Deck 16: Direct Marketing

Question 1

To segment and target their audiences, direct marketers use a , a listing of customers and/or potential customers.

A) database
B) cross/sell technique
C) catalogue
D) CRM

Answer 1

A

Question 2

Which of the following statements about direct marketing is NOT true?

A) Direct marketing can generate trial among prospects.
B) Direct marketing is especially useful to target current customers.
C) Direct marketing is only used when the identity of the receiver is known.
D) Direct marketing is effective in targeting competitors' customers.

Answer 2

C

Question 3

When databases are used to identify the most relevant profile variables to ensure the highest response rate possible among unknown receivers, the marketer is most likely going to:

A) send unaddressed direct mail
B) use sweeps marketing
C) consult an in-house list
D) send to previous responders

Answer 3

A

Question 4

When she subscribed to a cooking magazine, Betty 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) an unethical business practice
B) renewal marketing
C) cross-selling
D) remarketing

Question 5

The aim of is to establish and maintain a relationship with one's customers through personalized communication and customized product/service offerings.

A) customer relationship management
B) customer relationship marketing
C) transactional marketing
D) customized business relationships

Question 6

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

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

Question 7

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

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

Question 8

With databases containing current customer purchase history, the direct marketer can attempt to influence all of the following EXCEPT:

A) the timing and amount of the next purchase
B) the rate of purchase
C) the customer's decision to forward a message to a friend or colleague
D) repeat consumption or visits

Question 9

Information on Canada's privacy legislation that places limitations on what marketers can do with information stored in their databases can be found at:

A) HYPERLINK "http://www.canadaleg.gc.ca/" www.canadaleg.gc.ca
B) HYPERLINK "http://www.promotions.gc.ca/" www.promotions.gc.ca
C) HYPERLINK "http://www.privcom.gc.ca/" www.privcom.gc.ca
D) HYPERLINK "http://www.canadaprivacy.gc.ca/" www.canadaprivacy.gc.ca

Question 10

Databases are used in all of these ways EXCEPT:

A) to assist in the stimulation of repeat purchases
B) with CRM programs
C) to improve the selection of market segments
D) to pre-determine purchase intention

Question 11

Information about consumers with precise purchase patterns can be sourced through:

A) loyalty programs
B) broadcast advertising
C) consumer promotions
D) public relations

Question 12

Database marketing is criticized because it is:

A) an invasion of privacy
B) unmonitored and uncontrolled by any internal or external forces
C) really unnecessary if the advertiser has properly targeted their marketing efforts
D) still a largely unsophisticated process

Question 13

When Melissa purchased a Maytag dryer, she was given a warranty card to fill out and return to the manufacturer. The warranty card serves two purposes. The first is to protect the consumer in case the dryer operates faultily within the first year of ownership. The
Second purpose is to:

A) provide information for Statistics Canada
B) establish a two-step marketing relationship between Maytag and Melissa
C) create a database for Maytag
D) There is no second purpose; the warranty is simply a service offered by Maytag.

Question 14

The interactive use of advertising media to stimulate an immediate behaviour modification is called:

A) consumer marketing
B) direct marketing
C) database marketing
D) telemarketing

Question 15

The growth of electronic communication has given marketers the ability to capture:

A) private information not previously available
B) monetary transactions between the consumer and the marketer
C) consumers' email addresses and social media identification
D) hackers and spammers

Question 16

CRM stands for:

A) customer relationship management
B) customized relationship marketing
C) customer relationship marketing
D) Canadian relations management

Question 17

An RFM scoring method is often used to measure the effectiveness of a database. RFM stands for:

A) rough, fine-tuned, maximized database updates
B) recent, fortnightly, monthly transactional data compiled
C) recency, frequency, and monetary transactions between the company and the customer
D) rebates, free premiums, and multiple purchases engaged in by the consumer

Question 18

What do Statistics Canada, Canada Post, Info Canada, and The Canadian Marketing Association all have in common?

A) They are all government agencies.
B) They are all sources of information for direct-marketing databases.
C) They all have loyalty programs.
D) They are all marketing research houses.

Question 19

Direct marketing:

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

Question 20

Which of the following is NOT an example of direct response media?

A) telemarketing
B) Internet
C) interior transit boards
D) direct mail

Question 21

In direct response advertising, the "direct response" sought is:

A) attitude change
B) awareness
C) return on investment (ROI)
D) sales

Question 22

A typical objective for direct marketing is a response rate of:

A) 25 percent
B) 10 percent
C) 2 to 3 percent
D) the same as the response for an in-store coupon

Question 23

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

A) the one-step approach
B) Canada Post's data on direct marketing purchasers
C) direct mail rather than telemarketing
D) the two-step approach

Question 24

Which of the following is NOT true about direct-response TV?

A) Infomercials range from 3 to 60 minutes.
B) It encompasses direct-response TV spots, infomercials, and home shopping shows.
C) The process is always one-step; the consumer sees the product she likes and calls a 1-800 number to order.
D) The television spots are also referred to as short-term programs.

Question 25

All of the following statements about direct e-mail are true EXCEPT:

A) It is difficult to finely target the recipients.
B) Permission-based e-mail is essentially the opposite of spam.
C) It is basically an electronic version of regular mail.
D) Consumers can opt to have specific types of e-mail sent to them.

Question 26

In a study comparing the communication effects of a one-minute ad, a 15-minute infomercial, a 30-minute infomercial, and a direct interactive experience with the product, researchers found:

A) Because television is such a passive medium, respondents suggested that an infomercial's message tended to get lost in the "noise".
B) Specific targeting was not available with infomercials; hence they were much less effective than television advertising.
C) Infomercials provided a similar cognitive and emotional experience as a direct interaction with the brand.
D) Infomercials were deemed to be too long and one-minute ads provided the best results.

Question 27

Which of the following is NOT a finding of Canada Post research about direct mail?

A) Consumers are curious to find out what is in their mailbox.
B) A high percentage of consumers read their mail the same day they receive it.
C) Direct mail ads have a short life span in the home.
D) Direct mail messages contribute to ad recall.

Question 28

A successful direct mail program relies on:

A) a higher level of marketing dollars than a print campaign
B) the recreation of the in-store experience in order to fully engage the consumer
C) a database which may be a purchased mailing list from an external source
D) the use of an external specialty agency for the development and execution of the program

Question 29

Which of the following statements about direct e-mail is true?

A) The majority of research respondents suggest that branded content makes no impact on whether they forward a message.
B) The chance of a consumer passing along a commercial message using email is quite high.
C) Today's marketers use permission-based email instead of having to maintain a comprehensive website.
D) Studies show that the use of direct mail via e-mail messages has no corresponding effect on visits to the retail location of the sender.

Question 30

The two-step approach to direct marketing:

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

Question 31

Cookware, music CDs, and exercise videos are being advertised on television for purchase by calling 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) the one-step approach
B) telemarketing
C) the two-step approach
D) support marketing

Question 32

Which of the following statements about catalogues is NOT true?

A) In some instances in the consumer market, the catalogue merchandise is available in retail stores as well.
B) Catalogues are now available on the Internet for both consumers and business-to-business customers.
C) Most catalogue companies now operate only in physical retail locations.
D) In some instances in the consumer market, the catalogue and retail divisions are treated as separate entities.

Question 33

Which effectiveness measure is most commonly employed in direct marketing?

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

Question 34

Which of the following statements about infomercials is NOT true?

A) Studies indicate that infomercials get watched and sell products.
B) It is possible to target specific audiences at a low cost via specialty channels.
C) Infomercials are mandated to fill a 30 minute time slot.
D) Infomercials are popular with small firms, but large firms are beginning to use them as well.

Question 35

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

A) cost per thousand (CPM)
B) net sales
C) breakeven point
D) cost per order (CPO)

Question 36

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 of the ________ direct marketing approach.

A) one-step
B) secondary
C) two-step
D) primary

Question 37

Which off the following is NOT related to telemarketing?

A) negotiated purchase of broadcast time
B) inbound and outbound calling
C) potential for fraud and deception
D) call centre management

Question 38

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

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

Question 39

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

A) a magazine subscription service that sends an announcement of a forthcoming contest
B) a company asking if a household is interested in an estimate for a new pool
C) The Shopping Channel
D) an ad advising television viewers to watch their mailboxes for a way to earn free calling cards

Question 40

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

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

Question 41

Shoppers Drug Mart gives customers Optimum cards, which allow customers to take advantage of additional discounts on certain products and to be notified of special, customer-only sales. In addition, customers can accrue points each time they present their cards. These points can be used to purchase goods. Shoppers is using a:

A) self-liquidating promotion
B) bonus program
C) loyalty program
D) customer rewards contest

Question 42

All of the following are advantages of direct marketing EXCEPT:

A) image factors
B) creative flexibility
C) ability to personalize
D) segmentation capabilities

Question 43

Every time Beth buys a book at Chapters, she presents her Chapters card, and the sales associate enters her purchase in a database. When she has purchased five books at regular price, she is sent a coupon for a free book to be picked out on her next visit to the store. This is an example of a:

A) bonus program
B) loyalty program
C) subsidized program
D) customer rewards contest

Question 44

On average, each Canadian is a member of about loyalty programs.

A) four
B) eleven
C) seven
D) twenty

Question 45

are a way of encouraging consumers to buy a company's products or services on a continual basis and to develop strong long-term relationships.

A) Sweepstakes and contests
B) Loyalty programs
C) Interactive websites
D) Refunds and rebates

Question 46

When the University of Western Ontario calls its alumni and asks them to make contributions to pay for the remodelling of Alumni House, it is an example of the combining of direct marketing with:

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

Question 47

Direct marketing lets the advertiser reach a large number of people and reduces or eliminates waste coverage through its strength of:

A) target audience coverage.
B) segmentation capabilities.
C) flexibility.
D) frequency.

Question 48

The National Post calls its subscribers to tell them of a contest that they can enter to win a trip to Bermuda. This is an example of the combining of direct marketing with:

A) advertising
B) personal selling
C) public relations
D) sales promotion

Question 49

Which of the following describes a disadvantage associated with direct marketing?

A) poor media image
B) inability to measure effectiveness
C) high costs
D) lack of creative flexibility

Question 50

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

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

Question 51

This phenomenon describes when consumers earn points and then realize they are close to achieving a reward level, so they make additional purchases to achieve it:

A) the points-pressure mechanism
B) the last-minute accelerator mechanism
C) the rewarded-behaviour mechanism
D) the personalized marketing mechanism

Question 52

A press conference called by the Maritime Museum of the Atlantic 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 Halifax County and the neighbouring 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) personal selling
B) advertising
C) consumer promotion
D) public relations

Question 53

Loyalty programs achieve each of the following objectives EXCEPT:

A) They assist in creating strong consumer relationships and loyalty.
B) They encourage consumers to use their products or services on a continual basis.
C) They help increase the dollar amount of goods purchased by light and medium users.
D) They preclude members from purchasing any other competitive brand.

Question 54

Air Miles currently offers consumers the option of using points collected as cash when making purchases at a point of sale:

A) because forcing the collection of points in order to achieve non-monetary rewards did not effectively build brand equity among the partners.
B) in order to enhance the rewarded-behaviour mechanism.
C) because some of the partners would rather give out cash than merchandise.
D) in order to lessen the time delay associated with collecting points for big-ticket items.

Question 55

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

A) difficulty in measuring effectiveness
B) limited segmentation capabilities
C) high overall costs relative to sales
D) less planning time required as compared to other forms of media use

Question 56

Functional satisfaction with loyalty programs is strongly associated with each of the following EXCEPT:

A) proximity of the store to the consumer's home
B) amount of reward "points" accumulated per $1 spent
C) ability to reach desired reward levels in a timely manner
D) appeal of the rewards or benefits

Question 57

No other advertising medium can personalize the message as well as:

A) newspapers
B) television
C) direct mail
D) magazines

Question 58

Disadvantages inherent in the use of direct marketing include:

A) audience exerts control for selective exposure
B) difficulty in obtaining effectiveness measurements
C) difficulty in acquiring TV time
D) lack of flexibility