Deck 13: Digital and Direct-Response Advertising

Question 1

For 2009, it is estimated that ________ percent of the U.S. population used the Internet.

A)34
B)44
C)64
D)74
E)84

Answer 1

B

Question 2

Ethical e-mail marketers are advocating that:

A)they be allowed to send mass online messages with the proviso that consumers can then opt-out of future communication.
B)there be no opt-out opportunity for consumers once they accept an initial e-mail.
C)there be stringent opt-in requirements.
D)they need not include their privacy policy in an e-mail or its link.
E)all use of e-mail for commercial purposes be forbidden.

Answer 2

A

Question 3

The leading video sharing site is:

A)Facebook.
B)YouTube.
C)Bing.
D)Kodak EasyShare.
E)MySpace.

Answer 3

D

Question 4

For the last 25 years, marketers have moved toward more personal relationships with customers, moving from marketing to broad demographic categories to the next phase of focusing on more narrowly defined:

A)one-to-one marketing.
B)niche marketing.
C)category marketing.
D)community or group marketing.
E)integrated marketing communications.

Question 5

One of the intriguing areas of media marketing gaining advertisers' attention is:

A)the dot-coms.
B)e-mail.
C)social networks.
D)iPhone.
E)iPad.

Question 6

Which of the following summarizes the role digital plays well in marketing?

A)complementary in integrated campaigns
B)information source only
C)fine in entertainment and sports campaigns
D)virtually has no role
E)stands alone and is superiors in integrated campaigns

Question 7

Restrictive legislation and regulations on the state and federal level have focused recently on:

A)coupons.
B)Internet marketers.
C)mall intercepts.
D)direct mail.
E)trading mailing lists.

Question 8

At the same time technology was changing marketing, the competitive environment was:

A)allowing increased profit margins for sellers.
B)lowering customer expectations about brands.
C)reducing distinctions among brands.
D)lessening the need for customer service.
E)lowering customer expectations about quality.

Question 9

Advantages of using digital media include all of the following EXCEPT:

A)visual and audio characteristics are ideal for engaging prospective customers.
B)continues to be more easily accessible.
C)measurability.
D)assurance of confidentiality with information consumers provide.
E)relative ease in which they react to changing market conditions.

Question 10

Which of the following brands has the most social network fans?

A)Pepsi-Cola
B)Coca-Cola
C)Nutella
D)Starbucks
E)Kraft

Question 11

Virtually every advertiser is using techniques learned from this discipline as a key ingredient of marketing strategies:

A)TV.
B)newspapers.
C)direct response.
D)radio.
E)out-of-home advertising.

Question 12

The AAAA, ANA, and DMA have cooperated to establish:

A)guidelines that allow them to acquire e-mail addresses through automated systems without permission of consumers.
B)an electronic feature that delays removal of names from e-mail lists.
C)a set of self-regulating guidelines that protect use of legitimate e-mail marketing.
D)guidelines that allow them to provide e-mail lists to unrelated third parties.
E)civil penalties for the sale or transfer of mailing lists.

Question 13

While advertisers recognize the potential in mobile, the number one drawback is:

A)lack of qualified research data to support its claims as a legitimate advertising medium.
B)time consumed by users responding to appeals.
C)consumers' negative reaction to unwanted solicitations.
D)lack of verification of the legitimacy of organizations requesting donations to causes.
E)overdependence on the device for keeping connected to friends and family.

Question 14

Above all else, interactive technology has provided businesses with the capability of:

A)retaining higher earnings.
B)increasing its revenues.
C)one-to-one marketing.
D)being less concerned about invasion of privacy.
E)reducing the use of paper.

Question 15

Applying the CRM concept, a company using sophisticated software and the Internet could achieve:

A)higher customer loyalty and retention.
B)reduced costs for repairs.
C)less need for Web site security.
D)reduced manufacturing costs.
E)less cross-selling.

Question 16

According to Advertising Age, in 2009, the top display advertiser on the Internet was:

A)General Electric.
B)News Corp.
C)Bank of America Corp.
D)IBM Corp.
E)General Motors

Question 17

Which of the following is a most serious concern of users of digital media?

A)difficulties with the technology
B)security regarding information provided
C)difficulty accessing various categories of them
D)lack of interactivity
E)status bestowed upon their users

Question 18

Considering the reliability of traditional media, contrasted with the effectiveness of new technology, creating brand image requires:

A)more use of new communication technologies.
B)less use of communication theories.
C)a blending of old and new communication strategies and technologies.
D)more use of tested communications theories.
E)dropping all traditional methods and shifting to new technology.

Question 19

Which of the following are among the advantages that digital media offer advertisers?

A)assured results
B)consumers with more time to scan messages
C)flexible media
D)means of formal communication with customers
E)assurance of confidentiality for customers

Question 20

According to Advertising Age, in 2008, the top digital advertising agency was:

A)Sapient.
B)Digitas.
C)IBM Interactive.
D)Wunderman.
E)General Motors.

Question 21

Which of the following is NOT an objective for a direct-response campaign?

A)to solicit and/or close a sale
B)to undersell competition
C)to generate sales leads
D)to generate traffic
E)to provide prospects with a means to request product information

Question 22

Among the advantages of using direct response in marketing is:

A)the potential to reach virtually any audience based on prospective psychographic characteristics.
B)it is inexpensive.
C)it is highly measurable.
D)the ease of maintaining prospect lists.
E)privacy is easily maintained.

Question 23

Research on dayparts reveals that Internet users in the evenings and on weekends are likely to spend much more time on which of the following type(s)of programming?

A)self-improvement
B)information
C)entertainment and sports
D)news
E)personal ads

Question 24

The key to successful direct response is:

A)data warehousing.
B)thorough knowledge of the customer.
C)determining behavior contours.
D)IMC.
E)data mapping.

Question 25

Internet marketing enjoys the following benefit claimed by no other media.

A)reduced manufacturing costs for products and services
B)the ability to collect market research more quickly and inexpensively, even on a global basis, than with conventional research methods
C)guaranteed new-product success because of the pervasiveness of the media
D)less concern for invasion of privacy because of permission marketing
E)lack of paper documentation that can reduce returns and exchanges

Question 26

Which of the following pertains to youth audiences and the Internet?

A)spend more time watching television than using the Internet
B)spend more time using it than watching television
C)spend twice as much time using their phones than using the Internet
D)spend more time reading than using the Internet
E)spend more time doing school work than using the Internet

Question 27

Now that we are in the twenty-first century, who is apparently in charge in the marketplace?

A)big-box retailers
B)manufacturers
C)home-improvement retailers
D)customers
E)federal regulators

Question 28

According to some research, the major challenge for online promoters is to:

A)make prospective purchasers happy.
B)provide information that is eye-appealing.
C)move the shopper to a buyer.
D)reduce the clutter.
E)overcome the online user's impatience.

Question 29

Which of the following are prospects for online promotions?

A)earnest purchasers
B)first-time purchasers
C)information seekers
D)cost-conscious purchasers
E)quality-conscious shoppers

Question 30

Because the sheer number of online options can make users impatient, there is a heightened need for companies to:

A)create fewer dot-coms.
B)pay even more attention to branding.
C)link more traditional media more prudently.
D)avoid integration of online with their media mix.
E)phish with Web sites that resemble their competitor's.

Question 31

Direct-response TV utilizes all of the following EXCEPT:

A)800-series numbers and/or Internet ordering.
B)the traditional 30-second format with a tagline containing ordering information.
C)program-length infomercials featuring well-known personalities, slick production, and blanket coverage during specific dayparts.
D)2- to 3-minute commercials.
E)easily identified sponsors' names.

Question 32

When NBC began an online-only series, Star Tomorrow, it was trying to:

A)creatively use the Internet and cross-media deals to attract advertisers.
B)reduce production costs for content.
C)transition to a purely digital networking scheme.
D)pre-sell consumers on pilot programs for new broadcast TV series.
E)drum up votes for people they wanted to advance to the next round.

Question 33

Among the downsides to use of direct response in marketing is:

A)difficulty in building an ongoing relationship with primary targets impossible to reach through traditional media.
B)difficulty in personalizing messages.
C)difficulty of pinpointing prospects on a demographic basis.
D)high cost per contact.
E)difficulty in pinpointing prospects on a geographical basis.

Question 34

Predictive models of consumer purchase behavior that allow advertisers to combine recent purchasing activity and consumer profiling are:

A)data mapping.
B)behavior contours.
C)behavior maps.
D)data mining.
E)data stripping.

Question 35

The key to CRM and to fully utilizing the benefits of database marketing is:

A)inexpensive handling of consumer requests for basic information.
B)maintaining personal contacts that customers say they like.
C)building models of behavior in order to avoid having to deal with customers directly.
D)providing information that allows a company to maintain customer loyalty and profitability.
E)having service representatives to help on a 24-hour basis.

Question 36

Advertising is usually used as one step in the process of building awareness and brand equity that could lead to a future sale, whereas direct response's main purpose is to:

A)make the customer fully aware of a service or product.
B)fit an appeal to the demographics of the prospect.
C)create an immediate sale.
D)fit an appeal to the psychographics of the prospect.
E)verify the contact information on the purchased list.

Question 37

Which of the following is NOT-from an advertising and marketing perspective-how Internet and commercial Web sites are being used?

A)as a source of direct sales
B)as a source of advertising-supported communication
C)as a stop-gap on freedom of the press
D)as a source of marketing and promotional information
E)as a builder of consumer engagement

Question 38

Research indicates that 13- to 24-year-olds spend more time on which of the following rather than on traditional media?

A)phone
B)online
C)reading their textbooks
D)doing community service
E)reading magazines or books

Question 39

If you wanted to reach consumers under the age of 18, you might want to place your Internet advertising during which daypart?

A)evenings and weekends
B)early morning
C)daytime
D)overnights
E)early and mid-mornings

Question 40

Advantages for international companies that use the Internet globally include all of the following EXCEPT:

A)ease of receiving orders from consumers worldwide without incurring extra expenses.
B)relative simplicity of executing localized strategies on a global basis.
C)ease of providing information about their products in other countries without incurring extra expenses.
D)for academic institutions, savings in materials and mailing costs because application materials can be put online.
E)option to advertise on search engines like Google or Yahoo! or pay to receive favorable placement.

Question 41

Which of the following is NOT an organization involved in the direct-mail list process?

A)list managers
B)list decoyer
C)list compilers
D)list brokers
E)service bureaus

Question 42

Research from the Polk Center for Automotive Studies says over one-third of first-time car buyers listed the Internet as their most important informational tool.

Question 43

Many companies, led by Procter & Gamble, have moved more into online display and other forms of digital advertising and away from traditional media.

Question 44

A major concern about using digital media to purchase anything is the comfort level prospective customers have over providing private information.

Question 45

Which of the following is NOT true of direct mail as an advertising medium?

A)It represents 23% of U.S. advertising expenditures.
B)Direct mail's share of direct response advertising will decrease in the future due to rising costs.
C)The sheer volume of mail that households receive makes it difficult to gain a competitive advantage.
D)As long as a business has a quality product and a competitive offer, the mailing list is not that important.
E)Despite recent competition from e-mail, telemarketing, and other direct-marketing options, direct mail remains a primary advertising vehicle.

Question 46

Which of the following is NOT a key for catalog sellers to successfully move a prospect into being a buyer?

A)spend whatever it takes to capture their attention
B)have exciting creative executions
C)have a product or service that appeals to consumers
D)reach a targeted group of prospects with limited waste circulation
E)have excellent fulfillment and customer service reputations

Question 47

Research is indicating that online audience members reduce their use of traditional media and also use traditional media less often than people who are not online.

Question 48

As catalogers move into online options, which of the following statements is untrue?

A)Catalogers must integrate multiple channels so they work effectively together.
B)Catalogers must deal effectively with a customer-controlled online environment and find ways to encourage prospects to visit their Web sites.
C)Catalogers may find relief from related production and postage costs.
D)Catalogers must embrace the concept of the data warehouse to integrate information into a single transaction history, regardless of what channels a customer uses.
E)Catalogers must establish the fact that although a new medium, they are trustworthy.

Question 49

CRM provides several advantages to business although some control of the consumer is sacrificed.

Question 50

The major role of business magazines in direct-response marketing is to:

A)provide leads for personal salespeople or telemarketers.
B)combine generic feel of direct response with traditional advertising virtues.
C)provide impact that matches TV.
D)drive traffic to the Web site.
E)assist with a radio campaign.

Question 51

One advantage digital media offers advertisers is the combination of audio and video capabilities that engage consumers.

Question 52

Consumers who have opted in to receive regular e-mail from a business indicate they derive more satisfaction from the relationship than those who do not make that choice.

Question 53

The primary reasons why radio has NOT had a role in direct-response marketing to date is:

A)failure to deliver targets audiences.
B)failure to provide niche programming.
C)lack of visuals.
D)lack of interactivity.
E)inappropriate radio personalities.

Question 54

Selling directly to consumers was practiced in this country as early as 1740, when Montgomery Ward sold scientific books by mail.

Question 55

Which of the following is the natural, logical extension of long-form infomercials?

A)reality TV
B)Tupperware parties
C)discount clubs such as Costco
D)QVC network
E)lower ratings

Question 56

To merge and purge lists in order to enhance their quality is the primary job of the:

A)service bureau.
B)list broker.
C)list manager.
D)lettershop.
E)response lists.

Question 57

When it comes to DRTV, which of the following would NOT be an inherent advantage?

A)shows product in use
B)creates excitement for product demonstrations in realistic circumstances
C)inexpensive way to rid TV of commercials
D)significant way to test various product benefits and measure sales response
E)almost immediate results compared to almost all other media F)time sensitivity related to a spot

Question 58

Which if the following is the most important element of e-mail elements to test?

A)timing
B)design
C)calls to action
D)subject lines
E)body copy

Question 59

Research in direct mail began in the early 1920s when personal computers were introduced.

Question 60

Search, referred to as keyword advertising, is expected to help to double digital advertising revenues by 2015.

Question 61

Digital is creating a public relations problem for marketers trying to reach consumers because of privacy concerns over the collection and use of personal data.

Question 62

Interactive home shopping on networks, such as QVX and HSN, are expected to fundamentally change general retailing in the next 20 years.

Question 63

Victoria's Secret owes much of its success and sales to its popular catalog and, like other catalogers, to its e-commerce site.

Question 64

Believe it or not, catalogs-dating back to about 1500-may be the most popular form of direct-response media.

Question 65

Internet and commercial Web sites provide marketers opportunities to engage prospective consumers.

Question 66

List decoying is a technique used by list brokers to avoid list abuses, such as a company contracting to use a list once but then using it several times.

Question 67

The primary concern of database marketing is how to use information to predict future purchases.

Question 68

For a company with a good product but limited capital, PI (per inquiry)advertising is very beneficial because it allows advertisers to share their risk with the medium.

Question 69

Radio is one of the major players in direct response advertising.

Question 70

In direct mail, the list is the media plan.

Question 71

Research indicates, especially among young adults and youth audiences, surfing the Web and "watching" time is common.

Question 72

One the most successful revenue producing forms of advertising formats is the infomercial.

Question 73

E-mail, telemarketing and various other direct-marketing approaches have not, so far, deposed direct mail as a primary advertising vehicle.

Question 74

Magazines are almost perfect for many direct marketers because of their audience selectivity and high reach among prospects who likely are not heavy users of other media.

Question 75

A core principle of direct-response and Internet marketing is ________ in which customers feel empowered by interactive media and use that empowerment in a proactive fashion, resulting in a loss of control for businesses but a higher percentage of prospects than in mass advertising.

Question 76

One of the major characteristics of direct response, regardless of the means used to reach its audience, is the ability to personalize the message.

Question 77

During the past 25 years, marketers have moved toward a more ________ relationship with their customers.

Question 78

________ uses a variety of vehicles; compared to other digital marketing, it holds lots of promise for companies selling products and services.

Question 79

A major concern for consumers using the Internet is the amount of ________, or unsolicited, usually unwanted online messages or advertisements companies send them.

Question 80

Discuss the various advantages that the CRM concept offers businesses when they are able to combine with the use of sophisticated software and the Internet.