Question 1

Service firms in direct marketing specialize in ________.

Accepted Answer

Service firms in direct marketing specialize in providing services such as printing, mailing, list brokering, and data management that are needed for executing successful direct-marketing campaigns. Media buying involves purchasing advertising space and time in various media, which is not a common service provided by direct marketing firms. Evaluating the results of direct-marketing campaigns is often done by the firm that executed the campaign, not a separate service firm. Creating direct-marketing messages is typically done by advertising and marketing agencies rather than service firms. Delivering ordered products to customers is the responsibility of the marketer or the company itself, not a direct marketing service firm.

Question 2

Which type of agency is responsible for making sure consumers receive whatever they request in a timely manner,be it a catalog,additional information,or the product itself?

Accepted Answer

Fulfillment houses specialize in the storage, packaging, and shipping of products ordered by customers. They are responsible for ensuring timely delivery of products, catalogs, and additional information requested by consumers.

Question 3

The term or phrase that refers to the way that marketers identify potential customers is ________.

Accepted Answer

Prospecting is the term used to describe the process of identifying potential customers. Mining refers to gathering data, hunting implies a more aggressive approach to finding customers, phishing is a fraudulent activity and converting refers to turning potential customers into actual customers.

Question 4

Which basic objective of direct marketing involves attempting to motivate customers to visit an event or retail outlet?

Accepted Answer

Driving traffic is the basic objective of direct marketing that involves attempting to motivate customers to visit an event or retail outlet. This is usually done through tactics such as coupons, special promotions or invitations.

Question 5

Which of the following is NOT a type of company that has traditionally made extensive use of direct marketing?

Accepted Answer

Oil companies have not traditionally relied heavily on direct marketing as their industry is focused on exploration, production, refining, and distribution of oil and gas. In contrast, insurance companies, book and record clubs, gardening firms, and publishers have traditionally used direct marketing extensively as a way to promote their products and services directly to consumers.

Question 6

Which of the following is the last step in the direct-marketing process?

Accepted Answer

The last step in the direct-marketing process is relationship building, which involves maintaining and enhancing the customer relationship after the sale.

Question 7

Direct marketers have identified the criteria of recency,frequency,and monetary to predict who will most likely ________.

Accepted Answer

Recency, Frequency, and Monetary (RFM) analysis is a customer segmentation technique used by direct marketers to identify the customers who are most likely to repurchase. RFM analysis evaluates how recently a customer has made a purchase (recency), how frequently they make purchases (frequency), and how much they have spent (monetary), based on which the customers are segmented into different groups for targeted marketing efforts. Therefore, direct marketers use RFM analysis to predict who will most likely repurchase.

Question 8

What is the first step in the direct-marketing process?

Accepted Answer

The first step in the direct-marketing process is to establish objectives and develop a strategy to meet those objectives. This includes identifying target markets, determining the message and offer, selecting the right communication channels, and measuring success metrics.

Question 9

Which of the following are the two fundamental components of the direct-marketing business?

Accepted Answer

The two fundamental components of the direct-marketing business are communication sent directly to the consumer and consumer response sent directly back to the source. Direct marketing is all about establishing a direct line of communication between the marketer and the customer, which allows for personalized targeting and measurability of results. The consumer response (e.g. purchase, inquiry, subscription) serves as the basis for further communication and relationship-building.

Question 10

What is the second step in the direct-marketing process?

Accepted Answer

The second step in the direct-marketing process is creating the offer, which includes the specific product, service, or information being offered to potential customers. This offer serves as the foundation for the remaining steps in the process.

Question 11

Which of the following statements about direct-marketing customers is most likely true?

Accepted Answer

Customers who frequently purchase from a company are more likely to buy again, as frequent purchases indicate a strong relationship and satisfaction with the company.

Question 12

Getting the product to those who order it is called ________.

Accepted Answer

Fulfillment refers to the process of getting the product to the customer who has ordered it. This covers everything from pick and pack processes to shipping and delivery. Options A, B, C, and D refer to different stages of the sales funnel, such as optimizing marketing efforts, generating leads, identifying potential customers, and converting prospects into customers.

Question 13

Direct-response marketing is typically designed to accomplish which of the following?

Accepted Answer

Direct-response marketing is specifically designed to produce an immediate sale or response from the targeted audience. The goal is to create a sense of urgency for the consumer to take action and purchase the product or service being advertised.

Question 14

The best customer prospects of direct marketers are ________.

Accepted Answer

Current customers are the best customer prospects for direct marketers as they have already shown an interest in the company's products or services and are more likely to purchase again. Profiled, segmented, and affiliated consumers may also be good prospects, but current customers have a proven track record of purchasing from the company. Purged customers have already been removed from the company's database and are not prospects.

Question 15

________ marketing occurs when a seller and customers deal with each other directly rather than through an intermediary,such as a wholesaler or retailer.

Accepted Answer

Direct-response marketing is the only option that specifically mentions dealing with customers directly, without the use of intermediaries. Integrated marketing involves using multiple channels to promote a product, while simplified and leveled marketing are not commonly used terms. Tiered marketing typically involves offering different price points or levels of a product or service.

Question 16

There are four main players in direct-response marketing communication.Which of the following is NOT one of these four main players?

Accepted Answer

The state and federal governments that regulate marketing communication are not one of the four main players in direct-response marketing communication. The four main players are marketers, agencies, media, and consumers.

Question 17

What is the rationale for the higher cost of direct marketing?

Accepted Answer

Direct marketing allows for messages to be tightly targeted to reach prime prospects, which can require more resources and effort to gather and analyze data. This targeted approach is often more effective than mass advertising, but can result in higher costs.

Question 18

Theo is implementing the direct-marketing process in his business.Currently,he is conducting marketing research,segmenting and targeting markets,and setting objectives.Which step in the direct-marketing process is he implementing?

Accepted Answer

Theo is currently conducting marketing research, segmenting and targeting markets, and setting objectives. These are all activities that are part of Step 1 of the direct-marketing process.

Question 19

Which of the following refers to the percentage of direct-marketing contacts who actually act on a direct-marketing communication?

Accepted Answer

Conversion rate refers to the percentage of direct-marketing contacts who actually act on a direct-marketing communication by making a purchase, filling out a form, or taking some other desired action. Frequency refers to the number of times a customer has purchased within a given time period, recency refers to how recently a customer has made a purchase, fulfillment rate refers to the percentage of orders that are properly fulfilled, and variable rate is not a relevant term in this context.

Question 20

Which of the following is designed to gather leads or answer consumer questions?

Accepted Answer

A two-step offer is designed to gather leads or answer consumer questions. This type of offer involves a low-commitment initial request for information, such as filling out a form, in order to gather contact information and gauge interest before presenting a more specific offer or request. This can be an effective way to generate leads and gather customer data in a non-intrusive manner.

Quiz 16: Direct Response