Deck 19: Managing Personal Communications: Direct Marketing and Personal Selling

Question 1

Which of the following is a disadvantage of direct marketing?

A) invasion of privacy
B) inability to build brand awareness
C) low chances of customers avoiding messages
D) inability to control marketing communication
E) inability to maintain information security

Answer 1

A

Question 2

Market demassification has resulted in ________.

A) niche market creation
B) product standardization
C) mass production practices
D) intrinsic marketing channels
E) just-in time production

Answer 2

A

Question 3

Small Web pages of DTH Bank appear in the Web site of an online property brokerage firm. The pages provide tips to home buyers and publishes its new home loan offerings. These Web pages are examples of ________.

A) microsites
B) online banners
C) interstitials
D) paid advices
E) display advertisements

Answer 3

A

Question 4

The management of Raleigh Bicycles observes that the company's selling costs are affected by the increased number of visits that the salespeople make to meet dealers. The company decides to reduce its personal selling costs by making sales calls to dealers via the telephone. This marketing strategy used by Raleigh is an example of ________.

A) inbound telemarketing
B) search marketing
C) internal marketing
D) outbound telemarketing
E) paid-search marketing

Question 5

Which of the following is a disadvantage of using Web for interactive marketing?

A) Consumers can effectively screen out most messages.
B) An average customer spends very little time on Internet.
C) Internet selling and advertising is costlier than other advertising media.
D) It is unable to create long-term marketing assets.
E) Online marketing limits the possibilities of personalization.

Question 6

The catalog you receive from a large apparel store, displaying their new summer collection, is an example of ________ marketing.

A) buzz
B) direct
C) virtual
D) word of mouth
E) interactive

Question 7

Increased credit card penetration, especially in China and Korea, has also fueled ________________.

A) viral marketing
B) objective screening
C) internal targeting
D) direct marketing
E) RFM formula targeting

Question 8

A salesperson sends e-mails to persuade prospects to buy the products of his company. This is a type of ________ marketing.

A) buzz
B) virtual
C) word of mouth
D) direct
E) viral

Question 9

Which of the following is a factor considered when a customer is evaluated based on RFM formula?

A) the amount of time passed after the customer's last visit
B) the product categories purchased by the customer
C) the mode of payment used by the customer
D) the location from which the customer has bought goods
E) the type of feedback provided by the customer

Question 10

Which of the following channels is best suited for interactive marketing?

A) television
B) news papers
C) Internet
D) hoardings
E) magazines

Question 11

Which of the following is an element of an offer strategy?

A) the medium used for delivery
B) the number of customers in the locality
C) the vision of the company
D) the skills required for production
E) the details of customer order received

Question 12

Of the seven key design elements of an effective Web site, ________ refers to layout and design.

A) character
B) capability
C) context
D) customization
E) connection

Question 13

Which of the following is a major advantage of using direct mails?

A) Direct mails permit target market selectivity.
B) It is the best suited tool for selling complex products.
C) Campaign testing is not needed for direct mails.
D) Direct mails have very high conversion rates.
E) It is the best method to sell industrial products.

Question 14

OrdOnline, a pure click company offering online auctioning, decides to launch a promotional program to increase its sales. The company identifies customers who have made at least three purchases and spent at least $150 in the past six months and offers discount coupons to these customers. Which of the following strategies is used here for targeting the customers?

A) viral marketing
B) objective screening
C) internal targeting
D) catalog marketing
E) RFM targeting

Question 15

In outbound telemarketing, the call center employees ________.

A) sell high-involvement products
B) initiate calls from a location closer to prospects
C) offer huge discounts to customers
D) initiate calls to prospects and customers
E) answer the queries of consumers who call for information

Question 16

The practice of using call centers, where employees receive calls from customers and provide service by taking orders and answering queries, is called ________.

A) customer response marketing
B) guerilla marketing
C) rective marketing
D) internal marketing
E) inbound telemarketing

Question 17

The Internet provides marketers and consumers with opportunities for much greater interaction and ________ than other marketing channels.

A) control
B) data security
C) high involvement selling
D) order conversion
E) individualization

Question 18

Individual Web pages or clusters of pages that function as supplements to a primary Web site are called ________.

A) banners
B) pop-ups
C) interstitials
D) microsite
E) interstitial

Question 19

Which of the following is an example of contextual placement?

A) advertisements that appear when a consumer types in the term "baby" in Google
B) dynamic advertisements of an automobile company appear in a newspaper's Web site
C) descriptive listings of products and services in an online shopping Web site
D) "buy now" tags that appear near the product description in a company's Web site
E) advertisement of a new movie that appears at the background of a news Web page

Question 20

Companies design ________ to embody or express their purpose, history, products, and vision and that are attractive on first viewing and interesting enough to encourage repeat visits.

A) Web sites
B) microblogs
C) banner ads
D) operating programs
E) social network pages

Question 21

Identify a social network that majorly targets career-minded professionals.

A) LinkedIn
B) Facebook
C) MySpace
D) Twitter
E) Orkut

Question 22

In ________, marketers bid in a continuous auction on search terms that serve as a proxy for the consumer's product or consumption interests.

A) paid searches
B) pop-up advertising
C) display advertising
D) banner marketing
E) micro-advertising

Question 23

Having a ________ page has become a virtual prerequisite for many companies.

A) LinkedIn
B) Twitter
C) MySpace
D) Orkut
E) Facebook

Question 24

____ search engines provide up-to-minute analysis of millions of blogs to find out what's on people's minds.

A) Blog
B) Interstitial
C) Online magazine
D) Buzz spot
E) Microsite

Question 25

Which of the following is an example of marketing through social media?

A) a leading brand of sports shoes sponsors the soccer world cup
B) a software company organizes a cancer awareness camp free for all
C) a new department store in your neighborhood that relies on people to spread the word
D) a newspaper article talks about the pollution control processes put in place by a steel manufacturing giant
E) a leading car manufacturer advertises the new model on facebook

Question 26

A banner ad is a(n) ________.

A) large ad shown on the screen for complementary products
B) advertisement that appears before displaying a Web page
C) advertisement that comes up when viewing a Web site
D) small, rectangular box containing text and perhaps a picture
E) advertisement that is put up on hoardings

Question 27

Inception, a recent Hollywood blockbuster, had created a lot of interest among viewers even before its release due to the credentials of its makers. The movie was discussed in social network pages and discussion forums. The discussions increased after its release and it helped the movie do good business. Which of the following most closely describes the type of marketing discussed in this example?

A) personalized marketing
B) direct marketing
C) interactive marketing
D) word of mouth marketing
E) technology marketing

Question 28

________ marketing generates excitement, creates publicity, and conveys new relevant brand-related information through unexpected or even outrageous means.

A) Live-in
B) Buzz
C) Viral
D) Guerrilla
E) Experimental

Question 29

________ are advertisements, often with video or animation, which pop up between changes on a Web site.

A) Interstitials
B) Pay-per click ads
C) Podcasts
D) Wallpaper ads
E) Floating ads

Question 30

Podcasts are ________.

A) digital representations of animated pictures
B) dynamic advertisements that change color and fonts while being displayed
C) advertisements that pop up between Web pages
D) digital media files created for playback
E) advertisements that alter the contents of the Web page

Question 31

________ are regularly updated online journals or diaries.

A) Cliques
B) Podcasts
C) Interstitials
D) Blogs
E) Forums

Question 32

All the PR benefits a firm receives without having directly paid for anything is called ________ media.

A) earned
B) open
C) passive
D) inherent
E) internal

Question 33

You are searching for the details of a refrigerator in Google. When you perform the search, advertisements by home appliance manufacturers appear above the organic search results displayed by Google. These advertisements link you to the online appliance store of the companies. Which of the following terms refer to these advertisements?

A) pay-per-click ads
B) floating ads
C) interstitials
D) superstitials
E) banner ads

Question 34

Twitter is a Web site that allows users to publish micro comments. It allows users to create accounts and publish short messages not exceeding 140 characters. Interested people can follow a person's twitter account and the messages published by him. Many celebrities in the United States are active tweeters and have a number of followers. Twitter is an example of a ________.

A) social network
B) blog
C) wiki
D) microsite
E) microblog

Question 35

You are browsing through an entertainment Web site. When you click on one of the links, the screen turns grey and displays the advertisement of an automobile manufacturer. Clicking on the advertisement leads to the automobile manufacturer's Web site. This advertisement is an example of a(n) ________.

A) interstitial
B) superstitial
C) floating ad
D) pay-per-click ad
E) wallpaper ad

Question 36

You are visiting FIFA's Web site to know the schedule of the football World cup. On the top of the Web page showing the schedule, a small picture displays the official mascot and the text "Buy tickets for the World Cup now". This static exhibit provides the link to the official ticket booking Web site. Identify the type of advertisement used here.

A) pay-per-click ad
B) floating ad
C) wallpaper ad
D) superstitial
E) banner ad

Question 37

Which of the following is the world's biggest social network?

A) MySpace
B) Twitter
C) Facebook
D) Orkut
E) Youtube

Question 38

Which of the following is a valid observation about word of mouth advertisements?

A) It is the one form of advertisement that cannot be controlled by companies because it occurs naturally.
B) Social media can be used as a tool to generate positive word of mouth.
C) Word-of-mouth strategy will be less effective for smaller organizations.
D) Attempts to manage word-of-mouth would lead to negative consequences.
E) Organic word of mouth is always positive whereas facilitated word of mouth is negative.

Question 39

In developed Asian markets such as Hong Kong, Japan, Singapore, and South Korea, ____________ is fast becoming a central component of customer experiences.

A) interstitial advertising
B) pay-per click advertising
C) podcast advertising
D) wallpaper advertising
E) mobile marketing

Question 40

Which of the following is a disadvantage of using emails in marketing?

A) Non-technical products cannot be promoted using emails.
B) Emails are not a cost-effective alternative.
C) Customers can filter the e-mails and many won't reach them.
D) Emails cannot be used for prospecting.
E) Customer feedback cannot be sought when using emails.

Question 41

A sales representative whose expertise is in unraveling customers' problem is called a(n) ________.

A) order taker
B) missionary
C) technician
D) solution vendor
E) demand creator

Question 42

Alduro Asia Chemicals, a manufacturer of detergents, delivers chemicals used for commercial washing to various hoteliers in Asia. Most of the company's revenue comes from routine orders from its existing customers and the company uses unskilled salespeople to collect requirements from its customers. These unskilled customers are known as ________.

A) demand creators
B) deliverers
C) missionaries
D) order takers
E) solution vendors

Question 43

________ is another form of word of mouth that encourages consumers to pass along company-developed products and services or audio, video, or written information to others online.

A) Buzz marketing
B) Viral marketing
C) Guerrilla marketing
D) Motivational marketing
E) Internal marketing

Question 44

Altruron Technologies creates a Facebook page for its new brand of LED television, Sparta. The Facebook page provides latest updates on Sparta and key service issues of the product. It also encourages user comments on the page and users share the information and pictures with their contacts in Facebook. The company has been marketing the page aggressively and has been encouraging users to "like" the product in Facebook. This social networking page and related efforts help the company attract prospective customers. The situation discussed here is an example of ________ marketing.

A) viral
B) deceptive
C) stealth
D) direct
E) guerilla

Question 45

Aldoor, a smart phone manufacturer, understands that word-of-mouth marketing is an important aspect in the success of a product. It promotes discussions about the product both online and offline. Certain loyalists, who have good knowledge about smart phones, act as key participants in such discussions. They help others sort out the problems and provide suggestions to those who want to buy smart phones. These individuals can be called ________.

A) intuiters
B) buzzers
C) bridges
D) connectors
E) mavens

Question 46

The original and oldest form of direct marketing are ________.

A) billboards
B) banner advertising
C) mail campaigns
D) outbound telemarketing calls
E) field sales calls

Question 47

Which of the following refers to the process of deciding which customers will get scarce products during product shortages?

A) delegating
B) prospecting
C) allocating
D) dispersing
E) targetting

Question 48

Gordron Inc. manufactures and markets medical equipment. To ensure that its salespeople are knowledgeable enough to answer all product queries, the company hires only those individuals who have a good understanding of both the medicine profession and the mechanics of the equipment used. Which of the following is the most accurate classification of Gordron's salesforce?

A) technicians
B) demand creators
C) deliverers
D) order takers
E) missionaries

Question 49

A salesperson who relies on creative methods for selling a company's tangible or intangible offerings is called a(n) ________.

A) demand creator
B) deliverer
C) order taker
D) missionary
E) solution vendor

Question 50

A company uses sales representatives for selling the company's more complex and customized products to large accounts, while using inside salespeople and Web ordering for low-end selling. Which of the following describes the company's sales force best?

A) demand creators
B) direct marketing force
C) missionary sellers
D) technical salesforce
E) leveraged salesforce

Question 51

People who know and communicate with a great number of other people are called ________.

A) buzzers
B) connectors
C) informants
D) stickers
E) bridges

Question 52

Robert is hired as a sales representative for a company that manufactures fire extinguishers. His job description reads as follows: "The key duty of the sales representative is to unravel the customer's problems using the company's products." Which of the following positions would best describe Robert's profile?

A) deliverer
B) technical salesperson
C) missionary salesperson
D) order taker
E) solution vendor

Question 53

According to communication researchers, the society consists of ________, small groups whose members interact frequently.

A) intuiters
B) buzzers
C) cliques
D) informants
E) campaigners

Question 54

A salesperson performing over the counter sales in a medical store can be referred to as a(n) ________.

A) order taker
B) demand creator
C) solution vendor
D) phisher
E) missionary

Question 55

Which of the following tasks of the salesforce refers to conducting market research and doing intelligence work?

A) servicing
B) communicating
C) targeting
D) prospecting
E) information gathering

Question 56

The process of deciding how to allocate company's time among prospects and customers is called ________.

A) targeting
B) prospecting
C) allocating
D) dispersing
E) delegating

Question 57

Apple created a lot of publicity before the release of its tablet computer, iPad. The product was discussed in online communities and social networks. Many booked the product in advance, ensuring good initial revenues for Apple. The company published periodic updates of the product creating huge expectation in the minds of customers. This pre-launch publicity can be viewed as ________ marketing.

A) buzz
B) stealth
C) ambush
D) undercover
E) direct

Question 58

Buzz and viral marketing both try to ______.

A) use unethical methods to popularize a brand
B) market products by providing free samples to customers
C) create a splash in the marketplace to showcase a brand
D) induce impulse sales by displaying products close to the pay counters
E) market products to customers without their knowledge

Question 59

One team of viral marketing experts caution that although influencers or ________ start trends, they are often too introspective and socially alienated to spread them.

A) alphas
B) caches
C) bridges
D) cliques
E) buzzers

Question 60

Andrew is a post graduate student in Hong Kong University. He is also a member of the group of engineering professionals. The membership was issued to him when he worked as an engineer before joining the school. Andrew is called a(n) ________ connecting the Hong Kong University student community and group of engineering professionals.

A) bridge
B) maven
C) buzzer
D) intuiter
E) external

Question 61

________ aspects also contribute to why fixed compensation is favored over variable compensation in some Asian countries.

A) Social
B) Cultural
C) Technological
D) Legal
E) Political

Question 62

Company call center executives provide procedural information to the clients who call up to know the specifications and operation of the product. These call center employees can be called ________.

A) technical support people
B) sales assistants
C) telemarketers
D) deliverer
E) consultants

Question 63

Your company has customer-service representatives who provide you with leads, write up proposals, fulfill orders, and provide post-sales support. Your responsibilities are to concentrate on the larger accounts with more complex and customized needs. Your company most likely has a ________ salesforce.

A) distributive
B) territory based
C) leveraged
D) decentralized
E) parallel

Question 64

A salesperson who is contacting possible buyers by mail or phone to assess their level of interest and financial capacity is in the ________ step of the selling process.

A) preapproach
B) prospecting
C) qualifying
D) following up
E) objection handling

Question 65

Direct marketing has the ability to test different elements of an offer strategy under real marketplace conditions.

Question 66

Which of the following is an example of a problem question?

A) What system are you using to invoice your customers?
B) How does this problem affect your people's productivity?
C) What parts of the system create errors?
D) How much would you save if our company could help reduce errors by 80 percent?
E) Which operating system have you installed in your personal computer?

Question 67

________ questions ask about the consequences of the buyer's problems.

A) Situation
B) Problem
C) Implication
D) Need-payoff
E) Solution

Question 68

Identify the first step in the workload approach to establish sales force size.

A) grouping customers into size classes according to annual sales volume
B) establishing desirable call frequencies for each customer class
C) determining the total workload for the country in terms of sales calls per year
D) determining the average number of calls a sales representative can make per year
E) calculating the total number of sales reps needed

Question 69

Direct mail permits target market selectivity and allows early testing and response measurement.

Question 70

In catalog marketing, companies may send full-line merchandise catalogs, specialty
consumer catalogs, and business catalogs, usually in print form.

Question 71

Part-time paid employees who work exclusively for the company are a part of the ________ salesforce.

A) direct
B) virtual
C) contractual
D) implicit
E) brokered

Question 72

Today's customers expect a salesperson to have extensive product knowledge, to be efficient and reliable, and to provide ideas to improve the customer's operations. These demands are forcing companies to make higher investments in ________.

A) sales training
B) internal selling
C) management controls
D) advertising
E) sales promotions

Question 73

________ consists of manufacturers' reps, sales agents, and brokers who earn a commission based on sales.

A) Virtual salesforce
B) Domestic salesforce
C) Contingent sales force
D) Contractual sales force
E) Decentralized salesforce

Question 74

A company's best prospects are customers who have never bought its products.

Question 75

Jackson, the sales representative of a Korean manufacturer of commercial heavy duty washing machines, calls on the hotels in Asia. During a sales call, he asks the housekeeping manager of a hotel "How many bed sheets do you wash in a day, on an average?" This question can be classified as a(n) ________ question.

A) situation
B) problem
C) implication
D) need-payoff
E) consequence

Question 76

Which of the following is the first step in the process of personal selling?

A) prospecting and qualifying
B) sales preapproach
C) sales presentation
D) unearthing objections
E) demonstrating advantages

Question 77

In which of the following stages of personal selling does a salesperson tell the product story to the buyer?

A) preapproach
B) prospecting
C) presentation
D) closing
E) objection handling

Question 78

One of the shortcomings of direct marketing is that the firms cannot easily measure its response.

Question 79

Fixed compensation receives more emphasis in sales rep jobs with ________.

A) a high ratio of selling to non-selling duties
B) a high requirement for individual initiatives
C) an intensive focus on selling activities
D) very little need for teamwork
E) technical complexities

Question 80

Which of the following types of questions directly enquires about the value or usefulness of a proposed solution?

A) situation questions
B) problem questions
C) implication questions
D) consequence questions
E) need-payoff questions