Deck 17: Integrating Direct Marketing and Personal Selling

Question 1

In an omnichannel strategy,a consumer could have the choice of returning an online purchase digitally or in the store.

Answer 1

True

Question 2

Direct marketing is not helpful as a tool to close the sale with a customer.

Answer 2

False

Question 3

The evolution of direct marketing can be seen by the history of some brands; among catalog marketers,few are more exemplary than L.L.Bean.

Answer 3

True

Question 4

A key aspect of direct marketing is that it is interactive; the advertiser is attempting to develop an ongoing dialogue with customers.

Question 5

Cross-selling is the practice of identifying past purchasers of one product and suggesting that they purchase other products.

Question 6

Keeping a date of birth in a customer database allows companies to do something a little special and contact customers on their birthdays with a birthday note or special promotion for them.

Question 7

Multiple media can be used in direct marketing programs 

Question 8

One disadvantage of direct marketing is that it has no way to identify and target specific segments of the population.

Question 9

A key aspect of direct marketing programs is that they are often designed to produce an immediate,measurable response.

Question 10

Knowing who the best customers are along with what and how often they buy is a direct marketer's secret weapon.

Question 11

Direct marketing includes e-commerce; direct marketing has broken free from its mail-order heritage to e-commerce and other direct-to-consumer interactive digital platforms.

Question 12

A marketing database allows a firm to measure how much business it is doing with its best customers through an analysis of recency,frequency,and monetary factors.

Question 13

Direct marketing is an interactive system of marketing that uses one or more advertising media to affect a measurable response and/or transaction at any location.

Question 14

Direct marketing is interactive because the advertiser is attempting to develop an ongoing dialogue with customers.

Question 15

Privacy is a big concern with respect to consumer databases and other related lists (internal lists,mailing lists,e-mail lists).

Question 16

Called hybrid commerce or an omnichannel strategy,the consumer can have the best of both digital and in-store channels.

Question 17

Direct marketing programs are commonly planned with the notion that one contact will lead them to another and then another.

Question 18

Direct marketing programs are commonly used for three purposes: closing a sale,prospecting future customers,and engaging customers.

Question 19

Direct marketing is measurable by calculating cost per inquiry (CPI)or cost per order (CPO),for example.

Question 20

With the growing concern about fragmenting markets and the diminishing effectiveness of traditional media in reaching those markets,many advertisers are investing in direct marketing programs for more precision in targeting and measuring results.

Question 21

A smart way to enhance direct mail is to make it personal,such as addressing it to the consumer's name or thanking a consumer for their loyalty.

Question 22

The pivotal role for direct marketing programs in this process is to establish dialogue with customers and then close the sale.

Question 23

Which is a key aspect of direct marketing programs? 

A) It uses only one type of media to get a response.  
B) It has a long-term sales promotion goal. 
C) It often is designed to produce an immediate, measurable response. 
D) It relies on technology rather than human behavior.

Question 24

Traditionally done via face-to-face-communications,now personal selling has emerged to include personal chats,video session,calls,and other ways to communicate in a more personal manner with a consumer as it relates to a sale or service.

Question 25

The missionary salesperson calls on accounts with the express purpose of monitoring the satisfaction of buyers and updating buyers' needs but may provide product information after a purchase.

Question 26

Creative selling is the type of selling in which customers rely heavily on the salesperson for technical information,advice,and service.

Question 27

Direct marketing is ________________ because the marketer attempts to develop an ongoing dialogue with the customer based on the idea that one contact will lead to another,and the message is continually refined. 

A) mass 
B) interactive 
C) social media 
D) partnership

Question 28

It can cost 19 to 20 times more to reach a person with a direct mail piece than it would to reach that person with a traditional advertising medium because of the cost-per-contact advantages of traditional mass media.

Question 29

In digital form,spam is the new manifestation of junk mail.

Question 30

Products that are higher priced,complicated to use,or require demonstration are heavily dependent on personal selling in order to close the deal.

Question 31

Direct marketing is defined as an interactive system that uses one or more advertising media to: 

A) develop a one-time communication with customers.  
B) push a product through the distribution channel. 
C) sustain a brand image. 
D) affect a measurable response and/or transaction at any location.

Question 32

System selling entails selling a set or interrelated components that fulfill all or a majority of a customer's needs in a particular area.

Question 33

Advertisers invest nearly $9 billion annually in direct-mail programs.

Question 34

Customer relationship management,or CRM,involves cultivating short-term transactions with customers.

Question 35

Companies use advanced technology to merge offline data,like credit ratings and home value,with online data,like online searches.

Question 36

List enhancement includes any of four categories of information: demographic data,geodemographic data,psychographic data,and behavioral data.

Question 37

Which of the following is true of building customer relationships through direct marketing? 

A) Word-of-mouth advertising is the best way to build a marketing base.  
B) Long-term customer relationships must be based on trust. 
C) Transactions are more important than relationships in direct marketing.  
D) Customers are willing to pay for catalogs if given the proper incentive.

Question 38

The CAN-SPAM legislation passed in 2003 requires that marketers use an accurate and verifiable return e-mail address,be transparent about the nature of the e-mail content,provide opt-out options and act on such requests or face stiff penalties.

Question 39

Our advice is to stay away from the low-cost temptations of bulk-email because the quickest way to get flamed and damage your brand name is to start sending out bulk emails to people who do not want to hear from you.

Question 40

A marcom manager,or marketing communications manager-which may be folded into the chief marketing officer role-plans an organization's overall communications program and oversees the various functional specialists inside and outside the organization.

Question 41

_________ lists are the starting point for developing better relationships with current customers,whereas __________ lists help an organization cultivate new business.

A) internal; external 
B) demographic; psychographic 
C) external; internal 
D) psychographic; demographic

Question 42

A direct marketing transaction can take place ___________.

A) anywhere 
B) only in store 
C) only online 
D) only through omnichannel

Question 43

Which forms of media can be used in executing direct marketing programs? 

A) direct mail only 
B) social media only 
C) direct mail, digital, social, and mobile media 
D) e-commerce only

Question 44

Marketing databases can be expanded by adding _________ data,which allows for a more qualitative assessment of a customer's general lifestyle,interests,and options.

A) demographic 
B) psychographic 
C) telegraphic 
D) geo-demographic

Question 45

Marketers in many fields are offering frequency-marketing programs that __________________.

A) test internal mailing lists 
B) offer concrete rewards to frequent customers 
C) comprise an external mailing list 
D) need a salesperson to help implement

Question 46

A real estate firm has a name-and-address file.It now chooses to incorporate into the file the demographic,geo-demographic,psychographic,and behavioral data of its customers.Through this type of list enhancement,the real estate firm will: 

A) get a larger number of customer names and addresses in its database.  
B) contribute to the ease of payment for its customers. 
C) have a more complete description of who its customers are. 
D) allow consumers convenient access to compare product features on its website.

Question 47

A suburban country club contacts each member who holds a pool membership to inquire if they would also be interested in purchasing a golf membership.The country club personnel are using their marketing database for                                               .

A) personal selling 
B) creative selling  
C) marcom selling  
D) cross-selling

Question 48

A direct marketer promoting a service industry uses both internal and external lists.Which of the following is a difference between internal and external lists? 

A) Internal lists contain all types of consumer information, whereas external lists consist of names and addresses. 
B) Internal lists help to develop relationships with current customers, whereas external lists help to attract new customers. 
C) Internal lists are drawn from the general population, whereas external lists are drawn from competitors' customer lists. 
D) Internal lists cannot be enhanced, whereas external lists can be enhanced.

Question 49

What are three main purposes of direct marketing programs? 

A) To close the sale, identify prospects, and engage consumers 
B) To identify target markets, tailor the message, and support brand identity  
C) To provide information, answer questions, and foster brand loyalty 
D) To reward customers, furnish information, and generate brand preference

Question 50

A marketing manager for a company that packages vacations to exotic locations uses a variety of media to promote these trips,including social media,infomercials,and direct mail.One of the primary objectives is integration.This is because if these programs are integrated,the manager can: 

A) cut the cost of communicating with audiences.  
B) easily measure results. 
C) make the program more effective than the sum of its parts. 
D) eliminate the need to tailor specific messages to specific audiences.

Question 51

A shoe retailer uses its marketing database to run a recency,frequency,monetary analysis on its customers.In this context,recency refers to: 

A) how often a consumer was reached with any kind of advertising message.  
B) how often a consumer was reached through a direct marketing medium. 
C) how long it has been since a consumer shopped at or bought a product from the company. 
D) how often a consumer purchases a product from a certain product category.

Question 52

One characteristic of direct marketing is that it: 

A) depends on consumer response for its success.  
B) emphasizes developing a customer database. 
C) has a lower cost per contact. 
D) relies on audience segmentation.

Question 53

An RFM analysis is used to: 

A) determine which products or services are most popular.  
B) identify the most loyal customers. 
C) track the replies from direct mail pieces. 
D) compare the efficiencies of various direct marketing programs.

Question 54

The Direct Marketing Association (DMA)estimated that the _______ would cost telemarketers about $50 billion in lost sales.

A) CAN-SPAM act 
B) Direct Marketing Association's opt-out program 
C) FTC's Do Not Call Registry 
D) Better Business Bureau

Question 55

What is a very important concern for consumers regarding direct marketing that advertisers and marketers should take very seriously? 

A) Cross-selling 
B) Invasion of privacy 
C) Increased junk mail 
D) Credit card debt

Question 56

For consumers,what is often a benefit of direct marketing? 

A) Convenience 
B) Privacy 
C) Technology 
D) Quality

Question 57

Cross-selling involves marketing: 

A) additional products to current customers. 
B) the same product to different consumers. 
C) products to different members of the same household. 
D) to one geo-demographic segment.

Question 58

In evaluating direct marketing programs,which of the following are frequently used measures? 

A) Cost per media and cost per consumer  
B) Cost per rating point and cost per share 
C) Cost per thousand and cost per million 
D) Cost per inquiry and cost per order

Question 59

A company has a mailing list,but they are collecting information directly from individual consumers as well.They are in the process of developing: 

A) a marketing database. 
B) an external mailing list. 
C) a geo-demographic data source.  
D) a single-source tracking study.

Question 60

Companies can address customers' privacy concerns if they remember two fundamental premises about database marketing.Which of the following is one of those premises? 

A) Customers should be provided with the option of replying to a lead card. 
B) Information gained for databases should only be used for mailing purposes.  
C) Information collected should not be sold to other companies. 
D) A primary goal for developing a marketing database is to get to know customers in such a way that an organization can offer them products and services that better meet their needs.

Question 61

Most consumers view their personal email addresses and mobile phones as _____________ and violating that space _______________.

A) personal property; upsets people 
B) unimportant; is not a big deal. 
C) rented; is amusing. 
D) just a material possession; is not a true privacy violation since we can simply delete the unwanted email or text.

Question 62

Careless use of the e-mail took can earn one's company the label of ____________.

A) junk mailer 
B) telemarketer 
C) spammer 
D) netiquette

Question 63

The role of a marcom manager (or CMO for some firms)is to: 

A) ensure efficient and timely delivery of products ordered.  
B) monitor contacts, sales, and return sales. 
C) schedule the media for marketing communications. 
D) plan overall communications programs and oversee the functional specialists inside and outside of the organization.

Question 64

Likely related to consumer privacy concerns,direct mail and/or direct e-mail marketers should be prepared for the: 

A) limited ability to test executions.  
B) lack of creative options. 
C) inaccuracy of addresses or e-mail addresses on mailing lists. 
D) consumers' distrust in mailed advertising.

Question 65

Which of the following is the least complex form of personal selling? 

A) Creative selling  
B) System selling 
C) Missionary services  
D) Order taking

Question 66

Since the Do Not Call Registry was established,U.S.regulators have fined violators more than ________.

A) $50,000 
B) $500 million 
C) $5 billion 
D) $500,000

Question 67

Just because a company sends an email does not mean it was received.Roughly what percent of emails get directed to recipients' "spam inboxes"? 

A) 80 percent 
B) 1 percent 
C) 5 percent 
D) 20 percent

Question 68

Scenario 17-1
American Profile is an e-technology company. It allows companies to search and navigate gigabytes of data, categorize disparate content, and gain secure access to information regardless of where it resides-all from its Web browser. Thus, American Profile can share content across connected servers with partners, suppliers, customers, and employees to form an e-business content network. And it all happens in real time. 
(Scenario 17-1)The idea behind promoting American Profile is to show companies that gathering information about visitors' households and lifestyles through its website is a crucial step in building a: 

A) selection of testimonials. 
B) creative selling strategy. 
C) marketing database. 
D) core team of functional specialists.

Question 69

What is an important form of integrated brand promotion that relates to the sale of a product or service,and one that was traditionally done face-to-face (in person)but now has emerged with technology such as chats,videos,and online calls? 

A) public relations 
B) personal selling 
C) publicity 
D) e-mail

Question 70

Scenario 17-1
American Profile is an e-technology company. It allows companies to search and navigate gigabytes of data, categorize disparate content, and gain secure access to information regardless of where it resides-all from its Web browser. Thus, American Profile can share content across connected servers with partners, suppliers, customers, and employees to form an e-business content network. And it all happens in real time. 
(Scenario 17-1)American Profile is considering imitating a direct marketing tactic employed by several consumer magazines.Visitors to the home pages of these magazines' websites can link to tips on gardening,home decorating,cooking,clothes shopping,skin care,hair care,etc.They are then encouraged to rate these articles and columns,explain whether they were helpful,and add comments and suggestions based on their own lifestyles and hobbies.This allows marketers to enhance their customer information with: 

A) psychographic data. 
B) geo-demographic data.  
C) demographic data. 
D) behavioral data.

Question 71

General Motors has its salespeople attend Disney Institute,and BMW,like Apple,now features a highly trained "genius" to demonstrate and explain the many features of its luxury vehicles.This suggests the importance of ________________ in sales and marketing.

A) customer service 
B) affect appeals 
C) cross-selling 
D) database marketing

Question 72

Because advertising conducted in direct marketing campaigns is typified by this emphasis on immediate response,it is commonly referred to as _____________.

A) cross-selling 
B) direct response advertising 
C) instant gratification 
D) instant commerce

Question 73

Personal selling is: 

A) traditionally face-to-face communication and persuasion related to a sale of a product or service, but adapting to be virtual as well. 
B) now exclusively digital or technology mediated, although its origin was face-to-face. 
C) easier to conduct than any other marketing function  
D) the most controversial form of direct marketing

Question 74

The unsolicited email generates a response rate that is less than: 

A) 5 percent 
B) 10 percent 
C) 1 percent 
D) 20 percent

Question 75

The wide variety of options available for reaching customers poses tremendous challenges with respect to:  

A) languages 
B) social media 
C) humor appeals 
D) coordination and integration

Question 76

According to Seth Godin in his 1999 book Permission Marketing,what is the best way to make your customer list worthless? 

A) Decreasing the cost and response rate 
B) Selling it 
C) Merging offline mailing lists and online consumer data 
D) Increasing cost and delivery of the list to employees

Question 77

Two advantages of direct mail as a medium of communication is its: 

A) cost and response rate.  
B) selectivity and flexibility. 
C) mailing lists and consumer data.  
D) cost and delivery.

Question 78

ARF Systems sells a finance and payroll application to a corporate buyer.In addition to the software,they offer to install the hardware required to run,install,and maintain the software.It will also train the employees on the usage of the software,and provide engineers to fix any problem that may arise in the software.They fulfill all or a majority of client needs in a particular area.In this scenario,ARF is involved in ________.

A) system selling 
B) frequency marketing  
C) cross selling 
D) CPO marketing

Question 79

In some companies,the ___________ is rolled into the Chief Marketing Officer (CMO)job.

A) missionary salesperson 
B) marcom manager 
C) list enhancer 
D) functional specialist

Question 80

Which of the following is a key to success for an infomercial? 

A) Keeping the broadcast under five minutes 
B) Avoiding the use of celebrities 
C) Promoting only nationally known brand names 
D) Including testimonials from satisfied users