Deck 17: Direct and Online Marketing

Question 1

A measure of website performance that enables a web developer to assess whether referring site payments provide a return on investment is:

A) total audience ratings points.
B) page impressions.
C) click stream analysis.
D) log files.
E) page views.

Answer 1

C

Question 2

Processes implemented by a company to manage customer contact points over time with a view to maximising the relationship benefit are known as:

A) customer relationship management.
B) addressable marketing.
C) contact point marketing.
D) transactional targeting.
E) behavioural targeting.

Answer 2

A

Question 3

A(n) is simply a set of customer names, addresses, and telephone numbers.

A) customer mailing list
B) prospect list
C) customer database
D) Rolodex file
E) electronic market

Answer 3

A

Question 4

It is important to evaluate the effectiveness of sales promotions. Which of the following research methods would NOT normally be used to evaluate a sales promotion?

A) observation methods
B) consumer panels
C) experiments
D) aided recall tests
E) unaided recall tests

Question 5

Glen was thumbing through his wife's Craft magazine when he saw an ad for a musical collectible doll. Since the doll was dressed in green with red hair and played "That's an Irish Lullaby," Glen decided it would be a perfect gift for his wife who was born on St. Patrick's Day. He debated using the reply card that was a part of the ad, but then decided to use the toll- free number to place his order. Glen used to buy his wife's birthday present.

A) direct sales
B) videotext
C) outbound telemarketing
D) online marketing
E) direct- response advertising

Question 6

The act of cross- referencing data about a single individual from multiple sources such as online activity, credit card activity, loyalty scheme activity to build a richer picture of a buyer's purchasing habits is known as:

A) data cross- referencing.
B) spamming.
C) behavioural targeting.
D) market research.
E) purchaser profiling.

Question 7

According to your text, telesales operators can make some per day calls, whereas sales representatives can make some per week.

A) 100; 50
B) 30- 40; 30
C) 120; 60
D) 40- 50; 40
E) none of the above

Question 8

In ideal circumstances, the optimal way to track individual behaviour at a website thereby allowing a true picture of website usage and estimating return on investment is to:

A) use clickstream analysis.
B) use a combination of web- centric and audience- centric measures.
C) use page impressions combined with time spent online measures.
D) use log files.
E) allow only subscribers access to a site.

Question 9

According to research quoted in your text, per cent of teens have at least one social network account.

A) 73
B) 63
C) 95
D) 93
E) 83

Question 10

Which of the following are types of direct marketing?

A) personal selling
B) direct- response advertising
C) telemarketing
D) videotext and interactive TV
E) all of the above

Question 11

When a marketer uses the telephone to call consumers or businesses, this is known as telemarketing.

A) inbound
B) lateral
C) outbound
D) parallel
E) casual

Question 12

Data mining involves searching for patterns or relationships within a database or set of records. Which of the following is NOT one of the relationships that an analyst should look for?

A) associations
B) sequences
C) structures
D) classes
E) clusters

Question 13

Luke D'Apice sells an online dating service. With the aid of a database, he is selecting young, single, professional people in the Sydney area and will offer them a free trial for one month. Luke is using his database to:

A) reactivate customer interest in his service.
B) deepen customer loyalty.
C) make sure that the people contacted are able and willing to buy his service.
D) qualify customers for his service.
E) identify prospects for his dating service.

Question 14

The major difference between telemarketing and telesales is:

A) telemarketing covers a broad range of marketing activities while telesales is primarily an order taking mechanism.
B) telemarketing can be inbound or outbound while telesales is generally outbound.
C) telesales calls are routinely made to existing customers whereas most telemarketing involves cold calls.
D) telemarketing is typically associated with mass media advertising while telesales uses direct media such as the telephone.
E) all of the above

Question 15

Which of the following statements about evaluating database marketing performance is NOT true?

A) Marketers should get away from the use of "average purchases" and instead use individual accounts.
B) Marketers should award points to criteria such as recency of purchase, frequency of purchase and monetary value of purchase to identify worthwhile accounts.
C) Break- even costs and profitability for each customer can and should be calculated for each account.
D) Marketing activities should be directed at those patrons who have made the most frequent purchases.
E) all of the above

Question 16

Which of the following statements about database marketing is true?

A) A customer database simply contains customers' names, addresses and phone numbers.
B) Database marketing is more frequently used by consumer- packaged goods manufacturers than by business- to- business marketers.
C) Service retailers seldom use database marketing.
D) A business- to- business customer database contains the same information as is found in a customer database for sales to ultimate consumers.
E) A marketing organisation can use their database to reactivate customer purchases and for data mining purposes.

Question 17

A company that does not have a physical retail outlet, but sells exclusively over the Internet is popularly known as a _ retailer.

A) click and brick
B) fly by night
C) click only
D) virtual
E) none of the above

Question 18

Approximately per cent of Australian households have broadband access.

A) 73
B) 53
C) 83
D) 63
E) none of the above

Question 19

Direct marketers use three criteria to identify the characteristics of prospects and customers in an effective database. They are:

A) recency, frequency and monetary value of purchase.
B) reach, focus and market share.
C) reach, focus and marketing effort.
D) recency, follow- up and marketing effort.
E) return on investment, follow- up and market share.

Question 20

According to your text, profitable use of a database requires:

A) keeping track of sales using at least three criteria: postcode of purchasers, frequency of purchase and monetary value of purchase.
B) keeping track of sales using at least three criteria: postcode of purchasers, speed in taking up an offer and monetary value of purchase.
C) keeping track of sales using at least three criteria: recency of purchase, frequency of purchase and monetary value of purchase.
D) keeping track of sales using at least three criteria: recency of purchase, speed in taking up an offer and monetary value of purchase.
E) all of the above

Question 21

Your text suggests that telemarketing can be employed to achieve many ends. Might any of the following NOT be an objective in using telemarketing?

A) increase sales to existing customers
B) renew magazine subscriptions
C) ensure payments or subscriptions are paid on time
D) generate new sales leads
E) none of the above

Question 22

Which of the following would NOT be considered to be a form of online purchasing?

A) sending a mail order to Myer Direct via Australia post
B) placing a bet on a horse race using a computer and modem connection to a totalisator agency
C) placing a bet on a horse race via a telephone call to a totalisator agency
D) sending a fax to Myer Direct to order a new mattress
E) all of the above

Question 23

In contrast to vending machines, which dispense only products, many companies are using to dispense information and take orders without direct human aid.

A) kiosks
B) TV monitors
C) cell phones
D) the Internet
E) none of the above

Question 24

If a company places an information and ordering machine in stores, airports, or other locations, it is using a to market its products.

A) home shopping spot
B) kiosk
C) vending machine
D) push cart
E) booth

Question 25

Companies that lack an online presence are likely to miss out on which of the following?

A) increased sales
B) lower information exchanger costs
C) enhanced corporate image
D) opportunties to build and develop customer relationships
E) all of the above

Question 26

Which of the following is NOT one of the benefits of direct marketing (DM) from the customer's perspective?

A) Most DM formats provide prospective purchasers with customised information that is relevant to them
B) DM enables customers to access products at lower costs than via standard retail sales.
C) Many DM formats provide customers with the opportunity to access product- related information at times that are convenient to them.
D) Many FM formats provide more product related information than an advertisement or a sales representative.
E) DM enables access to a wealth of comparative information.

Question 27

The set of steps used to reach the prospect, make the sale and develop the relationship is termed:

A) direct selling.
B) telemarketing.
C) integrated marketing.
D) maximarketing.
E) relationship marketing.

Question 28

Which of the following is NOT a commercial measure of a website's ability to reach and engage with target audiences?

A) Page Views
B) Log files
C) Total Audience Ratings Points
D) Page Impressions
E) Clickstream analysis

Question 29

According to your text, telesales operators:

A) cannot be compared with sales representatives in terms of performance.
B) are more economical to use than sales representatives.
C) are less economical to use than sales representatives.
D) are the only type of salesforce to use.
E) none of the above

Question 30

A company that operates both a physical store and an online sales area is popularly known as a retailer.

A) dual integrated
B) click and brick
C) click only
D) multi- networked
E) none of the above

Question 31

Wikis are BEST defined as:

A) web pages that can be edited by anyone.
B) web pages that can be accessed or edited by anyone.
C) online encyclopedias.
D) web pages that are accessible by anyone.
E) none of the above

Question 32

Which of the following is a major disadvantage of Wikis as a source of marketing information?

A) The accuracy of the information on Wikis is questionable.
B) Wiki content changes regularly as pages are updated.
C) Wikis are difficult for site visitors to navigate.
D) The performance of Wikis is difficult to evaluate.
E) all of the above

Question 33

Customers should have certain perceptions of a catalogue if it is to be successful. Which of the following is NOT one of these perceptions?

A) value for money offerings
B) glossy paper and full colour images
C) unique product offering
D) guarantee of satisfaction
E) an air of authority by the seller

Question 34

Troy Allen works in the marketing department of a company that sells reproduction cast iron money boxes to small retailers. He has been given the task of developing a year- round direct marketing effort for his company. When he explained to his CEO that they need to begin thinking about what information they want in their databases, the CEO said "Oh, we already have that taken care of. We can use the information we have for mailing Christmas catalogues." Allen is talking about a(n) , while his CEO is talking about a(n) .

A) customer database; customer mailing list
B) business- to- business database; bulletin board
C) inbound direct marketing plan; outbound direct marketing plan
D) direct mail effort; direct marketing effort
E) forum; bulletin board

Question 35

Which of the following statements about electronic dispensing machines is FALSE?

A) Dispensing machines are a cost efficient means of delivering products.
B) Out of order machines can be a source of frustration to customers.
C) Dispensing machines are designed to dispense products or provide information.
D) none of the above

Question 36

Kiosk marketing is used for:

A) consumer marketing.
B) consumer and business marketing.
C) industrial marketing.
D) hot foods.
E) business marketing.

Question 37

The primary difference between kiosks and electronic vending machines is that:

A) kiosks do not charge customers for use whereas dispensing machines typically charge a handling fee.
B) kiosks provide information while dispensing machines dispense products and provide information.
C) kiosks are electronically networked whereas electronic vending machines are more likely to be stand- alone units.
D) kiosks do not sell products but enable orders to be placed or payments made.
E) none of the above

Question 38

Australian Direct Marketing Association endorses the following incomplete definition. Direct Marketing is a(n) which uses one or more to effect a(n) at any location. Match the statements below so as to accurately complete the preceding ADMA definition of direct marketing. X = advertising media; Y = measurable response and/or transaction; Z = interactive system of marketing

A) Y; X; Z
B) Z; X; Y
C) Z; Y; X
D) X; Y; Z
E) Y; Z; X

Question 39

According to your text, direct marketers think of order- processing and delivery in terms of:

A) sales levels.
B) fulfilment response.
C) delivery costs.
D) all of the above
E) none of the above

Question 40

The most popular purchases made via the Internet are:

A) exercise equipment and weight loss preparations.
B) clothing, fashion accessories and leathergoods.
C) skincare, fragrances, toiletries and cosmetics.
D) sensitive products such as condoms and Viagra.
E) travel, accommodation, subscriptions and CDs, DVDs.

Question 41

Database marketing is Internet based.

Question 42

Which of the following is NOT one of the principal benefits of direct marketing (DM)?

A) DM provides opportunities for one- on- one interactions, dialogue and relationships.
B) DM can lead to reduced inventory costs.
C) DM facilitates cost effective reach of mass markets.
D) DM facilitiates speedy handling of channel and logistics functions.
E) all of the above

Question 43

Direct- response ads typically provide to make it easier for customers to place an order.

A) an order number
B) pop- ups
C) a mailing address for comments
D) a free number or the web address
E) a hit button to record the number of viewers

Question 44

Direct marketers view order- processing and delivery as a fulfilment response.

Question 45

Mail order giants in the US have discovered that there are three criteria to use: speed of making a purchase, frequency of purchase and monetary value of purchase.

Question 46

Direct marketers and database developers in Australia are required to publish privacy guidelines that disclose the purposes for which they are gathering customer information, and they must be prepared to show individuals the information they hold on them.

Question 47

Kiosks are essentially mini offices.

Question 48

Direct and online marketing has witnessed major growth due to:

A) improvements in postal services.
B) the advent of database technologies.
C) an improving economy.
D) the willingness of consumers to spend more of their disposable income.
E) all of the above

Question 49

The advent of the Internet has changed buyer behaviour. Which of the following statements about consumer use of the Internet is FALSE?

A) Consumers tend to go online and search for information on a narrow range of goods, especially high ticket items.
B) Some 97 per cent of consumers use the Internet to research products and services before they buy.
C) Consumers using the Internet are more actively involved in the purchase decision.
D) The Internet allows consumers to initiate and control the flow of information.
E) The Internet now influences approximately 47 per cent of total retail sales.

Question 50

Telesales involves the use of telephone operators:

A) who send faxes to potential customers.
B) who only handle inbound calls.
C) who call random telephone numbers from the telephone book.
D) who routinely call customers to take their orders.
E) all of the above

Question 51

There are at least four perceptions that must be held by consumers for catalogues to be a successful direct marketing tool-a speedy production system, an air of authority by the seller, value for money offerings, and a guarantee of satisfaction.

Question 52

A measure of web performance that evaluates whether referring site payments provide a return on investment is known as a log file.

Question 53

In spite of its obvious benefits, interactive TV has been slow to penetrate the Australian market.

Question 54

The sending of unwanted or unsolicited email messages is known as:

A) spamming.
B) instrusion.
C) invasion.
D) whamming.
E) all of the above

Question 55

Which of the following statements about telemarketing is true?

A) Telemarketing is used in both consumer marketing and business marketing.
B) Consumer privacy is not an important consideration for telemarketers.
C) Telemarketing will one day eliminate expensive field sales calls.
D) Effective telemarketing depends on the sales script not the individual reading it.
E) All of the above statements about telemarketing are true.

Question 56

Which of the following statements BEST defines direct marketing?

A) another term for telemarketing or telesales
B) any approach that permits customers to place orders by telephone, Internet or post
C) an interactive system of marketing that uses one or more advertising media and results in a measurable response
D) any approach used by an organisation that leads to a sale
E) marketing activities conducted via telephone or over the Internet

Question 57

Telemarketing may:

A) involve both inbound and outbound calls.
B) be used only with TV.
C) be used only with direct mail.
D) be used in conjunction with all media.
E) none of the above

Question 58

Sarah Fortner sells insurance. She has installed a software programme on her company's customer database that will remind her to mail birthday and anniversary cards to her clients. Sarah is using the customer base to:

A) reactivate customer interests in buying insurance.
B) identify prospects for sales calls.
C) qualify potential customers.
D) deepen customer loyalty.
E) create sales leads.

Question 59

Maximarketing calls for the complete development of distribution through the use of single- vehicle, multiple stage campaigns.

Question 60

A major public policy and ethical issue related to direct marketing is:

A) privacy.
B) fraud.
C) deception.
D) irritation and unfairness.
E) none of the above

Question 61

Printed materials sent by mail and conveying offers to consumers are called mail outs.

Question 62

The many different measures of web- site performance can be classified into three types, namely web- centric, audience centric and network- centric.

Question 63

For the consumer, the main advantages of door- to- door selling are convenience and personalised attention.

Question 64

The key difference between telesales and telemarketing is that telesales routinely calls existing customers while telemarketing is primarily based on cold calling.

Question 65

Maximarketing consists of a set of steps designed to reach the prospect, make the sale and develop the relationship.

Question 66

Kiosks are unattended direct marketing tools placed in airports, stores, train stations, and malls that dispense actual products to customers.

Question 67

A measure of web performance that records the number of times a single visitor visits a website is known as page views.

Question 68

Direct marketers often put TV and radio commercials to air that persuasively describe a product and then give a toll- free number for viewers to call and place an order- this is termed telesales.

Question 69

Privacy guidelines are of little impact on database marketing in Australia.

Question 70

Search related advertising now accounts for about 41 per cent of all online advertising expenditures.

Question 71

A major advantage of customer databases is that the customer lifetime value for each customer can be readily monitored.

Question 72

Direct response television is another word for an infomercial.

Question 73

Although niche social network sites have fewer members than Facebook, they provide a better marketing message environment.

Question 74

Telesales involves cold calling new clients.

Question 75

All social network sites are funded, at least in part, from advertising.

Question 76

Many marketers view mobile phones as the next big direct marketing medium.

Question 77

According to research quoted in your text, 73 per cent of teens and 72 per cent of young adults have at least one social network account.

Question 78

Deepening customer loyalty is a feature of database marketing.

Question 79

On average, a field salesperson can make some five to six calls a day, depending on the industry - some 30 calls per week, whereas a telesales operator can call 30 to 40 a day and more.

Question 80

Data mining involves interrogating a database to identify patterns that lead to marketing insights.