Deck 17: Relationship Building: Direct Marketing, personal Selling, and Sales Promotion

Question 1

Personal selling incorporates all three legs of the IMC triangle because what the salesperson does will either confirm or contradict the company's other messages.

Answer 1

True
Explanation: The three legs of the IMC triangle are: say; do; and confirm.

Question 2

In reality,sales promotion is only supplementary to personal selling and advertising because it makes the two activities more effective.

Answer 2

False
Explanation: Sales promotion is far more than supplementary. One study showed marketers spend 54 percent of their advertising/promotion budget on sales promotion compared to only 46 percent on advertising.

Question 3

As an IMC medium,telemarketing is the next best thing to a face-to-face,personal sales call.

Answer 3

True
Explanation: When combined with other direct-response media, telemarketing becomes even more effective.

Question 4

More often than not,the choice between the focus on share of market or on retention and loyalty is a short-term versus long-term trade-off.

Question 5

The customer lifetime value (LTV)model is based on historical and potential share of wallet business.

Question 6

Telemarketing costs a lot less money than personal selling.

Question 7

One of the drawbacks to direct marketing is the fact that such efforts must often stand on their own without the content support of the media that advertising offers.

Question 8

Seamless,consistent communication,from every corner of the company,is how a firm earns a good reputation.

Question 9

Advertising that asks the reader,viewer,or listener to provide feedback to the source is called direct-response advertising.

Question 10

Direct marketing is a measurable system of marketing that uses one or more advertising media to effect a measurable response and/or transaction at any location,with this activity stored in a database.

Question 11

While advertising helps build market volume,sales promotion helps build long-term market value.

Question 12

Data management is the process of gathering,consolidating,updating,and enhancing the information about customers and prospects that resides in the database.

Question 13

The two processes required to work with a marketing database are data storage and data retrieval.

Question 14

In an IMC program,the objective of personal selling is only to make a sale.

Question 15

Because the commercial for Bowflex exercise equipment asked readers to phone for a CD on how the exercise system could help them strengthen their muscles,the promotional message would be characterized as direct-response advertising.

Question 16

Personal selling is not very labor intensive,making it the least costly way to communicate with prospects.

Question 17

Consumer sales promotions are examples of push strategies.

Question 18

The RFM formula can be used to determine how much of an IMC program should be devoted to direct marketing.

Question 19

Database marketers build and maintain a pool of data on current and prospective customers and other stakeholders and communicate with them using a variety of media from personal contact to direct mail to mass media.

Question 20

While the boom in telecommunications and computer technology is spurring the growth of direct marketing in the United States,it has not had the same effect worldwide.

Question 21

What are the two primary forms of personal selling?

A) Person-to-person and group sales
B) Impersonal sales and dealer loader
C) Rebates and contests
D) Internet and television
E) Order-taker and order-filler

Question 22

Sierra South sells whitewater rafting and kayaking trips,and related merchandise.The company uses a Web site to gather information from potential customers of its products.This information is entered into the company's database.Names and information in this database are used to determine who should receive a personalized sales e-mail from the company.Sierra South is using:

A) mail-order advertising.
B) database marketing.
C) direct selling.
D) direct-mail advertising.
E) interactive advertising.

Question 23

All direct marketers must make two basic strategy decisions.The first is the extent to which they will use direct sales.The second is:

A) when they will require the marketing to become interactive.
B) when they will need feedback.
C) the extent to which they will use direct-response advertising.
D) the extent to which they will rely on sales promotion.
E) when they will look to publicity to further their promotional effort.

Question 24

_____ is a measurable system of marketing that uses one of more advertising media to effect a measurable response and/or transaction at any location,with this activity stored in a database.

A) Mass advertising
B) Direct marketing
C) Sales promotion
D) Direct selling
E) Personal selling

Question 25

Which of the following statements about direct marketing is true?

A) Direct marketing is not a measurable system of marketing.
B) Direct marketing is static.
C) Direct marketing is often called reminder advertising.
D) Direct marketing does not typically produce feedback.
E) Direct marketing is interactive.

Question 26

Excessive trade deals help to build up brand loyalty because they encourage customers to buy whatever brand is on sale.

Question 27

Spiffs are allowances paid to retailers for handling manufacturer point-of-purchase displays.

Question 28

_____ is the process of gathering,consolidating,updating,and enhancing the information about customers and prospects that resides in an organization's database.

A) Direct marketing implementation
B) Data mining
C) Data management
D) Interactive marketing
E) Data query

Question 29

Direct marketing is virtually synonymous with:

A) mass media advertising.
B) unsolicited advertising.
C) digital marketing.
D) database marketing.
E) interactive advertising.

Question 30

Which of the following statements describes a reason why an advertiser might decide against using direct marketing?

A) Direct marketing efforts provide its users with the prestigious affiliation offered by some media.
B) Many customers like to be able to use more than their visual senses when they are buying.
C) In the past, direct marketers were excessively relationship-oriented, and this gave direct marketers a bad reputation.
D) Direct marketing suffers from a lack of sufficient clutter.
E) Direct marketing is one of the least effective ways of developing a good database.

Question 31

Which of the following statements about the importance of direct marketing to integrated marketing communications is true?

A) People enjoy thinking of themselves as part of a giant database.
B) Direct marketing's growth is closely related to the growth of mass-market audiences.
C) By providing a tangible response, direct marketing offers accountability.
D) Direct marketing's universality prohibits a direct marketing campaign from being kept secret from the competition.
E) Direct marketing campaigns will not be successful if aimed at time-sensitive consumers.

Question 32

Three types of data that are typically available for purchase by companies are:

A) geographic, demographics, and financial.
B) inquiries, sales, and returns.
C) primary research, secondary research, and tangential research.
D) demographics, lifestyle, and behavioristics.
E) feedback, decoding, and noise responsiveness.

Question 33

Sampling can only be effectively used as a push.

Question 34

Cardinal Hill makes redwood furniture for gardens.The company uses classified advertising to encourage potential customers to request its latest catalog.When these requests are received,the catalogs are sent and the prospects' names are entered into the company's database for possible sale of garden furniture.Cardinal Hill is using:

A) mail-order advertising.
B) interactive advertising.
C) direct selling.
D) direct-mail advertising.
E) database marketing.

Question 35

Both contests and sweepstakes encourage consumption of the product by creating consumer involvement.

Question 36

_____ is any direct communication to a consumer or business recipient that is designed to generate a response in the form of an order,a request for further information,and/or a visit to a store or other place of business for the purchase of a specific good or service.

A) Mass advertising
B) Interactive marketing
C) Sales promotion
D) Direct marketing
E) Personal selling

Question 37

Marmot Mountain Works sells whitewater rafting and kayaking trips,and related merchandise.Marmot Mountain Works uses the Internet as its _____ to connect its customers and prospects with the company to provide them with information on upcoming trips,new gear,and sales.

A) linkage media
B) interactive communication capability
C) indirect-response advertising device
D) interstitial
E) feedback encoding device

Question 38

According to Rob Jackson,database marketing should start with _____ because it gives marketers a snapshot of what their customers like at any given time by identifying common characteristics and ranking their importance to different segments.

A) customer profiling
B) data warehousing
C) data mining
D) observational research
E) customer streaming

Question 39

The trend toward self-service retailing is decreasing the importance of P-O-P materials.

Question 40

Direct marketing expert Bob Stone recommends using the RFM formula to identify a company's best customers.The letters "RFM" are an acronym for:

A) reposition, find, and monitor.
B) research, finance, and manipulate.
C) research, fund, and manage.
D) recency, frequency, and monetary.
E) reach, frequency, and marketability.

Question 41

A(n)_____ list is the house list of other direct-mail advertisers,and they can be rented with a wide variety of demographic breakdowns.

A) demographic
B) compiled
C) in-house inquiry
D) outsourced inquiry
E) mail-response

Question 42

A marketer can reduce the cost of personal selling by:

A) eliminating the need for database management.
B) communicating relevant information about the company and its product before the sales call.
C) providing proof that what the salesperson says is true.
D) reminding the prospect to close the sale.
E) avoiding the use of trial closes that may delay the actual sale.

Question 43

An advertiser might choose to use some other advertising medium instead of direct-mail advertising because direct-mail advertising:

A) cannot be used for testing prospects' reactions to new products.
B) has a negative image.
C) has the highest cost per exposure of any medium.
D) has intensive coverage and limited reach.
E) achieves the least response of any advertising medium.

Question 44

_____ includes selling and prospecting by telephone,answering phone inquires,and providing sales-related services to callers.

A) Data mining
B) Data warehousing
C) Direct-response advertising
D) Relationship marketing
E) Telemarketing

Question 45

Advertising that asks the reader,viewer,or listener to provide feedback straight to the sender is called:

A) unduplicated marketing.
B) customized marketing.
C) direct-response advertising.
D) advocacy selling.
E) direct-sales advertising.

Question 46

What is the greatest strength of personal selling?

A) Its low cost.
B) Its historically positive reputation.
C) The fact that it is labor intensive.
D) Its personal nature.
E) The immediacy of the sale.

Question 47

_____ is defined as face-to-face selling away from a fixed retail location.

A) Interactive commerce
B) Direct selling
C) Telemarketing
D) Indirect-response marketing
E) Relationship marketing

Question 48

Which of the following statements about sales promotion is true?

A) It is a deceleration tool.
B) It normally involves an indirect inducement.
C) It is usually considered to be complementary.
D) It may be used anywhere along the marketing route.
E) It is designed to maintain the timing of a purchase.

Question 49

Which of the following is the best example of direct-response broadcast advertising?

A) A CD offering you a trial subscription to an online music review magazine.
B) A catalog featuring children's clothing.
C) A TV infomercial for exercise equipment.
D) A telemarketing call selling investment opportunities.
E) A commercial before a movie in a theater that asks you to shop at Friedman's Furniture Store.

Question 50

Barton Beers invited its retailers to celebrate "Fiestas Patrias," a traditional Mexican holiday that celebrates the country's independence from Spain.The marketing vice president for Barton announced that the company has developed posters,displays,and banners for retailers to use during the celebration period.The purpose of this _____ is to encourage Mexican customers to buy Barton beer.

A) viral marketing
B) direct marketing activity
C) sales promotion
D) publicity
E) advertorial

Question 51

Which of the following is the best marketing communication tool for relationship building?

A) Infomercials
B) Word-of-mouth
C) Personal selling
D) Direct-response marketing
E) Interactive broadcast advertising

Question 52

The objective of personal selling in an IMC program is to:

A) create a total quality marketing (TQM)program.
B) create transactional relationships between retailers and sellers.
C) build a relationship that will provide long-term benefits to both buyers and sellers.
D) provide sellers with an inexpensive interpersonal communication approach to promoting products.
E) provide buyers with the tools needed to negotiate the best possible deals.

Question 53

The most common form of direct-mail advertising is the:

A) statement stuffer.
B) brochure.
C) self-mailer.
D) broadside.
E) sales letter.

Question 54

Personal selling is the most costly way to communicate with prospects because:

A) it is very labor intensive.
B) sales cannot occur without advertising.
C) it has an inflexible methodology.
D) sales quotas force the salesperson to use unethical means to close a sale.
E) it cannot be integrated easily into a company's marketing communications strategy.

Question 55

In 2005,the airwaves of KFI-AM were saturated with commercials that asked listeners to dial advertisers' toll-free numbers or visit their Web sites.The approach accounted for nearly half the advertising on KFI,and is a big reason why the station has climbed nearly to the top of the Los Angeles market in revenues and to No.4 nationwide.In this example,a broadcast medium is prospering from the use of:

A) unduplicated marketing.
B) customized marketing.
C) direct-response advertising.
D) strategic selling.
E) advocacy selling.

Question 56

The single biggest weakness of personal selling is:

A) its cost.
B) how it is viewed as an invasion of privacy.
C) its impersonal nature.
D) the slowness with which buyer-seller relationships grows.
E) database capabilities.

Question 57

Which of the following statements about telemarketing is true?

A) Telemarketing costs a lot more money than personal selling.
B) As an IMC medium, telemarketing is far superior to personal selling.
C) Telemarketers simply take orders.
D) The effectiveness of telemarketing is weakened when it is combined with other direct-response media.
E) Telemarketing is an example of one of two types of direct-sales strategies.

Question 58

To increase the number of orders it receives from recipients of its direct-mail advertising,the maker of Redwood Playground Equipment encloses a special envelope that customers can use to mail their orders without paying postage.This special envelope is an example of a(n)_____ mail.

A) sales letter
B) priority
C) business reply
D) second-class
E) brochure

Question 59

_____ is defined as a direct inducement offering extra incentives anywhere along the marketing route to enhance the movement or accelerate the product's movement from producer to consumer.

A) Indirect selling
B) Event planning
C) Sales promotion
D) Public relations
E) Direct-response advertising

Question 60

Which of the following is the best example of direct-response print advertising?

A) An advertorial.
B) A mailing from a travel agency that asks you to explain why your spouse deserves a dream vacation.
C) The opening Web page for ebates.com.
D) A magazine ad that asks you to call a toll-free number for more information.
E) An unsolicited e-mail that asks you to buy the services of a company that creates web pages.

Question 61

Overly aggressive sales promotion or advertising can draw competitors into a _____,which leads to reduced sales and profits for everyone.

A) push strategy
B) withdrawal from the market
C) diversification strategy
D) cartel
E) price war

Question 62

In the Moosehead Cabin Fever Rescue Promotion,beer retailers were sent an inflatable bush plane with 30-inch wingspan that appeared to be dropping a parachute that holds a Moosehead 12-pack box.Moosehead probably had to pay a(n)_____ to encourage retailers to use this rather large promotional material in their stores.

A) display allowance
B) buyback allowance
C) placement allowance
D) trade fee
E) inserting allowance

Question 63

Why is database marketing one of the fastest growing marketing methods?

Question 64

To create effective sales promotions,a company should:

A) use nonspecific objectives to give its marketing a desirable level of flexibility.
B) avoid any promotion pretesting because of its inherent costs.
C) make sure the sales promotion reinforces the brand's advertising message.
D) involve itself in either the trade or consumer promotions-but not both.
E) use complex, attention-getting copy so the consumer will understand the message.

Question 65

Automakers began rewarding dealers with financial incentives long before dealership customers started getting them,too.Recipients are employees of multi-franchise dealerships.Automakers offer these salespeople _____ to get them to pitch their brand of vehicles over a competitor's product sold at the same store.

A) direct promotions
B) instant rebates
C) spiffs
D) supplementary promotions
E) FSIs

Question 66

A _____ strategy is primarily designed to secure the cooperation of retailers.

A) push
B) pull
C) parallel
D) cohort
E) channel

Question 67

Rather than ultimately building a new power plant,which costs hundreds of millions of dollars,a TX-based energy company is offering customers a rebate of up to $15,000 to install home solar energy systems.This would be an example of a _____ strategy.

A) push
B) pull
C) parallel
D) cohort
E) channel

Question 68

Who coined the term "direct marketing"?

Question 69

What is meant by linkage media?

Question 70

Direct marketing expert Bob Stone recommends using the RFM formula to identify the best customers.What do the letters "RFM" stand for?

Question 71

Hard Stuf manufactures sports helmets.It has offered to reimburse its dealers 100 percent of the ad charges when those dealers run newspaper advertisements for Hard Stuf products.This practice is an example of:

A) cooperative advertising.
B) comparative advertising.
C) a trade deal.
D) an advertising commission.
E) a collateral commission.

Question 72

What is another name for direct-response advertising?

Question 73

The maker of Behr paints is offering supermarkets a one-month deal,which allows hardware and do-it-yourself stores to purchase its paints at 25 percent off the regular price.The paint manufacturer hopes supermarkets will pass along these savings to consumers in the form of "specials." Assume buyers for a small regional chain of hardware retailers have purchased enough Behr paint to last the chain for the next five months.This chain is engaging in:

A) a tying agreement.
B) forward buying.
C) diverting.
D) front loading.
E) backward buying.

Question 74

Marketers sometimes use _____ is used as a push tactic.

A) trade advertising
B) diverting promotion.
C) promotional inducement
D) cartels
E) price discounts

Question 75

A trade deal is a(n):

A) advertisement placed in trade journals read by marketing intermediaries.
B) reimbursement from a manufacturer to a retailer for advertising the manufacturer's products.
C) payment made by retailers to manufacturers for the privilege of stocking a particular product.
D) type of rebate that often accompanies pull strategies.
E) short-term discount on the cost of a product offered to members of the trade.

Question 76

The publisher Zondervan ran ad for Refuel: The Complete New Testament for Guys in a magazine that is targeted at Christian athletes.What type of promotional strategy did Zondervan use?

A) Parallel strategy
B) Push strategy
C) Cannibalization strategy
D) Pull strategy
E) Cohort strategy

Question 77

_____ is the use of promotional discounts to purchase large quantities of an item in one region,then shipping portions of the buy to areas where the discount is not offered.

A) A tying agreement
B) Forward buying
C) Diverting
D) Front loading
E) Backward buying

Question 78

A(n)_____ is paid by a manufacturer for the privilege of obtaining shelf or floor space for its new product.

A) slotting allowance
B) buyback allowance
C) forward buying allowance
D) buying allowance
E) spiff

Question 79

Which of the following is the best example of a trade promotion that the publisher Zondervan could use for its newly-introduced Refuel: The Complete New Testament for Guys?

A) A direct mail piece that contains a sample chapter for prospective customers to read.
B) A coupon in a hunting magazine for $5 off the purchase price.
C) A rebate offer given to customers at the time of purchase.
D) A newspaper article about the new edition of the Bible.
E) A slotting allowance to leading bookstores.

Question 80

A sales promotion aimed at members of the distribution channel is called a:

A) spiff.
B) diverting promotion.
C) promotional inducement.
D) trade promotion.
E) logistical activity.