Deck 16: Direct Marketing

Question 1

The National Geographic Society offers a variety of products to its subscribers through direct marketing.This is an example of:

A) cross-selling
B) renewal marketing
C) an unethical business practice
D) membership-based marketing

Answer 1

A

Question 2

For market segmentation and targeting,direct marketers rely most heavily on:

A) primary qualitative research
B) census data
C) a database
D) survey responses

Answer 2

C

Question 3

Database marketing is criticized because it is:

A) still a largely unsophisticated process
B) an invasion of privacy
C) unmonitored and uncontrolled by any internal or external forces
D) really unnecessary if the advertiser has properly targeted their marketing efforts

Answer 3

B

Question 4

When the University of Western Ontario calls its alumni and asks them to make contributions to pay for the remodelling of Alumni House,it is an example of the combining of direct marketing with:

A) a trade promotion
B) public relations
C) advertising
D) personal selling

Question 5

CRM stands for:

A) customized relationship marketing
B) customer relationship marketing
C) Canadian relations management
D) customer relationship management

Question 6

The aim of _____ is to establish and maintain a relationship with one's customers through personalized communication and customized product/service offerings.

A) customized business relationships
B) customer relationship marketing
C) transactional marketing
D) customer relationship management

Question 7

To segment and target their audiences,direct marketers use a _______,a listing of customers and/or potential customers.

A) catalogue
B) database
C) CRM
D) cross/sell technique

Question 8

Databases are used in all of these ways EXCEPT:

A) to improve the selection of market segments
B) to assist in the stimulation of repeat purchases
C) to pre-determine purchase intention
D) with CRM programs

Question 9

Information on Canada's privacy legislation that places limitations on what marketers can do with information stored in their databases can be found at:

A) www.privcom.gc.ca
B) www.pricacy.gc.ca
C) www.canadaprivacy.gc.ca
D) www.canadaleg.gc.ca

Question 10

A press conference called by the Maritime Museum of the Atlantic informed the public of the need for major repairs to prevent water damage to the museum's collection of primitive paintings.During the conference,the museum representative announced that each family in Halifax County and the neighbouring counties could expect to receive a donation envelope in the mail within the next few days.This is an example of the combining of direct marketing with:

A) consumer promotion
B) public relations
C) advertising
D) personal selling

Question 11

An RFM scoring method is often used to measure the effectiveness of a database.RFM stands for:

A) rebates, free premiums, and multiple purchases engaged in by the consumer
B) recency, frequency, and monetary transactions between the company and the customer
C) rough, fine-tuned, maximized database updates
D) recent, fortnightly, monthly transactional data compiled

Question 12

With an offer to subscribe to a cooking magazine,Betty was offered the opportunity to buy a set of cookware,an electric can opener,and a coffee maker that were featured in the publication and selected by the magazine editors as the best value for the money.This is an example of:

A) cross-selling
B) renewal marketing
C) an unethical business practice
D) remarketing

Question 13

Which of the following is NOT an example of direct response media?

A) direct mail
B) Internet
C) telemarketing
D) interior transit boards

Question 14

Direct marketing:

A) is not a useful tool for a company that is using an integrated marketing communications plan
B) seeks the same objectives as advertising, sales promotion, and personal selling strategies
C) is one of the slowest growing forms of promotion in terms of dollar expenditures
D) can generate immediate behavioural response

Question 15

When Melissa purchased a Maytag dryer,she was given a warranty card to fill out and return to the manufacturer.The warranty card serves two purposes.The first is to protect the consumer in case the dryer operates faultily within the first year of ownership.The second purpose is to:

A) establish a two-step marketing relationship between Maytag and Melissa
B) provide information for Statistics Canada
C) create a database for Maytag
D) there is no second purpose; the warranty is simply a service offered by Maytag

Question 16

An ad for pet health insurance contains both a toll-free number to call and a website to visit for more information.This ad is an example of the combining of direct marketing with:

A) consumer promotion
B) public relations
C) advertising
D) personal selling

Question 17

The National Post calls its subscribers to tell them of a contest that they can enter to win a trip to Bermuda.This is an example of the combining of direct marketing with:

A) sales promotion
B) public relations
C) advertising
D) personal selling

Question 18

What do Statistics Canada,Canada Post,Info Canada,and The Canadian Marketing Association all have in common?

A) They are all government agencies.
B) They are all sources of information for direct-marketing databases.
C) They are all marketing research houses.
D) They all have loyalty programs.

Question 19

_______ are a newer source of information about consumers with precise purchase patterns.

A) Loyalty programs
B) Consumer promotions
C) Public relations
D) Personal selling

Question 20

According to the chapter-opening vignette about loyalty programs:

A) About 50 percent of consumers modify when and where they shop in order to maximize loyalty benefits.
B) Few Canadian adults participate in more than one or two loyalty programs.
C) Consumers find loyalty programs confusing and of little value.
D) Consumers would rather have many small rewards than wait to accumulate towards a big ticket item.

Question 21

Which of the following statements about direct e-mail is true?

A) Today's marketers use permission-based email instead of having to maintain a comprehensive website.
B) The majority of research respondents suggest that branded content makes no impact on whether they forward a message.
C) The chance of a consumer passing along a commercial message using email is quite high.
D) Studies show that the use of direct mail via e-mail messages has no corresponding effect on visits to the retail location of the sender.

Question 22

Many advertisers shied away from _____ in the past,fearful of the image it might create or because they believed that it was useful only for low-cost products.

A) direct mail
B) publicity
C) public relations
D) cross-selling

Question 23

Due to clutter and relatively high costs,the use of _____ by direct marketers does not result in returns as high as those for other forms of direct marketing media.

A) magazines and newspapers
B) television and radio
C) direct mail and catalogues
D) newspapers, television, and radio

Question 24

The lower cost of commercials on cable and satellite has led advertisers to a new form of advertising called ____.

A) direct-response television
B) split 30s
C) infomercials
D) 2 minute commercials

Question 25

Cookware,music CDs,and exercise videos are being advertised on television for purchase by calling a toll-free telephone number.Viewers are instructed to have their credit cards handy when they call to place the order.This form of direct marketing is referred to as:

A) telemarketing
B) support marketing
C) the one-step approach
D) the two-step approach

Question 26

When a direct advertising medium is designed to directly obtain an order,the _____ approach is being used:

A) two-step
B) indirect
C) direct
D) one-step

Question 27

Which of the following is NOT true about direct-response TV?

A) It encompasses direct-response TV spots, infomercials, and home shopping shows.
B) The television spots are also referred to as short-term programs.
C) The process is always one-step; the consumer sees the product she likes and calls a 1-800 number to order.
D) Infomercials range from 3 to 60 minutes.

Question 28

All of the following statements about direct e-mail are true EXCEPT:

A) It is basically an electronic version of regular mail.
B) It is difficult to finely target the recipients.
C) Consumers can opt to have specific types of e-mail sent to them.
D) Permission-based e-mail is essentially the opposite of spam.

Question 29

In a study comparing the communication effects of a one-minute ad,a 15-minute infomercial,a 30-minute infomercial,and a direct interactive experience with the product,researchers found:

A) Infomercials were deemed to be too long and one-minute ads provided the best results.
B) Infomercials provided a similar cognitive and emotional experience as a direct interaction with the brand.
C) Specific targeting was not available with infomercials; hence they were much less effective than television advertising.
D) Because television is such a passive medium, respondents suggested that an infomercial's message tended to get lost in the "noise".

Question 30

A television commercial in which Publishers Clearing House urges consumers to look in their mailboxes for coming sweepstakes entries is an example of:

A) sweeps marketing
B) add-on marketing
C) the one-step approach
D) the two-step approach

Question 31

In direct marketing situations,when it is necessary to screen or qualify potential buyers,it is advisable to use:

A) the two-step approach
B) the one-step approach
C) direct mail rather than telemarketing
D) Canada Post's data on direct marketing purchasers

Question 32

The two-step approach to direct marketing:

A) asks for an immediate sale
B) uses the first contact to screen potential buyers
C) is commonly found in direct sales
D) is followed by a professional sales call

Question 33

Which of the following companies employs a one-step approach to direct marketing?

A) The Shopping Channel
B) a magazine subscription service that sends an announcement of a forthcoming contest
C) an ad advising television viewers to watch their mailboxes for a way to earn free calling cards
D) a company asking if a household is interested in an estimate for a new pool

Question 34

In direct response advertising,the "direct response" sought is:

A) return on investment (ROI)
B) awareness
C) sales
D) attitude change

Question 35

Which of the following statements about catalogues is NOT true?

A) Catalogues are now available on the Internet for both consumers and business-to-business customers.
B) Most catalogue companies now operate only in physical retail locations.
C) In some instances in the consumer market, the catalogue and retail divisions are treated as separate entities.
D) In some instances in the consumer market, the catalogue merchandise is available in retail stores as well.

Question 36

Advertisers can measure the relative effectiveness of a direct marketing campaign quickly by looking at the:

A) cost per thousand (CPM)
B) breakeven point
C) net sales
D) cost per order (CPO)

Question 37

Which of the following statements about direct marketing is NOT true?

A) direct marketing is especially useful to target current customers
B) direct marketing can generate trial among prospects
C) direct marketing is effective in targeting competitors' customers
D) direct marketing is only used when the identity of the receiver is known

Question 38

The announcer on the television commercial said,"Get your credit card and call now to order the 'Monster Ballads of Rock & Roll' CD." This is an example of the _____ direct marketing approach.

A) direct
B) indirect
C) one-step
D) two-step

Question 39

When databases are used to identify the most relevant profile variables to ensure the highest response rate possible among unknown receivers,the marketer is most likely going to:

A) use sweeps marketing
B) consult an in-house list
C) send unaddressed direct mail
D) send to previous responders

Question 40

Which of the following statements about infomercials is NOT true?

A) Infomercials are mandated to fill a 30 minute time slot.
B) It is possible to target specific audiences at a low cost via specialty channels.
C) Infomercials are popular with small firms, but large firms are beginning to use them as well.
D) Studies indicate that infomercials get watched and sell products.

Question 41

Loyalty programs achieve each of the following objectives EXCEPT:

A) They encourage consumers to use their products or services on a continual basis.
B) They assist in creating strong consumer relationships and loyalty.
C) They help increase the dollar amount of goods purchased by light and medium users.
D) They preclude members from purchasing any other competitive brand.

Question 42

Every time Beth buys a book at Chapters,she presents her Chapters card,and the sales associate enters her purchase in a database.When she has purchased five books at regular price,she is sent a coupon for a free book to be picked out on her next visit to the store.This is an example of a:

A) bonus program
B) loyalty program
C) customer rewards contest
D) subsidized program

Question 43

Which effectiveness measure is most commonly employed in direct marketing?

A) cost per order (CPO)
B) cost per thousand (CPM)
C) cost per man-hour (CPMH)
D) sales per database name (SDN)

Question 44

Which of the following describes an advantage that an advertiser using direct marketing is likely to enjoy?

A) limited segmentation capabilities
B) high overall costs relative to sales
C) difficulty in measuring effectiveness
D) less planning time required as compared to other forms of media use

Question 45

Which off the following is NOT related to telemarketing?

A) inbound and outbound calling
B) potential for fraud and deception
C) call centre management
D) negotiated purchase of broadcast time

Question 46

Air Miles currently offers consumers the option of using points collected as cash when making purchases at a point of sale:

A) in order to lessen the time delay associated with collecting points for big-ticket items.
B) because some of the partners would rather give out cash than merchandise.
C) because forcing the collection of points in order to achieve non-monetary rewards did not effectively build brand equity among the partners.
D) in order to enhance the rewarded-behaviour mechanism.

Question 47

No other advertising medium can personalize the message as well as:

A) television
B) direct mail
C) magazines
D) newspapers

Question 48

This phenomenon describes when consumers earn points and then realize they are close to achieving a reward level,so they make additional purchases to achieve it:

A) the last-minute accelerator mechanism
B) the rewarded-behaviour mechanism
C) the personalized marketing mechanism
D) the points-pressure mechanism

Question 49

Which of the following describes a disadvantage associated with direct marketing?

A) poor media image
B) high costs
C) inability to measure effectiveness
D) lack of creative flexibility

Question 50

Shoppers Drug Mart gives customers Optimum cards,which allow customers to take advantage of additional discounts on certain products and to be notified of special,customer-only sales.In addition,customers can accrue points each time they present their cards.These points can be used to purchase goods.Shoppers is using a:

A) bonus program
B) continuity program
C) customer rewards contest
D) self-liquidating promotion

Question 51

All of the following are advantages of direct marketing EXCEPT:

A) ability to personalize
B) image factors
C) segmentation capabilities
D) creative flexibility

Question 52

Disadvantages inherent in the use of direct marketing include:

A) difficulty in obtaining effectiveness measurements
B) audience exerts control for selective exposure
C) lack of flexibility
D) difficulty in acquiring TV time

Question 53

Direct marketing lets the advertiser reach a large number of people and reduces or eliminates waste coverage through its strength of:

A) frequency.
B) flexibility.
C) segmentation capabilities.
D) target audience coverage.