Exam 15: Direct Marketing, CRM, and Other Media

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Which advertising medium simplifies the task of justifying the results of communications efforts? 

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E

Success of direct mailing depends on the quality of mailing lists contained in a company's database.

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What are the major differences between direct marketing and indirect marketing? Describe situations where direct marketing would be appropriate and situations where indirect marketing would be appropriate.

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Direct marketing is an interactive system of marketing that uses one or more advertising media to effect a measurable response and/or transaction at any location.  It typically makes use of postal mail in the form of print materials (e.g.,direct mail and catalogs)or in digital/electronic form such as DVDs and CD-ROMs.Indirect marketing includes the use of intermediaries in the channel of distribution,such as distributors,dealers,and retailers.The marketer's purpose with direct marketing is to establish a relationship with a customer in order to initiate an immediate and measurable response.If a marketer has an up-to-date database,direct advertising is appropriate because the firm is provided with a number of assets,including the ability to direct advertising efforts to those people who represent the best prospects for the company's products or services,offer varied messages to different groups of customers,create long-term relationships with customers,enhance advertising productivity,and calculating the lifetime value of a customer or prospect.In situations where there is no such database,indirect advertising is appropriate.

A key feature of database marketing is that each present or prospective customer is viewed as not just an address,but rather as a(n)____.

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Typical databases include customers' behavioral data and other types of relevant information (demographic,geographic,and psychographic data).

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The substantial increase in brand placements on TV has been concurrent with the growth of _____ television programming.

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The problem with databases is that they are small in size with few addresses and few variables for each database entrant.

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Direct advertising enables the advertiser to convey a message to a target market that has been selected with precision.

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The likelihood that people will remain customers is known as the _____ rate.

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Direct advertising that is not online is delivered to individuals' homes or workplaces typically via postal mail in the form of print materials or in a digital/electronic form such as DVDs.

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Which of the following factors accounts for the widespread use of direct mail by marketers? 

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____ is NOT an asset of an up-to-date database.

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Conor needs to purchase a new refrigerator.He wants to purchase a General Electric refrigerator,but he doesn't know which retail stores carry the brand and model he is interested in purchasing.Which medium should he turn to find a retailer that sells this brand of refrigerator? 

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Which of the following is a distinctive feature of direct mail? 

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The F in a company's R-F-M formula stands for frequency.

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Data miners look for revealing relations among the variables contained in the a database.

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Older consumers appear to be the most responsive to brand placement in movies.

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The _____ rate is a critical component of net present value analysis.

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Customer lifetime value is the net present value of the profit that a company stands to realize on the average new customer during a given number of years.

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Compared to other age groups,_____ year-olds are the most likely to notice brand placements in movies and to consider trying the brands seen in films.

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