Question 1

Developments in _______ have allowed 'buzz' content to spread very quickly via email and social media.

Accepted Answer

Technology has made it possible for content to be easily shared through email and various social media platforms, allowing for buzz to spread quickly.

Question 2

When companies use buzz marketing, they are attempting to harness a _______ effect by building messages that are suitably engaging and interesting that customers want to read and pass on.

Accepted Answer

Buzz marketing is all about creating a viral effect. The goal is to create messages that customers want to share with others, leading to a snowball effect of increased brand awareness and engagement. Therefore, choice A, viral, is the best choice as the explanation matches perfectly.

Question 3

Which of the following is not a type of information recorded on a database?

Accepted Answer

D

Question 4

Database information allows organizations to build which of the following?

Accepted Answer

Database information can be used to build customer profiles, loyalty schemes, and a better understanding of shopper behavior. Organizations can use this information to tailor their marketing strategies and improve customer satisfaction. Therefore, all of the above options are correct.

Question 5

Which of the following is an example of message content commonly shared via viral/buzz marketing?

Accepted Answer

All of the above options can be shared via viral/buzz marketing. Video clips can go viral on social media platforms like YouTube, while email attachments and blog posts can be easily shared through email and social media.

Question 6

Which of the following is not an application of database marketing?

Accepted Answer

All the options listed (Target marketing, Distributor management systems, Loyalty marketing) are applications of database marketing. Database marketing involves using customer data to deliver more personalized, relevant marketing messages to customers or to manage relationships with them, which encompasses all these areas.

Question 7

Which of the following reasons has led to the growth in direct marketing activities?

Accepted Answer

All of the given reasons (developments in technology, high costs of other techniques, growing fragmentation of media and markets) have contributed to the growth of direct marketing activities. Developments in technology have made it easier and more efficient to reach and target specific audiences, while the high costs of traditional advertising and marketing methods have led businesses to seek more cost-effective alternatives. The growing fragmentation of media and markets has also made it more challenging to reach a broad audience through traditional methods, leading businesses to turn to direct marketing to reach specific niche markets.

Question 8

The first step in a buzz marketing campaign involves identifying the trendsetters that adopt new ideas and technologies before everyone else. These trendsetters are known as:

Accepted Answer

The trendsetters referred to in buzz marketing campaigns are known as "alphas," as they are the first to adopt new ideas and technologies, paving the way for others to follow.

Question 9

Which of the following is not an aim of database marketing?

Accepted Answer

Database marketing aims to stay close to customers by recording and storing data, to stimulate demand, and to provide information to a target audience. However, it is not aimed at controlling the dialogue between the organization and the customer. Instead, it focuses on creating personalized and relevant communication with customers based on their past behaviors and preferences.

Question 10

CRM systems can be used for:

Accepted Answer

CRM systems can be used for a wide range of purposes, including managing enquiries, developing customer relationships, and winning back customers who have stopped doing business with the company. Therefore, all of the options A, B, and C are correct.

Question 11

The origins of direct marketing lie in:

Accepted Answer

Direct mail is widely considered to be the origin of direct marketing, dating back to the mid-19th century when companies began sending catalogs to potential customers via mail. While telemarketing and electronic media have become popular forms of direct marketing in more recent years, they were not the original forms.

Question 12

Which of the following is not a characteristic of viral/buzz marketing?

Accepted Answer

Viral/buzz marketing is known for being cost-effective, so it is not typically expensive to produce. A is true since viral/buzz marketing relies on spreading content through peer-to-peer connections, while C is true because engaging message content is a key factor in creating viral/buzz marketing. D is not necessarily true, as viral/buzz marketing can still be rejected by audiences if the message is not well-received.

Question 13

Transactional data must be sufficiently detailed to allow FRAC information to be extracted from each customer. What does FRAC stand for?

Accepted Answer

FRAC stands for Frequency, Recency, Amount, and Category, which are all important measures for analyzing customer transaction data. Option A lists the correct words that make up the acronym.

Question 14

Which of the following is not a form of direct marketing?

Accepted Answer

Advertising is not a form of direct marketing because it typically involves reaching a large audience through mass media such as television, radio or print without targeting specific individuals or households. Direct marketing, on the other hand, involves communicating directly with specific consumers through mail, email, telephone, or in-person visits. Catalogue marketing, inserts, and door-to-door leafleting are all examples of direct marketing.

Question 15

Which of the following is not a factor that has been associated with the success of CRM?

Accepted Answer

Having a production orientation has not been associated with the success of CRM. In fact, having a customer orientation is considered to be crucial for the success of CRM. The other three factors listed (having a board level champion, involving users in design, and managing cultural change) are all considered important for successful CRM implementation.

Question 16

Which of the following is not a characteristic associated with database marketing?

Accepted Answer

All of the characteristics listed are associated with database marketing. None of them are excluded from the definition or purpose of database marketing.

Question 17

Which of the following is not a characteristic of buzz marketing?

Accepted Answer

Buzz marketing is a type of informal communication, as it involves the passing of information from person-to-person and is often generated through word-of-mouth. It may involve the use of electronic or verbal communication, but it is not a type of formal communication.

Question 18

Which of the following is a benefit of using a marketing database?

Accepted Answer

It helps maintain customer loyalty by providing a centralized repository of customer information that can be used to track customer behavior, preferences, and interactions.

Question 19

Word-of-mouth marketing which is also known as _______ marketing is defined as the passing of information about products and services by verbal or electronic means, in an informal person-to-person manner.

Accepted Answer

Word-of-mouth marketing is also known as buzz marketing. It involves people talking about a product or service to their friends, family, or colleagues. This kind of marketing is considered to be highly effective because people tend to trust the opinions and recommendations of their peers.

Question 20

What does the term CRM stand for?

Accepted Answer

CRM stands for Customer Relationship Management. It is a strategy and technology that companies use to manage interactions with customers and potential customers. The goal is to improve customer satisfaction and loyalty, increase sales, and enhance customer retention.

Quiz 11: Integrated Marketing Communications 2: Direct Communications Techniques