Deck 15: Direct-Response Marketing

Question 1

Which of the following is a tool of direct marketing?

A) catalogs
B) direct mail
C) telemarketing
D) direct-response advertising
E) all of the above

Answer 1

all of the above

Question 2

Which of the following is an advantage of direct marketing over indirect marketing?

A) flexibility in both form and timing
B) purchase not restricted to a location
C) marketer controls the product until delivery
D) easier to evaluate
E) all of the above

Answer 2

all of the above

Question 3

Which of the following is NOT an advantage of direct marketing over indirect marketing?

A) reduced waste
B) flexibility in both form and timing
C) ability to reach everyone in the marketplace
D) purchase not restricted to a location
E) marketer controls the product until delivery

Answer 3

ability to reach everyone in the marketplace

Question 4

Which of the following is a weakness of direct marketing?

A) consumers are still reluctant to purchase a product sight unseen
B) annoyances associated with direct marketing
C) unable to reach everyone in the marketplace
D) a and b
E) a, b, and c

Question 5

Which of the following is a contact element that can be included in a direct-response advertisement?

A) toll-free phone number
B) order coupon
C) email address
D) web site address
E) all of the above

Question 6

Which of the following is a basic objective of direct marketing?

A) develop leads
B) create sales
C) traffic generation
D) a and b
E) a, b, and c

Question 7

Which basic objective of direct marketing attempts to motivate customers to visit an event or retail outlet?

A) lead generation
B) generate traffic
C) action
D) enhancing awareness
E) enhancing attitude

Question 8

Which basic objective of direct marketing focuses on getting customers to order products and make payments or take some other action, such as visiting a dealer, returning a response card, or visiting a web site?

A) lead generation
B) traffic generation
C) create sales
D) enhancing awareness
E) enhancing attitude

Question 9

Description of the product, terms of sale, and payment and delivery information are all part of the ________ in direct marketing.

A) message
B) media
C) fulfillment
D) offer
E) all of the above

Question 10

Which of the following is NOT a variable that is intended to satisfy the needs of the consumer and considered part of the offer?

A) response device
B) price
C) cost of shipping and handling
D) guarantees and warranties
E) future obligations

Question 11

Which of the following is NOT a general guideline that applies to message development in direct marketing?

A) message is often longer and contains more explanation and detail than regular advertising
B) copy tends to be written in a personal, one-to-one conversational style
C) message should reflect whether the offer is a one-step offer of a two-step offer
D) message must, by law, include return policy
E) all of the above are general guidelines that apply to message development in direct marketing

Question 12

What do direct marketers use to keep track of customers, to identify prospective customers, and as a segmentation tool for communicating offers to customers and prospects?

A) databases
B) fulfillment
C) one-step offers
D) two-step offers
E) consultants

Question 13

Which of the following is NOT an objective of a marketing database?

A) to record names of customers, expires, and prospects
B) to provide a vehicle for storing and then measuring results of direct-response advertising
C) to provide a vehicle for storing and then measuring purchasing information
D) to provide a vehicle for continuing direct communication by mail or phone
E) to record TV commercials

Question 14

Where does the database marketing process begin?

A) data entry
B) data clustering
C) information collection point
D) data assessment
E) data sharing

Question 15

Direct marketers purchase or rent lists from ________.

A) list brokers
B) list managers
C) list owners
D) list retailers
E) list distributors

Question 16

Combining lists is known as ________.

A) purging
B) merging
C) database marketing
D) sourcing
E) consolidating

Question 17

Deleting the repeated names on lists that have been combined is known as ________.

A) purging
B) merging
C) elimination
D) parsing
E) consolidating

Question 18

Combining lists is called ________, and deleting the repeated names is called ________.

A) consolidating; elimination
B) purging; merging
C) elimination; consolidating
D) merging; purging
E) compiling; parsing

Question 19

Which of the following is a type of list used in direct marketing?

A) house list
B) compiled list
C) response list
D) a and b
E) a, b, and c

Question 20

Which of the following is NOT a type of list?

A) data list
B) house list
C) compiled list
D) response list
E) All of the above are types of lists.

Question 21

Which type of list consists of the marketer's own customers or members?

A) data list
B) house list
C) compiled list
D) response list
E) prospect list

Question 22

Which type of list is the most valuable list to a marketer?

A) data list
B) house list
C) compiled list
D) response list
E) prospect list

Question 23

What is a concern regarding data-driven communications?

A) lack of hardware to take advantage of its benefits
B) lack of software to take advantage of its benefits
C) lack of processes to take advantage of its benefits
D) consumer privacy
E) cost

Question 24

Which process identifies and analyzes patterns in customer behavior to maximize the profitability of each relationship?

A) integrated marketing communications
B) customer relationship management
C) database direct marketing
D) direct marketing
E) contact marketing

Question 25

What does CRM stand for?

A) customer retention marketing
B) customer relationship management
C) customer retention management
D) continuity, retention, and monetary value, which are measures of direct marketing success
E) customer relationship marketing

Question 26

Which of the following is a key player in direct-response marketing?

A) advertisers who use direct response to sell products or services
B) agencies that specialize in direct-response advertising
C) media that deliver messages by phone, mail, or the web
D) consumers, who are the recipients of the information and sometimes initiators
Of the contract
E) all of the above

Question 27

Which of the following is NOT a main player in direct-response marketing?

A) advertisers who use direct response to sell products or services
B) agencies that specialize in direct-response advertising
C) media that deliver messages by phone, mail, or the web
D) consumers, who are the recipients of the information and sometimes initiators of the contract
E) federal and state governments, which monitor who is contacted and how personal information is safeguarded

Question 28

Delivering ads through phone calls is known as ________.

A) phone marketing
B) telemarketing
C) one-to-one marketing
D) predictive marketing
E) inbound telemarketing

Question 29

Which of the following is a disadvantage of catalogs?

A) high response rates
B) low cost per thousand
C) targeted
D) positive perceptions
E) all of the above

Question 30

What type of response cards are attached to the magazine after it is printed by special machinery that puffs open the pages?

A) bind-ins
B) puff-ins
C) blow-ins
D) tie-ins
E) supplements

Question 31

Three basic objectives of direct marketing are lead generation, traffic generation, and maximize profits.

Question 32

Because direct-marketing messages are constantly being measured, it is easier to learn what works and modify succeeding campaigns based on results than with advertising.

Question 33

Customer relationship management (CRM) identifies and analyzes patterns in customer behavior to maximize the profitability of each relationship.

Question 34

A business responsible for making sure consumers receive whatever they requested in a timely manner in direct-response marketing is known as a service firm.

Question 35

Outbound telemarketing means the call center staff are calling unqualified numbers, sometimes just randomly selected, and this practice has a much lower response rate.

Question 36

Outbound telemarketing calls are the ones that generate the most consumer resistance.

Question 37

Every state in the United States has a "do-not-call" list.

Question 38

In newspapers, response cards may be either bind-ins or blow-ins.

Question 39

The use of e-mail as a marketing tool has really only been used by the usual e-commerce companies, such as Amazon.com.

Question 40

Unwanted e-mail is known as spam.

Question 41

Name and define the three types of lists.

Question 42

What challenge did the GEICO campaign as described in the chapter's opening vignette?

A) to change GEICO'S image from the number one direct-response auto insurer
B) to generate inquiries for rate quotes and to motivate people to call or go online to find out how they can save money
C) to increase sagging sales
D) to gain acceptance in foreign countries
E) to reach out to young women and convince them they want home insurance from GEICO

Question 43

Scott is developing the offer in a direct marketing campaign. What should he include?

A) description of the product
B) terms of sale
C) payment and delivery information
D) other information such as price, optional features, future obligations, etc.
E) all of the above

Question 44

Alvin wants to develop database marketing capabilities for his business, but he doesn't even know where to begin. Which of the following is the first stage of the database marketing process?

A) get to know your customers by name
B) collect information
C) enter data
D) assess data
E) cluster data

Question 45

Laurie is a college professor who teaches a course in direct marketing. She is a member of the Direct Marketing Association (DMA), which is a trade association for businesses in the direct marketing industry, because she finds it useful for attaining information for her course. However, she receives direct mail offers, e-mails, and telemarketing calls that are also sent to the other, practitioner, members of the DMA. What type of list is Laurie's name on?

A) house list
B) response list
C) compiled list
D) professional list
E) business list

Question 46

Anthony working on an account interested in direct marketing targeting men who own sports cars. Anthony needs a _______ list?

A) marketing
B) house
C) response
D) satisfaction
E) compiled

Question 47

As described in "The Inside Story," what was the objective for the direct mail campaign developed for Texins-Activity Centers?

A) encouraging activity and changing the targets' health and wellness habits
B) reach high school girls with a message that the T-I Centers are the place to be
C) reach high school boys whose parents are members of other fitness centers
D) pull members of other fitness centers away from their current fitness centers
E) encourage families with household incomes greater than $500,000 to become members of Texins-Activity Centers

Question 48

Sandy likes to read magazines while she works out on the elliptical machine at her health club. However, she hates the cards that fall out when she turns the pages, so the first thing she does when she gets a magazine is shake all those out into the trash. What are those cards called?

A) bind-ins
B) puff-ins
C) blow-ins
D) tie-ins
E) supplements

Question 49

As described in the opening vignette who is the leading direct-response auto insurer?

A) GEICO
B) Allstate
C) State Farm
D) USAA
E) Shelter

Question 50

MINI-CASE
Solumbria, a company that sells medically recommended sun protective clothing, has ads in several different magazines that give consumers information about their products. The headline says "Serious Sun Protection" surprinted over a man and a woman dressed head to toe in the protective clothing. The body copy then goes on to tout the benefits of sun protection, their clothing, and how dermatologists have recommended Solumbria for their patients. The last paragraph of the copy says "For a FREE catalog of Solumbria hats, shirts, pants and accessories for men, women and children, call Sun Precautions: 1-800-882-7860." The ad also provides a web address.

-Refer to Mini-Case. Which of the following best describes the type of advertising this print ad illustrates?

A) retail advertising
B) national advertising
C) directory advertising
D) direct-response advertising
E) direct-to-consumer advertising

Question 51

MINI-CASE
Solumbria, a company that sells medically recommended sun protective clothing, has ads in several different magazines that give consumers information about their products. The headline says "Serious Sun Protection" surprinted over a man and a woman dressed head to toe in the protective clothing. The body copy then goes on to tout the benefits of sun protection, their clothing, and how dermatologists have recommended Solumbria for their patients. The last paragraph of the copy says "For a FREE catalog of Solumbria hats, shirts, pants and accessories for men, women and children, call Sun Precautions: 1-800-882-7860." The ad also provides a web address.

-Refer to Mini-Case. Which of the three primary direct marketing objectives does this ad illustrate?

A) lead generation
B) traffic generation
C) action
D) increase awareness
E) enhance attitudes

Question 52

MINI-CASE
Solumbria, a company that sells medically recommended sun protective clothing, has ads in several different magazines that give consumers information about their products. The headline says "Serious Sun Protection" surprinted over a man and a woman dressed head to toe in the protective clothing. The body copy then goes on to tout the benefits of sun protection, their clothing, and how dermatologists have recommended Solumbria for their patients. The last paragraph of the copy says "For a FREE catalog of Solumbria hats, shirts, pants and accessories for men, women and children, call Sun Precautions: 1-800-882-7860." The ad also provides a web address.

-Refer to Mini-Case. What type of offer does this ad represent?

A) one-step
B) two-step
C) primary
D) secondary
E) indirect

Question 53

MINI-CASE
Solumbria, a company that sells medically recommended sun protective clothing, has ads in several different magazines that give consumers information about their products. The headline says "Serious Sun Protection" surprinted over a man and a woman dressed head to toe in the protective clothing. The body copy then goes on to tout the benefits of sun protection, their clothing, and how dermatologists have recommended Solumbria for their patients. The last paragraph of the copy says "For a FREE catalog of Solumbria hats, shirts, pants and accessories for men, women and children, call Sun Precautions: 1-800-882-7860." The ad also provides a web address.

-Refer to Mini-Case. Once a consumer calls the phone number or visits the web site, he or she can purchase products by phone, mail, or the Internet. Which step of the direct marketing process gets the product to the customer who ordered it?

A) objectives/strategy
B) the offer
C) response/order
D) fulfillment
E) relationship building

Question 54

Your job at work is to develop and execute direct marketing campaigns. Direct marketers conduct a lot of testing before launching a big campaign. Explain how direct marketing professionals are able to continually evaluate and accurately measure the effectiveness of various offers in a single campaign.

Question 55

Barbara is the owner of a gift shop and is considering developing a catalog to increase her sales. Although there are several advantages of using catalogs, there are also some disadvantages. Discuss the disadvantages of catalogs that Barbara needs to be aware of.

Question 56

As described in opening vignette, the leading direct-response auto insurer in a low-involvement category dominated by major brands was successful in overcoming consumer inertia, driving customers to their phones and the Internet and attained the highest level of inquiries in company history. Describe the campaign that produced these results.

Question 57

Although e-mail marketing is a very cost-effective way to reach millions of consumers, many people view it negatively and call it spam. Explain what spam is, and how can legitimate direct marketers respond to the criticisms surrounding e-mail marketing.

Question 58

MINI-CASE
Proactive Solution is a skincare system to help those with acne. Proactive originally started out as being sold only through direct marketing, and the consumer had to enroll in membership in the Proactive Solution Clear Skin Club. However, now some large malls have kiosks selling Proactive Solution products without the club membership, but the prices are much higher. Proactive Solution has had one of the longest-running infomercials on television, and their product is also sold through magazine ads. Through these mediums, consumers can purchase the product directly by calling, mailing, or going through the Internet to submit an order.
-Refer to Mini-Case. Name and describe the type of advertising that Proactive Solution uses to promote and sell its product.

Question 59

MINI-CASE
Proactive Solution is a skincare system to help those with acne. Proactive originally started out as being sold only through direct marketing, and the consumer had to enroll in membership in the Proactive Solution Clear Skin Club. However, now some large malls have kiosks selling Proactive Solution products without the club membership, but the prices are much higher. Proactive Solution has had one of the longest-running infomercials on television, and their product is also sold through magazine ads. Through these mediums, consumers can purchase the product directly by calling, mailing, or going through the Internet to submit an order.
-Refer to Mini-Case. The infomercials and print ads allow consumers to purchase directly from the ad itself. There is a mail-in coupon order form, a toll-free phone number, and a web address given in the print ad that states, "Call Now!" Some infomercials even state that "calls received within the next 30 minutes will receive '2 Free Bonuses' when ordering." Name and describe the type of offer this is, and explain how it is different from the other type of offer.

Question 60

MINI-CASE
Proactive Solution is a skincare system to help those with acne. Proactive originally started out as being sold only through direct marketing, and the consumer had to enroll in membership in the Proactive Solution Clear Skin Club. However, now some large malls have kiosks selling Proactive Solution products without the club membership, but the prices are much higher. Proactive Solution has had one of the longest-running infomercials on television, and their product is also sold through magazine ads. Through these mediums, consumers can purchase the product directly by calling, mailing, or going through the Internet to submit an order.
-Refer to Mini-Case. What do you think Proactive Solution uses to track consumer purchases? How can they use this to restart customers who have joined the club but later quit?

Question 61

MINI-CASE
Proactive Solution is a skincare system to help those with acne. Proactive originally started out as being sold only through direct marketing, and the consumer had to enroll in membership in the Proactive Solution Clear Skin Club. However, now some large malls have kiosks selling Proactive Solution products without the club membership, but the prices are much higher. Proactive Solution has had one of the longest-running infomercials on television, and their product is also sold through magazine ads. Through these mediums, consumers can purchase the product directly by calling, mailing, or going through the Internet to submit an order.
-Refer to Mini-Case. Name and describe the three types of lists and explain which one is the most important to Proactive.

Question 62

MINI-CASE
Proactive Solution is a skincare system to help those with acne. Proactive originally started out as being sold only through direct marketing, and the consumer had to enroll in membership in the Proactive Solution Clear Skin Club. However, now some large malls have kiosks selling Proactive Solution products without the club membership, but the prices are much higher. Proactive Solution has had one of the longest-running infomercials on television, and their product is also sold through magazine ads. Through these mediums, consumers can purchase the product directly by calling, mailing, or going through the Internet to submit an order.
-Refer to Mini-Case. Jill is a member of the Proactive Solution Clear Skin Club, and she received a telephone sales call trying to get her to purchase Proactive make-up, too. Jill registered her phone number with the National Do-Not-Call List and is upset that she received this call. Can Proactive call her? Explain any restrictions they must be aware of.