Exam 11: Database and Direct Response Marketing

A frequency program is an incentive program designed to encourage customers to make repeat purchases.

What is a data warehouse and what type of data should it contain?

Retaining current customers is more expensive than gaining new customers.

A program designed to build long term loyalty and bonds with customers through the use of a personal touch facilitated by technology is a customer relationship management (CRM)program.

With a frequency program,consumers are more likely to put forth greater effort to obtain luxury goods as opposed to necessity items.

Costs and clutter are the two major disadvantages of direct mail.

Vending products to customers without the use of other channel members is:

To maintain positive attitudes in a permission marketing program,consumers must be given rewards along the way,not just at the beginning.Doing so creates the feeling of:

The most common method of direct-marketing is:

Identify the various forms of direct response marketing.

Customer contact personnel with a company should not use RFM codes or lifetime values of individual customers to affect the way they deal with a customer since every customer should be treated equally.

The basic idea behind customer relationship management (CRM)is that companies can use databases to customize products and communications to customers that would result in higher sales and profits.

The most common approach to direct mail is to:

Outbound direct response telemarketing is most successful when:

An effective database contains:

A retailer can use data mining to determine when to mark merchandise down and how much to mark it down.

identify and describe the three primary types of data-driven marketing programs.

Successful database marketing emphasizes two things: identifying customers and building relationships.

Many marketing experts believe calculating the lifetime value of a market segment is superior to calculating the value for a singe individual because:

In developing data-driven communications with customers through Web visits,identification codes allow a visitor to register with the site through an ID name or number and a password.