Deck 14: Direct Marketing

Question 1

Direct marketing:

A)is not a useful tool for a company that is using an integrated marketing communications plan
B)seeks the same objectives as advertising,sales promotion,and personal selling strategies in an IMC plan
C)is one of the slowest growing forms of promotion in terms of dollar expenditures
D)can generate immediate behavioral response
E)is accurately described by all of the above

Answer 1

D

Question 2

Unlike traditional marketing,the typical goal of direct marketing is to:

A)create brand image
B)generate an immediate behavioral response
C)utilize telephone communication exclusively
D)create awareness
E)convey detailed information

Answer 2

B

Question 3

A press conference called by the Winchester County Museum informed the public of the need for major repairs to prevent water damage to the museum's collection of primitive paintings.During the conference,the museum representative announced that each family in Winchester County and neighboring counties could expect to receive a donation envelope in the mail within the next few days.This is an example of the combining of direct marketing with:

A)a trade promotion
B)public relations
C)advertising
D)personal selling
E)consumer promotion

Answer 3

B

Question 4

To successfully implement a direct marketing program,companies must:

A)set objectives
B)develop target marketing strategies
C)develop direct-marketing strategies
D)evaluate program effectiveness
E)do all of the above

Question 5

Which of the following is an example of direct-response media?

A)billboards
B)place-based media
C)the Internet
D)product placement
E)guerrilla media

Question 6

Using an integrated marketing communications plan,QVC is attempting to:

A)offset a decline in interest in shopping with an increase in text messaging
B)replace their RFM strategy with faster than lightning (FTL)approach
C)repackage itself for younger,hipper customers
D)broadcast only where the advertising time is the least expensive
E)all of the above

Question 7

To encourage customers to open mail offering them a subscription to Home Companion,the front of the envelope advised there was a gift inside.Inside was an attractively laminated bookmark.This is an example of combining direct marketing with:

A)personal selling
B)specialty advertising
C)place-based media
D)product placement
E)advertising

Question 8

One of the reasons for the recent,rapid growth of direct marketing in American society is due to the:

A)the fact the U.S.has moved from an industrialized nation to a service nation
B)increase in the number of hours individuals spend watching television
C)proliferation of cellular phones
D)increased use of consumer credit cards
E)development of four-color printing presses

Question 9

Red Bud Florist received in the mail an offer from Aquafoam,a water-soluble foam brick frequently used for arranging fresh flowers.According to the offer,if the owner of Red Bud would place an order with Aquafoam,she would be automatically registered to win $10,000 in a customer appreciation contest.This is an example of the combining of direct marketing with:

A)a trade promotion
B)public relations
C)advertising
D)personal selling
E)a consumer promotion

Question 10

QVC Home Shopping Network believes it can increase sales if:

A)they offer discounts to new customers who bring in other customers
B)they can get viewers to stay tuned ten seconds longer
C)they alternate between a television and an Internet-based format
D)they expand transit advertising in rural markets
E)they create a one-step telemarketing approach

Question 11

Which of the following is an example of direct-response media?

A)direct mail
B)interactive television
C)telemarketing
D)print
E)all of the above

Question 12

Direct marketing has been in existence since the invention of the:

A)printing press
B)television
C)telephone
D)radio
E)alphabet

Question 13

All of the following factors have contributed to the increased attractiveness of direct marketing EXCEPT:

A)the increasing number of direct-marketing syndicates
B)the rising number of women in the work force
C)the improved image of the industry
D)the rapid technological advancement of electronic media and of computers
E)the attractiveness of malls for family entertainment

Question 14

For market segmentation and targeting,direct marketers rely most heavily on:

A)primary qualitative research
B)census data
C)a database
D)survey responses
E)focus groups

Question 15

Which of the following is a type of response that could be generated by direct marketing?

A)a vote for a mayoral candidate
B)a subscription to Martha Stewart Living magazine
C)an inquiry for more information on a water reclamation system for a car wash
D)a purchase of a tin of St.Julien macaroon cookies
E)all of the above

Question 16

The major impetus behind the growth of direct marketing was the:

A)increase in the number of working women
B)invention of the printing press
C)development and expansion of the U.S.Postal Service
D)development of multinational companies and international markets
E)law that mandated public education

Question 17

When the University of Miami has volunteers call its alumni and ask them to make contributions to pay for the remodeling of the administration building,it is an example of the combining of direct marketing with:

A)a trade promotion
B)public relations
C)advertising
D)personal selling
E)consumer promotion

Question 18

Direct marketing:

A)is a valuable tool in integrated marketing communications (IMC)
B)can generate immediate behavioral response
C)creates a direct channel of distribution
D)seeks different objectives from advertising,sales promotion,and personal selling strategies
E)is accurately described by all of the above

Question 19

All of the following have contributed to the growth of direct marketing EXCEPT:

A)direct-marketing syndicates
B)rapid development of computers and electronic media
C)increased consumer credit card use
D)the fact many Americans are "money-rich and time-poor"
E)postage rate increases

Question 20

A magazine ad for pet health insurance contains both a toll-free number to call and a Web site to visit for more information.This ad is an example of the combining of direct marketing with:

A)a trade promotion
B)public relations
C)advertising
D)personal selling
E)consumer promotion

Question 21

When a direct advertising medium is designed to directly obtain an order,the _____ approach is being used?

A)two-step
B)indirect
C)direct
D)one-step
E)bulls-eye

Question 22

A television commercial in which Publishers Clearing House urges consumers to look in their mailboxes for soon-to-arrive sweepstakes entries is an example of:

A)sweeps marketing
B)add-on marketing
C)specialty advertising
D)the one-step approach
E)the two-step approach

Question 23

The announcer on the television commercial said,"Get your credit card and call now to order the Monster Ballads of Rock & Roll CD." This is an example the _____ direct marketing approach.

A)two-step
B)indirect
C)direct
D)one-step
E)three-step

Question 24

The National Geographic Society offers a variety of products to its subscribers through direct marketing.This is an example of:

A)cross-selling
B)renewal marketing
C)an unethical business practice
D)membership-based marketing
E)remarketing

Question 25

Databases are used:

A)to improve the selection of market segments
B)to assist in the stimulation of repeat purchases
C)to create transactional sales
D)as the foundation from which direct marketing programs evolve
E)in all of the above ways

Question 26

Which of the following statements about the use of broadcast media by the direct-marketing industry is true?

A)Direct-response advertising is the broadcast industry does not use support advertising.
B)More direct-response advertising is broadcast on radio than on television.
C)The use of broadcast media over the next five years is expected to increase at a faster rate than ever before.
D)The two-step approach is often used with direct-response advertising on the radio.
E)When a toll-free number is included in a direct-response ad,it is called support advertising.

Question 27

Which of the following companies could benefit from the use of database marketing?

A)financial institutions such as loan companies
B)credit card companies
C)retailers like Lands' End and Chadwick's of Boston
D)charitable organizations like the American Heart Association
E)all of the above

Question 28

In direct-response marketing,the "direct response" sought is:

A)sales
B)awareness
C)attitude change
D)changes in perception
E)return on investment (ROI)

Question 29

The two-step approach to direct marketing:

A)asks for an immediate sale
B)uses the first contact to screen potential buyers
C)is commonly found in direct sales
D)is followed by a professional sales call
E)is similar to missionary selling

Question 30

Which of the following companies employ a one-step approach to direct marketing?

A)the QVC shopping network
B)a magazine subscription service that sends an announcement of an upcoming sweepstakes
C)an ad advising television viewers to watch their mailboxes for a way to earn free calling cards
D)a company asking if a homeowner is interested in an estimate for a vinyl siding
E)all of the above

Question 31

Market segmentation in the direct marketing industry:

A)is not a viable strategy
B)is used effectively by only a few large companies
C)is considered less efficient than mass mailings
D)is directly tied to the mailing list
E)is unnecessary because demographic and geographic selectivity exist without any segmentation

Question 32

In direct marketing situations,when it is necessary to screen or qualify potential buyers,it is advisable to use:

A)the two-step approach
B)the one-step approach
C)direct mail rather than telemarketing
D)direct-response television
E)SMRB's data on direct marketing purchasers

Question 33

With an offer to subscribe to a cooking magazine,Rosina was offered the opportunity to buy a set of cookware,an electric can opener,and a coffee maker that were featured in the publication and selected by the magazine editors as the best value for the money.This is an example of:

A)cross-selling
B)renewal marketing
C)an unethical business practice
D)membership-based marketing
E)remarketing

Question 34

_____ is the use of specific information about individual customers and/or prospects to implement more effective and efficient marketing communications.

A)Information mining
B)The preapproach
C)Data warehousing
D)A marketing information system (MIS)
E)Database marketing

Question 35

To determine the effectiveness of a database,the U.S.Postal Service recommends an RFM scoring method.The letters RFM stand for:

A)recency,frequency and monetary transactions between the company and the customer
B)rate of sales,fixed use fee paid,and markets reached
C)relationship between the company and the customer,frequency of the sale,and monetary transactions between the company and the customer
D)reach,frequency,and markets reached
E)ratio of inquiries to sales,frequency of sales,and market share

Question 36

Which of the following media forms is LEAST commonly used today for direct marketing?

A)radio
B)catalogs
C)infomercials
D)direct mail
E)telephones

Question 37

Which of the following statements about the use of catalogs in the direct-marketing industry is true?

A)Most business-to-business marketers use print catalogs.
B)The number of catalogs mailed since 1984 has decreased significantly.
C)Many companies use catalogs in conjunction with their more traditional sales and promotional strategies.
D)There is no company today that relies solely on catalog sales.
E)The number of catalog shoppers has steadily declined since 1984.

Question 38

Which of the following is NOT a commonly used source of information for a direct-marketing database?

A)the U.S.Census Bureau
B)the Better Business Bureau
C)Simmons Market Research Bureau
D)U.S.Postal Service
E)Standard Rate and Data Service

Question 39

To purchase cookware,music CDs,and exercise videos advertised on television consumers are asked to call a toll-free telephone number.Viewers are instructed to have their credit cards handy when they call to place the order.This form of direct marketing is referred to as:

A)outbound telemarketing
B)videotext
C)the one-step approach
D)the two-step approach
E)support marketing

Question 40

Which of the following forms of segmentation are available through mailing lists?

A)people that buy exercise equipment in the mail
B)consumers over the age of 50 with a median income of at least $50,000
C)hunters,people who fish,and campers
D)presidents of civic organizations in western Canada
E)all of the above

Question 41

The Mail Moves America campaign is designed to convey the positive side of direct mail and:

A)counter antimail bills
B)provide information for the U.S.Census
C)establish a two-step marketing relationship between QVC and CBS
D)comply with Federal Trade Commission regulations
E)reduce energy consumption in America

Question 42

The use of _____ allows individuals to gather information and purchase products and services via their home computer.

A)electronic teleshopping
B)telemedia
C)audiotex
D)infomercials
E)telemarketing

Question 43

Which of the following statements about infomercials is true?

A)By definition,infomercials must be at least 30 minutes in length.
B)Retail stores are experiencing dramatic drops in sales as a result of the growing number of infomercials.
C)Studies have proven infomercials are not watched and do not sell.
D)Infomercials are never used by reputable,Fortune 500-type companies.
E)Some consumer groups are concerned that infomercials may be confused with regular television programming.

Question 44

An Electrolux vacuum cleaner salesperson selling door-to-door is an example of which form of direct selling?

A)repetitive person-to-person selling
B)party plan
C)two-step approach
D)non-repetitive person-to-person selling
E)support selling

Question 45

_____ is the direct,personal presentation,demonstration and sales of products to consumers in their homes.

A)A need-stimulus sales presentation
B)Direct marketing
C)A personal shopper program
D)Consultative selling
E)Direct selling

Question 46

Which of the following are forms of direct selling?

A)repetitive person-to-person selling,non-repetitive person-to-person selling,and party plans
B)home shopping,out-of-home shopping,vending,and manufacturers' agents
C)party plans,out-of-home shopping,and non-repetitive person-to-person selling
D)manufacturers' sales representatives,party plans,and non-repetitive person-to-person selling
E)brokers,manufacturers' agents,party plans,and professional sales

Question 47

_____ is shopping done on one's home computer,using a telephone and a keyboard.

A)Direct selling
B)Infomercials
C)One-stop shopping
D)Electronic teleshopping
E)Telemarketing

Question 48

The huge success of the National Do Not Call list has led direct marketers to use more:

A)cross-selling through infomercial-based audio-texting
B)production efficiency cost reductions
C)direct mail,catalog and Internet marketing
D)supported publicity
E)door-to-door direct selling

Question 49

Which of the following describes an advantage an advertiser using direct marketing is likely to enjoy?

A)effective segmentation capabilities
B)low overall costs relative to sales
C)ease of effectiveness measurements
D)fewer time pressures as compared to other forms of media use
E)all of the above

Question 50

Due to clutter and relatively high costs,the use of _____ by direct marketers does not result in returns as high as those for other forms of direct marketing media.

A)magazines and newspapers
B)television and radio
C)direct mail and catalogs
D)newspapers,television,and radio
E)newspapers,magazines,and catalogs

Question 51

Which of the following statements concerning infomercials is true?

A)Infomercials are only useful for marketing fads.
B)Even critics of infomercials do not consider them to be deceptive.
C)The lower costs on cable and satellite channels led to the growth of the infomercial.
D)By law,infomercials have to be at least 30 minutes in length.
E)Infomercials typically move consumers into the conviction stage of the hierarchy of effects model.

Question 52

_____ is a measure of cost effectiveness of advertising employed by direct marketers.

A)Cost per thousand
B)Cost per ratings point
C)Cost per order
D)frequency and reach
E)Breakeven point

Question 53

Audiotex is also called:

A)electronic teleshopping
B)e-tailing
C)telemedia
D)direct selling
E)e-commerce

Question 54

A television ad for Pizza Hut telling you to look in your mailbox for coupon offers that will save you big bucks on your next pizza order is an example of:

A)supplementary promotion
B)support advertising
C)a one-step direct marketing approach
D)add-on marketing
E)sweeps marketing

Question 55

Which of the following statements about telemarketing is true?

A)Telemarketing is defined as sales without face-to-face contact between the buyer and the seller.
B)One of the problems that used to be associated with telemarketing is its potential for fraud and deception,but that problem has been completely eliminated by rigorous self-monitoring.
C)Business-to-business marketers do not use telemarketing.
D)Telemarketing is only used by for-profit companies.
E)None of the above statements about telemarketing is true.

Question 56

to market,advertise,promote,entertain,and inform.It is a new dimension of telemarketing.

A)Telepromotion
B)Audiotex
C)Promotional sponsorship
D)Advertorial
E)Teleshopping

Question 57

Infomercials are:

A)primarily designed to sell products that would be classified as fads
B)always televised during off-viewing hours
C)never appear on network television
D)part of a two-step program,and their effectiveness cannot be measured
E)typically produced by the advertiser

Question 58

Direct marketing in the broadcast industry involves both direct-response advertising and:

A)supplementary promotions
B)support advertising
C)a one-step direct marketing approach to sales
D)add-on marketing
E)sweeps marketing

Question 59

Which effectiveness measure is most commonly employed in direct marketing?

A)cost per order (CPO)
B)cost per thousand (CPM)
C)cost per man-hour (CPMH)
D)cost per new prospect (CPNP)
E)sales per database name (SDN)

Question 60

Advertisers can measure the relative effectiveness of a direct marketing campaign quickly by looking at:

A)cost per thousand (CPM)
B)the breakeven point
C)reach and frequency
D)cost per order (CPO)
E)net sales

Question 61

All of the following are advantages of direct marketing EXCEPT:

A)ability to personalize
B)selective reach
C)segmentation capabilities
D)creative flexibility
E)rising costs

Question 62

Promoters of __________________________ are a prominent example of the "few bad apples" tarnishing the image of the direct marketing industry.

A)Canadian car dealers
B)AARP
C)pharmaceuticals
D)wonder products
E)the U.S.Army See Ethical Perspective 14-2.

Question 63

Disadvantages inherent in the use direct marketing include:

A)difficulty in obtaining effectiveness measurements
B)poor image factors
C)lack of flexibility
D)difficulty in acquiring TV time
E)all of the above

Question 64

Which of the following was identified in the text as a disadvantage associated with direct marketing?

A)poor image
B)poor selectivity
C)inability to measure effectiveness
D)long lead time
E)lack of creative flexibility

Question 65

As postal rates increase,direct-mail advertising has frequently been replaced with:

A)billboards
B)e-mail
C)use of Fedex
D)telemarketing
E)none of the above.Postal rates have decreased for large volume direct marketers.

Question 66

Which of the following describes an advantage offered by direct marketing to advertisers?

A)accurate delivery to targeted audience
B)ability to create a mood
C)exclusive image
D)high-budgeted direct-response ads on television
E)none of the above