Question 1

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 2

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 most likely using?
A) skimming
B) searching
C) prospecting
D) relationship marketing
E) converting

Accepted Answer

P&G is most likely using prospecting, which involves analyzing customer data to identify potential buyers whose characteristics match those of their current customers for a given product and brand.

Question 3

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 website,emails 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 higher 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 website, emails to current customers, and an online catalog would allow the marketing team to learn more about their customers and tailor offerings to fit their needs. This is because direct marketing approaches allow for more personalized interactions with customers, which can generate useful information about their buying habits and preferences. The other answer choices are not necessarily associated with direct marketing and/or do not accurately reflect the potential benefits of this marketing approach.

Question 4

Discuss how legitimate direct marketers can respond to the criticisms surrounding email marketing.

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Question 5

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 6

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

The most likely reason that Gutter Guys switched from telemarketing to direct mail is due to the national Do Not Call Registry, which allows consumers to opt-out of receiving telemarketing calls. This makes it more difficult for companies to reach potential customers through telemarketing, whereas direct mail does not have the same restrictions.

Question 7

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 approach is to merge the lists first and then purge any duplicates to avoid mailing the same person twice. Once the lists are combined, the owners can then filter and define the merged list based on both demographic and psychographic information to target their desired audience. However, it is important to ensure that the merged list is accurate and up-to-date before purging any duplicates.

Question 8

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 9

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 data mining to identify and segment customers based on their behavior, which is known as behavioral targeting. They are analyzing customers' past purchases to gain insights and improve their marketing efforts. Skimming is a pricing strategy, prospecting is a lead generation strategy, converting refers to turning leads into customers, and opt-in marketing involves obtaining explicit permission from customers to receive marketing communications.

Question 10

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 emailing

Accepted Answer

Catalogs would be the most effective method of direct marketing for Organic Designs because they allow the company to showcase their products and provide detailed information to potential customers who may not be able to visit their stores in person. Catalogs also have a longer shelf life and can be referred to repeatedly, increasing the likelihood of creating a long-term relationship with new customers. Telemarketing and bulk emailing may be seen as intrusive and opt-out marketing is not a recommended practice. Print direct-response advertising may be effective but may not provide enough information or visuals to fully showcase Organic Designs' products.

Question 11

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" 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) generating leads
B) strengthening customer relationships
C) testing offers
D) following up
E) enhancing attitudes

Accepted Answer

The scenario illustrates the direct-marketing objective of generating leads by offering a free catalog to consumers who call the provided phone number or visit the website.

Question 12

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

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Question 13

Explain what spam is.

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Question 14

Identify the five primary tools of direct marketing.

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Question 15

Why is relationship building particularly important in direct marketing?

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Question 16

How does direct marketing benefit customers?

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Question 17

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 18

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" 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 ad includes a call-to-action for consumers to call a specific phone number to receive a free catalog of products, making it an example of direct-response advertising.

Question 19

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 20

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" 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

This ad represents a two-step offer, as it first provides information about the benefits of sun protection and then suggests the audience to call for a free catalog. The call to action is not immediate, requiring a second step to complete the offer.

Quiz 16: Direct Response