Question 1

Which of the following is an example of a company that serves a niche market?

Accepted Answer

The manufacturer who creates tools specifically for left-handed individuals serves a narrow niche market. The other choices either offer a wide range of products or serve a broader customer base.

Question 2

A salesperson sends e-mails to persuade prospects to buy the products of his company. This is a type of ________ marketing.

Accepted Answer

Direct marketing involves any direct communication between a seller and a consumer, including email marketing.

Question 3

The management of Raleigh Bicycles observes that the company's selling costs are affected by the increased number of visits that salespeople make to meet dealers. The company decides to reduce its personal selling costs by making sales calls to dealers via telephone. This marketing strategy used by Raleigh is an example of ________.

Accepted Answer

The marketing strategy used by Raleigh, where the company reduces personal selling costs by making sales calls to dealers via telephone, is an example of outbound telemarketing. In outbound telemarketing, the company initiates the call to the customers or clients to promote their products or services.

Question 4

Which of the following is NOT one of the advantages of direct mail?

Accepted Answer

The statement "The cost per thousand is lower than for mass media" is false. Direct mail can actually be more expensive than some forms of mass media advertising, such as television or radio ads.

Question 5

The catalog you receive from a large apparel store, displaying their new summer collection, is an example of ________ marketing.

Accepted Answer

The catalog sent directly to customers is an example of direct marketing.

Question 6

Catalog marketing and telemarketing are examples of indirect marketing.

Accepted Answer

Catalog marketing and telemarketing are examples of direct marketing, as they involve direct communication with potential customers.

Question 7

Which of the following is a disadvantage of direct marketing?

Accepted Answer

Direct marketing often requires personal information from customers, which can lead to concerns about invasion of privacy. This can result in negative perceptions of the brand and damage to the customer relationship.

Question 8

Greta is attempting to get as many orders as possible. Which direct marketing tool is generally associated with the highest order response rate?

Accepted Answer

Direct mail to an internal company list is generally associated with the highest order response rate because the recipients are already familiar with the company and its offerings, increasing the likelihood of a positive response.

Question 9

OrdOnline, a pure click company offering online auctioning, decides to launch a promotional program to increase its sales. The company identifies customers who have made at least three purchases and spent at least $150 in the past six months and offers discount coupons to these customers. Which of the following strategies is used here for targeting customers?

Accepted Answer

The strategy used here for targeting customers is the RFM formula targeting. RFM formula (Recency, Frequency, Monetary) is a marketing technique used to analyze customer behavior by examining how recently a customer has purchased (recency), how often they purchase (frequency), and how much money they spend (monetary). In this case, the company is identifying customers who have made at least three purchases and spent at least $150 in the past six months, which matches the RFM criteria of high frequency and high monetary value. By offering discount coupons to these customers, the company is incentivizing them to make more purchases and increasing their customer lifetime value.

Question 10

Which of the following is an element of an offer strategy?

Accepted Answer

The medium used for delivery is an element of an offer strategy as it can impact the customer experience and the overall effectiveness of the offer.

Question 11

Market demassification has resulted in ________.

Accepted Answer

Market demassification refers to the breaking down of large mass markets into smaller, more specialized markets or niches. Therefore, the most relevant outcome of market demassification is the creation of niche markets, which cater to specific groups of consumers with unique needs and preferences. The other options, such as product standardization and mass production practices, are more closely associated with a mass market approach. Intrinsic marketing channels and just-in-time production are not directly related to the concept of market demassification.

Question 12

Which of the following is a factor considered when a customer is evaluated based on the RFM formula?

Accepted Answer

The RFM formula (Recency, Frequency, Monetary) primarily considers three factors: how recently the customer made a purchase, how often they make purchases, and how much money they spend. The amount of time passed after the customer's last visit is a key factor in evaluating recency. The other options listed are not typically considered inthe RFM formula.

Question 13

Greta is marketing a product that is technologically advanced and requires a great deal of explanation. Which direct response tool should she use?

Accepted Answer

An infomercial is a longer format television advertisement that is designed to explain a product or service in detail. This is a good choice for Greta's product, as it is technologically advanced and requires a great deal of explanation. An infomercial allows her to showcase the features and benefits of the product in an engaging and informative way.

Question 14

Which of the following is a major advantage of using direct mail?

Accepted Answer

Direct mail allows for highly targeted messaging to specific demographics, making it an effective way to reach desired audiences.

Question 15

In 2010, three top B-to-B ________ were Thermo Scientific lab and research supplies ($10.8 billion), Henry Schien dental, medical, and vet supplies ($7.5 billion) and WESCO International electrical and industry maintenance supplies ($5 billion).

Accepted Answer

The other options (inbound/outbound telemarketers, infomercial marketers, and mobile marketers) are not relevant to the specific B-to-B companies mentioned in the question. Catalog sellers, however, align with the idea of companies selling supplies to other businesses through catalogs or online catalogs.

Question 16

In 2010, the three top B-to-C ________ were Dell ($52 billion), Staples ($9.8 billion), and CDW ($8.8 billion).

Accepted Answer

The question is asking for the top business-to-consumer (B-to-C) sellers, and out of the given options, the only one that fits is "catalog sellers." Therefore, the answer is B.

Question 17

In outbound telemarketing, the call center employees ________.

Accepted Answer

Outbound telemarketing involves employees initiating calls to prospects and customers in order to sell products or services. They are not necessarily selling high-involvement products or offering huge discounts, and they may not be located closer to prospects than the customers themselves. While they may also answer customer queries, this is not the primary focus of outbound telemarketing.

Question 18

During the 2012 election, much of the $690 million raised online by the Obama campaign resulted from carefully targeted and tested e-mails.

Accepted Answer

The Obama campaign did raise $690 million online during the 2012 election, and a significant portion of it was through targeted and tested e-mails.

Question 19

The practice of using call centers, where employees receive calls from customers and provide service by taking orders and answering queries, is called ________.

Accepted Answer

The practice of using call centers to receive calls from customers and provide service by taking orders and answering queries is called inbound telemarketing. Option A, customer response marketing, is a broad term that encompasses various activities and strategies undertaken by businesses to attract and retain customers. Option B, guerilla marketing, relies on unconventional and low-cost tactics to promote a product or service. Option C, reactive marketing, involves responding to a customer's concerns or complaints. Option D, internal marketing, involves promoting a company's culture and values among its employees.

Question 20

Direct marketing has not been growing as fast as US retail sales.

Accepted Answer

Direct marketing has been growing rapidly, often outpacing the growth of traditional retail sales, due to the rise of e-commerce and digital advertising technologies.

Quiz 22: Managing Personal Communications: Direct and Database Marketing and Personal Selling