Question 1

_____ refers to selling goods or services to consumers without intermediaries,typically to select customer groups and typically with tracking of the results.

Accepted Answer

Direct marketing refers to selling goods or services directly to consumers without intermediaries, often targeting specific customer groups while also tracking the results of the marketing efforts. This can include tactics such as direct mail, email marketing, telemarketing, and online advertising.

Question 2

_____ refers to a method of selling in which catalogs,brochures,letters,videos,and other pieces of marketing materials are shipped straight to customers from which they can mail,call,or e-mail an order.

Accepted Answer

Direct mail refers to the method of selling in which catalogs, brochures, letters, videos, and other pieces of marketing materials are shipped straight to customers from which they can mail, call, or email an order. Guerilla marketing is a marketing tactic that relies on unconventional and low-cost methods to achieve maximum impact. Direct sales refers to selling products or services directly to consumers without the use of intermediaries. Contract manufacturing is an arrangement in which a company outsources the production of its products to a third-party manufacturer.

Question 3

Which of the following statements is true of catalogs?

Accepted Answer

Part-time entrepreneurs often lack the resources to produce their own catalogs, so they frequently use existing catalogs for their products. Option A is incorrect because catalogs usually target particular types of consumers. Option B is false as creating and disseminating catalogs online reduces company costs compared to traditional print catalogs. Option D is also false since catalogs typically focus on specific types of products.

Question 4

Which of the following statements is true of telemarketing?

Accepted Answer

Telemarketing is often considered annoying by many customers due to unsolicited calls, leading to negative perceptions and regulatory restrictions.

Question 5

A _____ is a form of direct mail.

Accepted Answer

A brochure is a form of direct mail that is mailed directly to potential customers to promote a product or service. Door-to-door sales and party sales involve a salesperson physically going to a customer's home or party to make a sale. Vending machines do not involve any direct mail or salesperson interaction.

Question 6

Which of the following statements is true of a direct mail approach?

Accepted Answer

Direct mail requires careful targeting in order to be effective, so finding the right market can be a challenge. It does not involve major inventory investments as it is typically used for small-scale campaigns. While some customers may see it as invasive, others may appreciate the personalized nature of the communication. Preparation is necessary for any sales approach.

Question 7

A(n)_____ refers to a set of goods or services that consists of only one or a few items.

Accepted Answer

Micro inventory refers to a small quantity of a certain product or service that a business maintains in stock. It is used when a company deals with a limited number of products or services.

Question 8

Which of the following forms of direct mail is the least expensive?

Accepted Answer

E-mail is generally the least expensive form of direct mail as it does not require printing and postage costs. Catalogs, sales letters, and leaflets all require printing and postage costs, making them more expensive options.

Question 9

_____ involves contacting customers via telephone for the express purpose of selling a product or service.

Accepted Answer

Telemarketing involves calling customers with the intention of selling something. Options A, B, and D do not refer to this specific practice.

Question 10

Which of the following is a modern form of direct mail?

Accepted Answer

Direct faxing and e-mailing are both modern forms of direct mail that use digital communication methods to reach customers. Catalogs, brochures, sales letters, mail orders, postcards, and leaflets are all traditional forms of direct mail that have been used for decades.

Question 11

Door-to-door sales and party sales are examples of _____.

Accepted Answer

Door-to-door sales and party sales involve face-to-face interaction with customers, making them examples of direct sales. Telemarketing involves selling products or services over the phone, while direct response advertising involves promoting products or services through ads that encourage customers to make a direct purchase. Contract manufacturing refers to outsourcing the production of goods to another company.

Question 12

Which of the following forms of direct response advertising attracts a large audience and is a good way to demonstrate a product?

Accepted Answer

Television is the best choice because it has a wide reach and allows for a visual demonstration of the product.

Question 13

Which of the following direct sales methods is effective for products that need demonstrations or detailed explanations?

Accepted Answer

Door-to-door sales allow salespeople to provide demonstrations and detailed explanations of the product directly to potential customers in their homes. This can be particularly effective for products that require a personal touch, such as vacuum cleaners, kitchen appliances, or health and beauty items. Additionally, this method allows the salesperson to address any concerns or questions the customer may have on the spot.

Question 14

Which of the following is usually the first technique an entrepreneur uses to get customers?

Accepted Answer

Word-of-mouth is usually the first technique an entrepreneur uses to get customers. This involves relying on satisfied customers to spread the word about your business to their family and friends, which can lead to a steady stream of customers. It is cost-effective and can help build a strong reputation for your business.

Question 15

A(n)_____ refers to having only sufficient amount of products on the shelves to meet immediate purchases and usually requires frequent shipment from the supplier.

Accepted Answer

Just-in-time inventory refers to a system of inventory control in which products are only ordered and received as they are needed for immediate use or sale. This minimizes the amount of inventory that must be stored, reduces inventory-related costs, and allows for more efficient use of warehouse space. Frequent shipment from the supplier is a characteristic of this approach as it ensures that the inventory levels remain low and do not exceed immediate requirements. The other options, macro inventory, micro inventory, and in-process inventory, do not accurately describe this inventory control system.

Question 16

Which of the following forms of direct marketing is the most expensive?

Accepted Answer

The answer of Which of the following forms of direct...

Question 17

In _____,an advertisement is placed in a magazine,newspaper,radio,billboard,or television and includes an order blank with a phone number,e-mail,or snail-mail address,using which customers can place immediate orders.

Accepted Answer

Direct response advertising involves placing ads that include an order blank and a way for customers to place immediate orders, such as a phone number or email. This allows for direct and immediate response from potential customers. Telemarketing involves making direct calls to potential customers, guerilla marketing involves unconventional and low-cost tactics to promote a product, and direct selling involves selling products directly to consumers through personal meetings or parties.

Question 18

While teaching strategy at Farrell University,Jessica developed an interactive strategy-simulation game to help her students understand its concepts.She found that they were able to grasp the concept much better from the game rather than from reading books.For two years,Jessica used the game to teach students.Eventually she removed possible glitches and perfected the game.She wanted students at other universities to benefit from the simulation.The result was the launch of Simulate Strategy,Inc.Given that Jessica has a very limited budget,which of the following forms of direct mail will be most appropriate for her to adopt?

Accepted Answer

E-mail would be the most appropriate form of direct mail for Jessica as it is a cost-effective method of reaching a large audience. She can easily send an e-mail to a list of contacts, including professors and educators at other universities who may be interested in using her simulation game to teach strategy. It also allows for easy tracking of responses and can include links to her website or a demo of the game. Brochures, direct response advertising, and telemarketing may be too expensive or intrusive for her limited budget and may not reach as many potential customers.

Question 19

Wholesalers and retailers who connect manufacturers to consumers are referred to as _____.

Accepted Answer

Wholesalers and retailers who connect manufacturers to consumers are referred to as distribution channels. They play a crucial role in getting products to consumers effectively and efficiently. Traffic generators refer to methods used to increase website traffic, manufacturing agents work on behalf of manufacturers to find buyers for their products, and business franchisors are companies that allow others to use their business model under their brand name in exchange for a fee.

Question 20

_____ offer the flexibility of having a product available around the clock and at convenient locations.

Accepted Answer

Vending machines offer products 24/7 and can be placed in convenient locations, making them a flexible option for customers who need to purchase items outside of traditional store hours or in areas where stores may not be easily accessible. Party sales and door-to-door sales have limited availability and may not be as convenient for all customers. Farmers' markets are typically only open on certain days and times, and may not be located in convenient areas for all customers.

Quiz 11: Small Business Distribution and Location