Deck 6: Planning for Direct Response Communications

Question 1

Online communications is a form of direct response communication.

Answer 1

True

Question 2

Direct response commercials are not a good media tool if your objective is to create awareness.

Answer 2

False

Question 3

Direct mail is the second most common way of delivering messages directly to consumers.

Answer 3

False

Question 4

Walmart can use data mining to customize each store's offerings to better fit the local markets.

Question 5

A postage-paid return envelope is another means of encouraging the recipient of a direct mail piece to take action.

Question 6

According to Canada Post, most Canadians open direct mail if their name is on it.

Question 7

American Express sent out a book of fake traveller's cheques to show how easy they are to use when one travels. This is an example of dimensional mail.

Question 8

Telemarketing helps support other forms of direct response communication because it provides a means for customers and potential customers to respond to the other method.

Question 9

Because of the poor image connected to infomercials, it will be years before Canadians see mainstream marketing organizations use them as part of their promotional campaigns.

Question 10

Marketers like using direct response advertising because it is a form of mass media that is capable of making a sale.

Question 11

One of the reasons that direct response communications is increasing is that executives want managers to be more accountable for the expenditures they oversee.

Question 12

As an advertising medium, direct mail ranks ahead of magazines and radio in Canada.

Question 13

If a company wanted to get a high response rate out of a coupon, it would be better to make it available in a magazine over a direct mail piece.

Question 14

Fraser's Canadian Trade Index is an example of a circulation list.

Question 15

The best list to use for direct mail is a list purchased from an outside source.

Question 16

Despite the fact that telemarketers seem to call at the worst times, it is growing in popularity with marketers.

Question 17

The primary advantage of telemarketing is cost.

Question 18

Surprisingly, one of the smallest suppliers of external data about households in Canada is Canada Post.

Question 19

Remnant time is the only time available on television with which to air infomercials.

Question 20

Mazda produces a magazine called Zoom Zoom to anyone who is interested. This is a form of direct response communications.

Question 21

With the volume of direct mail that is sent to Canadian households, what can one do to break through the clutter so it is not seen as junk mail?

Question 22

Describe the merge/purge process as it relates to direct mail.

Question 23

Distinguish between direct marketing and direct response advertising.

Question 24

Name and give examples of the three types of lists available to marketers.

Question 25

Which of the following is NOT one of the reasons cited for the growth of direct marketing?

A) executives looking for immediate sales returns
B) expanding media budgets
C) the availability of database management techniques
D) managers demanding greater accountability
E) the expanded use of customer relationship management techniques

Question 26

Direct mail accounts for __________ of net advertising revenues in Canada.

A) 3 billion
B) 2 billion
C) 1.24 billion
D) 1 billion
E) 2.5 billion

Question 27

List the traditional forms of direct response communications.

Question 28

What is the difference between selective direct mail and cooperative direct mail? Why use one over the other?

Question 29

List and explain the forms of direct response television.

Question 30

Explain why marketers continue to use telemarketing as part of their communications program when outbound calls usually need to occur during the worst times, like suppertime?

Question 31

Discuss five of the roles that telemarketing performs, citing examples of each to illustrate your answer.

Question 32

Explain the difference between inbound telemarketing and outbound telemarketing.

Question 33

What is an online database? Give an example of an online database.

Question 34

Describe the components of the typical direct mailing. Give examples.

Question 35

Explain the benefits of direct mail over other forms of direct response advertising.

Question 36

In order to incorporate direct response advertising a marketer would need the following to its target audience

A) a convincing sales message
B) a response mechanism
C) product information
D) A and C are both correct
E) A, B and C are correct

Question 37

Use examples to explain why some retailers are utilizing catalogues as part of their marketing programs.

Question 38

Which of the following is NOT a traditional form of direct response communications?

A) event marketing
B) direct mail
C) catalogues
D) direct response television
E) telemarketing

Question 39

What are the benefits of data mining?

Question 40

A marketing system for developing products, sending messages directly to customers, and accepting orders through a variety of media, and then distributing the purchase directly to customers is called

A) target marketing.
B) direct advertising.
C) telemarketing.
D) direct marketing.
E) direct response advertising.

Question 41

Data mining offers organizations two essential benefits. It allows organizations to predict future sales and it

A) allows organizations to predict profitability.
B) allows organizations to advertise more.
C) makes it easier for them to generate sales.
D) makes managers more accountable.
E) provides a means of profiling the "best'' and the "worst" customers.

Question 42

The Canadian Medical Association provides lists of their physicians to direct marketers. When a company purchases this for a direct mail campaign, they are purchasing a(n)

A) circulation list.
B) compiled list.
C) in-house list.
D) broker list.
E) internal list.

Question 43

When a company delivers leaflets and flyers through Canada Post or independent delivery agents, it is engaging in

A) direct mail.
B) catalogue marketing.
C) direct response print.
D) sales promotion.
E) database marketing.

Question 44

MAC's goal of this component of a direct mailing is to get the recipient to read the contents that show the colours for next season's line of make-up. What component is it?

A) letter
B) leaflet
C) folder
D) order form
E) envelope

Question 45

Statistics Canada makes its some of its information database accessible through the Internet so anyone with proper communications facilities. This is known as a(n)

A) house list.
B) internal list.
C) external database.
D) online database.
E) directory database.

Question 46

Lists prepared from government, census, telephone, warranty, and other publication information are referred to as

A) compiled lists.
B) response lists.
C) circulation lists.
D) house lists.
E) merged lists.

Question 47

A company that sells yarn and knitting supplies by catalogue, bought a list of book-of-the-month buyers. This would be considered a(n)

A) circulation list.
B) list broker list.
C) response list.
D) internal list.
E) compiled list.

Question 48

The analysis of information to determine relationships among the data and enable more effective marketing strategies are identified and implemented is called

A) data marking.
B) data analysis.
C) data mining.
D) marketing research.
E) telemarketing.

Question 49

Shoppers Drug Mart uses its Shoppers Optimum rewards program as a way of collecting information about the buying behaviour of its customers. This information can then be utilized in

A) preventing bad debt issues.
B) direct marketing communications.
C) generating awareness.
D) being a good corporate citizen.
E) comparative advertising.

Question 50

A response list is a list of

A) current customers.
B) proven direct response buyers.
C) brokers.
D) magazine subscribers.
E) publication information.

Question 51

A new company has developed a profile of their target market. With this information they can purchase a list of possible prospects on a cost-per-name basis from

A) a direct response agency.
B) a house list.
C) a CRM company.
D) Canada Post.
E) a list broker.

Question 52

When numerous lists are purchased, they are often combined and stripped of duplicate names through this process.

A) merge/purge
B) response listing
C) compiling
D) list brokering
E) house listing

Question 53

Which of the following is NOT a common form of internal customer data collected by companies?

A) names
B) when a customer purchases
C) addresses
D) psychographic
E) what a customer purchases

Question 54

Direct response advertising is a subset of

A) sales promotion.
B) direct response television.
C) direct mail.
D) catalogue marketing.
E) direct marketing.

Question 55

Which of the following is NOT a benefit of direct mail?

A) Direct mail offers the opportunity to target customers demographically.
B) Direct mail is the least expensive form of direct response advertising.
C) Direct mail offers the opportunity to target customers geographically.
D) Direct mail provides an opportunity to "tell a story".
E) Direct mail is not restricted by time.

Question 56

If you wanted a quick picture of a company and its products (i.e. ownership, sales revenue, number of employees) you could go to a

A) compiled list.
B) list broker.
C) circulation database.
D) directory database.
E) response list.

Question 57

The goal of data mining is

A) to produce lower marketing costs.
B) increase efficiency by identifying customers that are more likely to buy.
C) devise more creative direct mail.
D) to sell products at a higher price.
E) both A and B are goals of data mining

Question 58

When Canadian Tire accumulates considerable data on customers through its own credit card, they are able to create a

A) response list.
B) house list.
C) recall list.
D) merge/purge.
E) list broker.

Question 59

Chatelaine makes their subscription lists available to companies wanting to reach readers with direct mail campaigns. This type of list is a(n)

A) response list.
B) circulation list.
C) broker list.
D) compiled list.
E) in-house list.

Question 60

Toys "R" Us places an ad in Canadian Family magazine with a 1-800 telephone number for customer orders. This is an example of

A) direct mail.
B) catalogues.
C) telemarketing.
D) direct response advertising.
E) advertising.

Question 61

When some companies send out a direct mailing, they include a free gift or a(n) __________ to encourage the buyer to take action.

A) statement stuffer
B) incentive
C) bounce back
D) order form
E) postage-paid envelope

Question 62

Which of the following is NOT true of direct response television?

A) Well-produced infomercials are being run by serious mainstream marketing organizations.
B) Infomercials today are presented in a more entertaining and less "hard sell" manner.
C) Consumers are more accepting of infomercials than they once were.
D) Infomercials are more popular with advertisers than traditional television ads.
E) Direct response television ads have improved in quality over recent years.

Question 63

Lauren found in her cooking magazine a small recipe book from Kraft that was glued to a page using a removable adhesive. Lauren actually found a

A) free-standing insert.
B) statement stuffer.
C) tip-in.
D) top- up.
E) glued insert.

Question 64

Mayim opens up her mail to find an envelope addressed to her that contains coupons for the local pizza place, a shampoo sample, and a deal for magazine subscriptions. Mayim has opened up an example of __________ direct mail.

A) cooperative
B) statement stuffer
C) selective
D) dimensional
E) differentiated

Question 65

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

A) often perceived as junk mail
B) image
C) measurability
D) cost per exposure
E) lack of editorial support

Question 66

Cooperative direct mail refers to the type of direct mail that

A) includes a catalogue.
B) contains special offers from non-competing products.
C) is a unique offer mailed directly to a target audience.
D) contains bounce backs.
E) is commonly employed in business-to-business communication.

Question 67

A unique advertising offer mailed directly to a target audience by a marketing organization is called

A) solo direct mail.
B) selective direct mail.
C) targeted direct mail.
D) cooperative direct mail.
E) both A and B are correct

Question 68

Which of the following is NOT a form of direct response television?

A) a 30-second commercial that sells something
B) a home shopping network
C) an infomercial
D) a 60-second commercial that sells something
E) a personal video recorders

Question 69

__________ telemarketing refers to calls received by an order desk, a customer enquiry and calls generated from toll-free telephone numbers promoted on direct response television commercials.

A) Customer-based
B) Rebound
C) Outbound
D) Inbound
E) Infomercial

Question 70

A free gift or offer included in a direct mail package is also called a(n)

A) incentive.
B) folder.
C) statement stuffer.
D) bounce back.
E) order form.

Question 71

One of the challenges for marketers in utilizing informercials is that the airtime is expensive. If a company wants to save on airtime they will likely produce an informercial and take advantage of __________ when they can.

A) direct mail
B) telemarketing
C) catalogues
D) call centres
E) remnant time

Question 72

If David opened up a piece of mail addressed to him, which of the following items if present, would NOT reflect a typical direct mailing?

A) statement stuffer
B) marketing survey
C) envelope
D) postage paid return envelope
E) letter

Question 73

Herbal Essence Shampoo often inserts coupons in bundles with offers from other unrelated companies such as Kodak and Kellogg's. This is an example of

A) solo direct mail.
B) a statement stuffer.
C) cooperative direct mail.
D) selective direct mail.
E) a group mailing.

Question 74

Why would someone select cooperative direct mail over solo direct mail?

A) It is less costly.
B) It is commonly employed in business-to-business communication.
C) It consists of specialized offers sent directly to prospects.
D) It is more expensive.
E) It has a higher response rate.

Question 75

Outbound telemarketing refers to calls that

A) are 1-800 calls.
B) a company receives.
C) are made by an agency.
D) are generated by classified advertisements.
E) a company makes to clients.

Question 76

One of the characteristics of telemarketing is the fact that consumers find it

A) user-friendly.
B) unwelcome and intrusive.
C) convenient.
D) a part of customer service.
E) misleading.

Question 77

A cable television provider sent out a mailer that opened into a three-dimensional replica of a remote control for its new high definition personal video recorder. This is an example of

A) fun mail.
B) dimensional mail.
C) a leaflet.
D) a folder.
E) a bounce back.

Question 78

CIBC wanted a central operation from which to operate its inbound and outbound telemarketing programs. This meant they wanted to open a

A) telemarketing office.
B) telemarketing centre.
C) call centre.
D) central centre.
E) main office.

Question 79

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

A) creative flexibility
B) audience selectivity
C) image
D) exclusivity
E) measurability

Question 80

MasterCard likes to include statement stuffers with their billings; also often called

A) sales letters.
B) flyers.
C) bounce backs.
D) reply cards.
E) folders.