MKTG 437 ch. 14 – Flashcards
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19. Direct marketing: A. is not a useful tool for a company that is using an integrated marketing communications plan. B. seeks the same objectives as advertising, sales promotion, and personal selling strategies in an IMC plan. C. is one of the slowest growing forms of promotion in terms of dollar expenditures. D. can generate immediate behavioral response. E. cannot be combined with other forms of promotional media.
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D. can generate immediate behavioral response.
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20. Unlike traditional marketing, the typical goal of direct marketing is to: A. create brand image. B. generate an immediate behavioral response. C. utilize telephone communication exclusively. D. create awareness. E. convey detailed information.
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B. generate an immediate behavioral response.
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21. _____ is a system of marketing by which organizations communicate directly with target customers to generate a response or transaction. A. Sales promotion B. Word-of-mouth marketing C. Synchro marketing D. Direct marketing E. Publicity
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D. Direct marketing
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22. Direct marketing response can take the form of: A. an inquiry. B. awareness. C. knowledge about the product. D. sales promotion. E. push promotional strategy.
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A. an inquiry.
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23. Which of the following promotional media create an immediate response in the form of an inquiry, a purchase or even a vote? A. Trade advertising B. Publicity C. Public relations D. Direct marketing E. Synchro marketing
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D. Direct marketing
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24. Which of the following is an example of direct-response media? A. Billboards B. Place-based media C. The Internet D. Product placement E. Guerrilla media
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C. The Internet
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25. _____ are tools by which direct marketers implement the communications process. A. Databases B. Sweeps C. Direct-response media D. Promotional push strategies E. Encoders
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C. Direct-response media
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26. Which of the following statements is true about direct marketing? A. Direct marketing is suitable only for consumer-to-consumer advertising. B. Direct response media includes interactive TV and print media. C. Direct marketing is not popular among industrial marketers. D. Direct marketing as a promotional media is suitable only for small retailers. E. Rapid increase in dual income families in America has led to a reduction in the use of direct marketing as a promotional media.
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B. Direct response media includes interactive TV and print media.
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27. The major impetus behind the growth of direct marketing was the: A. increase in the number of working women. B. invention of the printing press. C. development and expansion of the U.S. Postal Service. D. development of multinational companies and international markets. E. law that mandated public education.
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C. development and expansion of the U.S. Postal Service.
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28. One of the reasons for the recent, rapid growth of direct marketing in American society is due to the: A. the fact the U.S. has moved from an industrialized nation to a service nation. B. increase in the number of hours individuals spend watching television. C. proliferation of cellular phones. D. increased use of consumer credit cards. E. development of four-color printing presses.
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D. increased use of consumer credit cards.
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29. Which of the following statements is true about the growth of direct marketing? A. Direct marketing is being used as a promotional media only after the invention of Internet. B. All the purchases being made with the use of credit cards are as a result of direct marketing. C. One of the major factors contributing to the success of direct marketing is that so many Americans are now 'time rich and money poor'. D. Increase in poverty has led to a rapid increase in direct marketing. E. The rapid technological advancement of the electronic media and the Internet has led to growth in direct marketing.
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E. The rapid technological advancement of the electronic media and the Internet has led to growth in direct marketing.
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30. A magazine ad for pet health insurance contains both a toll-free number to call and a Web site to visit for more information. This ad is an example of the combining of direct marketing with: A. a trade promotion. B. public relations. C. advertising. D. personal selling. E. consumer promotion.
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C. advertising.
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31. _____ was known as the stepchild of the promotional mix. A. Advertising B. Direct marketing C. Sales promotion D. Public relations E. Publicity
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B. Direct marketing
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32. The print ad of 'Fedex' read 'Call 1-800-FEDEX (toll free) to send gifts this Christmas to your loved ones anywhere in the world'. This print ad uses direct marketing combined with which of the following promotional media? A. Advertising B. Sales promotion C. Publicity D. Public relations E. Personal selling
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A. Advertising
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33. Joy receives print ads from 'HP' marketing their ink cartridges to him as it is seen that he is a regular buyer of HP ink cartridges. 'HP' is making use of which of the following combination of promotional mix? A. Advertising and sales promotion B. Direct marketing and advertising C. Sales promotion and public relations D. Direct marketing and sales promotion E. Public relations and support media
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B. Direct marketing and advertising
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34. OASIS, a charitable foundation, makes use of telemarketing for soliciting funds for charities that go towards child education. This is an example of the use of direct marketing along with: A. advertising. B. sales promotion. C. informercials. D. public relations. E. support media.
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D. public relations.
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35. Telemarketing and _____ are two methods of personal selling used to generate sales. A. advertising B. sales promotion C. direct selling D. informercials E. homeshopping
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C. direct selling
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36. Airlines send out mailers or e-mails announcing promotional airfares. Which of the combinations of promotional media do they make use of? A. Advertising and sales promotion B. Advertising and direct marketing C. Sales promotion and direct marketing D. Sales promotion and public relations E. Direct marketing and personal selling
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C. Sales promotion and direct marketing
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37. A press conference called by the Winchester County Museum informed the public of the need for major repairs to prevent water damage to the museum's collection of primitive paintings. During the conference, the museum representative announced that each family in Winchester County and neighboring counties could expect to receive a donation envelope in the mail within the next few days. This is an example of the combining of direct marketing with: A. a trade promotion. B. public relations. C. advertising. D. personal selling. E. consumer promotion.
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B. public relations.
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38. When the University of Miami has volunteers call its alumni and ask them to make contributions to pay for the remodeling of the administration building, it is an example of the combining of direct marketing with: A. a trade promotion. B. public relations. C. advertising. D. personal selling. E. consumer promotion.
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D. personal selling.
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39. Red Bud Florist received a mail with an offer from Aquafoam, a water-soluble foam brick frequently used for arranging fresh flowers. According to the offer, if the owner of Red Bud places an order with Aquafoam, she would be automatically registered to win $10,000 in a customer appreciation contest. This is an example of the combining of direct marketing with: A. a trade promotion. B. public relations. C. advertising. D. personal selling. E. a consumer promotion.
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A. a trade promotion.
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40. To encourage customers to open mail offering them a subscription to Home Companion, the front of the envelope advised there was a gift inside. Inside was an attractively laminated bookmark. This is an example of combining direct marketing with: A. personal selling. B. support media. C. place-based media. D. product placement. E. advertising.
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B. support media.
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41. Adding a(n) _____ to a direct mailer has proved to increase response rates. A. contest B. promotional product C. informercial D. needledrop E. sweeps period
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B. promotional product
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42. The most common direct marketing objective that is typically expected by companies is: A. to seek a direct response. B. to increase awareness about a product/service. C. to increase knowledge of use of the product. D. to reduce post purchase dissonance. E. to sell the product at a higher price.
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A. to seek a direct response.
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43. A direct marketer usually seeks ____. A. to increase the brand image of the organization B. a direct response C. to build awareness of the brand D. increase long term sales E. inform customer about the product
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B. a direct response
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44. The success of a direct-marketing program is in large part tied to the ability to: A. combine advertising with direct marketing. B. do group marketing. C. do homeshopping. D. combine sales promotion with public relations. E. do one - to - one marketing.
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E. do one - to - one marketing.
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45. Direct marketers make use of _____ to segment and target their markets. A. informercials B. sweeps periods C. databases D. TV spots E. junk mails
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C. databases
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46. A ____, maintained by direct marketers, contains a listing of current and/or potential customers of the organization. A. informercial B. junk mail C. spot D. database E. response bag
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D. database
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47. Direct marketers make use of database in order to: A. create informercials. B. segment and target their markets. C. position their product or service. D. develop their promotional mix. E. select the direct marketing strategies to be employed.
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B. segment and target their markets.
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48. _____ is the use of specific information about individual customers and/or prospects to implement more effective and efficient marketing communications. A. Information mining B. Public relations C. Data warehousing D. A marketing information system (MIS) E. Database marketing
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E. Database marketing
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49. The National Geographic Society offers a variety of products to its subscribers through direct marketing. This is an example of: A. cross-selling. B. renewal marketing. C. an unethical business practice. D. membership-based marketing. E. remarketing.
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A. cross-selling.
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50. With an offer to subscribe to a cooking magazine, Rosina was offered the opportunity to buy a set of cookware, an electric can opener, and a coffee maker that were featured in the publication and selected by the magazine editors as the best value for the money. This is an example of: A. cross-selling. B. renewal marketing. C. an unethical business practice. D. membership-based marketing. E. remarketing.
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A. cross-selling.
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51. For customer relationship management (CRM) to work effectively, a(n) _____ is required. A. database B. sweepstake C. TV spot D. product list E. informercial
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A. database
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52. One of the main concerns relating to database marketing is: A. its similarity with customer relationship management. B. the invasion of privacy. C. the high actual cost per thousand. D. lack of selectivity. E. waste coverage.
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B. the invasion of privacy.
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53. DMA, in relation to direct marketing activities, stands for: A. Direct Marketing Advertising. B. Direct Mail Ads. C. Database Marketing Advertisements D. Direct Marketing Association E. Direct Marketing Agency
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D. Direct Marketing Association
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54. SRDS, a United States organization provides information regarding both consumer and business lists. SRDS stands for: A. Standard Rate Dialling Service. B. Standard Rate and Data Service. C. Standard Rate Direct Source. D. State Residency Direct Service. E. Standard Real Data Source.
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B. Standard Rate and Data Service.
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55. ____ conducts an annual study of customers who buy at home via mail, telephone, or Internet. It compiles information on total orders placed, types of products purchased, demographics, and purchase satisfaction, among others. A. The U.S census Bureau B. Standard Rate and Data Service (SRDS) C. The U.S Postal Service D. Direct Mail lists and data E. Simmons Market Research Bureau (SMRB)
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E. Simmons Market Research Bureau (SMRB)
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56. To determine the effectiveness of a database, the U.S. Postal Service recommends an RFM scoring method. The letters RFM stand for: A. recency, frequency and monetary transactions between the company and the customer. B. rate of sales, fixed use fee paid, and markets reached. C. relationship between the company and the customer, frequency of the sale, and monetary transactions between the company and the customer. D. reach, frequency, and markets reached. E. ratio of inquiries to sales, frequency of sales, and market share.
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A. recency, frequency and monetary transactions between the company and the customer.
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57. _____ is a method of collecting and storing a large amount of regularly updated information about the customers in the database. A. Customer development index B. Focus groups C. Delphi method D. RFM scoring method E. Cost per order method
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D. RFM scoring method
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58. Walmart employs a method of collecting and storing data about their customers in which data is entered each time a purchase is made by the customer. This enables the company to track how recently purchases have been made, how often they are made, and what amounts of money are being spent. This helps it in maintaining better relation with its customers. Which of the following methods of maintaining a database is employed by Walmart? A. Delphi technique B. Cost per order method C. RFM scoring method D. Customer development index E. One step approach
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C. RFM scoring method
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59. The announcer on the television commercial said, "Get your credit card and call now to order the Monster Ballads of Rock & Roll CD." This is an example the _____ direct marketing approach. A. two-step B. group C. one - to - one D. one-step E. three-step
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D. one-step
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60. In the _____ approach of direct marketing, the medium is used directly to obtain an order. A. one-to-one B. one-to-many C. indirect D. one-step E. two-step
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D. one-step
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61. All the television commercials and other print ads that urge the customer to pick up the phone and call the toll free number to place an order immediately make use of the _____ approach of direct marketing. A. one-step B. two-step C. one-to-one D. indirect E. telemarketing
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A. one-step
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62. The goal of the _____ approach of direct marketing is to generate an immediate sale when the ad is shown. A. two-step B. one-step C. RFM scoring D. indirect E. all-in-one
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B. one-step
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63. The _____ approach of direct marketing involves the use of more than one medium. A. two-step B. one-step C. RFM scoring D. indirect E. all-in-one
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A. two-step
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64. Under the two-step approach of direct marketing, the first effort is designed to screen or qualify the potential buyers and the second effort: A. generates the response. B. is designed to increase awareness about the product. C. reduces the post purchase dissonance. D. increases knowledge about the use of the product. E. creates interest in the product.
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A. generates the response.
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65. Which of the following companies employ a one-step approach to direct marketing? A. The QVC shopping network. B. A magazine subscription service that sends an announcement of an upcoming sweepstakes. C. An ad advising television viewers to watch their mailboxes for a way to earn free calling cards. D. A company asking if a homeowner is interested in an estimate for a vinyl siding. E. An advertisement for band - aid announcing free gifts on purchase of band - aids worth $10 and above.
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A. The QVC shopping network.
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66. To purchase cookware, music CDs, and exercise videos advertised on television consumers are asked to call a toll-free telephone number. Viewers are instructed to have their credit cards handy when they call to place the order. This form of direct marketing is referred to as: A. outbound telemarketing. B. videotext. C. the one-step approach. D. the two-step approach. E. support marketing.
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C. the one-step approach.
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67. When a direct advertising medium is designed to directly obtain an order, the _____ approach is being used? A. two-step B. indirect C. direct D. one-step E. bulls-eye
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D. one-step
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68. In direct marketing situations, when it is necessary to screen or qualify potential buyers, it is advisable to use: A. the two-step approach. B. the one-step approach. C. direct mail rather than telemarketing. D. direct-response television. E. SMRB's data on direct marketing purchasers.
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A. the two-step approach.
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69. The two-step approach to direct marketing: A. asks for an immediate sale. B. uses the first contact to screen potential buyers. C. is commonly found in direct sales. D. is followed by a professional sales call. E. is similar to missionary selling.
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B. uses the first contact to screen potential buyers.
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70. A television commercial in which Publishers Clearing House urges consumers to look in their mailboxes for soon-to-arrive sweepstakes entries is an example of: A. sweeps marketing. B. add-on marketing. C. specialty advertising. D. the one-step approach to direct marketing. E. the two-step approach to direct marketing.
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E. the two-step approach to direct marketing.
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71. _____ is often called the 'junk mail'. A. Sweepstake B. Informercial C. TV spot D. Direct mail E. Database marketing
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D. Direct mail
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72. Market segmentation in the direct marketing industry: A. is not a viable strategy. B. is used effectively by only a few large companies. C. is considered less efficient than mass mailings. D. is directly tied to the mailing list. E. is unnecessary because demographic and geographic selectivity exist without any segmentation.
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D. is directly tied to the mailing list.
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73. Keys to the success of direct mail are the ____, which constitutes the database from which names are generated, and the ability to segment markets and, of course the offer. A. mailing lists B. informercials C. TV spots D. web pages E. shopping networks
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A. mailing lists
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74. Which of the following statements is true about mailing lists? A. They lead to a lot of waste coverage. B. They have become more current and selective leading to increased effectiveness. C. The most commonly used lists include a set of heterogeneous people. D. The most commonly used lists are of people who have never tried the product. E. The most commonly used lists are of individuals who have used competitor's products.
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B. They have become more current and selective leading to increased effectiveness.
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75. Companies like A. B. Zeller, Experian, and Nielsen Business Media provide _____ on a national level, and in most metropolitan areas there are firms providing the same service locally. A. TV spots B. network communications C. mailing lists D. infomercials E. marketing loans
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C. mailing lists
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76. The lower cost and convenience of which of the following media have raised concerns among traditional direct-mail marketers but at the same time created better opportunities? A. Television B. Radio C. Internet D. Outdoor advertising E. Transit advertising
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C. Internet
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77. Which of the following statements is true about the use of catalogs in the direct-marketing industry? A. Most business-to-business marketers use print catalogs. B. The number of catalogs mailed since 1984 has decreased significantly. C. Many companies use catalogs in conjunction with their more traditional sales and promotional strategies. D. There is no company today that relies solely on catalog sales. E. The number of catalog shoppers has steadily declined since 1984.
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C. Many companies use catalogs in conjunction with their more traditional sales and promotional strategies.
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78. Which of the following statements is true about the use of broadcast media by the direct-marketing industry? A. Direct-response advertising is the broadcast industry does not use support advertising. B. More direct-response advertising is broadcast on radio than on television. C. The use of broadcast media over the next five years is expected to increase at a faster rate than ever before. D. The two-step approach is often used with direct-response advertising on the radio. E. When a toll-free number is included in a direct-response ad, it is called support advertising.
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D. The two-step approach is often used with direct-response advertising on the radio.
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79. In direct-response marketing, the "direct response" sought is: A. sales. B. awareness. C. attitude change. D. changes in perception. E. return on investment (ROI).
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A. sales.
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80. Direct marketing in the broadcast industry involves both direct-response advertising and: A. supplementary promotions. B. support advertising. C. a one-step direct marketing approach to sales. D. add-on marketing. E. sweeps marketing.
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B. support advertising.
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81. _____ is a type of direct marketing that is designed to do exactly that—supports other forms of advertising. A. Outdoor advertising B. Publicity C. Support advertising D. Sales promotion E. Direct response advertising
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C. Support advertising
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82. A television ad for Pizza Hut telling you to look in your mailbox for coupon offers that will save you big bucks on your next pizza order is an example of: A. supplementary promotion. B. support advertising. C. a one-step direct marketing approach. D. add-on marketing. E. sweeps marketing.
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B. support advertising.
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83. Which of the following statements concerning infomercials is true? A. Infomercials are only useful for marketing fads. B. Even critics of infomercials do not consider them to be deceptive. C. The lower costs on cable and satellite channels led to the growth of the infomercial. D. By law, infomercials have to be at least 30 minutes in length. E. Infomercials typically move consumers into the conviction stage of the hierarchy of effects model.
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C. The lower costs on cable and satellite channels led to the growth of the infomercial
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84. Which of the following statements about infomercials is true? A. By definition, infomercials must be at least 30 minutes in length. B. Retail stores are experiencing dramatic drops in sales as a result of the growing number of infomercials. C. Studies have proven infomercials are not watched and do not sell. D. Infomercials are never used by reputable, Fortune 500-type companies. E. Some consumer groups are concerned that infomercials may be confused with regular television programming.
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E. Some consumer groups are concerned that infomercials may be confused with regular television programming.
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85. Infomercials are: A. primarily designed to sell products that would be classified as fads. B. always televised during off-viewing hours. C. never appear on network television. D. part of a two-step program, and their effectiveness cannot be measured. E. typically produced by the advertiser.
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E. typically produced by the advertiser
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86. Due to clutter and relatively high costs, the use of _____ by direct marketers does not result in returns as high as those for other forms of direct marketing media. A. magazines and newspapers B. television and radio C. direct mail and catalogs D. newspapers, television, and radio E. newspapers, magazines, and catalogs
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A. magazines and newspapers
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87. Which of the following statements about telemarketing is true? A. Telemarketing is defined as sales without face-to-face contact between the buyer and the seller. B. One of the problems that used to be associated with telemarketing is its potential for fraud and deception, but that problem has been completely eliminated by rigorous self-monitoring. C. Business-to-business marketers do not use telemarketing. D. Telemarketing is only used by for-profit companies. E. Telemarketing relates to sales by telephone.
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E. Telemarketing relates to sales by telephone.
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88. _____ is the direct, personal presentation, demonstration and sales of products to consumers in their homes. A. A need-stimulus sales presentation B. Direct marketing C. A personal shopper program D. Consultative selling E. Direct selling
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E. Direct selling
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89. Which of the following are forms of direct selling? A. Repetitive person-to-person selling, non-repetitive person-to-person selling, and party plans B. Home shopping, out-of-home shopping, vending, and manufacturers' agents C. Party plans, out-of-home shopping, and non-repetitive person-to-person selling D. Manufacturers' sales representatives, party plans, and non-repetitive person-to-person selling E. Brokers, manufacturers' agents, party plans, and professional sales
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A. Repetitive person-to-person selling, non-repetitive person-to-person selling, and party plans
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90. In case of ____, the salesperson visits the buyer's home, job site, or other location to sell frequently purchased products or services. A. repetitive person-to-person selling B. non-repetitive person-to-person selling C. party plans D. homeshopping E. telemarketing
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A. repetitive person-to-person selling
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91. In case of ____, the salesperson visits the buyer's home, job site, or other location to sell infrequently purchased products or services. A. repetitive person-to-person selling B. non-repetitive person-to-person selling C. party plans D. homeshopping E. telemarketing
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B. non-repetitive person-to-person selling
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92. An Electrolux vacuum cleaner salesperson selling door-to-door is an example of which form of direct selling? A. Repetitive person-to-person selling B. Party plan C. Two-step approach D. Non-repetitive person-to-person selling E. Support selling
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D. Non-repetitive person-to-person selling
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93. In case of ____, the salesperson offers products or services to groups of people through home or office parties and demonstrations. A. repetitive person-to-person selling B. non-repetitive person-to-person selling C. party plans D. homeshopping E. telemarketing
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C. party plans
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94. Advertisers can measure the relative effectiveness of a direct marketing campaign quickly by looking at: A. cost per thousand (CPM). B. the breakeven point. C. reach and frequency. D. cost per order (CPO). E. net sales.
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D. cost per order (CPO).
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95. Which effectiveness measure is most commonly employed in direct marketing? A. Cost per order (CPO) B. Cost per thousand (CPM) C. Cost per man-hour (CPMH) D. Cost per new prospect (CPNP) E. Sales per database name (SDN)
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A. Cost per order (CPO)
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96. _____ is a measure of cost effectiveness of advertising employed by direct marketers. A. Cost per thousand B. Cost per ratings point C. Cost per order D. frequency and reach E. Breakeven point
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C. Cost per order
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97. Which of the following describes an advantage offered by direct marketing to advertisers? A. Personalization of messages B. Ability to create a mood C. Exclusive image D. High-budgeted direct-response ads on television E. Accuracy of list
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A. Personalization of messages
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98. Which of the following is a disadvantage associated with direct marketing? A. Poor image B. Poor selectivity C. Inability to measure effectiveness D. Long lead time E. Lack of creative flexibility
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A. Poor image
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99. Disadvantages inherent in the use direct marketing include: A. difficulty in obtaining effectiveness measurements. B. poor image factors. C. lack of flexibility. D. difficulty in acquiring TV time. E. lack of personalization.
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B. poor image factors.
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100. As postal rates increase, direct-mail advertising has frequently been replaced with: A. billboards. B. e-mail. C. use of Fedex. D. telemarketing. E. radio advertising.
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B. e-mail
