Deck 16: Direct-Response

Question 1

Which of the following refers to the percentage of direct marketing contacts who actually act on a direct marketing communication?

A)frequency
B)conversion rate
C)recency
D)fulfillment rate
E)variable rate

Answer 1

B

Question 2

What is the second step in the direct marketing process?

A)setting objectives and making strategic decisions
B)communication of the offer
C)customer ordering
D)fulfillment
E)relationship building

Answer 2

B

Question 3

Theo is implementing the direct marketing process in his business. Currently, he is conducting marketing research, segmenting and targeting markets, and setting objectives. Which step in the direct marketing process is he implementing?

A)Step 1
B)Step 2
C)Step 3
D)Step 4
E)Step 5

Answer 3

A

Question 4

Which basic objective of direct marketing involves providing basic information on companies or individuals who are potential customers?

A)developing leads
B)driving traffic
C)testing offers
D)enhancing awareness
E)driving responses

Question 5

What is the first step in the direct marketing process?

A)setting objectives and making strategic decisions
B)communication of the offer
C)customer ordering
D)fulfillment
E)relationship building

Question 6

Which of the following is true about direct marketing?

A)Direct marketing relies on a consumer response that comes through an intermediary.
B)Direct marketing tends to be less interactive than other marcom tools are.
C)Direct marketing is considered one-way communication.
D)Direct marketing relies heavily on market research and database development.
E)Direct marketing messages are more cost efficient than mass media messages are.

Question 7

Which of the following statements about direct marketing customers is true?

A)The more recently customers bought from a company, the less likely they are to buy again.
B)The less money customers recently spent buying from a company, the more likely they are to buy again.
C)The less frequently customers have bought from a company, the more likely they are to buy again.
D)The more money customers recently spent buying from a company, the less likely they are to buy again.
E)The more frequently customers have bought from a company, the more likely they are to buy again.

Question 8

The best customer prospects of direct marketers are ________.

A)profiled consumers
B)current customers
C)affiliated consumers
D)segmented consumers
E)purged customers

Question 9

There are four main players in direct-response marketing communication. Which of the following is NOT one of these four main players?

A)state and federal government that regulates marketing communication
B)marketers who use direct response to sell products or services
C)agencies that specialize in direct response
D)media that deliver messages
E)consumers

Question 10

The term or phrase that refers to the way that marketers identify prospective customers is ________.

A)mining
B)prospecting
C)hunting
D)phishing
E)converting

Question 11

Direct marketers have identified the three criteria of RFM to predict who is most likely to repurchase. RFM stands for ________.

A)reach, frequency, and monetary
B)reach, financial, and media
C)recency, financial, and media
D)recency, frequency, and media
E)recency, frequency, and monetary

Question 12

Service firms in direct marketing specialize in ________.

A)printing
B)mailing
C)list brokering
D)A and B
E)A, B, and C

Question 13

Which basic objective of direct marketing involves attempting to motivate customers to visit an event or retail outlet?

A)developing leads
B)driving traffic
C)testing offers
D)enhancing awareness
E)driving responses

Question 14

________ is a technique of mining the information in databases to uncover prospective buyers whose characteristics match those of users.

A)Skimming
B)Searching
C)Profiling
D)Relationship marketing
E)Fulfillment

Question 15

Why is direct marketing a growth area for marketing?

A)The effectiveness of direct-response marketing is easy to evaluate.
B)Consumers are more accepting of it than other forms of marketing communication.
C)Response rates have increased dramatically in the past 10 years.
D)Consumers feel more confident in marketers' concerns for their privacy.
E)all of the above

Question 16

Which type of agency is responsible for making sure consumers receive whatever they request in a timely manner, be it a catalog, additional information, or the product itself?

A)advertising agency
B)independent agency
C)service firm
D)fulfillment house
E)U.S. Postal Service

Question 17

________ occurs when a seller and customers deal with each other directly rather than through an intermediary, such as a wholesaler or retailer.

A)Integrated marketing
B)Simplified marketing
C)Leveled marketing
D)Direct-response marketing
E)Tiered marketing

Question 18

Which of the following is the last step in the direct marketing process?

A)setting objectives and making strategic decisions
B)communication of the offer
C)customer ordering
D)fulfillment
E)relationship building

Question 19

Which of the following is NOT a type of agency involved in direct marketing?

A)advertising agencies
B)direct marketing agencies
C)service firms
D)U.S. Postal Service
E)fulfillment houses

Question 20

What is the focus of most direct marketing communications?

A)increasing awareness
B)enhancing attitudes
C)producing a sale
D)gaining acceptance among several stakeholders
E)encourage switching from a competitor's product or service

Question 21

Which of the following is NOT typically part of the offer in direct marketing?

A)description of the product
B)terms of sale
C)payment information
D)delivery information
E)rebate

Question 22

Which of the following is the original and most effective form of direct marketing?

A)personal sales
B)sales promotion
C)catalog marketing
D)print direct-response advertising
E)direct mail

Question 23

Which of the following is an advantage of direct mail?

A)positive perceptions
B)low cost per thousand
C)reaches the unreachable
D)high response rates
E)all of the above

Question 24

Which type of offer asks for a direct sales response?

A)secondary offer
B)indirect offer
C)one-step offer
D)two-step offer
E)primary offer

Question 25

For organizations that use direct marketing, which of the following is the most popular method of direct marketing?

A)personal sales
B)sales promotion
C)telemarketing
D)print direct-response advertising
E)direct mail

Question 26

Which of the following is NOT part of the fulfillment stage of the direct marketing process?

A)receiving payment
B)delivering the product
C)providing delivery tracking information to customers
D)providing financing for customers
E)processing the transaction

Question 27

Which of the following is NOT a good tip for creating effective direct mail?

A)Get the attention of the targeted prospect as the envelope comes from the mailbox.
B)Use the word free as often as possible.
C)Provide critical information about product use.
D)Use an incentive to encourage a fast response.
E)Inspire confidence, minimize risk, and establish that the company is reputable.

Question 28

Which of the following is NOT an advantage of direct mail?

A)tells a story
B)builds in feedback
C)personalizes the message
D)reaches the unreachable
E)low cost per thousand

Question 29

In direct marketing, getting the product to the customer who ordered it is known as ________.

A)follow-up
B)integration
C)conversion
D)fulfillment
E)relationship building

Question 30

Which of the following is NOT a variable that would be considered part of the offer in direct marketing?

A)media strategy
B)price
C)cost of shipping and handling
D)guarantees and warranties
E)future obligations

Question 31

A ________ is a multipage direct-mail publication that shows a variety of merchandise.

A)letter
B)brochure
C)broadsheet
D)self-mailer
E)catalog

Question 32

All of the variables that are intended to satisfy the needs of the consumer are considered part of the ________ in direct marketing.

A)message
B)media
C)fulfillment
D)offer
E)response

Question 33

Of the following, which is the best advice for writing an effective direct-response letter?

A)Make the offer as early as possible in the body of the letter.
B)Don't confuse prospects by including information about a website.
C)Use a general salutation.
D)Use brief descriptions of the product and offer.
E)Do not guarantee the product.

Question 34

Which of the following is a general guideline that applies to message development in direct marketing?

A)The message is often longer and contains more explanation and detail than an advertising message does.
B)Message copy tends to be written in an impersonal, formal style.
C)The message should not touch on the issue of product reliability.
D)The message should be very brief and to the point.
E)The message should not include information about a return policy or warranty.

Question 35

Which of the following is a disadvantage of direct mail?

A)negative consumer perceptions
B)inability to reach audiences who are inaccessible by mass media
C)inability to personalize the message
D)lack of feedback
E)difficulty engage attention of target

Question 36

Which type of offer is designed to gather leads, answer consumer questions, drive visits to a store, or set up appointments?

A)secondary offer
B)indirect offer
C)one-step offer
D)two-step offer
E)primary offer

Question 37

Which of the following is NOT a general guideline that applies to message development in direct marketing?

A)The message should contain clear comparisons or details about purchase decision factors.
B)The message should counter consumers' reluctance to buy.
C)The message should reflect whether the offer is a one-step offer or a two-step offer.
D)The message must, by law, include information about a return policy.
E)The more individually targeted the message is, the better.

Question 38

During the ________ step of the direct-marketing process, the DMC campaign must communicate benefits to buyers by answering the enduring question: "What's in it for me?"

A)objectives/strategy
B)offer
C)response/order
D)fulfillment
E)relationship building

Question 39

How is most direct mail sent?

A)first-class mail
B)second-class mail
C)second-class bulk mail
D)third-class bulk mail
E)certified mail

Question 40

During the ________ step in the direct marketing process, the DMC message must make it as easy as possible for customers to respond.

A)objectives/strategy
B)offer
C)response/order
D)fulfillment
E)relationship building

Question 41

A toll-free phone number, an order coupon, a website, and an e-mail address are examples of ________.

A)steps in the direct marketing process
B)direct marketing
C)measures of effectiveness in direct marketing
D)contact elements that can be included in a direct-response advertisement
E)the offer in direct marketing

Question 42

Which of the following is a disadvantage of catalogs?

A)high response rates
B)low cost per thousand
C)databases that must be constantly maintained
D)positive perceptions
E)difficult to target specific market segments

Question 43

What is the purpose of the national Do Not Call Registry?

A)to make businesses using telemarketing register all the numbers that they call
B)to allow consumers to receive telemarketing calls only from marketers that they want to call them
C)to stop telemarketers from calling cell phone numbers because consumers must pay for those calls
D)to allow consumers to "opt-out" of telemarketing calls from for-profit businesses
E)to stop telemarketers from calling people at work

Question 44

The database marketing process begins with a(n)________ that could include completing a warranty card, entering a contest or sweepstake, or opting in on a website.

A)behavioral target
B)house list
C)information collection point
D)merged list
E)response list

Question 45

In which type of telemarketing does the call originate with the customer?

A)opt-in
B)opt-out
C)external
D)inbound
E)outbound

Question 46

Which of the following is a true statement about catalogs?

A)More paper is consumed annually in the production of catalogs than in either magazines or books.
B)The most successful catalogs carry a variety of brands and products rather than products solely from the sponsoring brand.
C)The growth in catalogs in the 21st century is in general-interest catalogs.
D)Few paper catalogs are associated with online catalogs.
E)Due to increasing use of the Internet, the number of paper catalogs produced annually is decreasing.

Question 47

Which of the following are the two types of telemarketing?

A)opt-in and opt-out
B)toll and toll-free
C)internal and external
D)business and organizational
E)inbound and outbound

Question 48

In which type of telemarketing does the call originate with the marketer?

A)opt-in
B)opt-out
C)external
D)inbound
E)outbound

Question 49

Which of the following is NOT a protection included in the Telemarketing Sales Rule enacted by the Federal Trade Commission in 1995?

A)a prohibition on telemarketing calls made before 8 a.m. or after 9 p.m.
B)strict informational disclosure requirements for telemarketers
C)a prohibition against telemarketers using misrepresentative or misleading statements
D)a provision requiring telemarketers to honor do-not-call lists
E)a provision requiring specific payment collection procedures

Question 50

What do direct marketers use to keep track of customers, identify prospective customers, and segment groups of customers and prospects?

A)databases
B)permission marketing
C)integrated marketing communication
D)opt-out strategies
E)opt-in strategies

Question 51

A direct-response ad on television that is typically 30 or 60 minutes long and tends to be played during non-prime time periods is known as a(n)________.

A)infomercial
B)commercial
C)promotional program
D)telemarketing program
E)home shopping network

Question 52

The Register of Known Spam Operations (Rokso)is a kind of "most wanted" list of spammers that is maintained by ________.

A)the Federal Trade Commission
B)the Direct Marketing Association
C)the U.S. Postal Service
D)Internet hosts and service providers
E)the CAN-SPAM Act

Question 53

________ is a type of marketing communication that has characteristics of advertising but also includes an element that allows the audience to make a direct response to the advertiser.

A)Direct-response advertising
B)Direct-focus advertising
C)Integrated marketing communications
D)Direct-marketing advertising
E)Direct-to-consumer advertising

Question 54

The ________ regulates e-mail marketing.

A)Do Not Mail List
B)Mail Preference Service
C)McAfee Internet Security Suite
D)CAN-SPAM Act
E)Do Not Call Registry

Question 55

Which of the following refers to the use of special computerized programs that use random dialing, making it possible for telemarketing companies to call anyoneeven those with unlisted numbers?

A)opt-in telemarketing
B)opt-out telemarketing
C)cold calling
D)conversion calling
E)predictive dialing

Question 56

Which of the following is NOT an objective of a marketing database?

A)to record names of customers, expires, and prospects
B)to store and analyze responses
C)to store and analyze purchasing performance
D)to continue direct communication with customers
E)to record and analyze marketing communications

Question 57

Rooms with large banks of phones and computers where workers send and receive calls are known as ________.

A)call centers
B)telephone pits
C)call lists
D)call floors
E)call pits

Question 58

________ is a practice that uses databases to predict trends and monitor consumers to more effectively implement direct-marketing strategies.

A)Integrated marketing
B)Permission-based marketing
C)Database marketing
D)Conversion marketing
E)Predictive marketing

Question 59

Fraudulently using a company's identity to send out spam is known as ________.

A)copy-cat advertising
B)vampire advertising
C)phishing
D)spying
E)spoofing

Question 60

In a marketing database, the term expire means ________.

A)the customer is dead
B)the marketer no longer has permission to communicate with this customer
C)the customer name is no longer valid
D)the customer has not purchased from the marketer for more than 18 months
E)the customer's name has been merged to another list

Question 61

In which stage of the database marketing process can the direct marketer create clusters of characteristics and behaviors representing valuable consumer segments or target markets?

A)first
B)third
C)fourth
D)fifth
E)seventh

Question 62

The financial contribution through sales volume of an individual customer or customer segment over a length of time is known as ________.

A)return on investment
B)lifetime customer value
C)customer contribution
D)customer loyalty
E)customer relationship assessment

Question 63

Combining direct-mail lists is known as ________.

A)purging
B)merging
C)mining
D)sourcing
E)converting

Question 64

Three basic objectives of direct marketing are lead generation, traffic generation, and elimination of competition.

Question 65

Direct-marketing messages are constantly being measured, so direct marketers can learn what works and modify succeeding campaigns based on results.

Question 66

In direct marketing, optimization is the function that gets the product to the customer who ordered it.

Question 67

Which type of list is derived from people who have responded to some type of direct-response offer?

A)data list
B)house list
C)compiled list
D)response list
E)prospect list

Question 68

Deleting the repeated names on direct-mail lists that have been combined is known as ________.

A)purging
B)merging
C)mining
D)parsing
E)converting

Question 69

In direct-response marketing, a business responsible for making sure consumers receive whatever they requested in a timely manner is known as a service firm.

Question 70

Only the product or service is considered part of the offer in direct marketing.

Question 71

Which type of database provided by an outside firm contains information useful in segmenting as well as contact information?

A)mined database
B)relational database
C)response database
D)house database
E)clustered database

Question 72

A two-step offer is designed to sell consumers a lower-priced item before offering them a higher-priced, and thus more profitable, offer.

Question 73

Advertising agencies do not play a role in direct-response marketing.

Question 74

Which type of direct-marketing list consists of the marketer's own customers or members?

A)data list
B)house list
C)converted list
D)response list
E)compiled list

Question 75

The four main players in direct-response marketing are the advertisers, the agencies, the media, and the government.

Question 76

In direct marketing, service firms are agencies that specialize in supplying printing, mailing, and list brokering.

Question 77

Direct marketing is often used by nonprofit organizations and by political associations.

Question 78

In which stage of the database marketing process is data entered into the computer to merge it with other information already in the file or added at the same time?

A)first
B)second
C)fourth
D)fifth
E)seventh

Question 79

Which type of direct-marketing list is a list of some specific category, such as sports car owners, new homebuyers, graduating seniors, or subscribers to a magazine?

A)data list
B)house list
C)compiled list
D)response list
E)prospect list

Question 80

Which type of direct-marketing list is the most valuable list to a marketer?

A)data list
B)house list
C)compiled list
D)response list
E)prospect list