Deck 15: Direct Marketing, CRM, and Other Media

Question 1

An up-to-date database provides firms with a number of assets,including the ability to calculate the lifetime value of a product.

Answer 1

False

Question 2

If a marketer focuses on customer retention rather than just customer acquisition,customer lifetime value can be increased.

Answer 2

True

Question 3

One reason for the increased use of direct mail is the increased emphasis on measurable advertising results.

Answer 3

True

Question 4

Typical databases include customers' behavioral data and other types of relevant information (demographic,geographic,and psychographic data).

Question 5

Direct advertising enables the advertiser to convey a message to a target market that has been selected with precision.

Question 6

Success of direct mailing depends on the quality of mailing lists contained in a company's database.

Question 7

One reason for the growth of direct mail is the rising cost of television advertising and increasing audience fragmentation.

Question 8

Perhaps the major problem with direct mail is that many people consider it excessively intrusive and invasive of privacy.

Question 9

From a database perspective,each present or prospective customer is viewed as not just an address but rather as a long-term asset.

Question 10

From the consumers' perspective,shopping by catalog saves time because people do not have to find parking spaces and deal with in-store crowds.

Question 11

Compared with other media,direct mail is much less wasteful and will usually produce the highest percentage of responses.

Question 12

Inbound telephone marketing efforts are directed at selling products over the phone.

Question 13

Only B2B marketers have increased their usage of direct-mail advertising.

Question 14

An up-to-date database can offer varied messages to different groups of customers.

Question 15

Customer lifetime value refers to all product category purchases that an individual will make during his or her lifetime.

Question 16

Direct advertising that is not online is delivered to individuals' homes or workplaces typically via postal mail in the form of print materials or in a digital/electronic form such as DVDs.

Question 17

On a cost per thousand basis,direct mail is less expensive than other media.

Question 18

Customer lifetime value is the net present value of the profit that a company stands to realize on the average new customer during a given number of years.

Question 19

Direct-mail advertising refers to any advertising matter delivered by the postal service to the person whom the marketer wishes to influence.

Question 20

Efficiency is a distinctive feature of direct mail.

Question 21

Older consumers appear to be the most responsive to brand placement in movies.

Question 22

National advertisers place the majority of yellow-pages ads.

Question 23

Telemarketing uses outbound calls from salespeople for what purpose? 

A) to open new accounts 
B) to qualify advertising leads 
C) to service existing business 
D) All of these are correct. 
E) None of these are correct.

Question 24

The M in a company's R-F-M formula stands for motivation.

Question 25

Brand placements have occurred in songs.

Question 26

Placing one's number on the National Do Not Call Registry will stop all unsolicited calls.

Question 27

Product placements in movies date back to the 1940s,yet the frequency of occurrence is greater now than ever.

Question 28

The F in a company's R-F-M formula stands for frequency.

Question 29

One advantage of brand placements is that they are generally less intrusive than advertisements and thus less likely to be avoided.

Question 30

The more essential face-to-face contact is,the more appropriate is outbound telemarketing.

Question 31

The yellow pages represent a huge advertising medium with annual revenues exceeding $140 billion.

Question 32

_____ advertising is delivered to individuals' homes or workplaces typically via postal mail in the form of printed materials or in a digital/electronic form.

A) Indirect 
B) Mass 
C) Personal 
D) Direct 
E) Focused

Question 33

The problem with databases is that they are small in size with few addresses and few variables for each database entrant.

Question 34

The yellow pages is an advertising medium that consumers turn to when they are seeking a product or service supplier and are prepared to make a purchase.

Question 35

The R in a company's R-F-M formula stands for referral rate.

Question 36

Mediamark has developed a service to measure video game audiences.

Question 37

Research shows that users of yellow pages tend to have relatively low household incomes.

Question 38

One of the factors to be considered when evaluating the suitability of using a telephone sales force is the number and type of decision makers typically involved in purchasing a company's product.

Question 39

Data miners look for revealing relations among the variables contained in the a database.

Question 40

Video games provide an excellent advertising medium for reaching millenials.

Question 41

Which of the following is NOT a function direct mail can accomplish? 

A) increase sales from current customers 
B) acquire new customers 
C) create job opportunities 
D) gather customer information 
E) generate leads for a sales force

Question 42

What company ran a forehead tattoo promotion in conjunction with the NCAA March Madness basketball tourney? 

A) Nike 
B) Heineken 
C) Geico 
D) Dunkin' Donuts 
E) None of these are correct.

Question 43

Which of the following is NOT a factor accounting for the widespread use of direct mail by marketers? 

A) consumers have favorable attitudes 
B) unparalleled targeting 
C) reduced cost per thousand 
D) rising cost of television advertising and audience fragmentation 
E) measurable advertising results

Question 44

Which of the following is a distinctive feature of direct mail? 

A) targetability 
B) measurability 
C) accountability 
D) efficiency 
E) All of these are correct.

Question 45

Beverly should use _____ advertising for her client who has requested a medium that is less wasteful than other media and produces the highest percentage of responses.

A) magazine 
B) radio 
C) television 
D) direct mail 
E) newspaper

Question 46

Charles wants to use an advertising medium that offers the capability to target a precisely defined group of people,the ability to determine exactly how effective the advertising effort is so that he can justify budget allocations to this medium,and offers the flexibility to meet changing circumstances.Charles should use _____.

A) television 
B) outdoor billboards 
C) magazines 
D) direct mail 
E) brand placement

Question 47

Which of the following is NOT a distinctive feature of direct mail? 

A) targetability 
B) measurability 
C) accountability 
D) flexibility 
E) expandability

Question 48

Companies' databases of customers often contain R-F-M data.The M stands for _____.

A) motivation 
B) monetary value 
C) markdown 
D) media 
E) message

Question 49

Which of the following is a major problem with direct mail? 

A) intrusive and invasive of privacy 
B) inefficient 
C) lack of flexibility 
D) inability to target a precisely defined group of people 
E) lack of accountability

Question 50

In what type of alternative advertising medium can a message of 25 to 30 letters cost between $25,000 and $30,000? 

A) restroom space 
B) human body 
C) fruit labels 
D) skywriting 
E) street sweepers

Question 51

Yellow pages,video games,and brand placement are examples of _____.

A) direct advertising 
B) indirect advertising 
C) niche advertising 
D) electronic advertising 
E) stealth advertising

Question 52

Which of the following factors accounts for the widespread use of direct mail by marketers? 

A) rising cost of television advertising and increasing audience fragmentation 
B) unparalleled targeting 
C) measurable advertising results 
D) consumers have favorable attitudes 
E) All of these are correct.

Question 53

Which of the following is a function direct mail can accomplish? 

A) build traffic at a specific retailer or website 
B) generate leads for a sales force 
C) communicate with individuals in a relatively private manner 
D) sell products and services to new customers 
E) All of these are correct.

Question 54

On a cost per thousand (CPM)basis,the most expensive medium is ____.

A) television 
B) radio 
C) magazines 
D) direct mail 
E) newspaper

Question 55

Which advertising medium simplifies the task of justifying the results of communications efforts? 

A) television 
B) radio 
C) newspaper 
D) magazine 
E) direct mail

Question 56

What factor should be considered when evaluating the suitability of introducing a telephone sales force? 

A) geographical concentration 
B) customer decision criteria 
C) nature of the purchase 
D) status of the major decision maker 
E) All of these are correct.

Question 57

From the consumer's perspective,which of the following is NOT an advantage of shopping by catalog? 

A) It saves time because people do not have to find parking spaces and deal with in-store crowds. 
B) Catalog buying appeals to consumers who are fearful of shopping due to concerns about crime. 
C) Catalogs allow people the convenience of making purchase decisions at their leisure and away from the pressure of a retail store 
D) The availability of toll-free numbers and online websites, credit-card purchasing, and liberal return policies make it easy for people to order from catalogs. 
E) All of these are advantages.

Question 58

Compared with other media,_____ is much less wasteful and will usually produce the highest percentage of responses.

A) radio 
B) television 
C) direct mail 
D) outdoor advertising 
E) newspaper

Question 59

According to the Telemarketing Sales Rule (TSR),telemarketers must not _____.

A) tell customers the odds of winning any prizes 
B) tape record a customer's express oral authorization 
C) maintain lists of the names and addresses of all prize winners 
D) call customers before 8 A.M. 
E) maintain complete employment records

Question 60

Letters,postcards,programs,calendars,folders,and catalogs are all examples of _____.

A) indirect marketing 
B) indirect advertising 
C) direct-mail advertising 
D) e-mail advertising 
E) database marketing

Question 61

____ is NOT an asset of an up-to-date database.

A) Directing advertising to the best prospects for the company's products or services 
B) Offering varied messages to different groups of customers 
C) Enhancing advertising productivity 
D) Calculating the lifetime value of a customer or prospect 
E) Calculating the lifetime value of a product

Question 62

What alternative medium did Unilever use to advertise Axe deodorant? 

A) public restrooms 
B) garbage trucks 
C) comic books 
D) skywriting 
E) human bodies

Question 63

Compared to broadcast advertising,_____ does not deal with customers as a mass but rather creates individual relationships with each customer or prospective customer.

A) lifetime analysis 
B) data mining 
C) direct advertising 
D) indirect advertising 
E) niche advertising

Question 64

The goal of _____ is to discover hidden facts contained in databases.

A) data mining 
B) data warehousing 
C) data definition 
D) data discovery 
E) data manufacturing

Question 65

Which of the following is an advantage of brand placements in movies,TV programs,and elsewhere? 

A) more intrusive than advertisements 
B) less likely to be summarily rejected as just another persuasive attempt 
C) lack of clutter 
D) complete control over placements 
E) measurability

Question 66

Who advertised on New York City garbage trucks and street sweepers? 

A) Dunkin' Donuts 
B) Levi Strauss & Co. 
C) Glad trash bags 
D) Heineken 
E) Coca-Cola

Question 67

The net present value of the profit that a company stands to realize on the average new customer during a given number of years is known as _____.

A) brand equity 
B) customer equity 
C) customer lifetime value 
D) marginal customer analysis 
E) customer profitability

Question 68

Lou is trying to increase the lifetime value of his customers.Which of the following is a way for him to augment his customers' lifetime value? 

A) decrease the retention rate 
B) increase the discount rate 
C) increase the referral rate 
D) increase marketing communications expenditures 
E) All of these are correct.

Question 69

The likelihood that people will remain customers is known as the _____ rate.

A) discount 
B) retention 
C) acquisition 
D) attrition 
E) lifetime

Question 70

A key feature of database marketing is that each present or prospective customer is viewed as not just an address,but rather as a(n)____.

A) long-term asset 
B) short-term asset 
C) declining asset 
D) unpredictable asset 
E) number

Question 71

Which of the below is NOT one of the ways to enhance lifetime value? 

A) increase the retention rate 
B) increase the discount rate 
C) increase the referral rate 
D) cut direct costs 
E) enhance the average purchase volume per customer

Question 72

Consumers in the ______ age group are more positively disposed towards cinema advertising.

A) 10-to-16 
B) 12-to-24 
C) 18-to-30 
D) 25-to-34 
E) 30-to-40

Question 73

A study of brand placements in films found a(n)______ effect between stock returns and time (in days).

A) short-term 
B) inverted-U 
C) placebo 
D) R-F-M 
E) contextual

Question 74

Companies' databases of customers often contain R-F-M data.The F stands for _____.

A) frequency 
B) familiarity 
C) feedback 
D) follow-up 
E) functional

Question 75

The _____ rate is a critical component of net present value analysis.

A) turnover 
B) annual percentage 
C) referral 
D) discount 
E) actuary

Question 76

In lifetime value analysis,taking the reciprocal of the discount rate and multiplying the gross profit by the reciprocal will give one the _____.

A) cumulative NPV profit 
B) NPV profit 
C) discount rate 
D) total costs 
E) net profit

Question 77

Which of the following is an asset an up-to-date database provides a firm? 

A) ability to direct advertising efforts to those people who represent the best prospects for the company's products or services 
B) offer varied messages to different groups of customers 
C) create long-term relationships with customers 
D) enhance advertising productivity 
E) All of these are correct.

Question 78

It is claimed that video advertising is _____ than comparable print advertising in the form of brochures.

A) more effective and less expensive 
B) less effective and less expensive 
C) more effective and more expensive 
D) less effective and more expensive 
E) None of these are correct.

Question 79

With effective database marketing a firm may be able to alter the channel of distribution via direct marketing efforts,and hence _____.

A) cut direct costs 
B) reduce marcom costs 
C) increase retention rate 
D) enhance average purchase volume per customer 
E) increase the referral rate

Question 80

Companies' databases of customers often contain R-F-M data.The R stands for _____.

A) retention rate 
B) referral rate 
C) registration 
D) responsiveness 
E) recency