Question 1

Sierra Miller Inc.is a travel company that sells whitewater rafting and kayaking travel packages.The company has a telemarketing team which regularly gathers information about travel needs from potential customers.This information is entered into the company's electronic system to help segment customer groups based on their needs and requirements.Sierra Miller is using:

Accepted Answer

Database marketers build and maintain a pool of data on current and prospective customers and communicate with them using a variety of media ranging from personal contact to direct mail to mass media. Database marketing is a widely adopted marketing method because it has proven to be a cost-efficient way to increase sales.

Question 2

_____ allows marketers to get a snapshot of what their customers look like at any given time by identifying common characteristics and ranking their relative importance in different segments.

Accepted Answer

Customer profiling allows marketers to get a snapshot of what their customers look like at any given time by identifying common characteristics and ranking their relative importance in different segments.

Question 3

A contest offers prizes based on a chance drawing of entrants' names.

Accepted Answer

A contest offers prizes based on entrants' skill. On the other hand, a sweepstakes offers prizes based on a chance drawing of entrants' names.

Question 4

Allen Hall Inc.makes redwood furniture for gardens.The company places ads in newspapers to encourage potential customers to place orders for its furniture catalogs.When these requests are received by the company,prospects' names and product details are entered into the company's electronic system to segment and grade prospective customers.In this scenario,Allen Hall is using:

Accepted Answer

Database marketers build and maintain a pool of data on current and prospective customers and communicate with them using a variety of media. A good database enables marketers to target, segment, and grade customers.

Question 5

The three types of data that are typically available for purchase by companies are:

Accepted Answer

Three types of data are typically available for purchase. These are demographics, lifestyle, and behavioristics.

Question 6

A drawback of direct marketing is that it:

Accepted Answer

Many consumers are concerned with privacy and they don't like having their names sold by list vendors.

Question 7

Which of the following statements about direct marketing is true?

Accepted Answer

By providing a tangible response, direct marketing offers accountability. Marketers can count the responses and determine the cost per response.

Question 8

Direct marketing experts Stone and Jacobs use an RFM formula to identify the best customers."RFM" is an acronym for:

Accepted Answer

Direct marketing experts Stone and Jacobs use an RFM formula, which stands for recency, frequency, monetary. They use the formula to identify the best customers, the ones most likely to buy again.

Question 9

For combination offers to be effective,items should be unrelated.

Accepted Answer

For best results out of combination offers, the items should be related.

Question 10

Bennett and Wood Inc.an interior designing firm,uses its print ads to help customers connect with them.The ads provide the company's e-mail and Web site details for customers to inquire about their services.In such a scenario,which of the following is Bennett and Wood Inc.using?

Accepted Answer

Linkage media refers to media that help prospects and customers link up with a company. It aids the company in informing prospects on how to inquire about its products.

Question 11

_____ is defined as an "interactive process of addressable communication that uses one or more advertising media to effect,at any location,a measurable sale,lead,retail purchase or charitable donation,with this activity analyzed on a database for the development of ongoing mutually beneficial relationships between marketers and customers,prospects or donors."

Accepted Answer

The Direct Marketing Association (DMA) defines direct marketing as "an interactive process of addressable communication that uses one or more advertising media to effect, at any location, a measurable sale, lead, retail purchase or charitable donation, with this activity analyzed on a database for the development of ongoing mutually beneficial relationships between marketers and customers, prospects or donors."

Question 12

Which of the following terms is defined as "a measurable system of marketing that uses one of more advertising media to effect a measurable response and/or transaction at any location,with this activity stored in a database?"

Accepted Answer

Direct Marketing magazine defines direct marketing as "a measurable system of marketing that uses one or more advertising media to effect a measurable response and/or transaction at any location, with this activity stored in a database."

Question 13

_____ is the process of gathering,consolidating,updating,and enhancing the information about customers that resides in an organization's database.

Accepted Answer

Data management is the process of gathering, consolidating, updating, and enhancing the information about customers and prospects that resides in the database. Working with a marketing database requires two processes: data management and data access.

Question 14

The kind of advertising direct marketers use is called direct-response advertising.This is because:

Accepted Answer

The kind of advertising direct marketers use is called direct-response advertising. This is because direct marketing efforts are always aimed at stimulating some action or response on the part of the customer or prospect. It may be in the form of a request for information, a store visit, or an actual purchase.

Question 15

Contests are easier to enter and take lesser time than sweepstakes.

Accepted Answer

Sweepstakes and games are now more popular than contests because they are much easier to enter and take less time.

Question 16

Which of the following is true of database marketing?

Accepted Answer

Database marketers build and maintain a pool of data on current and prospective customers and communicate with them using a variety of media from personal contact to direct mail to mass media. Database marketing is a widely adopted marketing method because it has proven to be a cost-efficient way to increase sales.

Question 17

Combination offers are the most costly of all sales promotions.

Accepted Answer

Sampling is the most costly of all sales promotions. It is also one of the most effective for new products because it offers consumers a free trial in hopes of converting them to habitual use.

Question 18

All direct marketers must make two basic strategy decisions.The first is the extent to which they will use direct sales.The second is:

Accepted Answer

All direct marketers face two basic strategy decisions: the extent to which they will use direct sales and the extent to which they will use direct response advertising. Direct marketers can use either or both.

Question 19

Which of the following statements about direct marketing is true?

Accepted Answer

Direct marketing is a measurable response. Direct marketing efforts are always aimed at stimulating some action or response on the part of the customer or prospect. It may be in the form of a request for information, a store visit, or an actual purchase.

Question 20

Which of the following is a reason why an advertiser would decide against using direct marketing?

Accepted Answer

Direct marketing does not always get the prestigious affiliation offered by some media. This makes it more difficult and costly to build image for the product, something mass media advertising is particularly good at.

Quiz 18: Relationship Building

_____ allows marketers to get a snapshot of what their customers look like at any given time by identifying common characteristics and ranking their relative importance in different segments.

A contest offers prizes based on a chance drawing of entrants' names.

The three types of data that are typically available for purchase by companies are:

A drawback of direct marketing is that it:

Which of the following statements about direct marketing is true?

Direct marketing experts Stone and Jacobs use an RFM formula to identify the best customers."RFM" is an acronym for:

For combination offers to be effective,items should be unrelated.

Bennett and Wood Inc.an interior designing firm,uses its print ads to help customers connect with them.The ads provide the company's e-mail and Web site details for customers to inquire about their services.In such a scenario,which of the following is Bennett and Wood Inc.using?

Which of the following terms is defined as "a measurable system of marketing that uses one of more advertising media to effect a measurable response and/or transaction at any location,with this activity stored in a database?"

_____ is the process of gathering,consolidating,updating,and enhancing the information about customers that resides in an organization's database.

The kind of advertising direct marketers use is called direct-response advertising.This is because:

Contests are easier to enter and take lesser time than sweepstakes.

Which of the following is true of database marketing?

Combination offers are the most costly of all sales promotions.

All direct marketers must make two basic strategy decisions.The first is the extent to which they will use direct sales.The second is:

Which of the following statements about direct marketing is true?

Which of the following is a reason why an advertiser would decide against using direct marketing?