Exam 11: Database and Direct Response Marketing and Personal Selling

For a company developing a loyalty program, the most attractive group of individuals is which type of user?

Repeat customers purchase more frequently and spend more money than do new customers.

Many companies that sell clothes over the internet will email messages or an email newsletter to customers who are interested in keeping up with the latest fashion news. This strategy is most successful if it is based on:

With location-data tracking, the term "hashed" refers to the process of:

If a salesperson is paid commission on sales, then he or she tends to neglect the follow-up step in the selling process.

If Amelia spends $300 per year at Gap and spends an average of $1500 per year on clothes, then the "share of customer" value for the Gap:

According to the Direct Marketing Association, about 60 percent of direct marketing expenditures are spent on retaining current customers.

With the compensation approach to handling objections, the salesperson:

A lifetime value analysis creates a figure that represents the:

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:

A key principle in developing a loyalty or frequency program is to design the program to enhance the value of what the product offers to customers.

The most common form of direct marketing is email.

When providing rewards for a frequency program, a variable ratio reward schedule is superior to regularly scheduled rewards.

Key figures in calculating the lifetime value of a consumer or set of consumers are revenues, costs, and purchase history.

Direct sales are not an attractive method for selling products to consumers.

When a customer's objections are partially true, a salesperson can use the indirect approach to handle the objection.

Personalized communications with customers through database information builds relationships and leads to both repeat purchases and customer loyalty.

In purchasing a mailing list, a "hot list" is individuals that have responded to a direct mail offer within the last 90 days.

The fourth step in the selling process, after knowledge acquisition, is:

A permission marketing program means promotions are only sent to customers who grant permission to receive them.