Exam 17: Integrating Direct Marketing and Personal Selling

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.

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:

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

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) Marketers consider to be the most economical form of direct response advertising.

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

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 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:

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

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:

Which of the following is true of building customer relationship through direct marketing?

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

The role of a marcom manager is to:

Companies can address customers' privacy concerns if they remember two fundamental premises about database marketing.Which of the following is one of those premises?

The two advantages of direct mail as a medium of communication is its:

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?

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.

Which of the following are the three main purposes of direct marketing programs?

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 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 .

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.