Deck 19: Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling

Question 1

Which of the following is an example of a company that serves a niche market?

A) a large apparel manufacturing company that produces a wide range of products for different segments
B) a software company that creates standardized supply chain applications for manufacturers
C) a large multi-national manufacturer of consumer products, FMCG products, and consumer electronics
D) a manufacturer who creates tools such as bolts, latches, door handles etc. for left-handed individuals
E) a company that manufactures denim pants for men and women of all ages

Answer 1

D

Question 2

One of the great advantages of direct marketing is the ability to test, under real marketplace conditions, different elements of an offer strategy. An example of an offer strategy would be a(n)

A) copy platform.
B) order.
C) consumer response.
D) test market.
E) list.

Answer 2

A

Question 3

Market demassification has resulted in ________.

A) product standardization
B) niche market creation
C) mass production practices
D) intrinsic marketing channels
E) just-in time production

Answer 3

B

Question 4

Once the target market is defined, the marketer needs to obtain specific names. The company's best prospects are customers who have bought in the past. Additional names can be obtained by purchasing a list of names. The better lists include overlays of ________ and ________ information

A) demographic/attitudes
B) opinions/interests
C) financial/buying groups
D) demographic/financial
E) Demographic/psychographic

Question 5

The extraordinary growth of direct marketing is the result of many factors. These include higher costs of driving, traffic congestion, parking headaches, and

A) retailers not having interesting sales.
B) lack of interest in shopping malls.
C) too few new retailers.
D) too many new items to choose from.
E) lack of time.

Question 6

Direct marketers can time their offer to reach their prospects at the right moment and as a result receive higher readership because of its applicability. An example of such "right moment" timing would be

A) senior citizens receiving offers on retirement planning.
B) generation Xers receiving retirement planning offers.
C) newlyweds receiving an offer to join a dating service.
D) "baby-boomers" receiving information on first time home ownership.
E) parents of new born babies receiving coupons in the mail.

Question 7

In constructing an effective direct-mail campaign, marketers must decide on their objectives, target markets and prospects; offer elements, means of testing the campaign, and ________.

A) salespeople's input
B) advertising campaign
C) measures of campaign success
D) sales promotions
E) management's input

Question 8

Catalogue marketing has a long history in Canada. Which Canadian catalogue was so beloved that it was known by nicknames, such as the "bible" and the "Wish Book"?

A) Canadian Gardener
B) Canadian Tire
C) IKEA
D) Eaton's
E) Walmart

Question 9

Direct-mail prospects can be identified on the basis of such variables as age, sex, income, education and

A) response to mail-order catalogs.
B) previous mail-order purchases.
C) telemarketing response.
D) banking practices.
E) previous purchases.

Question 10

Market demassification has resulted in

A) a reduction in the use of direct marketing.
B) a resistance to home shopping.
C) increased use of mainstream media.
D) an ever-increasing number of market niches.
E) an increase of retail sales help.

Question 11

Suppose only 2 percent of the prospects of a direct-mail campaign for Samsonite results in an order. Since direct mail has higher readership, many more than 2 percent became ________ Samsonite and their luggage.

A) aware of
B) converts to
C) purchasers of
D) loyal to
E) committed to

Question 12

You have identified those customers who have purchased "any" product from your firm within the last six months. Additionally, you have identified those customers who have spent at least "$100" and those customers who purchase something from your firm three to six times a year. What formula are you using to select customers for your mailing?

A) product, offer, distribution
B) recency, frequency, monetary amount
C) distribution, dollar amount, frequency
D) recent, often, dollar
E) key customer, minimum amount, frequency

Question 13

Direct marketing permits the ________ of alternative media and messages in search of the most cost-effective approach.

A) use of
B) accent
C) testing
D) outsourcing
E) implementation

Question 14

Direct marketers seek a measurable response, typically a customer order. This is sometimes called

A) direct-access marketing.
B) direct-order marketing.
C) first time ordering.
D) benchmarking.
E) direct marketing.

Question 15

Direct marketing is the use of consumer-direct channels to reach and deliver goods and services to customers without using marketing middlemen. These channels include direct mail, catalogs, Web sites, interactive TV, and ________.

A) bounce-back coupons
B) coupons
C) after sales support
D) telemarketing
E) billboards

Question 16

An objective of a direct-mail campaign is to solicit an order from the prospects. Your firm's latest direct-mail offer was mailed to 100 000-targeted consumers. To date, you have received 2000 orders to your offer. Based upon what the industry's historical order rate runs, has this campaign been successful?

A) No, the 2000 orders do not cover the marginal costs of the mailing.
B) Yes, a 2 percent rate is considered good.
C) No, the 2 percent is below acceptable standards for a mailing.
D) No, the level is below acceptable levels.
E) Cannot tell without more information.

Question 17

Your company uses direct marketing to reach its customers. Your direct mail pieces include a telephone number and a Web address. Your company directs the consumer to visit your Web site and print coupons for your products. This is an example of what stage of direct marketing?

A) lifetime value marketing
B) carpet bombing
C) real-time personalized marketing
D) database marketing
E) interactive marketing

Question 18

Which of the following is a major advantage of using direct mails?

A) It is the best suited tool for selling complex products.
B) Campaign testing is not needed for direct mails.
C) Direct mails have very high conversion rates.
D) Direct mails permit target market selectivity.
E) It is the best method to sell industrial products.

Question 19

The catalog you receive from a large apparel store, displaying their new summer collection, is an example of ________ marketing.

A) direct
B) buzz
C) virtual
D) word of mouth
E) viral

Question 20

A direct mail campaign that has an order-response rate of ________ is considered a success.

A) 15 percent
B) 2 percent
C) 5 percent
D) 10 percent
E) 3 percent

Question 21

Which of the following is a factor considered when a customer is evaluated based on RFM formula?

A) the amount of time passed after the customer's last visit
B) the product categories purchased by the customer
C) the mode of payment used by the customer
D) the location from which the customer has bought goods
E) the type of feedback provided by the customer

Question 22

________ marketing generates excitement, creates publicity, and conveys new relevant brand-related information through unexpected or even outrageous means.

A) Live-in
B) Viral
C) Buzz
D) Guerrilla
E) Experimental

Question 23

All companies need to consider and evaluate e-marketing and e-purchasing opportunities. Visitors to a Web site will judge its performance on its ease of use and its physical attractiveness. Ease-of-use breaks down into three attributes: the Web site downloads quickly, the first page is easy to understand, and

A) the visitor finds it easy to navigate to other pages that open quickly.
B) the visitor can easily see the product selected.
C) the Web site interacts with the visitor in some manner.
D) the visitor finds it easy to order.
E) the visitor is entertained.

Question 24

Call centres that receive calls from customers are called

A) teleprospecting.
B) telesales.
C) inbound telemarketing.
D) telecoverage.
E) outbound telemarketing.

Question 25

In the world of the Internet, the hot growth area in interactive marketing is paid search. Search terms are a proxy for the consumer's product or consumption interests and . These ads are called

A) pop-up ads.
B) content advertising.
C) pay-per-click ads.
D) interstitials.
E) microsites.

Question 26

The Web offers the advantage of "contextual placements." Marketers can buy ads from sites that are related to their offerings. An example of a "contextual placement" ad would be

A) Johnson and Johnson ads that appear when a consumer types in the term "baby".
B) ads for expensive yachts when the term "bankruptcy" is typed.
C) Johnson and Johnson ads that appear on a new car dealer's Web site.
D) an ad for new cars when the user logs on to a Web site.
E) new car ads that appear when the user types in the term "baby".

Question 27

The infomercial for a miraculous roaster that you saw on the late-late-late show was a combination of the "sell" of commercials and the draw of "educational information." This is a form of

A) direct-response advertising.
B) telemarketing.
C) interactive marketing.
D) telesales.
E) videotext.

Question 28

The definition of "banner ads" is

A) ads that the user "clicks" to see.
B) ads that appear in the user's e-mail.
C) large ads shown on the screen for complementary products.
D) small, rectangular boxes containing text and perhaps a picture.
E) ads that "pop up" on the users screen from time to time.

Question 29

The Internet provides marketers and consumers with opportunities for much greater interaction and

A) ease of use.
B) individualization.
C) speed.
D) convenience.
E) specificity.

Question 30

The original and oldest form of direct marketing is the ________.

A) direct mail
B) telephone sales
C) Internet commerce
D) billboards
E) field sales calls

Question 31

________ are individual webpages or clusters of pages that function as supplements to a primary site.

A) Banner ads
B) Microsites
C) Related ads
D) Interstitials
E) Pop-up ads

Question 32

Other media for direct-response marketing includes television. Television is used by direct marketers in conducting or producing "infomercials," and

A) commercials.
B) direct response.
C) ad campaigns.
D) kiosks.
E) at-home shopping channels.

Question 33

One of the benefits of interactive marketing is that it is highly accountable and its ________ can be easily traced.

A) sellers
B) sales
C) buyers
D) effects
E) costs

Question 34

Apple created a lot of publicity before the release of its tablet computer, i-pad. The product was discussed in online communities and social networks. Many booked the product in advance, ensuring good initial revenues for Apple. The company published periodic updates of the product creating huge expectation in the minds of customers. This pre-launch publicity can be viewed as ________ marketing.

A) stealth
B) ambush
C) buzz
D) undercover
E) direct

Question 35

According to Statistics Canada, almost ________ of the total workforce works in sales or service occupations.

A) 20 percent
B) 12 percent
C) 30 percent
D) 5 percent
E) 24 percent

Question 36

For a Web site, physical attractiveness is determined by three factors. These are: good use of colour and sound; pages are clean and not overly crammed; and

A) the typefaces and fonts are very readable.
B) the site has ease of navigation.
C) the site has plenty of colour photos.
D) use of attractive colours and music.
E) use of quickly loading pages.

Question 37

Market research conducted by Canada Post suggests that Canadians would rather

A) host home parties than shop via a catalogue.
B) shop in person than through the use of a catalogue.
C) receive catalogues through the mail than pick them up from a store.
D) browse for items online than in a hard-copy catalogue.
E) pick up catalogues from a store than receive them through the mail.

Question 38

An important guideline to be followed in conducting an e-mail campaign (to do it right) is to

A) update your e-mail lists once or twice a year.
B) offer something the customer could not get via direct mail.
C) make the consumer the same offering as in your direct-mail campaign.
D) personalize the e-mail with the subscribers first and last name.
E) make it difficult for the consumer to "unsubscribe" from your list.

Question 39

You have been hired by a firm that receives calls from customers. This is an example of a(n)

A) teleprospecting.
B) outbound call centre.
C) telesales.
D) inbound call centre.
E) telecoverage.

Question 40

Call centres that initiate calls to prospects and customers are called

A) teleprospecting.
B) telesales.
C) inbound telemarketing.
D) telecoverage.
E) outbound telemarketing.

Question 41

The average sales person turnover rate for all industries is almost

A) 45 percent.
B) 60 percent.
C) 80 percent.
D) 20 percent.
E) 52 percent.

Question 42

________ compensation receives more emphasis in jobs where sales are cyclical or depend on individual initiative.

A) Variable
B) Commission
C) Fixed
D) Ratio
E) Straight

Question 43

Today's customers expect a salesperson have deep product knowledge, to be efficient and reliable and, to ________ ideas to improve the customer's operations, are forcing companies to make higher investments in training.

A) abandon
B) promote new
C) add
D) listen to new
E) foster new

Question 44

To attract top-quality sales reps a company must develop an attractive compensation program. Which of the following components of sales force compensation satisfies the need for income stability?

A) expense allowances
B) variable amount
C) commission
D) fixed amount
E) benefits

Question 45

Training of salespeople varies by industry and the complexity of the products. For example, the median training period is ________ in industrial-products companies versus four for consumer-products companies.

A) 12 weeks
B) 28 weeks
C) 30 weeks
D) 8 weeks
E) 10 weeks

Question 46

Inside salespeople are of three types. These include the technical support people, the sales assistants, and the ________ who use the phone to find new leads and pass these leads onto the sales representatives.

A) telemarketers
B) office assistants
C) marketing assistants
D) support people
E) sales assistants

Question 47

The term "sales representative" covers a broad range of positions. A ________ is an individual whose major task is the delivery of a product.

A) deliverer
B) missionary
C) demand creator
D) technician
E) order taker

Question 48

Studies have shown that the best salespeople are those who manage their time efficiently. Face-to-face selling time has decreased to as little as ________ of total working time.

A) 60 percent
B) 45 percent
C) 10 percent
D) 29 percent
E) none of the above

Question 49

________ compensation receives more emphasis in jobs with a high ratio of nonselling to selling duties and in jobs where the selling task is technically complex and involves team work.

A) Estimated
B) Combination
C) Fixed
D) Variable
E) Commission

Question 50

According to communication researchers, the society consists of ________, small groups whose members interact frequently.

A) intuiters
B) buzzers
C) informants
D) campaigners
E) cliques

Question 51

The majority of sales representatives require encouragement and special incentives. To increase motivation, marketers reinforce intrinsic and ________ rewards of all types.

A) extrinsic
B) punitive
C) personal
D) financial
E) external

Question 52

At the heart of a successful sales force is the selection of effective representatives. One survey revealed that the top 25 percent of the sales force brought in ________ of all sales.

A) 45 percent
B) 60 percent
C) 80 percent
D) 52 percent
E) 20 percent

Question 53

Your company has customer service representatives who provide you with leads, writes up proposals, fulfill orders, and provide post-sale support. Your responsibilities are to concentrate on the larger accounts, with more complex and customized needs. This is an example of a(n) ________.

A) leveraged sales force
B) telemarketer
C) direct sales force
D) account management sales force
E) contractual sales force

Question 54

The sales force performs a number of specific tasks. ________ is conducting market research and doing intelligence work.

A) Information gathering
B) Communicating
C) Prospecting
D) Servicing
E) Targeting

Question 55

Many companies set annual sales quotas. Quotas can be set on dollar sales, selling effort or activity, margin, product type, and

A) attendance.
B) call ratio.
C) close ratio.
D) unit volume.
E) selling price.

Question 56

A(n) ________ consists of full- or part-time paid employees who work exclusively for the company.

A) independent contractor
B) direct sales force
C) agency
D) brokerage
E) contractual sales force

Question 57

Most companies today are moving to the concept of a "leveraged sales force" which is defined as

A) using a combination of inside salespeople and telemarketers.
B) using overseas inbound sales centres and a direct sales force.
C) using a combination of sales force, inside salespeople, and through the Web ordering.
D) using a combination of telemarketers and the Web for ordering.
E) using a direct sales force, a representative sales force, and inside salespeople.

Question 58

The term "sales representative" covers a broad range of positions. We call a sales representative whose expertise is in the solving of a customer's problem a(n)

A) demand creator.
B) order taker.
C) solution vendor.
D) technician.
E) missionary.

Question 59

The majority of sales representatives require encouragement and special incentives. The rewards least-valued by sales reps are

A) vacations.
B) gifts.
C) monetary.
D) promotions.
E) respect and recognition.

Question 60

You have been hired by a firm as a sales representative. Your job description reads as follows: "The key duty of the sales representative is to solve the customer's problems, using the company's products." You are a ________ sales representative.

A) deliverer
B) solution vendor
C) technician
D) missionary
E) demand creator

Question 61

You are calling on a buyer at a mid-west industrial supplier and are in the process of using the the FABV approaches. Of the six, generally accepted steps in the sales process, which step uses these two selling approaches?

A) preapproach
B) overcoming objections
C) prospecting and qualifying
D) closing
E) presentation and demonstration

Question 62

People who are knowledgeable about big and small things are called ________.

A) buzzers
B) informants
C) salesmen
D) mavens
E) connectors

Question 63

In this step, the salesperson is "telling the story" of his product or service.

A) presentation
B) preapproach
C) follow-up
D) closing
E) prospects

Question 64

Customers typically pose objections during the presentation or when asked for the order. ________ resistance includes resistance to interference or a reluctance to give up something.

A) Logical
B) Branding
C) Normal
D) Psychological
E) Promoting

Question 65

Today many companies are not trying to seek an immediate sale, but rather to build a ________ supplier-customer relationship.

A) transactional
B) mutually beneficial
C) potential
D) short-term
E) long-term

Question 66

The first step in the process of selling is to

A) close.
B) prospect.
C) present.
D) preapproach.
E) approach.

Question 67

People who posses natural persuasive power are called ________.

A) bridges
B) sticker
C) connectors
D) salesman
E) mavens

Question 68

Effective salespeople have more than instinct; they are trained in methods of ________ and ________.

A) time/territory management
B) customer management/time management
C) analysis/customer management
D) pricing/time management
E) profitability/analysis

Question 69

Conventional wisdom is that profits are maximized by sales reps focusing on the more important products and more profitable products. When the firm launches or is planning on launching a number of new products in succession, how should the company adjust the sales force?

A) Increase the compensation on the new items.
B) Tell the sales force to sell the new items at the expense of existing lines.
C) Increase the compensation on the existing line of products.
D) Increase the quotas on the new items to the sales force.
E) It should expand the sales force.

Question 70

People who know and communicate with a great number of other people are called ________.

A) mavens
B) connectors
C) salesmen
D) buzzers
E) informants

Question 71

When a relationship management program is properly implemented, the organization will begin to focus as much on managing its customers as on managing its

A) brands.
B) personnel.
C) finances.
D) markets.
E) products.

Question 72

The most important source of information about reps is sales reports. Sales reports are divided between activity plans and

A) write-ups of activity results.
B) written objectives.
C) call reports.
D) activity reports.
E) daily plans of action.

Question 73

The sales force's reports along with other observations supply the raw material for evaluation. One type of evaluation compares past performance to

A) mean performance.
B) current performance.
C) key individual's performance.
D) group performance.
E) manager's performance.

Question 74

A downside of sales quotas is that they ________ reps to get as much business as possible often at the expense of customer satisfaction.

A) drive
B) compensate
C) discourage
D) ignore
E) allow

Question 75

If the salesperson is learning about the prospect and sets call objectives to qualify the prospect, the salesperson is in what step in the selling process?

A) prospects
B) follow-up
C) closing
D) preapproach
E) presentation

Question 76

Salespeople need to know how to recognize closing signs from the buyer, including physical actions, statements or comments, and

A) actions.
B) questions.
C) statements.
D) products.
E) concerns.

Question 77

You are about to conduct a performance appraisal of one of your salespeople. Included in your portfolio is the salesperson's activity plans, write-ups of activity plans, call reports, and annual territory marketing plan. One type of evaluation that you can conduct

A) compares current performance to past performance.
B) compares current performance to other individual's performances.
C) compares current performance to quota.
D) compares current performance to "mean".
E) compares current performance to the groups performance.

Question 78

Follow-up and ________ are necessary if the salesperson wants to ensure customer satisfaction and repeat business.

A) follow-through
B) contact
C) billing
D) maintenance
E) servicing

Question 79

Using the formula of FABV the salesperson tells the "______" to the buyer.

A) objective
B) reason
C) feature
D) story
E) price

Question 80

Many companies require representatives to develop an annual territory-marketing plan in which they outline their program for increasing business in the existing accounts. Sales managers use these to develop

A) sales quotas.
B) sales objectives.
C) company objectives.
D) estimate the number of salespeople needed.
E) performance standards.