Question 1

Organic Designs is a small, successful chain of stores offering stylish clothes made of all-organic materials for infants, toddlers, and young children. Most of the Organic Designs stores are located in urban areas. Now Organic Designs is considering using direct marketing to reach potential customers who live outside of the company's existing markets, with the goal of engaging attention and creating long-term relationships with a new group of customers. Which of the following methods of direct marketing would most likely be effective in accomplishing this goal?
A)telemarketing
B)print direct-response advertising
C)catalogs
D)opt-out marketing
E)bulk e-mailing

Accepted Answer

Catalogs would be the most effective method of direct marketing for Organic Designs because they allow for a detailed representation of the company's merchandise, which is crucial for potential customers who have not yet seen or felt the organic materials used in the clothing. Catalogs also have a longer shelf life than other marketing materials, meaning they can continue to generate interest and customer leads over a longer period of time. Telemarketing, print direct-response advertising, opt-out marketing, and bulk e-mailing are less effective for Organic Designs because they either do not allow for detailed product representation, are more likely to be seen as unwanted intrusion, or are too impersonal for a small, high-end retailer like Organic Designs.

Question 2

Explain what spam is.

Accepted Answer

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Question 3

Infomercials have been around since the emergence of the cable industry in the 1980s and have become a multibillion-dollar industry. Explain what an infomercial is and why, today, it is viewed as a viable medium.

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Question 4

Refer to the passage below to answer the questions that follow.
Solumbria, a company that sells medically recommended sun protective clothing, has ads in several different magazines that give consumers information about their products. The headline of the ad says "Serious Sun Protection" surprinted over a man and a woman dressed head to toe in the protective clothing. The body copy then goes on to tout the benefits of sun protection, the comfort of the company's clothing, and how dermatologists have recommended Solumbria for their patients. The last paragraph of the copy says "For a FREE catalog of Solumbria hats, shirts, pants and accessories for men, women and children, call Sun Precautions: 1-800-882-7860." The ad also provides a web address.
-What type of offer does this ad represent?
A)one-step
B)two-step
C)primary
D)secondary
E)indirect

Accepted Answer

The ad provides information about the benefits of Solumbria's sun protective clothing but does not ask consumers to make an immediate purchase. Instead, it provides a phone number and web address for consumers to request a free catalog, which is a two-step offer.

Question 5

Gutter Guys is a gutter installation company in Southern California that used to generate most of its sales through telemarketing but now uses direct mail to reach prospective customers. Which of the following most likely explains the reason that Gutter Guys switched from telemarketing to direct mail?
A)the CAN-SPAM Act
B)the Telemarketing Sales Rule
C)the Register of Known Spam Operations
D)the Mail Preference Service
E)the national Do Not Call Registry

Accepted Answer

Gutter Guys most likely switched from telemarketing to direct mail because of the national Do Not Call Registry, which allows consumers to opt out of receiving telemarketing calls. Direct mail is a way to reach potential customers without violating their preferences.

Question 6

Gianna is a skeptical consumer whose motto is "I'll believe it works when I see that it works." Which of the following would be the most effective form of direct marketing for a marketer to use to reach Gianna and customers like her?
A)infomercials
B)catalogs
C)direct mail
D)telemarketing
E)data mining

Accepted Answer

Infomercials are the most effective form of direct marketing for reaching skeptical consumers like Gianna because they demonstrate how a product works, allowing consumers to see the product in action before making a purchase decision.

Question 7

Converges is a nationwide call center operator and has several call centers in college towns. They are recruiting on campus, and your roommate is interested because the pay is pretty good and the hours are flexible. However, she doesn't know much about telemarketing, so she asked you about it because you are taking this class. Briefly describe the two types of telemarketing.

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Question 8

Refer to the passage below to answer the questions that follow.
Solumbria, a company that sells medically recommended sun protective clothing, has ads in several different magazines that give consumers information about their products. The headline of the ad says "Serious Sun Protection" surprinted over a man and a woman dressed head to toe in the protective clothing. The body copy then goes on to tout the benefits of sun protection, the comfort of the company's clothing, and how dermatologists have recommended Solumbria for their patients. The last paragraph of the copy says "For a FREE catalog of Solumbria hats, shirts, pants and accessories for men, women and children, call Sun Precautions: 1-800-882-7860." The ad also provides a web address.
-Which of the following best describes the type of advertising described in this scenario?
A)retail advertising
B)indirect advertising
C)directory advertising
D)direct-response advertising
E)direct-to-consumer advertising

Accepted Answer

The advertisement described in the scenario is direct-response advertising because it provides a specific call to action for consumers to request a free catalog by phone or through the company's website.

Question 9

Adams Cutlery has always relied upon advertising to market its products to final customers. However, the marketing team at Adams Cutlery now wants to begin a direct marketing campaign consisting of a company Web site, e-mails to current customers, and an online catalog. Which of the following would the marketing team expect to gain as a result of implementing this direct marketing plan?
A)the ability to increase the range of products the company offers
B)a wealth of information about competitors and their products
C)more control over customers' interactions with the company
D)the ability to learn more about their customers and tailor offerings to fit their needs
E)a lower cost-per-contact that could prove to be more cost effective than advertising in mass media

Accepted Answer

Implementing a direct marketing plan consisting of a company Web site, e-mails, and an online catalog would allow the marketing team at Adams Cutlery to learn more about their customers and tailor offerings to fit their needs. Direct marketing provides the opportunity to collect data on customer preferences and behavior, which can be used to personalize future marketing efforts.

Question 10

Refer to the passage below to answer the questions that follow.
Solumbria, a company that sells medically recommended sun protective clothing, has ads in several different magazines that give consumers information about their products. The headline of the ad says "Serious Sun Protection" surprinted over a man and a woman dressed head to toe in the protective clothing. The body copy then goes on to tout the benefits of sun protection, the comfort of the company's clothing, and how dermatologists have recommended Solumbria for their patients. The last paragraph of the copy says "For a FREE catalog of Solumbria hats, shirts, pants and accessories for men, women and children, call Sun Precautions: 1-800-882-7860." The ad also provides a web address.
-Which of the direct marketing objectives does this scenario illustrate?
A)lead generation
B)strengthen customer relationships
C)test offers
D)follow-up
E)enhance attitudes

Accepted Answer

The ad is encouraging consumers to call and request a free catalog, which will generate leads for the company.

Question 11

Explain how direct marketing professionals are able to continually evaluate and accurately measure the effectiveness of various offers in a single campaign.

Accepted Answer

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Question 12

P&G has developed and purchased huge databases and has more than 30 million consumers in its current database. P&G routinely mines the information in the database to uncover potential buyers whose characteristics match those of their current customers for a given product and brand. What technique is P&G using?
A)skimming
B)searching
C)prospecting
D)relationship marketing
E)converting

Accepted Answer

P&G is using prospecting to uncover potential buyers who are similar to their current customers for a given product and brand.

Question 13

Some advertising students are visiting your agency on a field trip and have asked you to provide some guidance on creating effective direct-response mail. Give them three of the ideas that were given in the text.

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Question 14

You are developing the offer for a direct marketing campaign. Explain what is included in the "offer."

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Question 15

Kinder Clothes, an online children's clothing marketer, uses data mining to identify and segment customers who have purchased infant clothing, toddler clothing, and children's clothing. The company has also used data mining to further identify and segment these groups based on whether they purchased clothing for boys or girls. In this example, Kinder Clothes is using ________.
A)skimming
B)behavioral targeting
C)prospecting
D)converting
E)opt-in marketing

Accepted Answer

Kinder Clothes is using behavioral targeting to identify and segment customers based on their past purchasing behavior. They are using data mining to analyze customer data and target specific groups for their marketing efforts.

Question 16

Identify the five primary tools of direct marketing.

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Question 17

Barbara is the owner of a gift shop and is considering developing a catalog to increase her sales. Although there are several advantages of using catalogs, there are also some limitations. Discuss the limitations of catalogs that Barbara needs to be aware of.

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Question 18

The Pampered Sole is a new women's shoe store in Birmingham, Alabama. The owners want to target women between the ages of 30 and 45 with a household income greater than $50,000 with a special promotion. They have purchased two mailing lists: one with demographic information for their retail area and one with psychographic information. They want one list that combines both types of information, but they don't want to mail someone twice. What should they do?
A)purge, then merge the lists
B)merge, then define the lists
C)merge, then purge the lists
D)purge, then define the lists
E)compile, then convert the lists

Accepted Answer

The best choice is to merge the lists first and then purge any duplicates. This will create one comprehensive list with both demographic and psychographic information. Purging duplicates ensures that no one receives the same promotion twice.

Question 19

After graduation, you plan on working in your family's business, and you want to implement some of the direct marketing principles that you learned in this class. Identify three of the six basic objectives of direct marketing to convince your parents that it is the right move for the business.

Accepted Answer

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Question 20

What marketing challenge faced the GEICO campaign as described in the chapter's opening vignette?

Accepted Answer

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Quiz 16: Direct-Response