Deck 15: Direct Marketing and Other Media

Question 1

An up-to-date database can offer varied messages to different groups of customers.

Answer 1

True

Question 2

Only B2B marketers have increased their usage of direct mail advertising.

Answer 2

False

Question 3

Direct mail advertising refers to any advertising matter delivered by the postal service to the person whom the marketer wishes to influence.

Answer 3

True

Question 4

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

Question 5

Perhaps the major problem with direct mail is that many people consider it excessively intrusive and invasive of privacy.

Question 6

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

Question 7

Direct advertising is delivered either to homes and workplaces or at a variety of public venues.

Question 8

Efficiency is a distinctive feature of direct mail.

Question 9

Successful direct mailing necessitates the availability of computer databases and the addressability inherent in the databases.

Question 10

Direct advertising 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 and CD-ROMs.

Question 11

One reason for the growth of direct mail is the rising cost of television advertising and increasing audience fragmentation.

Question 12

An up-to-date database provides firms with a number of assets,including the ability to calculate the lifetime value of a product.

Question 13

On a cost per thousand basis,direct mail is less expensive than other media.

Question 14

Compared with other media,direct mail is much less wasteful and will usually produce the highest percentage of responses.

Question 15

Customer lifetime value refers to all product category purchases that an individual will make during his or her lifetime.

Question 16

From the consumers' perspective,shopping by catalog saves time because people do not have to find parking spaces and deal with in-store crowds.

Question 17

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.

Question 18

From a database perspective,each present or prospective customer is viewed as not just an address but rather as a long-term asset.

Question 19

If a marketer focuses on customer retention rather than just customer acquisition,customer lifetime value can be increased.

Question 20

One reason for the increased use of direct mail is the increased emphasis on measurable advertising results.

Question 21

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

Question 22

The traditional media and the Internet represent a disorderly state for individual advertisers inasmuch as their attempts to capture the viewer's or listener's attention is offset by the efforts of hundreds of other advertisers attempting to accomplish the same goal.This is referred to as _____.

A) noise
B) fragmentation
C) wasted coverage
D) fractionalization
E) clutter

Question 23

National advertisers place the majority of yellow-pages ads.

Question 24

The yellow pages is an advertising medium that consumers turn to when they are seeking a product or service supplier and are prepared to make a purchase.

Question 25

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

Question 26

The yellow pages represent a huge advertising medium with annual revenues exceeding $140 billion.

Question 27

Although unverified in a scientific sense,it stands to reason that video advertising is potentially less entertaining than comparable print advertising and is,thus,less effective in gaining attention and influencing memorability of an advertising message.

Question 28

Companies are increasingly using the audio-visual medium (i.e.,videotapes,CD-ROMs,or DVDs)to present customers with detailed product information.

Question 29

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

Question 30

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

Question 31

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

Question 32

Weblogs are a form of advertising that involves producing short films that feature the advertised brand and are available on the Internet for free viewing.

Question 33

Videogames provide an excellent advertising medium for reaching young males.

Question 34

_____ advertising is delivered to individuals' homes or workplaces typically via postal mail in the form of printed materials or in a digital/electronic form.

A) Indirect
B) Mass
C) Personal
D) Direct
E) Focused

Question 35

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

Question 36

Product placements in movies date back to the 1940s,yet the frequency of occurrence is greater now than ever.

Question 37

Research shows that users of yellow pages tend to have relatively low household incomes.

Question 38

Mediamark has developed a service to measure videogame audiences.

Question 39

One advantage of brand placements is that they are generally less intrusive than advertisements and thus less likely to be avoided.

Question 40

Brand placements have occurred in songs.

Question 41

Catalog marketing has reached the _____ life-cycle stage.

A) innovation
B) introduction
C) growth
D) maturity
E) decline

Question 42

Which of the following is a function direct mail can accomplish?

A) build traffic at a specific retailer or website
B) generate leads for a sales force
C) communicate with individuals in a relatively private manner
D) sell products and services to new customers
E) All of these are correct.

Question 43

Which of the following is NOT a distinctive feature of direct mail?

A) targetability
B) measurability
C) accountability
D) flexibility
E) expandability

Question 44

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

A) rising cost of television advertising and increasing audience fragmentation
B) unparalleled targeting
C) measurable advertising results
D) consumers have favorable attitudes
E) All of these are correct.

Question 45

On a cost per thousand (CPM)basis,the most expensive medium is ____.

A) television
B) radio
C) magazines
D) direct mail
E) newspaper

Question 46

Direct,yellow-pages,and video-game advertising can perform an invaluable role when used _____.

A) with sales promotion
B) with greater frequency than traditional media
C) as the main tools in a marcom program
D) in a supplementary capacity in an IMC program
E) only with younger target markets

Question 47

One research study found that cataloging is highly effective because _____.

A) sales to catalog recipients are over 150 percent greater on average compared to consumers not receiving a catalog
B) catalog recipients buy more items on average and spend more money than do non-recipients
C) more than two-thirds of catalog recipients visit the catalog company's website
D) a and b only
E) a, b, and c

Question 48

Compared with other media,_____ is much less wasteful and will usually produce the highest percentage of responses.

A) radio
B) television
C) direct mail
D) outdoor advertising
E) newspaper

Question 49

Which of the following is NOT a function direct mail can accomplish?

A) increase sales from current customers
B) acquire new customers
C) create job opportunities
D) gather customer information
E) generate leads for a sales force

Question 50

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

A) television
B) radio
C) newspaper
D) magazine
E) direct mail

Question 51

Beverly should use _____ advertising for her client who has requested a medium that is less wasteful than other media and produces the highest percentage of responses.

A) magazine
B) radio
C) television
D) direct mail
E) newspaper

Question 52

Which of the following is NOT a factor accounting for the widespread use of direct mail by marketers?

A) consumers have favorable attitudes
B) unparalleled targeting
C) reduced cost per thousand
D) rising cost of television advertising and audience fragmentation
E) measurable advertising results

Question 53

Charles wants to use an advertising medium that offers the capability to target a precisely defined group of people,the ability to determine exactly how effective the advertising effort is so that he can justify budget allocations to this medium,and offers the flexibility to meet changing circumstances.Charles should use _____.

A) television
B) outdoor billboards
C) magazines
D) direct mail
E) brand placement

Question 54

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

A) targetability
B) measurability
C) accountability
D) efficiency
E) All of these are correct.

Question 55

Which of the following is a reason for the subsiding growth rate of catalog marketing?

A) novelty of catalog scanning has worn off
B) increasing costs
C) consumer dissatisfaction
D) There are two reasons: increasing cost and the novelty of catalog scanning has worn off.
E) All of these are correct.

Question 56

Yellow pages,video games,and brand placement are examples of _____.

A) direct advertising
B) indirect advertising
C) niche advertising
D) electronic advertising
E) stealth advertising

Question 57

Which of the following is a major problem with direct mail?

A) intrusive and invasive of privacy
B) inefficient
C) lack of flexibility
D) inability to target a precisely defined group of people
E) lack of accountability

Question 58

Letters,postcards,programs,calendars,folders,and catalogs are all examples of _____.

A) indirect marketing
B) indirect advertising
C) direct mail advertising
D) e-mail advertising
E) database marketing

Question 59

Companies' databases of customers often contain R-F-M data.The M stands for _____.

A) motivation
B) monetary value
C) markdown
D) media
E) message

Question 60

From the consumer's perspective,which of the following is NOT an advantage of shopping by catalog?

A) It saves time because people do not have to find parking spaces and deal with in-store crowds.
B) Catalog buying appeals to consumers who are fearful of shopping due to concerns about crime.
C) Catalogs allow people the convenience of making purchase decisions at their leisure and away from the pressure of a retail store
D) The availability of toll-free 800 numbers and online websites, credit card purchasing, and liberal return policies make it easy for people to order from catalogs.
E) All of these are advantages.

Question 61

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)____.

A) long-term asset
B) short-term asset
C) declining asset
D) unpredictable asset
E) number

Question 62

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

A) discount
B) retention
C) acquisition
D) attrition
E) lifetime

Question 63

The net present value of the profit that a company stands to realize on the average new customer during a given number of years is known as _____.

A) brand equity
B) customer equity
C) customer lifetime value
D) marginal customer analysis
E) customer profitability

Question 64

Although unverified in a scientific sense,it stands to reason that video advertising is potentially more entertaining than comparable print advertising and thus more effective in gaining attention and influencing _____ of an advertising message.

A) measurability
B) transferability
C) memorability
D) predictability
E) durability

Question 65

With effective database marketing a firm may be able to alter the channel of distribution via direct marketing efforts,and hence _____.

A) cut direct costs
B) reduce marcom costs
C) increase retention rate
D) enhance average purchase volume per customer
E) increase the referral rate

Question 66

Which of the following is an asset an up-to-date database provides a firm?

A) ability to direct advertising efforts to those people who represent the best prospects for the company's products or services
B) offer varied messages to different groups of customers
C) create long-term relationships with customers
D) enhance advertising productivity
E) All of these are correct.

Question 67

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

A) turnover
B) annual percentage
C) referral
D) discount
E) actuary

Question 68

It is claimed that video advertising is _____ than comparable print advertising in the form of brochures.

A) more effective and less expensive
B) less effective and less expensive
C) more effective and more expensive
D) less effective and more expensive
E) None of these are correct.

Question 69

Compared to broadcast advertising,_____ does not deal with customers as a mass but rather creates individual relationships with each customer or prospective customer.

A) lifetime analysis
B) data mining
C) direct advertising
D) indirect advertising
E) niche advertising

Question 70

Companies' databases of customers often contain R-F-M data.The R stands for _____.

A) retention rate
B) referral rate
C) registration
D) responsiveness
E) recency

Question 71

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

A) Directing advertising to the best prospects for the company's products or services
B) Offering varied messages to different groups of customers
C) Enhancing advertising productivity
D) Calculating the lifetime value of a customer or prospect
E) Calculating the lifetime value of a product

Question 72

Which of the below is NOT one of the ways to enhance lifetime value?

A) increase the retention rate
B) increase the discount rate
C) increase the referral rate
D) cut direct costs
E) enhance the average purchase volume per customer

Question 73

Companies' databases of customers often contain R-F-M data.The F stands for _____.

A) frequency
B) familiarity
C) feedback
D) follow-up
E) functional

Question 74

Databases enable contacts with present or prospective customers who can be accessed by companies whose databases contain p- and e-mail addresses along with other pertinent data such as demographic information.This is called ____.

A) psychographics
B) buyographics
C) addressability
D) biographical data
E) flexibility

Question 75

The goal of _____ is to discover hidden facts contained in databases.

A) data mining
B) data warehousing
C) data definition
D) data discovery
E) data manufacturing

Question 76

Brand placement activity is perfectly aligned with one of the five key features of IMC.Which of the following is that feature?

A) Build relationships rather than engage in flings.
B) The customer represents the starting point for all marketing communications activities.
C) Multiple messages must speak with a single voice.
D) Don't lose focus of the ultimate objective: affect behavior.
E) Brand managers and their agencies should be amenable to using various marketing communication tools.

Question 77

In lifetime value analysis,taking the reciprocal of the discount rate and multiplying the gross profit by the reciprocal will give one the _____.

A) cummulative NPV profit
B) NPV profit
C) discount rate
D) total costs
E) net profit

Question 78

The use of CD-ROM discs would enhance marketing efforts for products such as ____.

A) tourist destinations
B) electronics
C) dog food
D) consumables
E) computers

Question 79

Which of the following is an advantage of brand placements in movies,TV programs,and elsewhere?

A) more intrusive than advertisements
B) less likely to be summarily rejected as just another persuasive attempt
C) lack of clutter
D) complete control over placements
E) measurability

Question 80

Lou is trying to increase the lifetime value of his customers.Which of the following is a way for him to augment his customers' lifetime value?

A) decrease the retention rate
B) increase the discount rate
C) increase the referral rate
D) increase marketing communications expenditures
E) All of these are correct.