Deck 15: IMC: Direct Marketing, Personal Selling, Packaging, and Sales Promotion

Question 1

Telemarketing should never be used if the objective of the sales call is to develop long-term relationships with customers.

Answer 1

False

Question 2

Direct marketing is a newly developed tool of marketing and promotion.

Answer 2

False

Question 3

Most salespeople perform four key communications functions: information gathering, information providing, order fulfillment, and relationship building.

Answer 3

True

Question 4

Direct marketing tends to suffer from clutter and prestige problems.

Question 5

If the commercial for Bow-Flex exercise equipment asked readers to phone for a CD on how the exercise system could help them strengthen their muscles, it would be characterized as direct-response advertising.

Question 6

By providing a tangible response, direct marketing enables marketers to determine the cost per response.

Question 7

Personal selling is an expensive method for building relationships with customers.

Question 8

Telemarketing is less costly than personal selling.

Question 9

Consumers and manufacturers tend to have conflicting concerns with product packaging. Most consumers want tamperproof, sturdy, attractive packages, while most manufacturers want packages to be recyclable and reusable.

Question 10

Databases help companies choose the prospects they can serve most effectively and profitably.

Question 11

The construction of trade-show booths and exhibits has become a major factor in sales promotion plans.

Question 12

Seamless, consistent communication helps a firm build a good reputation.

Question 13

One of the major advantages of sales promotion is that it is inexpensive.

Question 14

Mass marketing is the best way to develop a good database.

Question 15

The direct marketing database is a company's primary tool to initiate, build, cultivate, and measure the effectiveness of its loyalty efforts.

Question 16

Consumer sales promotions are examples of push strategies.

Question 17

Direct marketing interaction can take place at any location.

Question 18

Although the boom in telecommunications and computer technology has spurred the growth of direct marketing in the United States, it has not had the same effect worldwide.

Question 19

Personal selling is labor-intensive and has a poor reputation among many people.

Question 20

The primary task of personal selling is to make a quick, transactional sale.

Question 21

Which of the following statements about direct marketing is true?

A) Direct marketing is static.
B) Direct marketing is a measurable system of marketing.
C) Direct marketing is often called reminder advertising.
D) Direct marketing does not typically produce feedback.
E) Direct marketing as a form of promotion is ineffective in generating immediate sales.

Question 22

What are the two primary methods for implementing a direct-sales strategy?

A) Personal selling and mass marketing
B) Database selling and telemarketing
C) Face-to-face and telemarketing
D) Internet sales and telemarketing
E) Order-taking and order-filling

Question 23

As more companies use IMC and mass audiences continue to fragment, which of the following most likely enables companies to retain and grow customers?

A) Databases developed through direct marketing
B) Interactive communication on social media
C) Indirect-response advertising promotions
D) Loyalty programs based on interstitials
E) Feedback encoding with niche markets

Question 24

Which of the following is a form of direct marketing that involves tracking and analyzing the purchase patterns of specific customers?

A) Mass advertising
B) Sales promotion
C) Multilevel marketing
D) Database marketing
E) Personal selling

Question 25

Which statement about direct marketing is most likely true?

A) Many customers dislike the clutter associated with direct marketing.
B) Direct marketing lacks the flexibility needed by today's firms.
C) Direct marketing hinders firms from gathering customer data.
D) Only print media can be used for direct marketing efforts.
E) Direct marketing results are difficult to measure.

Question 26

Which term refers to 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?

A) Mass advertising
B) Sales promotion
C) Direct marketing
D) Personal selling
E) Network marketing

Question 27

The excessive use of trade deals has a tendency to threaten brand loyalty.

Question 28

_____ is the oldest marketing method and it is growing quickly today as a result of social and technological changes.

A) Direct marketing
B) Relationship marketing
C) Print advertising
D) Interactive marketing
E) Direct selling

Question 29

The growth of direct marketing has most likely been triggered by the:

A) development of kiosks.
B) increase in cultural diversity.
C) expanding use of credit cards.
D) aging of the baby boomer generation.
E) expectations of personal online security.

Question 30

Slippage is a phenomenon where customers buy a product because of a rebate offer and then never redeem the rebate because it is too much trouble.

Question 31

Sweepstakes encourage product consumption by creating consumer involvement.

Question 32

Rite-Aid announced the launch of a program called Living More that provides benefits and savings to customers at least 60 years of age. Every time Living More members make purchases at Rite-Aid, they receive an automatic ten percent discount. Which term best describes Living More?

A) Trade promotion
B) Direct sales promotion
C) Interactive program
D) Loyalty program
E) Push strategy

Question 33

Advertising that asks the viewer or listener to provide feedback immediately to the advertiser is called:

A) unduplicated marketing.
B) customized marketing.
C) direct-response advertising.
D) advocacy selling.
E) direct-sales advertising.

Question 34

Spiffs are allowances paid to retailers for using a manufacturer's point-of-purchase display.

Question 35

_____ is face-to-face selling away from a fixed retail location.

A) Interactive commerce
B) Direct selling
C) Telemarketing
D) Direct-response marketing
E) Relationship marketing

Question 36

_____ advertising is always aimed at stimulating some action or response from its recipient.

A) Radio
B) Viral
C) Direct-response
D) Mass
E) Aerial

Question 37

Sierra South sells whitewater rafting trips and related merchandise. The company has built a pool of data on current and prospective customers and sends postcards and e-mails to those individuals to announce sales and upcoming rafting trips. Sierra South is most likely using:

A) mail-order advertising.
B) database marketing.
C) direct selling.
D) direct-mail advertising.
E) interactive advertising.

Question 38

Point-of-purchase materials are increasingly important as the trend towards self-service retailing continues.

Question 39

_____ includes selling and prospecting by telephone, answering phone inquiries, and providing sales-related services to callers.

A) Data mining
B) Direct-response marketing
C) Direct-response advertising
D) Relationship marketing
E) Telemarketing

Question 40

KFFI-AM runs frequent commercials that ask listeners to dial advertisers' toll-free numbers or visit their Web sites for information about ordering the advertised products or services. Which of the following is most likely used on KFFI-AM?

A) Telemarketing
B) Mass marketing
C) Direct-response advertising
D) Digital interactive advertising
E) Customer database marketing

Question 41

Which of the following is the best example of direct-response broadcast advertising?

A) An e-mail offering for a trial magazine subscription
B) A glossy catalog featuring children's clothing
C) An infomercial for exercise equipment
D) A telemarketing call about a credit card
E) A product placement during a TV show

Question 42

Which of the following statements about sales promotion is most likely true?

A) Sales promotion is a deceleration tool.
B) Sales promotion normally involves an indirect inducement.
C) Sales promotion is usually considered to be complementary.
D) Sales promotion may be used anywhere along the marketing route.
E) Sales promotion adds intangible but immediate value to the brand.

Question 43

An energy company offers customers rebates of up to $500 for installing energy efficient water heaters, windows, and doors. This is most likely an example of a _____ strategy.

A) push
B) pull
C) parallel
D) cohort
E) horizontal

Question 44

To create effective sales promotions, a company should most likely:

A) use non-specific objectives to ensure marketing flexibility.
B) avoid any promotion pretesting because of its inherent costs.
C) ensure that the sales promotion reinforces the brand's advertising message.
D) invest in either trade or consumer promotions but not both, which is unethical.
E) use complex, attention-getting copy so the consumer will understand the message.

Question 45

What is the greatest strength of personal selling?

A) Historically positive reputation
B) Minimal labor requirements
C) Low overall costs
D) Personal nature
E) Sale immediacy

Question 46

Trade concentration refers to:

A) more products going through fewer retailers.
B) a type of promotion commonly used by service providers.
C) the ability to perform comparative advertising within the same store.
D) a marketplace that supports multiple retailers of the same or similar products.
E) the consolidation of advertising rates for various trade magazines into one generic rate card.

Question 47

_____ are exhibitions where manufacturers, dealers, and buyers get together for demonstration and discussion.

A) Product expositions
B) Trade shows
C) Distribution shows
D) Distribution fairs
E) Product retrospectives

Question 48

_____ is the interpersonal communications process by which a seller ascertains and then satisfies the needs of the buyer, to the mutual, long-term benefit of both parties.

A) Direct-response selling
B) Relationship marketing
C) Transactional marketing
D) Personal selling
E) Viral marketing

Question 49

Procter & Gamble created one of the most outrageous promotions in marketing history. Nobody blinked when some unknown brand assistant suggested giving away free goldfish in stores with the purchase of any king-size box of Spic and Span cleaner. The offer itself was the soul of simplicity: Buy one giant-size box of Spic and Span and you can fill a clear plastic container with two free goldfish. The display even had its own net for scooping the little fish out. This promotion was intended to be an example of a _____ strategy.

A) push
B) pull
C) parallel
D) cohort
E) horizontal

Question 50

A(n) _____ is paid to a retailer by a manufacturer for the privilege of obtaining shelf space for a new product.

A) slotting allowance
B) buyback allowance
C) forward buying allowance
D) advertising allowance
E) spiff

Question 51

A government agency would LEAST likely be concerned about which of the following aspects of food product packaging?

A) Expiration dates
B) Ingredient lists
C) All-around safety
D) Size and weight
E) Nutritional facts

Question 52

_____ encompasses the physical appearance of the container and includes design, color, shape, labeling, and materials.

A) Distribution
B) Sales promotion
C) Packaging
D) Network marketing
E) Trade promotion

Question 53

Which of the following is the best marketing communication tool for relationship building?

A) Infomercials
B) Word-of-mouth
C) Personal selling
D) Direct-response marketing
E) Interactive broadcast advertising

Question 54

_____ is a direct inducement offering extra incentives anywhere along the marketing route to enhance the movement or accelerate the product's movement from producer to consumer.

A) Direct selling
B) Direct marketing
C) Sales promotion
D) Public relations
E) Direct-response advertising

Question 55

A marketer can reduce the cost of personal selling by:

A) eliminating the need for database management by relying more on telemarketers.
B) communicating relevant product information before the sales call.
C) providing proof that what the salesperson says is factual.
D) reminding the prospect to close the sale quickly.
E) avoiding trial closes which are ineffective.

Question 56

Personal selling is the most costly way to communicate with prospects because:

A) it is very labor-intensive.
B) sales cannot occur without advertising.
C) it has an inflexible methodology.
D) sales quotas force the salesperson to use unethical means to close a sale.
E) it cannot be integrated easily into a company's marketing communications strategy.

Question 57

A _____ strategy is primarily designed to secure the cooperation of retailers.

A) push
B) pull
C) parallel
D) cohort
E) vertical

Question 58

Which of the following would most likely result from overly aggressive sales promotion?

A) An increase in industry sales and profits
B) Inadequate primary research data
C) Improved levels of brand attitude
D) A price war between competitors
E) Lower costs per transaction

Question 59

Which of the following is the best example of direct-response print advertising?

A) An advertorial about vitamin benefits
B) An SMS with a coupon for a department store
C) The opening Web page for an athletic shoe company
D) A magazine ad for pet food that asks you to call a toll-free number for more information
E) An unsolicited e-mail that asks you to purchase the services of a local lawn care company

Question 60

Barton Beer invited its retailers to celebrate March Madness, the NCAA basketball tournament that occurs every year. Barton Beer provided displays and banners for retailers to use during March, and it encouraged consumers to participate in a Barton Beer March Madness Tournament on the firm's Web site. The purpose of this _____ is to encourage customers to buy Barton Beer.

A) viral marketing program
B) direct marketing activity
C) sales promotion
D) publicity
E) advertorial

Question 61

Which of the following is an example of consumer sales promotion?

A) Spiffs
B) Coupons
C) Buyback allowances
D) Slotting allowances
E) Company conventions

Question 62

For a limited time, a Crest toothbrush is attached to a box of Crest toothpaste for the regular price of the toothpaste. Crest wants to encourage consumers to try the toothbrush. This is an example of a(n):

A) in-pack coupon.
B) self-liquidating premium.
C) on-pack premium.
D) spiff.
E) cents-off promotion.

Question 63

What is the most expensive type of sales promotion?

A) P-O-P displays
B) Rebates
C) Sampling
D) Coupons
E) Premiums

Question 64

_____ are coupons that reach consumers through colorful preprinted newspaper ads.

A) Spiffs
B) Freestanding inserts
C) Convenience cards
D) Premiums
E) Spillages

Question 65

A trade deal is a(n):

A) advertisement placed in trade journals read by marketing intermediaries.
B) reimbursement from a manufacturer to a retailer for advertising a product.
C) payment made by retailers to manufacturers for stocking a product.
D) type of rebate that often accompanies pull strategies.
E) short-term dealer discount on the cost of a product.

Question 66

In the Moose Head Cabin Fever Rescue promotion, beer retailers were sent an inflatable bush plane with a 30-inch wingspan that appeared to be dropping a parachute holding a 12-pack of Moose Head beer. Moose Head probably had to pay a(n) _____ to encourage retailers to use the large promotional material.

A) display allowance
B) buyback allowance
C) placement allowance
D) trade fee
E) inserting allowance

Question 67

The delivery of a free sample of Advil PM, a new pain reliever designed to aid in sleeping, in the same plastic bag as the Atlanta Journal was delivered in is an example of:

A) in-store sampling.
B) premium sampling.
C) polybagging.
D) a tie-in promotion.
E) a spiff.

Question 68

To introduce its new line of sugar-free gum, Britannia distributed free packs of gum to consumers in Chicago grocery stores. Which type of promotion did Britannia employ?

A) Contest
B) Sweepstake
C) Sampling
D) Polybagging
E) Free premium

Question 69

Keisha received a stiff cardboard mailer that contained a free sample of Advil PM, a pain reliever formulated to help people sleep. The mailer also included a certificate for $2 off the purchase of the over-the-counter drug. The manufacturer of Advil PM is most likely using a:

A) rebate.
B) spiff.
C) coupon.
D) trade promotion.
E) P-O-P material.

Question 70

To promote a new Malibu Rum flavor, Pernod Ricard U.S.A. used a promotion called "How Do You Banana Malibu," which encouraged those of legal drinking age to submit video interpretations of the classic song, "Banana Boat," better known as "Day-O," on YouTube.com. The winner of the _____ won $25,000 in cash.

A) game
B) contest
C) sweepstakes
D) lottery
E) reward

Question 71

Which of the following trends has most likely increased the importance of point-of-purchase (P-O-P) materials?

A) Online retailing
B) Self-service retailing
C) Interactive marketing
D) Relationship retailing
E) Customerization

Question 72

If you buy a case of Hanover kidney beans, you can mail eight UPC labels to Hanover and receive a "Kid Bean" stuffed toy. The toy is an example of a:

A) polybag.
B) premium.
C) sample.
D) rebate.
E) combination offer.

Question 73

Chad is a sales representative at Great Electronics, an appliance retailer. Every time Chad sells an HG appliance, he receives $1.00 from HG. HG is most likely using _____ to encourage salespeople to pitch the HG brand over other brands.

A) direct promotions
B) instant rebates
C) spiffs
D) supplementary promotions
E) buyback allowances

Question 74

Adrienne Faith & Co. offered retailers of spas a four-tiered acrylic shelf unit that holds 36 bottles (2.4 ounces each) of spa fragrance or spa crystals. The unit is to be placed on the counter, next to the cash register, and would be an example of a(n):

A) point-of-purchase material.
B) push strategy.
C) retailer spiff.
D) buyback allowance.
E) interactive advertising material.

Question 75

A(n) _____ offers prizes based on entrants' skill whereas a(n) _____ offers prizes based solely on a chance drawing of entrants' names.

A) coupon; in-pack premium
B) in-pack premium; self-liquidating premium
C) coupon; sweepstakes
D) contest; sweepstakes
E) sweepstakes; freestanding insert

Question 76

By mailing in $3.95 and two proofs of purchase from Dannon yogurt, Laura can receive a digital calorie counter. Each counter costs Dannon $3.75 and is most likely an example of a(n):

A) in-pack premium.
B) self-liquidating premium.
C) coupon premium.
D) on-pack premium.
E) sweepstakes.

Question 77

The manufacturer of Advil PM, a new pain reliever formulated to aid people sleep, conducted a _____ in which a winner was selected by a chance drawing of entrants' names. Contestants registered by visiting the Advil PM Web site. Each entrant had the same probability of winning the $10,000 grand prize.

A) game
B) contest
C) sweepstakes
D) lottery
E) reward

Question 78

Procter & Gamble created one of the most outrageous promotions in marketing history. The offer itself was the soul of simplicity: Buy one giant-size box of Spic and Span and you can fill a clear plastic container with two free goldfish. The display even had its own net for scooping the little fish out. The fish were examples of:

A) premiums.
B) display allowances.
C) trade deals.
D) free-standing inserts.
E) advertising specialties.

Question 79

_____ is generally considered the most effective method for generating consumer trial of a new product.

A) Buy-back allowance
B) A rebate award
C) A contest
D) Diverting
E) Sampling

Question 80

Goode Paint is offering hardware stores a one-month deal to purchase its paints at 25 percent off the regular price. Goode hopes retailers will pass along these savings to consumers in the form of specials. Harmon Hardware, a small regional chain, purchases enough paint from Goode to last the chain for the next five months. Harmon Hardware is most likely engaging in:

A) a tying agreement.
B) forward buying.
C) diverting.
D) front loading.
E) backwards buying.