Exam 11: Database and Direct Response Marketing

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Geocoding allows for combining demographic information,geographic information,and lifestyle data.

(True/False)
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The primary advantage of direct mail is that mail can be easily targeted to specific consumer groups and to specific individuals.

(True/False)
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CRM is built on two primary metrics: lifetime value of customers and RFM analysis.

(True/False)
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An important key to success in permission marketing programs is to make sure participants have actually agreed to participate and not been tricked into participating or signed up without their knowledge.

(True/False)
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The easiest part of building a data warehouse is:

(Multiple Choice)
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Database marketing involves collecting customer data for the purpose of developing direct marketing programs.

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When promotional materials are only sent to customers who have given their approval,the program is called:

(Multiple Choice)
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Through data mining a company can build a profile of its best customers,which can then be used to identify prospective new customers or upgrade current customers to a higher level of purchasing.

(True/False)
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In calculating the lifetime value of a market segment,the figures that are more difficult to obtain and are contained only in the marketing database are:

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The marketing team at Levi-Strauss responded to the decline in sales by developing a strong database marketing program.

(True/False)
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In developing data-driven communications with customers,maintaining customer profile information is important because the information helps the marketing team create personalized communications.

(True/False)
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The following are principles for building a successful frequency or loyalty program,except:

(Multiple Choice)
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In terms of alternative forms of direct marketing,ride-alongs are materials that are placed with a company's own catalog or direct-mail pieces,such as a record club's catalog.

(True/False)
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In purchasing a direct mailing list,a compiled list consists of individuals who have:

(Multiple Choice)
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Haley often purchases clothes from the VF Corporation online.On her birthday,the VF Corporation sends her an e-mail birthday card with a free voucher for $20 for her next online purchase.This is an example of:

(Multiple Choice)
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In coding data using RFM analysis,a value of "5" for the "R" would indicate:

(Multiple Choice)
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The primary reason for building a database,coding the information,and mining the data is to use the output to:

(Multiple Choice)
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Database-driven marketing programs should be designed to increase sales and profits.

(True/False)
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Direct mail is a primary tool for promoting Internet Web sites and online sales.

(True/False)
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Purchase and Web site visit histories are sufficient to build a quality database.

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