Deck 20: Managing Personal Communications: Direct and Database Marketing and Personal Selling

Question 1

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

Answer 1

D

Question 2

What are the five main challenges associated with database marketing?

Answer 2

The five main challenges associated with database marketing include:
1.Some situations are just not conducive to database marketing.Building a customer database may not be worthwhile when: (1)the product is a once-in-a-lifetime purchase (a grand piano); (2)customers show little loyalty to a brand (there is a lot of customer churn); (3)the unit sale is very small (a candy bar)so customer lifetime value is low; (4)the cost of gathering information is too high;and (5)there is no direct contact between the seller and ultimate buyer.
2.Building and maintaining a customer database require a large investment.Computer hardware,database software,analytical programs,communication links,and skilled staff can be costly.It's difficult to collect the right data,especially to capture all the occasions of company interaction with individual customers.Sometimes companies mistakenly concentrate on customer contact processes without making corresponding changes in internal structures and systems.
3.Employees may resist becoming customer-oriented and using the available information.Employees find it far easier to carry on traditional transaction marketing than to practice CRM.Effective database marketing requires managing and training employees as well as dealers and suppliers.
4.Not all customers want a relationship with the company.Some may resent knowing the company has collected that much personal information about them.Online companies should explain their privacy policies and give consumers the right not to have their information stored.European countries do not look favorably on database marketing and are protective of consumers' private information.The European Union passed a law handicapping the growth of database marketing in its 27 member countries.
5.The assumptions behind CRM may not always hold true.High-volume customers often know their value to a company and can leverage it to extract premium service and/or price discounts,so it may not cost the firm less to serve them.Loyal customers may also be jealous of attention lavished on other customers.Loyal customers also may not necessarily be the best ambassadors for the brand.One study found those who scored high on behavioral loyalty and bought a lot of a company's products were less active word-of-mouth marketers than customers who scored high on attitudinal loyalty and expressed greater commitment to the firm.
LO: 2

Question 3

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.

Answer 3

A

Question 4

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

Question 5

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 6

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 7

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 8

In general,what are the five ways companies use database marketing?

Question 9

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 10

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

A)the amount of time has passed since the customer's last purchase
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 11

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 12

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

Question 13

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 14

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 15

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 16

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 17

_________ marketing is the use of customer-direct channel to reach and deliver goods and services to customers without using marketing middleman.

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

Question 18

What situations are not conducive to database marketing?

Question 19

Database marketing is ideal when a company does not have direct contact with its customers.

Question 20

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 21

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 22

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 23

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

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

Question 24

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 25

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 26

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 27

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 28

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

Question 29

________ 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 30

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 31

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 32

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 33

________ 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 34

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 35

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 36

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 37

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 38

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 39

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 40

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 41

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

Question 42

Demand creators are not permitted to take an order but expected rather to build goodwill or educate the actual or potential user.

Question 43

Paid search refers to the practice of charging Internet users a small premium for obtaining individualized search results.

Question 44

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

Question 45

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

Question 46

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

Question 47

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

Question 48

Display advertisements can be used as a medium for interactive advertising.

Question 49

Interstitials are advertisements that pop up between changes on a Web site.

Question 50

Internet is not a suitable channel for engaging in interactive marketing.

Question 51

A salesperson calling on supermarkets to take repeat orders is called an order taker.

Question 52

Search terms serve as a proxy for the consumer's consumption interests and trigger relevant links to product or service offerings alongside search results from Google,Yahoo!,or Bing.

Question 53

Podcasts are digital media files created for playback on portable MP3 players and computers.

Question 54

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 55

Targeting refers to the process of deciding which customers will get scarce products during product shortages.

Question 56

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 57

If a company exaggerates the features of its products in its product catalogue,it can be classified as deception.

Question 58

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 59

Microsites are versions of Web sites designed for access from mobile devices.

Question 60

Most industrial companies rely heavily on Internet selling and buzz marketing to promote their products.

Question 61

Closing signs from the buyer include physical actions,statements or comments,and questions.

Question 62

The fixed amount in a salesperson's salary is majorly designed to stimulate and reward efforts from salespeople.

Question 63

Briefly explain the various tasks that the salespeople of an organization perform.

Question 64

The term sales representative covers a broad range of positions,tasks,and responsibilities.List and briefly describe each of the positions.

Question 65

Implication questions ask about the consequences of a buyer's problems,difficulties,or dissatisfactions.

Question 66

An employee who provides clerical backup for outside salespersons,runs credit checks,follows up on deliveries,and answer customers' business-related questions is called a sales assistant.

Question 67

Situation questions focus on the problems,difficulties,and dissatisfaction a buyer might be experiencing with the existing situation.

Question 68

Sales representatives who are paid mostly in commissions require more supervision than other salespeople.

Question 69

What are the advantages and disadvantages of engaging in interactive marketing using the Web?

Question 70

Briefly describe the various forms of online interactive marketing.

Question 71

What are the six steps in personal selling?

Question 72

Most direct marketers apply the RFM formula to select customers.Explain this formula and how it is used to select customers.

Question 73

Most companies set annual quotas.Quotas can be on dollar sales,unit volume,margin,selling effort,or activity and product type.Compensation is often tied to the degree of quota attainment.What problems does the setting of quotas present to both the company and to the sales representative?

Question 74

Variable compensation is common in jobs where the selling task is technically complex and requires teamwork.

Question 75

A manager is using feed-forward sales supervision when he communicates what the sales reps should be doing and motivates them to do it.

Question 76

The first step in the workload approach for designing salesforce size is to establish desirable call frequencies for each customer class.

Question 77

Information gathering refers to the act of conducting market research and doing intelligence work.

Question 78

A contractual sales force consists of part-time employees who work exclusively for the company.

Question 79

What is direct marketing? What are the various channels that direct marketers use?

Question 80

A company that sells one product line to one end-using industry with customers in many locations would use product or market structure for its salesforce.