. On her birthday, the company sends her an email birthday card with a voucher for $20 off on her next online purchase. This is an example of: A) data mining. B) customer cluster analysis. C) data coding. D) trawling.
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trawling
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When promotional materials are only sent to customers who have given their approval, the program is called: A) direct mail. B) internet marketing. C) permission marketing. D) a frequency program.
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permission marketing
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Response rates are often higher for permission marketing programs because consumers: A) receive marketing materials for which they gave permission. B) individuals who participate are high-frequency purchasers. C) are not contacted by competing firms. D) are contacted only by mail.
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receive marketing materials for which they gave permission
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With a permission marketing program, customer permission is normally obtained: A) through third-party marketing research firms. B) when customers make an online purchase. C) by providing an incentive, such as a free gift, a coupon, or entry into a sweepstakes. D) by using cookies obtained from the individual's visit to the website.
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by providing an incentive, such as a free gift, a coupon or entry into a sweepstakes
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Consumers often ignore marketing information sent to them after joining a permission marketing program because: A) the products are too costly. B) the marketing pieces are not relevant any more. C) they can no longer win prizes or receive free gifts. D) the person has moved and did not leave a forwarding address or email.
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the marketing pieces are not relevant any more
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According to Direct Marketing, the number one reason consumers remain in permission marketing programs is: A) they receive account status updates. B) contests and sweepstakes being offered. C) price bargains offered. D) the content is interesting.
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the content is interesting
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To optimize permission marketing programs, firms feature: A) prizes and price discounts. B) regular newsletters. C) entertaining content and account information. D) empowerment and reciprocity.
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empowerment and reciprocity
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To optimize permission marketing, firms must grant customers empowerment, which means customers have: A) power over when marketing material is sent to them. B) control over what marketing material is sent to them. C) control over when they can opt-out of the permission marketing program. D) power throughout the entire relationship, not just at the beginning.
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power throughout the entire relationship, not just at the beginning
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To maintain positive attitudes in a permission marketing program, consumers must be given rewards along the way, not just at the beginning. Doing so creates the feeling of: A) empowerment. B) reciprocity. C) loyalty. D) satisfaction.
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reciprocity
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Frequent flier miles in airline travel are a form of: A) direct marketing. B) permission marketing. C) frequency program. D) ride-along program.
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frequency program
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Typical goals for frequency or loyalty programs include all of the following except: A) build brand parity. B) induce cross-selling to existing customers. C) differentiate a parity brand. D) preempt the entry of a new brand.
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build brand parity
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Customers cite all of the following benefits to being a member of frequency or loyalty programs except: A) better deals and offers. B) entertaining content. C) discounts and savings. D) recognition and appreciation.
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entertaining content
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Successful loyalty programs include the two principles of: A) added value and reciprocity. B) low costs and data mining. C) data analysis and targeted messages. D) utilizing digital marketing techniques and social media.
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added value and reciprocity
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For a company developing a loyalty program, the most attractive group of individuals is ________ users. A) light B) moderate C) heavy D) new
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moderate
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In a frequency program, research indicates the best method is to provide rewards: A) only when requested. B) with every person. C) using a fixed ratio schedule. D) using a variable ratio schedule.
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using a variable ratio schedule
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The program designed to build long-term loyalty and bonds with customers through the use of a database is: A) permission marketing. B) direct marketing. C) customer relationship management. D) frequency marketing.
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customer relationship management
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The two primary metrics in customer relationship management (CRM) programs are: A) data-driven communications and data-driven marketing programs. B) lifetime value and customer cluster analysis. C) data mining and data coding. D) lifetime value of customers and share of customer.
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lifetime value of customers and share of customer
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If Amelia spends $300 per year at Gap and spends an average of $1500 per year on clothes, then the "share of customer" value for the Gap: A) is 20 percent. B) is 50 percent. C) is $300. D) cannot be determined with the information provided.
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is 20 percent
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) In developing a customer relationship management (CRM) program, the "share" of customer term refers to the: A) potential value that could be added to a given customer's lifetime value. B) lifelong earnings of a customer. C) share of a customer's income that is spent on a particular product. D) percentage of time spent on acquiring the customer's loyalty.
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potential value that could be added to a given customer's lifetime value
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Typically, customer relationship management (CRM) programs should be designed to: A) provide two-way communications. B) increase sales and profits. C) create customer value. D) enhance customer loyalty.
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enhance customer loyalty
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Selling products to customers without the use of other channel members is: A) database marketing. B) direct marketing or direct-response marketing. C) indirect marketing. D) by-pass marketing.
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direct marketing or direct response marketing
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The most common method of direct marketing is: A) direct mail. B) telemarketing. C) direct response mass media. D) emails.
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direct mail
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) According to the Direct Marketing Association, about 60 percent of a typical direct marketing budget targets: A) former customers who have not purchased recently. B) prospecting for new customers. C) retaining current customers. D) individuals from an internal customer list.
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prospecting for new customers
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In purchasing a direct mailing list, a response list consists of individuals who have: A) met a specific demographic profile. B) responded to previous direct mail offers made by the company purchasing the list. C) made purchases or responded to direct mail offers in the past. D) responded to a direct mail offer within the last 30 days.
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made purchases or responded to direct mail offers in the past
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) In purchasing a direct mailing list, a hot list consists of individuals who have: A) met a specific demographic profile. B) responded to previous direct mail offers made by the company purchasing the list. C) made purchases or responded to direct mail offers in the past. D) responded to a direct mail offer within the last 30 days.
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responded to direct mail within the last 30 days
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In purchasing a direct mailing list, a compiled list consists of individuals who have: A) met a specific demographic profile. B) responded to previous direct mail offers made by the company purchasing the list. C) made purchases or responded to direct mail offers in the past. D) responded to a direct mail offer within the last 30 days.
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met a specific demographic profile
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Morgan is the marketing manager for a small auto parts retailer. She wants to purchase a list that has the highest probability of producing sales. The best list for her to purchase would be a(n) ________ list. A) response B) internal customer C) hot D) compiled
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hot
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Online sales are often spurred through offline direct response marketing approaches. The most likely direct response marketing source is a(n): A) direct mail flyer. B) email. C) catalog. D) telemarketing call.
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catalog
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Successful cataloging requires: A) a companion website to facilitate purchasing. B) an enhanced database for better targeting to specific customers. C) data mining to determine profiles of high catalog purchasers. D) digital direct-to-press technology.
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an enhanced database for better targeting to specific customers
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When Carrie hosts a party for Mark cosmetics and invites her friends and relatives in an effort to encourage them to purchase some Mark products, it is which method of direct response marketing? A) Trawling B) Direct sales C) Permission marketing D) A frequency program
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direct sales
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The least popular form of direct marketing is: A) email. B) direct mail. C) inbound telemarketing. D) outbound telemarketing.
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outbound telemarketing
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Outbound direct response telemarketing is most successful when: A) it is tied into a database and either customers or prospects are called. B) calls are made from a compiled list. C) individuals who have visited the company's website are called. D) it is used for cross-selling.
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it is tied into a database and either customers or prospects are called
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The first step in the selling process is: A) generating leads. B) sales presentation. C) knowledge acquisition. D) qualifying prospects.
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generating leads
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The second step in the selling process, after generating leads, is: A) handling objections. B) sales presentation. C) knowledge acquisition. D) qualifying prospects.
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qualifying prospects
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The third step in the selling process, after qualifying prospects, is: A) handling objections. B) sales presentation. C) knowledge acquisition. D) identifying prospects.
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knowledge acquisition
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The fourth step in the selling process, after knowledge acquisition, is: A) handling objections. B) sales presentation. C) follow-up. D) qualifying prospects.
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sales presentation
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In the selling process, which step follows the sales presentation? A) Handling objections B) Knowledge acquisition C) Sales closing D) Follow-up
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handling objection
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Jennifer is a salesperson and has just finished answering objections of a client. The next step in the selling process is: A) to make the sales presentation. B) acquire knowledge of the client. C) the sales closing. D) the follow-up.
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sales closing
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In terms of generating leads for personal selling, the best method is: A) networking. B) referrals. C) database-generated leads. D) directories.
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referrals
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In terms of generating leads for personal selling, the best referrals come from: A) channel members. B) vendors. C) other salespeople. D) current customers.
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current customers
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In terms of generating leads for personal selling, the worst method is: A) networking. B) directories. C) database-generated leads. D) cold calls.
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cold calls
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Sales leads should be qualified and placed into categories based on: A) sales potential and probability of acquisition. B) profit potential and probability of acquisition. C) sales potential and profit potential. D) the share of the customer currently held and the potential for increasing the share.
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sales potential and probability of acquisition
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When qualifying sales prospects, Jason places each lead in one of four baskets ranging from A to D with A as the best leads and D as the worst. Using this method of categorization, the appropriate strategy for "A" leads would be: A) do nothing currently, but monitor the lead for possible future changes. B) contact the lead using telemarketers. C) have one of the firm's salespeople make a sales call them. D) send the lead marketing materials and encourage them to make inquiries if they are interested.
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have one of the firm's salespeople make a sales call them
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When qualifying sales prospects, Jason places each lead in one of four baskets ranging from A to D with A as the best leads and D as the worst. Using this method of categorization, the appropriate strategy for "B" leads would be: A) do nothing currently, but monitor the lead for possible future changes. B) contact the lead using telemarketers. C) have one of the firm's salespeople make a sales call them. D) send the lead marketing materials and encourage them to make inquiries if they are interested.
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contact the lead using telemarketers
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When qualifying sales prospects, Jason places each lead in one of four baskets ranging from A to D with A as the best leads and D as the worst. Using this method of categorization, the appropriate strategy for "C" leads would be: A) do nothing currently, but monitor the lead for possible future changes. B) contact the lead using telemarketers. C) have one of the firm's salespeople make a sales call them. D) send the lead marketing materials and encourage them to make inquiries if they are interested.
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send the lead marketing materials and encourage them to make inquiries if they are interested
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During the knowledge acquisition stage of the selling process, a salesperson should gather all of the following information except: A) identify the current price that the prospect is paying. B) know and understand the prospect's customers. C) identify the prospect's needs. D) understand the prospect's business.
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identify the current price that the prospect is paying
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During the knowledge acquisition stage of the selling process, a salesperson should gather all of the following information except: A) evaluate the risk factors. B) identify the product users. C) evaluate the switching costs. D) identify the decision makers and influencers.
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identify the product users
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The stimulus-response sales approach: A) strives to discover a customer's needs during the first part of the sales call and then provide solutions to those needs. B) requires the two organizations to develop a common mission. C) requires employees from the selling organization to analyze the buyer's business. D) uses specific statements to elicit specific responses from customers.
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uses specific statements to elicit specific responses from customers
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The need-satisfaction sales approach: A) strives to discover a customer's needs during the first part of the sales call and then provide solutions to those needs. B) requires the two organizations to develop a common mission. C) requires employees from the selling organization to analyze the buyer's business. D) uses specific statements to elicit specific responses from customers.
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strives to discover a customer's needs during the first part of the sales call and then provide solutions to these needs
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In a sales presentation, the ________ approach uses specific statements, or stimuli, to elicit specific responses from customers. A) mission-sharing B) need-satisfaction C) problem-solution D) stimulus-response
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stimulus response
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In a sales presentation, the ________ approach is often used by telemarketers, retail sales clerks, and new field salespeople. A) mission-sharing B) need-satisfaction C) problem-solution D) stimulus-response
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stimulus response
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In a sales presentation, the ________ approach strives to discover customer needs during the first part of the sales presentation and then provides solutions to those needs during the second part of the sales call. A) mission-sharing B) need-satisfaction C) problem-solution D) stimulus-response
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need satisfaction
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The problem-solution sales approach: A) strives to discover a customer's needs during the first part of the sales call and then provide solutions to those needs. B) requires the two organizations to develop a common mission. C) requires employees from the selling organization to analyze the buyer's business. D) uses specific statements to elicit specific responses from customers.
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requires employees from the selling organization to analyze the buyer's business
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) The mission-sharing sales approach: A) strives to discover a customer's needs during the first part of the sales call and then provide solutions to those needs. B) requires the two organizations to develop a common mission. C) requires employees from the selling organization to analyze the buyer's business. D) uses specific statements to elicit specific responses from customers.
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requires two organizations to develop a common mission
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In a sales presentation, the ________ approach requires salespeople to analyze the buyer's business? A) mission-sharing B) need-satisfaction C) problem-solution D) stimulus-response
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problem solution
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In handling objections during a sales call, Brandon (the salesperson) normally answers the objection directly, an approach called the ________ method. A) compensation B) "feel, felt, found" C) head-on D) indirect
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head on
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In handling objections during the sales call, Nevaeh (the salesperson) tries to avoid confrontation and never wants to tell the customer he or she is wrong. Instead, Nevaeh will sympathize with the customer and then provide the correct information. This approach is called the ________ method. A) compensation B) "feel, felt, found" C) head-on D) indirect
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indirect
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) In handling objections during the sales call, Gavin (the salesperson) normally will say "yes, but..." then proceed to explain his brand's benefits or features that will address the objection raised. This approach is called the ________ method. A) compensation B) "feel, felt, found" C) head-on D) indirect
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compensation
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In handling objections during the sales call, Jasmine (the salesperson) will let the customer talk about his or her fears or worries, then relate the experience of a similar customer and how the brand Jasmine is selling met those worries. Which method is being used? A) Compensation B) "Feel, felt, found" C) Head-on D) Indirect
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feel, felt, found
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With the head-on approach to handling objections, the salesperson: A) will allow the customer to talk about his or her fears and worries, then relate how another customer had similar fears and how the product being sold met those fears or worries. B) answers the objection directly. C) will reply "yes, but..." and then explain how the product's benefits will answer the customer's objection. D) avoids confrontation by sympathizing with the customer, then provides the correct information.
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answers the objection directly
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With the indirect approach to handling objections, the salesperson: A) will allow the customer to talk about his or her fears and worries, then relate how another customer had similar fears and how the product being sold met those fears or worries. B) answers the objection directly. C) will reply "yes, but..." and then explain how the product's benefits will answer the customer's objection. D) avoids confrontation by sympathizing with the customer, then provides the correct information.
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avoids confrontation by sympathizing with the customer, then provides the correct information
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With the compensation approach to handling objections, the salesperson: A) will allow the customer to talk about his or her fears and worries, then relate how another customer had similar fears and how the product being sold met those fears or worries. B) answers the objection directly. C) will reply "yes, but ..." and then explain how the product's benefits will answer the customer's objection. D) avoids confrontation by sympathizing with the customer, then provides the correct information.
answer
will reply "yes, but..." and then explain how the product's benefits will answer the customer's objection
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With the "feel, felt, found" approach to handling objections, the salesperson: A) will allow the customer to talk about his or her fears and worries, then relate how another customer had similar fears and how the product being sold met those fears or worries. B) answers the objection directly. C) will reply "yes, but ..." and then explain how the product's benefits will answer the customer's objection. D) avoids confrontation by sympathizing with the customer, then provides the correct information.
answer
will allow the customer to talk about his or her fears and worries, then relate how another customer had similar fears and how the product being sold met those fears or worries
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Kaylee is getting ready to close her sales call. She feels she has answered all of the prospect's objections and feels confident that the prospect is ready to buy. The best close for her would be the ________ close. A) continuous "yes" B) direct C) summarization D) assumptive
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direct
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Gabriella is getting ready to close her sales call. She asks for the order outright. This would be a(n) ________ close. A) continuous "yes" B) direct C) summarization D) assumptive
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direct
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Sydney is getting ready to close her sales call. She is not sure the prospect is quite ready so she solicits feedback that provides information regarding the customer's reaction, without asking directly for the order. This is an example of the ________ close. A) continuous "yes" B) trial method C) summarization D) assumptive
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trial method
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Kathy is getting ready to close her sales call. She is not sure the prospect is quite ready so she goes over the benefits of the product and how it meets the customer's needs prior to asking for the order. This is an example of the ________ close. A) continuous "yes" B) trial method C) summarization D) assumptive
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summarization
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Destiny is getting ready to close her sales call. She assumes the customer will say "yes" so she just asks how many cases they would like shipped. This is an example of the ________ close. A) continuous "yes" close. B) trial method close. C) summarization close. D) assumptive close.
answer
assumptive close
