Deck 14: Direct and Online Marketing: Building Direct Customer Relationships

Question 1

CashSecure is a financial services provider.Whenever a customer has a child who is about to become eligible for a driver's license,CashSecure sends the customer materials related to teaching teenagers how to drive safely.This is an example of using ________ information from a customer database.

A)demographic
B)geographic
C)psychographic
D)metadata
E)political

Answer 1

A

Question 2

Catalogs,brochures,samples,and DVDs are all examples of which type of marketing?

A)direct-response marketing
B)direct-mail marketing
C)telemarketing
D)internal marketing
E)online marketing

Answer 2

B

Question 3

Which of the following has been limited in recent years by the implementation of the National Do-Not-Call Registry?

A)telemarketing by nonprofit groups and organizations
B)business-to-business telemarketing
C)unsolicited outbound telemarketing by businesses
D)inbound telephone marketing
E)telemarketing by politicians

Answer 3

C

Question 4

Information about a customer's age,income,and family make-up are all ________ in a customer database.

A)demographic data
B)psychographic data
C)unitary data
D)metadata
E)geographic data

Question 5

What are two major forms of direct-response television marketing?

A)direct-response television advertising and iTV advertising
B)home-selling and toll-free response
C)advertorials and audio-only commercials
D)call-in response and Web-site response
E)home shopping channels and podcasts

Question 6

________ consists of connecting directly with carefully targeted consumers,often on a one-to-one,interactive basis.

A)Marketing without segmentation
B)Mass marketing
C)Direct marketing
D)Internal marketing
E)Standardized marketing

Question 7

Which of the following statements is true of direct marketing?

A)Direct marketers offer a limited selection of products and services to customers.
B)For buyers, direct marketing is an inconvenient and lengthy process.
C)Direct marketers can target only large groups of customers whose demographic features have not been determined.
D)Direct marketing is immediate, interactive, and gives consumers a lot of control in making purchases.
E)Online direct marketing results in higher cost-per-contact for the company when compared to traditional mass marketing strategies.

Question 8

Organic Designs is a small,successful chain of stores offering stylish clothes made of all-organic materials for infants,toddlers,and young children.Most of the Organic Designs stores are located in urban areas.Now Organic Designs is considering using direct marketing to reach potential customers who live outside of the company's existing markets,with the goal of creating emotional connections and building long-term relationships with a new group of customers.Which of the following methods of direct marketing would likely be most effective in accomplishing this goal?

A)mass marketing
B)telephone marketing
C)catalog marketing
D)direct-response television marketing
E)test marketing

Question 9

Jean-Paul's Cutlery has always relied upon advertising to market its products to final customers.However,the marketing team at Jean-Paul's Cutlery is now considering starting a direct marketing campaign consisting of a company Web site,e-mail to current customers,and an online catalog.Which of the following would the marketing team expect to gain as a result of implementing this direct marketing plan?

A)the ability to increase the range of products the company offers
B)the ability to learn more about their customers and tailor offerings to fit their needs
C)greater control over employee-management interactions within the company
D)a lower cost-per-contact than its advertising campaign using mass marketing strategies
E)a wealth of information about competitors and their products

Question 10

Bruce Hobbs started his company,Cookzee,with the aim of creating a single kitchen appliance that would meet all the needs of a home-maker be it conventional cooking,baking,or grilling.With time this multi-functional kitchen appliance became very popular with consumers and Bruce decided to increase his reach by using direct marketing.Bruce and his team came up with a full 30-minute long program describing the various ways in which their product could be used and aired it on television with a toll-free number that interested consumers could call.This program is a(n)________.

A)interactive TV advertisement
B)infomercial
C)viral video
D)advertorial
E)B2B advertisement

Question 11

Which kind of marketing involves sending an offer,announcement,reminder,or other item to a person at a particular postal address?

A)kiosk marketing
B)digital direct marketing
C)mass marketing
D)direct-mail marketing
E)telephone marketing

Question 12

Eric Dylan is the marketing director of a charity that raises funds to help provide educational services to children and families in developing countries.Eric targets a selective market of individuals who have recently donated to international charities by sending them a letter with the proposed plan for charity and instructions for those who are interested to participate.Eric uses ________ in this scenario.

A)direct-mail marketing
B)mass marketing
C)telephone marketing
D)direct-response television marketing
E)kiosk marketing

Question 13

Gutter Guys is a gutter installation company in Southern California that used to generate most of its sales through telemarketing but now uses direct mail to reach prospective customers.Which of the following most likely explains the reason that Gutter Guys switched from telemarketing to direct mail?

A)Federal Trade Commission's Anti-Spam Act
B)Robinson-Patman Act
C)Clayton Act
D)Children's Online Privacy Protection Act
E)National Do-Not-Call Registry

Question 14

Using ________ telephone marketing,marketers sell directly to consumers.

A)viral
B)outbound
C)infomercial
D)advertorial
E)business-to-business

Question 15

Which of the following is true with regard to kiosk marketing?

A)It can be used for selling products, but not services.
B)It cannot be used to order goods that are currently unavailable.
C)It can be used to combine touch-screen and digital technologies .
D)It can be used only to generate printed catalogs for small purchases.
E)It can be used to circulate viral videos and infomercials.

Question 16

A 30-minute or longer television advertising program marketing a single product is called a(n)________.

A)testimonial
B)infomercial
C)advertorial
D)inbound advertisement
E)iTV advertisement

Question 17

Which of the following is an advantage of printed catalogs over digital catalogs?

A)a stronger emotional connection with customers
B)an ability to offer an unlimited amount of merchandise
C)ease in matching prices instantly in response to changes in demand
D)efficiencies in production, printing, and mailing costs
E)real-time merchandising

Question 18

Information about a customer's activities and interests are all ________ in a customer database.

A)demographic data
B)psychographic data
C)unitary data
D)metadata
E)geographic data

Question 19

Marketers use ________ telephone marketing to receive orders from television ads and catalogs.

A)inbound
B)viral
C)advertorial
D)direct-response
E)infomercial

Question 20

________ allows consumers to gain additional information about a product through the use of a remote control.

A)Direct-mail marketing
B)Telemarketing
C)Podcasting
D)Data mining
E)Interactive television

Question 21

The growth of the Internet caused many traditional companies to ________ in response to customer demands and a changing marketplace.

A)become click-only companies
B)become content sites
C)become click-and-mortar companies
D)develop more infomercials
E)expand their outside sales forces

Question 22

________ might appear anywhere on an Internet user's screen and are often related to the information being viewed.

A)Viral videos
B)Marketing Web sites
C)Online display ads
D)Corporate Web sites
E)iTV advertisements

Question 23

________ online marketing sites are online exchanges in which consumers search out sellers,learn about their offers,initiate purchases,and give feedback.

A)B2C
B)B2B
C)C2C
D)C2B
E)B2W

Question 24

The popular press has paid the most attention to ________ online marketing-the online selling of goods and services to final consumers.

A)B2C
B)B2B
C)C2C
D)C2B
E)global

Question 25

Jenny McCarthy,a stay-at-home mother,regularly posts new entries on a widely read blog.In these entries,she often reviews consumer products that she uses during the course of her day.This is an example of ________.

A)C2B online marketing
B)C2C online marketing
C)viral marketing
D)data mining
E)click and mortar blogging

Question 26

A company would be most likely to benefit in which of the following ways by using blogs as marketing tools?

A)Blogs provide companies with additional revenue.
B)Blog content is easy to filter, monitor, and control.
C)Long-term customer relationships can be developed through blogs.
D)Demographic information about customers can be easily tracked.
E)Blogs are an inexpensive yet personal way to connect with consumers.

Question 27

Converse has a Web site that welcomes consumers to "the Converse Century," invites readers to post their Converse stories and offers a wide variety of Converse shoes for direct purchase.The site even allows customers to individually design their own shoes.The Converse site is most accurately categorized as which of the following types of Web sites?

A)a B2B Web site
B)a C2B Web site
C)a C2C Web site
D)a corporate Web site
E)a marketing Web site

Question 28

The Internet gave birth to ________,which operate only on the Internet.

A)brick-and-mortar companies
B)click-and-mortar companies
C)SOHO companies
D)click-only companies
E)Web-and-mortar companies

Question 29

For most companies,the first step in conducting online marketing is to ________.

A)place an ad online
B)send e-mails
C)create a Web site
D)create a social network
E)place search-related ads

Question 30

New York Times on the Web,ESPN.com,and Encyclopedia Britannica Online provide financial,research,and other information.They are called ________.

A)transaction sites
B)content sites
C)iTV sites
D)ISPs
E)e-tailers

Question 31

________ marketers use online marketing to reach new business customers,serve current customers more effectively,and obtain buying efficiencies and better prices.

A)B2C
B)B2B
C)C2C
D)C2B
E)global commerce

Question 32

Which of the following is a transaction site?

A)Wikipedia
B)Yahoo
C)eBay
D)IMDB
E)Facebook

Question 33

Apollo,the market leader in high-resolution cameras and lenses is known for its quality and customer service.Apollo markets its vast range of cameras,lenses,and camera accessories directly to final consumers who belong to a broad group of demographic segments.By doing so,Apollo avoids all intermediaries and provides consumers with their products at the most competitive prices.Apollo falls under the ________ online marketing domain.

A)B2C
B)B2B
C)C2C
D)C2B
E)C2R

Question 34

Green Gardens is a click-and-mortar seller of gardening and landscaping goods and equipment.The marketing department wants to encourage shoppers at the physical stores to use the company's online catalog to order items that are not available at a given retail location.Which of the following marketing devices is the best match for this goal?

A)kiosks
B)retail stores
C)mail-order forms
D)infomercials
E)podcasts

Question 35

Which of the following is true of viral marketing?

A)It is the Internet version of word-of-mouth marketing.
B)It refers to problems that occur with viruses in the online marketing process.
C)It is another term for invasions of online privacy.
D)It is an automated system that manages the sales and marketing functions.
E)It is a system that allows a supplier to access a customer's inventory levels online.

Question 36

The online exchange of goods and information between final consumers is called ________.

A)B2C
B)B2B
C)C2C
D)C2B
E)social marketing

Question 37

What is the main purpose of a corporate Web site?

A)to sell the company's products directly
B)to build customer goodwill
C)to create a consumer query into a sale
D)to give out coupons and tell about sales events or contests
E)to point out and explain competitors' weaknesses

Question 38

Which of the following is a potential drawback of advertising on or attempting to influence content on a blog?

A)Advertising on a blog is typically very expensive.
B)It is difficult to use blogs to reach highly targeted audiences.
C)The content of a blog is difficult to control.
D)Blogs are losing popularity as there is not enough activity on them by consumers.
E)Blogs do not provide the kind of personalized medium that today's marketers want.

Question 39

The site www.bestbargains.com has become a rage among Internet-users and businesses.Though the site is only eight-months old,it has elicited large amounts of Internet traffic and transactions.The site promises to provide the best deals for an almost unlimited range of goods and services it lists.Consumers are required to log-in and bid for goods and services of their choice and can obtain heavy discounts,free shipping,and bonus points for being frequent users.This scenario reflects ________.

A)B2B online marketing
B)C2C online marketing
C)B2C online marketing
D)C2B online marketing
E)multi-channel marketing

Question 40

Amazon.com and Expedia.com are best described as ________ that sell products and services directly to final buyers via the Internet.

A)search engines
B)content sites
C)transaction sites
D)e-tailers
E)iTV sites

Question 41

Which of the following is a type of identity theft that uses deceptive e-mails and fraudulent Web sites to fool consumers into revealing their personal data?

A)data mining
B)microtargeting
C)viral marketing
D)phishing
E)crowdsourcing

Question 42

Online direct marketing results in higher costs and slower handling of channel and logistics functions.

Question 43

Fox Scully received an e-mail promoting a new financial services institution that offers surprisingly low mortgage rates.The e-mail simply asked customers to provide their address,date of birth,social security number,and current mortgage information in order to receive a free loan quote.Suspicious of the offer,Fox researched the company and discovered that the e-mail was a fraud.This is an example of ________.

A)cold calling
B)phishing
C)iTV advertising
D)data mining
E)viral marketing

Question 44

What happened in response to the FTC finding that many Web sites were collecting personal information from children without disclosure or parental permission?

A)Children have no access to certain parts of the Internet.
B)Congress passed the Children's Online Privacy Protection Act.
C)Children began to be targeted on more Web sites.
D)The Direct Marketing Association developed a "Privacy Promise to American Consumers."
E)Very little has happened as a result.

Question 45

Unsolicited and unwanted commercial e-mail is known as ________.

A)infomercial mails
B)e-tailing
C)pop-up advertising
D)iTV advertising
E)spam

Question 46

Though direct mail permits high target-market selectivity and can be personalized,it does not allow easy measurement of results.

Question 47

Telemarketing involves using the television to sell directly to consumers and business customers.

Question 48

Which of the following is a primary disadvantage of viral marketing?

A)The costs of viral marketing are too high for most companies.
B)The brand associated with the viral message is usually forgotten.
C)Marketers have little control over who receives the viral message.
D)Viral messages are less likely to be viewed than other types of online promotions.
E)Viral messages are blocked by most search engines.

Question 49

For inbound telephone marketing,the company provides a toll-free phone number so it can receive orders solicited by television and print ads,direct mail,and catalogs.

Question 50

Direct marketing is characterized by highly segmented target markets.

Question 51

What characteristic of niche sites makes the medium most appealing to marketers?

A)audience sizes larger than those of general social networking sites
B)wide variety of demographics and purchasing patterns
C)audiences of people with similar interests
D)commercial transaction capabilities
E)podcasting and vodcasting capabilities

Question 52

You are looking up airline schedules on HolApp,a mobile Web app.A bar at the bottom of the screen reads,"Stay at Holiday Inn and get a 25 percent discount!" This is a(n)________.

A)banner
B)viral advertisement
C)informercial
D)microblog
E)advertorial

Question 53

________ is the largest online social network with great potential as an online marketing hub.

A)Facebook
B)Youtube
C)Orkut
D)MySpace
E)Flickr

Question 54

Clenzo is a company that provides house cleaning services in major urban and suburban areas.Marketers at Clenzo developed a short,humorous video promoting the company's services and hope that customers who see the video will be so entertained that they will pass it on to their friends and colleagues.The marketers at Clenzo are using ________.

A)internal marketing
B)viral marketing
C)C2B marketing
D)C2C marketing
E)infomercial marketing

Question 55

Creating a customer database requires minimal investment and effort.

Question 56

A good customer database contains only demographic data of long-term consumers.

Question 57

Mass marketing consists of connecting directly with carefully targeted consumers,often on a one-to-one,interactive basis.

Question 58

Whereas space is limited in an online catalog,print catalogs can offer an almost unlimited amount of merchandise.

Question 59

As the marketing manager at Secure Services,a home security systems company,you have been asked to devise a new sales and marketing strategy for a new line of sophisticated alerting systems called "Imperio." The two previous promotional ventures failed to elicit much consumer response because most people were unaware of the benefits of such devices except for those consumers who were specifically looking for them.Which of the following would be categorized as a viral marketing approach to sell its products by Secure Services?

A)a promotional infomercial of thirty minutes duration that is aired with a toll-free number for interested customers to place orders
B)a promotional campaign with pop-ups and banners of the products of Secure Services on online social networks like Twitter and Facebook
C)a promotional e-mail sent to all customers on the customer database of Secure Services
D)a promotional video juxtaposing elements of extreme horror and humor to convey that the Imperio line of home security systems make homes impervious to strangers
E)a promotional video depicting the pros and cons of the products of Secure Services as opposed to those of the other competing products in the field

Question 60

Direct mail programs are typically used as stand-alone programs and cannot be integrated with a broader marketing campaign.

Question 61

Viral marketing involves creating a Web site,video,e-mail,mobile message,advertisement,or other marketing event that is so infectious that customers will seek it out or pass it along to their friends.

Question 62

Do-not-call legislation has rendered all forms of telemarketing ineffective.

Question 63

The Do-Not-Call Registry Act requires Web site operators targeting children to post privacy policies on their sites.

Question 64

Permission-based e-mail advertising is conducted based on customers' expressed preferences and previous purchases.

Question 65

Click-and-mortar companies avoid the expense of maintaining a retail store.

Question 66

Nellie Wills,an emergency medicine professional,is getting married in six months.Since her job is extremely demanding,Nellie lacks the time to go shopping for all the products and services she requires for the wedding.However,Nellie is a careful shopper and likes to evaluate many alternatives before finalizing on a final purchase.Explain any one direct marketing method that may meet the specific needs of Nellie?

Question 67

A Corporate Web site aims to build customer goodwill rather than sell products to customers.

Question 68

How can a customer database be used as a relationship-building tool? Explain an example from the insurance industry.

Question 69

Direct-response television (DRTV)marketing takes one of two major forms: direct response television advertising and interactive TV (iTV)advertising.

Question 70

Sterling Archer has been saving her money to buy a BMW convertible.Archer has spent hours on the BMW Web site choosing the exterior and interior colors and studying the various options and models.Archer has been using BMW's marketing Web site.

Question 71

Blogs are online journals where people post their thoughts,usually on a narrow topic.

Question 72

Identify the major advantages of the following forms of direct marketing: telephone,direct-mail,catalog,direct-response television,and kiosk.

Question 73

Blogs are predominantly a C-to-C medium.

Question 74

iTV lets viewers interact with television programming and advertising using their remote controls.

Question 75

Today,many click-and-mortar companies are experiencing more online success than their click-only competitors.

Question 76

Kiosk marketing is used for purchases of small value and caters only to products,and not services.

Question 77

The first step for a new company venturing into online marketing involves sending promotional e-mails.

Question 78

Explain the major benefits of direct marketing for both customers and sellers.

Question 79

The Intranet is a vast public web of computer networks that connect users to each other.

Question 80

B2C Web sites deal with exchanges between different groups of consumers only.