Deck 12: Direct Marketing

Question 1

Direct marketing activities are supported by the other elements of the promotional mix.

Answer 1

True

Question 2

Direct marketing is restricted to small companies seeking business.

Answer 2

False

Question 3

The main objective of direct marketing is to seek a direct response.

Answer 3

True

Question 4

Direct response advertising employs only the one step approach in order to solicit a sales response.

Question 5

The increase in the "money rich and time poor" people in the world have led to the success of direct marketing.

Question 6

One disadvantage of direct marketing is that it results in a lot of waste coverage.

Question 7

The program vehicles used for direct-response TV advertising are usually very expensive.Hence,the marketer cannot afford to purchase repeat times.

Question 8

Ideally,collecting names and information about customers is sufficient in order to maintain and utilize a database effectively.

Question 9

In the two step approach to direct marketing,the first effort generates the sales and the second effort reduces the post purchase dissonance.

Question 10

Direct marketing is synonymous to direct-marketing media.

Question 11

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.

Question 12

The one and only objective of direct marketing is to obtain a direct behavioral response.

Question 13

It is not possible to generate a behavioral response by relying solely on direct marketing.

Question 14

By running the same ad on different stations,a direct marketer can determine the relative effectiveness of the medium.

Question 15

For CRM to work effectively,a database is required.

Question 16

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.

Question 17

Both direct marketing and advertising could support one another.

Question 18

Telemarketing and direct selling are two methods of personal selling used to generate sales.

Question 19

Direct marketing is a form of advertising.

Question 20

Keys to the success of direct mail are the mailing lists.

Question 21

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.

Question 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.

Question 23

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.

Question 24

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.

Question 25

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

Question 26

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.

Question 27

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

Question 28

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.

Question 29

_____ was known as the stepchild of the promotional mix.

A)Advertising
B)Direct marketing
C)Sales promotion
D)Public relations
E)Publicity

Question 30

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.

Question 31

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.

Question 32

_____ are tools by which direct marketers implement the communications process.

A)Databases
B)Sweeps
C)Direct-response media
D)Promotional push strategies
E)Encoders

Question 33

Telemarketing and _____ are two methods of personal selling used to generate sales.

A)advertising
B)sales promotion
C)direct selling
D)informercials
E)homeshopping

Question 34

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

Question 35

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.

Question 36

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.

Question 37

_____ 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

Question 38

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

Question 39

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

Question 40

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.

Question 41

_____ 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

Question 42

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

Question 43

For customer relationship management (CRM)to work effectively,a(n)_____ is required.

A)database
B)sweepstake
C)TV spot
D)product list
E)informercial

Question 44

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

Question 45

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

Question 46

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.

Question 47

____ 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)

Question 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

Question 49

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

Question 50

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.

Question 51

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.

Question 52

Direct marketers make use of _____ to segment and target their markets.

A)informercials
B)sweeps periods
C)databases
D)TV spots
E)junk mails

Question 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

Question 54

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

Question 55

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.

Question 56

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.

Question 57

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.

Question 58

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.

Question 59

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.

Question 60

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

Question 61

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.

Question 62

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

Question 63

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.

Question 64

_____ is often called the 'junk mail'.

A)Sweepstake
B)Informercial
C)TV spot
D)Direct mail
E)Database marketing

Question 65

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.

Question 66

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

Question 67

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.

Question 68

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).

Question 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.

Question 70

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

Question 71

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.

Question 72

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.

Question 73

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.

Question 74

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

Question 75

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

Question 76

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.

Question 77

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

Question 78

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.

Question 79

_____ 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

Question 80

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.