Deck 17: Integrating Direct Marketing and Personal Selling

Question 1

Cross-selling is the practice of identifying past purchasers of one product and suggesting that they purchase other products.

Answer 1

True

Question 2

One disadvantage of direct marketing is that it has no way to identify and target specific segments of the population.

Answer 2

False

Question 3

One great benefit of a database is that it allows a firm to measure how much business it is actually doing with its best customers.This can be found with an analysis of recency, frequency, and monetary factors.

Answer 3

True

Question 4

Privacy continues to be a hot topic in the world of direct marketing, and today many consumers are uneasy about the ways in which their personal information is being gathered and used.

Question 5

Ben & Jerry's uses its database to not only get customers' reactions to flavors and product ideas, but also to involve them in social causes.

Question 6

Though emerging technologies have created exciting new options for direct marketers, businesses have had direct contact with consumers since the early days of Richard Sears, Alvah Roebuck, Les Wunderman, and L.L.Bean.

Question 7

The most common use of direct marketing is as a tool to close the sale with a customer.

Question 8

With the power that comes from every new computer chip, today's marketers can gather and manage a massive amount of information.They might think of their overall goal as cultivating a kind of cybernetic intimacy with customers.

Question 9

A direct marketing campaign can serve many purposes.One of them, though not the most common, is to engage customers and foster brand loyalty.

Question 10

One simple element in a customer database-a date of birth-allows companies to do something a little special and contact customers on their birthdays.

Question 11

A home decor catalog is trying to use its marketing database to identify and isolate its best customers to determine their decision making and purchasing behavior.A CPO analysis is an excellent tool to help accomplish this.

Question 12

Direct marketing can provide consumers access to a range of products and services right in their own homes, which many customers consider to be a valuable trait nowadays.

Question 13

One characteristic of a direct marketing program is that it almost always tries to strengthen brand recognition.

Question 14

Direct marketing is an interactive system that uses one or more forms of advertising media to effect a measurable response and/or transaction at any location.

Question 15

Internal mailing lists are created by accessing the organization's own records of its customers, donors, subscribers, or inquirers.

Question 16

The difference between a database and a mailing list is that the mailing list also includes information collected directly from a marketer's own customers.

Question 17

Direct marketers employ mailing lists because they are easy to use and inexpensive.

Question 18

The one word that could be used to summarize the popularity of direct marketing among today's consumers is convenience.

Question 19

External lists are the starting point for developing better relations with customers.

Question 20

The appeal of direct marketing is the ease with which marketers can measure results, most often by calculating cost per inquiry (CPI) or cost per order (CPO).

Question 21

The most complex and demanding type of creative selling is seen in telemarketing efforts directed at consumers at home.

Question 22

The job of a marcom manager is to provide technical advice, information, and service to the consumer.

Question 23

A recent surge in database development has involved companies that use advanced technology to get more personal information on consumers.They merge offline data, like credit ratings and home value, with online data, like ordinary search activities and Internet navigation.

Question 24

Direct marketing pioneer L.L.Bean has always been a relationship builder.What insight did L.L.Bean have from the beginning regarding the use of direct marketing?

A)Word-of-mouth advertising is the best way to build a marketing base.
B)Long-term customer relationships must be based on trust.
C)Closing the sale comes first and commitment to customer satisfaction comes second.
D)Customers are willing to pay for catalogs if given the proper incentive.

Question 25

The broad concept of ____ is interactive in that the marketer attempts to develop an ongoing dialogue with the customer, based on the idea that one contact will lead to another, and then another, so the message is continually refined.

A)direct mail
B)direct marketing
C)sales promotion
D)database marketing

Question 26

Perhaps the least controversial tool deployed recently by direct marketers has been the unsolicited email message, also called bulk email.

Question 27

All conventional media-television, radio, newspapers, and magazines-can be used to deliver direct response advertising.

Question 28

Merely having a marketing database can create conflict between departments within a company as well as between a company and its advertising agency.

Question 29

Infomercials that use celebrity testimonials have a definite advantage over those featuring ordinary people, though this adds significantly to overall cost.

Question 30

The missionary salesperson is required to handle the hardest part of selling-closing the sale.

Question 31

Order taking is just what it sounds like-accepting orders for merchandise or scheduling services.But it also requires answering basic questions and communicating effectively so that a quality relationship with the customer is established and maintained.

Question 32

What is one main reason why direct marketing has grown in popularity?

A)its use of only one type of media to get a response
B)its goal of long-term sales promotion
C)its immediate measurement of response
D)its reliance on technology rather than human behavior

Question 33

Direct marketing is defined as an interactive system that uses one or more advertising media to

A)reach large segments of the audience.
B)push a product through the distribution channel.
C)sustain a brand image.
D)get a measurable response and/or transaction at any location.

Question 34

Creative selling involves answering questions and providing basic benefits of the goods being offered, but it rarely requires communicating large amounts of information or advice.

Question 35

Products that are higher priced, complicated to use, or require demonstration are heavily dependent on personal selling in order to close the deal.

Question 36

Direct mail is probably the direct marketer's most invasive tool and as such must be used with discretion so as not to alienate customers.

Question 37

Three types of personal selling are described in the text-order taking, creative selling, and supportive communication.

Question 38

Failure to get the consumer dialogue right in the personal selling part of the direct marketing process can be easily rectified by accelerating and stressing other the direct marketing efforts of a business.

Question 39

If a company is looking for the lowest cost-per-contact, it should choose telemarketing.

Question 40

Customer relationship management, or CRM, is just what the term implies.It involves cultivating long-term relationships with customers.

Question 41

An emphasis on producing measurable effects is one of the noted appeals of direct marketing.In evaluating direct marketing programs, ____ and ____ are frequently used.

A)cost per contact; cost per consumer
B)cost per rating point; cost per share
C)cost per thousand; cost per million
D)cost per inquiry; cost per order

Question 42

Which of the following is one of the three basic elements of any frequency-marketing program?

A)an internal mailing list
B)a benefit package
C)an external mailing list
D)a sales staff

Question 43

A direct marketer promoting a service industry uses both internal and external lists.In essence, what is one main difference between these two types of lists?

A)Internal lists contain all types of consumer information.External lists consist of names and addresses.
B)Internal lists help to develop relationships with current customers.External lists help to attract new customers.
C)Internal lists are drawn from competitors' customer lists.External lists are drawn from the general population.
D)Internal lists cannot be enhanced.External lists can be enhanced.

Question 44

An RFM analysis is used to

A)determine which products or services are the most popular.
B)identify the customers who are the most loyal purchasers.
C)track the replies from direct mail pieces.
D)compare the efficiencies of various direct marketing programs.

Question 45

What are the three main purposes of direct marketing programs?

A)to close the sale, identify prospects, and engage consumers
B)to identify target markets, tailor the message, and support brand identity
C)to provide information, answer questions, and foster brand loyalty
D)to reward customers, furnish information, and generate brand preference

Question 46

Two broad categories of mailing lists should be recognized by marketers.They begin with ____ lists as the starting point for developing better relationships with current customers.Then they can purchase ____ lists to cultivate new business.

A)internal; external
B)demographic; geo-demographic
C)recency; frequency
D)behavioral; psychographic

Question 47

In one word, you can summarize the popularity of direct marketing with consumers today.What is that word?

A)convenience
B)privacy
C)technology
D)quality

Question 48

In some cases, marketing databases are expanded with more detail by adding ____ data, which reveals the characteristics of the neighborhood in which a person resides.

A)demographic
B)psychographic
C)telegraphic
D)geo-demographic

Question 49

A real estate firm has a name-and-address file.It can now add more names, add more details about the names already on the list, or merge the list with another list consisting of new information.All of these choices are forms of

A)media application.
B)cross-selling.
C)list enhancement.
D)system selling.

Question 50

Cross-selling involves marketing

A)additional products to current customers.
B)the same product across different consumer types.
C)to different members of the same household.
D)aimed at various segments with the same message.

Question 51

Xercise, a nationwide fitness center chain, interviews its customers to determine their wants and needs regarding their local center's services, classes, equipment, facility features, business hours, etc.The marketers at Xercise are in the process of developing

A)a marketing database.
B)an external mailing list.
C)a geo-demographic data source.
D)a single-source tracking study.

Question 52

Consumer worries about privacy issues related to direct marketing have been addressed, at least to a point, by

A)industry guidelines.
B)customer boycotts.
C)federal investigators.
D)government legislation.

Question 53

The one characteristic that makes direct marketing different from marketing in general is that it

A)depends on consumer response for its success.
B)emphasizes developing a customized database.
C)has a lower cost per contact.
D)relies on audience segmentation.

Question 54

A shoe retailer uses its marketing database to run an RFM analysis on its customers.The F in RFM stands for frequency and refers to the number of times a customer

A)was reached with any kind of advertising message.
B)was reached through a direct marketing medium.
C)bought a product from the company.
D)bought a product from a certain product category.

Question 55

You are a marketing manager for a company that packages vacations to exotic locations.You use a variety of media to promote these trips, including upscale magazines, infomercials, and direct mail.One of your primary objectives is integration.This is because if you integrate these programs,

A)you will cut the cost of communicating with audiences.
B)they will be easier to measure for their results.
C)they will be more effective than the sum of their parts.
D)you will eliminate the need to tailor specific messages to specific audiences.

Question 56

A suburban country club contacts each member who holds a golf membership and inquires as to whether he or she would also like to purchase a pool membership for the entire household. The country club personnel are using their marketing database for

A)personal selling.
B)creative selling.
C)marcom selling.
D)cross-selling.

Question 57

A busy mother of four children is concerned with issues of privacy and doesn't want her family phone number on mailing lists.What can she do?

A)learn to live with telemarketers until they are banned by law
B)sign up for the Direct Marketing Association's opt-out program
C)contact the FTC's Do Not Call Registry
D)call the state Better Business Bureau

Question 58

The development and expansion of ____ and ____, are among several societal factors that are driving the growing popularity of direct marketing today.

A)credit cards; computers
B)telemarketing; bulk emailing
C)mail-order firms; catalog houses
D)telecommunications; door-to-door sales

Question 59

What should always be a key goal of direct marketing today, one that many for-profit businesses and not-for-profit organizations seem to forget?

A)to build a widespread mail-order operation
B)to create an image for the brand
C)to integrate the message with all other advertising efforts
D)to reach customers across the board rather than consumers in specific markets

Question 60

According to the text, what looms as arguably the major concern regarding direct marketing today in the minds of consumers?

A)annoying telemarketing
B)invasion of privacy
C)increased junk mail
D)ongoing credit card debt

Question 61

A fast-growing frozen yogurt chain discovers the need to coordinate all of its communications programs and all of its specialists' efforts.At this point in its growth, the company would be wise to focus on hiring or promoting someone to act as a

A)missionary salesperson.
B)marcom manager.
C)list enhancer.
D)functional specialist.

Question 62

A salesperson sells sets of interrelated components, essentially representing a full range of products and services, to his business customers.His accounts are mainly industrial manufacturers who prefer to purchase entire lines of parts and products from his firm, including producers of steel and aluminum goods, manufacturing plants, heavy equipment producers, and government buyers.This individual is involved in

A)system selling.
B)missionary selling.
C)creative selling.
D)marcom management.

Question 63

Your phone rings one evening at dinnertime.A man says he's calling from a nationwide magazine subscription service and wants to know about your hobbies and interests and what you like to read.He proceeds to tell you about a special deal if you order three magazines.This type of telemarketing will most likely act to

A)furnish helpful information about the company.
B)annoy consumers and alienate them from the company.
C)create a favorable image of the company.
D)promote the company in an inexpensive way.

Question 64

How might the establishment of a marketing database create problems between a company and its advertising agency?

A)by implying that the ad agency is unable to gather and track reliable information
B)by using funds that would have supported traditional ad agency campaigns
C)by purchasing mailing lists from competing promotional agencies
D)by forcing the ad agency to use the data the company has on its own mailing lists

Question 65

At present, which form of direct marketing is considered the most controversial?

A)direct mail
B)telemarketing
C)bulk email
D)infomercial

Question 66

A nationwide restaurant chain is considering the use of a direct mail piece to reach potential customers.Managers of the company should realize that two negatives related to this tactic are the high cost per contact and the

A)limited ability to test executions.
B)lack of creative options.
C)inaccuracy of addresses on mailing lists.
D)consumer distrust of mailed advertising.

Question 67

Two big advantages of direct mail as a communication medium stems from its

A)cost and response rate.
B)selectivity and flexibility.
C)mailing lists and consumer data.
D)timing and delivery.

Question 68

What is one of the keys to success for an infomercial?

A)keeping the broadcast under five minutes
B)avoiding the use of celebrities
C)promoting only nationally known brand names
D)including testimonials from satisfied users

Question 69

Which direct marketing medium currently has the highest response rate?

A)telemarketing
B)infomercial
C)direct mail
D)advertorial

Question 70

There are many different types of sales jobs.Which type is the least complex form of personal selling?

A)creative selling
B)system selling
C)missionary selling
D)order taking

Question 71

Scenario 17-1
If you walk into a Cracker Barrel Old Country Store, you'll see many items once found in general stores, like porcelain signs, ceramic jugs, tin boxes-and Coca-Cola trays and plaques.And since 2004, Coca-Cola Co.has maintained a larger display of unique Coca-Cola memorabilia at the Cracker Barrel in Nashville, right next to the Opryland Hotel.Visitors will find a number of rare holiday paintings, prints, and calendars featuring the familiar Santa Claus figure and a bottle of Coke.In 1931, the company had commissioned professional illustrator Haddon Sundblom to create illustrations for its advertising, resulting in the warm and jolly image of Santa that has endured in American culture ever since.The soft drink has been served in Cracker Barrel stores for 40 years, so this is a natural connection for both brands.In fact, for its 40th anniversary in 2009, Cracker Barrel featured Black Cherry Coke in limited-edition glasses bearing logos of both brands.(http://www.crackerbarrel.com/about-decor.cfm?doc_id=51.Accessed January 17, 2011.)
(original press release by Jim Taylor, "Rare Coca-Cola® Holiday Artwork on Display at Cracker Barrel Old Country Store®," http://www.crackerbarrel.com/mediaroom-newsreleases, November 15, 2004.)
(Scenario 17-1) The marketers of Coca Cola collectibles offer their best customers a program in which they are allowed to preview and purchase limited-edition items one month before the general public is informed of the sale.This assures key customers that they won't miss out on a valued collectible due to unusually high demand.This is an example of

A)an effective use of external lists.
B)a CPO program.
C)a frequency-marketing program.
D)marcom management.

Question 72

Scenario 17-1
If you walk into a Cracker Barrel Old Country Store, you'll see many items once found in general stores, like porcelain signs, ceramic jugs, tin boxes-and Coca-Cola trays and plaques.And since 2004, Coca-Cola Co.has maintained a larger display of unique Coca-Cola memorabilia at the Cracker Barrel in Nashville, right next to the Opryland Hotel.Visitors will find a number of rare holiday paintings, prints, and calendars featuring the familiar Santa Claus figure and a bottle of Coke.In 1931, the company had commissioned professional illustrator Haddon Sundblom to create illustrations for its advertising, resulting in the warm and jolly image of Santa that has endured in American culture ever since.The soft drink has been served in Cracker Barrel stores for 40 years, so this is a natural connection for both brands.In fact, for its 40th anniversary in 2009, Cracker Barrel featured Black Cherry Coke in limited-edition glasses bearing logos of both brands.(http://www.crackerbarrel.com/about-decor.cfm?doc_id=51.Accessed January 17, 2011.)
(original press release by Jim Taylor, "Rare Coca-Cola® Holiday Artwork on Display at Cracker Barrel Old Country Store®," http://www.crackerbarrel.com/mediaroom-newsreleases, November 15, 2004.)
(Scenario 17-1) When consumers drop their business cards into a fishbowl at a Cracker Barrel store, they are entering a contest.But in essence, the marketers at Cracker Barrel may see this as

A)opting-in for bulk email and other promotions.
B)a form of direct response advertising.
C)a way to promote system solutions.
D)fostering creative selling.

Question 73

A marketer wonders aloud why salespeople no longer simply approach their prospects with the direct intention of making a sale, but instead spend time analyzing all their possible needs and desires.Her colleague in the next cubicle thinks about this as well, and they talk.They realize that the answer is because today's salespeople are expected to

A)be problem solvers who work in partnership with customers.
B)be technical experts with experience in database management and analysis.
C)take orders only after confirming the appropriateness of each sale.
D)do everything that was once done by several departments.

Question 74

Scenario 17-1
If you walk into a Cracker Barrel Old Country Store, you'll see many items once found in general stores, like porcelain signs, ceramic jugs, tin boxes-and Coca-Cola trays and plaques.And since 2004, Coca-Cola Co.has maintained a larger display of unique Coca-Cola memorabilia at the Cracker Barrel in Nashville, right next to the Opryland Hotel.Visitors will find a number of rare holiday paintings, prints, and calendars featuring the familiar Santa Claus figure and a bottle of Coke.In 1931, the company had commissioned professional illustrator Haddon Sundblom to create illustrations for its advertising, resulting in the warm and jolly image of Santa that has endured in American culture ever since.The soft drink has been served in Cracker Barrel stores for 40 years, so this is a natural connection for both brands.In fact, for its 40th anniversary in 2009, Cracker Barrel featured Black Cherry Coke in limited-edition glasses bearing logos of both brands.(http://www.crackerbarrel.com/about-decor.cfm?doc_id=51.Accessed January 17, 2011.)
(original press release by Jim Taylor, "Rare Coca-Cola® Holiday Artwork on Display at Cracker Barrel Old Country Store®," http://www.crackerbarrel.com/mediaroom-newsreleases, November 15, 2004.)
(Scenario 17-1) Cracker Barrel stores feature a big fishbowl inviting visitors to leave a business card and announcing a monthly drawing for free memorabilia from both brands.Those whose cards are drawn receive their prizes by mail.What are Cracker Barrel and Coca Cola specifically doing with this fishbowl activity?

A)developing a mailing list
B)promoting brand loyalty
C)cross-selling
D)conducting personal selling

Question 75

The role of a marcom manager is to

A)ensure efficient and timely delivery of products ordered.
B)monitor contacts, sales, and return sales.
C)schedule the media for marketing communications.
D)plan the overall communications program and oversee functional specialists.

Question 76

A company wants to sell a window cleaning kit in a 30-minute infomercial.What does an experienced PR specialist suggest that this company do?

A)Wait until the end to give contact information in order to build suspense.
B)Repeat the phone number and website throughout the broadcast.
C)Spend the money needed to hire a celebrity as spokesperson.
D)Avoid testimonials.

Question 77

The development of a marketing database can lead to interdepartmental conflict within a company.What are the most common sources of such conflict?

A)whether databases are helpful, and whether or not to even establish one
B)what privacy issues might arise, and how they might be addressed
C)how the information will be collected, and how the listings will be contacted
D)who will have direct access to the database, and whose budget will get cut to create it

Question 78

Personal selling is

A)the face-to-face communications and persuasion process.
B)virtually the only way to close the deal.
C)simpler to conduct than any other marketing functions.
D)the most controversial form of direct marketing.

Question 79

Infomercials were made possible by

A)the advent of video cameras.
B)increasingly gullible consumers.
C)less expensive ad space on satellite and cable systems.
D)relaxed network standards for programming.

Question 80

A nationally distributed fashion and beauty magazine regularly acts as a vehicle for direct marketing.This occurs when direct marketers promote their products or services by

A)having feature stories published.
B)sending press releases.
C)getting free publicity in advice columns.
D)paying for bind-in insert cards.