Deck 17: Integrating Direct Marketing and Personal Selling

Question 1

One disadvantage of direct marketing is that consumers may become uneasy about the ways in which their personal information is being gathered and used.

Answer 1

True

Question 2

A marketing database represents an organization's collective memory, which allows the organization to make a
personalized offer to the customer.

Answer 2

True

Question 3

Though emerging technologies have created exciting new options for direct marketers, businesses have had direct contact with consumers since the early days of mail-order companies and catalog merchandisers.

Answer 3

True

Question 4

All conventional media such as television, radio, newspapers, and magazines can be used to deliver direct response advertising.

Question 5

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

Question 6

Direct marketers employ mailing lists because they are easy to use and inexpensive.

Question 7

A home decor catalog is trying to use its marketing database to identify and isolate its best customers to determine their decision making and purchasing behavior.A CPO analysis is an excellent tool to help accomplish this.

Question 8

Direct marketing can provide consumers access to a range of products and services right in their own homes, which many customers consider to be a valuable trait nowadays.

Question 9

Streamlined catalogs are a great way to make timely offerings to targeted households in a cost-effective manner.

Question 10

In the context of direct marketing, focusing on a single medium is likely to be more effective than the use of multiple media.

Question 11

Internal mailing lists are created by accessing the organization's own records of its customers, donors, subscribers,
or inquirers.

Question 12

The one word that could be used to summarize the popularity of direct marketing among today's consumers is
convenience.

Question 13

Keeping a date of birth in a customer database allows companies to do something a little special and contact customers on their birthdays.

Question 14

To get more personal data of consumers, companies can use advanced technology to merge offline data, like credit ratings and home value, with online data, like ordinary search activities and Internet navigation.

Question 15

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

Question 16

The difference between a marketing database and a mailing list is that the mailing list also includes information
collected directly from a marketer's own customers.

Question 17

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

Question 18

The most common use of direct marketing is as a tool to close the sale with a customer.

Question 19

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

Question 20

External lists are the starting point for developing better relations with current customers.

Question 21

A marketing manager for a company that packages vacations to exotic locations uses a variety of media to promote these trips; including upscale magazines, 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 for their results.
C)make the program more effective than the sum of their parts.
D)eliminate the need to tailor specific messages to specific audiences.

Question 22

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

Question 23

Which of the following is the primary reason for direct marketing to grow in popularity?

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

Question 24

Which of the following is true of building customer relationship 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)Closing the sale comes first, followed by commitment to customer satisfaction.
D)Customers are willing to pay for catalogs if given the proper incentive.

Question 25

The most complex and demanding type of creative selling is seen in telemarketing efforts directed toward consumers at home.

Question 26

If a company is looking for the lowest cost-per-contact, it should choose telemarketing.

Question 27

Which of the following are the 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 28

Perhaps the least controversial tool deployed recently by direct marketers has been the unsolicited email message, also called bulk email.

Question 29

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)get a measurable response or transaction at any location.

Question 30

The missionary salesperson is required to handle the hardest part of selling which is closing the sale.

Question 31

Creative selling involves answering questions and providing basic benefits of the goods being offered, but it rarely requires communicating large amounts of information or advice.

Question 32

Direct mail is probably the direct marketer's most invasive tool, and as such must be used with discretion so as not to alienate customers.

Question 33

There two types of personal selling are order taking and creative selling.

Question 34

The job of a marcom manager is to provide technical assistance by ensuring that the IT department is functioning efficiently.

Question 35

Infomercials that use celebrity testimonials have a definite advantage over those featuring ordinary people, though this adds significantly to overall cost.

Question 36

Which of the following should be a key goal of direct marketing in for-profit businesses and not-for-profit organizations?

A)To build a widespread mail-order operation
B)To create an image for the brand
C)To integrate the program with all other advertising efforts
D)To reach customers across the board rather than consumers in specific markets

Question 37

Customer relationship management, or CRM, involves cultivating long-term relationships with customers.

Question 38

The development of a marketing database commonly leads to interdepartmental rivalries and can create major conflicts between a company and its advertising agency.

Question 39

Order taking involves accepting orders for merchandise or scheduling services.It also requires answering basic questions, and communicating effectively so that a quality relationship with the customer is established and maintained.

Question 40

Failure to get the consumer dialogue right in the personal selling part of the direct marketing process can be easily rectified by accelerating and stressing on the other direct marketing efforts of a business.

Question 41

A nationwide restaurant chain is considering the use of a direct mail piece to reach potential customers.Managers of the company should realize that two disadvantages related to this tactic are: the high cost per contact, and the:

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

Question 42

Which of the following is the main factor that has contributed to the popularity of direct marketing with consumers?

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

Question 43

A busy mother of four is concerned with issues of privacy, and doesn't want her family phone number on mailing lists.Which of the following should she consider?

A)Be aware of legislation that limit businesses' access to personal information
B)Sign up for the Direct Marketing Association's opt­out program
C)Contact the FTC's Do Not Call Registry
D)Call the state Better Business Bureau

Question 44

Marketing databases can be expanded by adding in which a person resides.

A)demographic
B)psychographic
C)telegraphic _{d. geo-demographic}
Data, which reveals the characteristics of the neighborhood

Question 45

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 46

Which of the following forms of direct marketing is currently considered to be most controversial?

A)Direct mail
B)Telemarketing
C)Bulk email
D)Infomercial

Question 47

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)Customers should be offered something they value.

Question 48

One characteristic of direct marketing that distinguishes it from other tactics 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 49

Which of the following direct marketing mediums currently have the highest response rate?

A)Telemarketing
B)Infomercial
C)Direct mail
D)Advertorial

Question 50

A suburban country club contacts each member who holds a golf membership to enquire if they would also be interested to purchase a pool membership for the entire family.The country club personnel are using their marketing database for .

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

Question 51

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

A)was reached with any kind of advertising message.
B)was reached through a direct marketing medium.
C)bought a product from the company.
D)bought a product from a certain product category.

Question 52

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 53

Xercise1, a nationwide fitness center chain, interviews its customers to determine their wants and needs regarding their local center's services, classes, equipment, facilities, business hours, etc.The marketers at Xercise1 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 54

Sarah's phone rings one evening at dinnertime.A man says he's calling from a nationwide magazine subscription service; and wants to know about Sarah's hobbies and interests, and her reading preferences.He proceeds to tell Sarah about a special deal if she orders three magazines.This type of telemarketing will most likely:

A)provide no information about the company.
B)annoy consumers and alienate them from the company.
C)create a favorable image of the company.
D)promote the company in an cost-effective manner.

Question 55

An emphasis on producing measurable effects is one of the noted appeals of direct marketing.In evaluating direct marketing programs, which of the following are frequently used parameters?

A)Cost per contact 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 56

Which of the following is the largest concern for consumers regarding direct marketing?

A)Telemarketing
B)Invasion of privacy
C)Increased junk mail
D)Credit card debt

Question 57

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 58

Cross-selling involves marketing:

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

Question 59

Which of the following is one of the basic elements of any frequency-marketing program?

A)An internal mailing list
B)A benefit package
C)An external mailing list
D)A salesperson

Question 60

The 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)timing and delivery.

Question 61

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

Question 62

A nationally distributed fashion magazine regularly acts as a vehicle for direct marketing.This occurs when companies use the magazine to promote their products or services by:

A)having feature stories about products published in the magazine.
B)sending press releases to the magazine.
C)getting free publicity in advice columns of the magazine.
D)paying for bind-in insert cards in the magazine.

Question 63

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 64

Scenario 17-3
As the number of firms utilizing direct marketing continues to grow, so does the number of consumers opposed to the methods often described as "intrusive." To combat the growing number of opposed consumers, marketers need to find creative new ways to optimize their direct marketing campaigns.One such outlet that firms are beginning to experiment with is social media.Executives understand that many consumers view a company's Facebook page more often than the company's home page, so they've grown to realize that setting up some form of an email opt­in on social media sites is a great way to build marketing databases.In addition to opt-in sections, social media allows businesses to interact with consumers, which may make them less inclined to respond negatively to a company's direct marketing efforts.By utilizing social media more often in the future, a number of U.S.companies hope to build stronger and more useful marketing databases.
(Scenario 17-3) Building a marketing database can be helpful because it allows companies to gauge how receptive customers may be to new products or product features.One way of isolating a company's best customers is by utilizing:

A)a recency, frequency, and monetary analysis.
B)a frequency marketing program.
C)cross-selling techniques.
D)direct response advertising.

Question 65

Personal selling is:

A)the process of face-to-face communication and persuasion.
B)virtually, the only way to close the deal.
C)easier to conduct than any other marketing function.
D)the most controversial form of direct marketing.

Question 66

Scenario 17-1
If you walk into a Cracker Barrel Old Country Store, you'll see many items once found in general stores, like
porcelain signs, ceramic jugs, tin boxes, and Coca-Cola trays and plaques.Since 2004, Coca-Cola Co.has maintained a larger display of unique Coca-Cola memorabilia at the Cracker Barrel in Nashville, right next to the Opryland Hotel.Visitors will find a number of rare holiday paintings, prints, and calendars featuring the familiar Santa Claus figure and a bottle of Coke.In 1931, the company had commissioned professional illustrator Haddon Sundblom to create illustrations for its advertising.This resulted in the warm and jolly image of Santa that has endured in American culture ever since.The soft drink has been served in Cracker Barrel stores for 40 years, so this is a natural connection for both brands.In fact, for its 40th anniversary in 2009, Cracker Barrel featured Black Cherry Coke in limited-edition glasses bearing logos of both brands.
HYPERLINK http://www.crackerbarrel.com/about-decor.cfm?doc_id=51 (http://www.crackerbarrel.com/about-decor.cfm?doc_id=51.Accessed January 17, 2011.)
(original press release by Jim Taylor, "Rare Coca­Cola^® Holiday Artwork on Display at Cracker Barrel Old
Country Store^®," HYPERLINK http://www.crackerbarrel.com/mediaroom http://www.crackerbarrel.com/mediaroom­newsreleases, November 15, 2004.)
(Scenario 17-1) If Coca-Cola employed someone to call on frequent buyers of its memorabilia to guarantee their satisfaction and update their needs; but not necessarily to pitch new products or close another sale, this employee would be considered as a(n):

A)order taker.
B)missionary salesperson.
C)system solutions person.
D)creative salesperson.

Question 67

Scenario 17-2
AmericanProfile 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, AmericanProfile 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 17-2) One of the magazine publishers that AmericanProfile has studied about, collects data at its website about readers of its health and fitness columns.The publisher uses direct mail to try and get these readers to subscribe to another one of its publications.This one focuses on nutrition.This publisher is involved in .

A)missionary selling
B)creative selling
C)system selling
D)cross-selling

Question 68

Scenario 17-1
If you walk into a Cracker Barrel Old Country Store, you'll see many items once found in general stores, like
porcelain signs, ceramic jugs, tin boxes, and Coca-Cola trays and plaques.Since 2004, Coca-Cola Co.has maintained a larger display of unique Coca-Cola memorabilia at the Cracker Barrel in Nashville, right next to the Opryland Hotel.Visitors will find a number of rare holiday paintings, prints, and calendars featuring the familiar Santa Claus figure and a bottle of Coke.In 1931, the company had commissioned professional illustrator Haddon Sundblom to create illustrations for its advertising.This resulted in the warm and jolly image of Santa that has endured in American culture ever since.The soft drink has been served in Cracker Barrel stores for 40 years, so this is a natural connection for both brands.In fact, for its 40th anniversary in 2009, Cracker Barrel featured Black Cherry Coke in limited-edition glasses bearing logos of both brands.
HYPERLINK http://www.crackerbarrel.com/about-decor.cfm?doc_id=51 (http://www.crackerbarrel.com/about-decor.cfm?doc_id=51.Accessed January 17, 2011.)
(original press release by Jim Taylor, "Rare Coca­Cola^® Holiday Artwork on Display at Cracker Barrel Old
Country Store^®," HYPERLINK http://www.crackerbarrel.com/mediaroom http://www.crackerbarrel.com/mediaroom­newsreleases, November 15, 2004.)
(Scenario 17-1) The marketers of Coca Cola collectibles offer their most loyal customers a program in which they are allowed to preview and purchase limited-edition items one month before the general public is informed of the sale.This assures key customers that they won't miss out on a valued collectible due to unusually high demand.This is an example of:

A)an effective use of external lists.
B)a CPO program.
C)a frequency-marketing program.
D)marcom management.

Question 69

Scenario 17-1
If you walk into a Cracker Barrel Old Country Store, you'll see many items once found in general stores, like
porcelain signs, ceramic jugs, tin boxes, and Coca-Cola trays and plaques.Since 2004, Coca-Cola Co.has maintained a larger display of unique Coca-Cola memorabilia at the Cracker Barrel in Nashville, right next to the Opryland Hotel.Visitors will find a number of rare holiday paintings, prints, and calendars featuring the familiar Santa Claus figure and a bottle of Coke.In 1931, the company had commissioned professional illustrator Haddon Sundblom to create illustrations for its advertising.This resulted in the warm and jolly image of Santa that has endured in American culture ever since.The soft drink has been served in Cracker Barrel stores for 40 years, so this is a natural connection for both brands.In fact, for its 40th anniversary in 2009, Cracker Barrel featured Black Cherry Coke in limited-edition glasses bearing logos of both brands.
HYPERLINK http://www.crackerbarrel.com/about-decor.cfm?doc_id=51 (http://www.crackerbarrel.com/about-decor.cfm?doc_id=51.Accessed January 17, 2011.)
(original press release by Jim Taylor, "Rare Coca­Cola^® Holiday Artwork on Display at Cracker Barrel Old
Country Store^®," HYPERLINK http://www.crackerbarrel.com/mediaroom http://www.crackerbarrel.com/mediaroom­newsreleases, November 15, 2004.)
(Scenario 17-1) When consumers drop their business cards into a fishbowl at a Cracker Barrel store, they are entering a contest.However, in essence, the marketers at Cracker Barrel may see this move as a(n):

A)opt-in for bulk email and other promotions.
B)form of direct response advertising.
C)way to promote system solutions.
D)way to foster creative selling.

Question 70

A marketer wonders why salespeople no longer simply approach their prospects with the direct intention of making a sale.Instead, they spend time analyzing all the possible needs and desires of the prospects.The marketer realizes that, today, salespeople are expected to:

A)be problem solvers who work in partnership with customers.
B)be technical experts with experience in database management and analysis.
C)take orders only after confirming the appropriateness of each sale.
D)understand the operations and output of several departments.

Question 71

The role of a marcom manager 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 and oversee the functional specialists.

Question 72

Scenario 17-2
AmericanProfile 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, AmericanProfile 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 17-2) AmericanProfile has adopted marketing techniques at a well-known pet magazine that is aware that casual visitors are often reluctant to provide personal information.The pet magazine has a full page on its website dedicated to privacy concerns.The magazine pledges to deal with these issues by:

A)abstaining from sharing their information with third parties without permission.
B)making the site appear independent from commercial sponsors.
C)having creative salespeople call visitors and ask about such concerns.
D)enhancing the final mailing list with nothing more than demographic data.

Question 73

Scenario 17-2
AmericanProfile 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, AmericanProfile 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 17-2) Like many firms, AmericanProfile uses an RFM analysis to identify certain groups of high-profile customers and analyze their habits across three criteria.RFM stands for:

A)record, format, momentum.
B)recency, frequency, monetary.
C)reach, function, marketing.
D)returns, files, mailings.

Question 74

Scenario 17-2
AmericanProfile 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, AmericanProfile 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 17-2) The whole idea behind promoting AmericanProfile 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 75

Scenario 17-2
AmericanProfile 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, AmericanProfile 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 17-2) AmericanProfile 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 76

Scenario 17-1
If you walk into a Cracker Barrel Old Country Store, you'll see many items once found in general stores, like
porcelain signs, ceramic jugs, tin boxes, and Coca-Cola trays and plaques.Since 2004, Coca-Cola Co.has maintained a larger display of unique Coca-Cola memorabilia at the Cracker Barrel in Nashville, right next to the Opryland Hotel.Visitors will find a number of rare holiday paintings, prints, and calendars featuring the familiar Santa Claus figure and a bottle of Coke.In 1931, the company had commissioned professional illustrator Haddon Sundblom to create illustrations for its advertising.This resulted in the warm and jolly image of Santa that has endured in American culture ever since.The soft drink has been served in Cracker Barrel stores for 40 years, so this is a natural connection for both brands.In fact, for its 40th anniversary in 2009, Cracker Barrel featured Black Cherry Coke in limited-edition glasses bearing logos of both brands.
HYPERLINK http://www.crackerbarrel.com/about-decor.cfm?doc_id=51 (http://www.crackerbarrel.com/about-decor.cfm?doc_id=51.Accessed January 17, 2011.)
(original press release by Jim Taylor, "Rare Coca­Cola^® Holiday Artwork on Display at Cracker Barrel Old
Country Store^®," HYPERLINK http://www.crackerbarrel.com/mediaroom http://www.crackerbarrel.com/mediaroom­newsreleases, November 15, 2004.)
(Scenario 17-1) Cracker Barrel stores feature a big fishbowl inviting visitors to leave a business card and announcing a monthly drawing for free memorabilia from both brands.The prizes are delivered to the home addresses of those whose cards are drawn.What are Cracker Barrel and Coca Cola attempting to do with this fishbowl activity?

A)Develop a mailing list
B)Promote brand loyalty
C)Cross-selling
D)Conduct personal selling

Question 77

Infomercials were made possible by:

A)the advent of video cameras in mobile marketing.
B)increasingly gullible consumers.
C)less expensive ad space on satellite and cable systems.
D)relaxed network standards for television programs.

Question 78

Verdure Systems, an electronics company, sells a finance and payroll application to a corporate buyer.In addition to the software; Verdure offers 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.In this way, Verdure manages to eliminate the buyer's worries related to the software package.In this scenario, Verdure is involved in .

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

Question 79

A company wants to sell a window cleaning kit in a 30-minute infomercial.Which of the following would an experienced public relations specialist suggest to the company?

A)Wait till the end of the informercial to provide contact information in order to make a climax.
B)Repeat the phone number and website throughout the broadcast.
C)Spend adequate money and hire a celebrity to attest the effectiveness of the kit.
D)Avoid using consumer testimonials.

Question 80

A fast-growing frozen yogurt chain discovers the need to create a proper advertising message that will result in increased sales.In order to do this, it needs to coordinate all of its communications programs with all of its specialists' efforts.At this point in its growth, the company would be wise to hire a .

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