Deck 17: Managing Personal Communications: Direct and Database Marketing and Personal Selling

Question 1

An ethical concern in direct marketing is whether some companies exaggerate the features of their products in catalog copy.

Answer 1

True

Question 2

Which of the following is NOT one of the advantages of direct mail?

A) The cost per thousand is lower than for mass media.
B) It permits target market selectivity.
C) It can be personalized.
D) It allows early testing and response measurement.
E) It is flexible.

Answer 2

A

Question 3

Greta is attempting to get as many orders as possible. Which direct marketing tool is generally associated with the highest order response rate?

A) e-mail to an internal company list
B) direct mail to an internal company list
C) e-mail to a general list
D) direct mail to a general list
E) no difference between e-mail and direct mail

Answer 3

B

Question 4

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

Question 5

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 6

Which of the following is a criticism of direct marketing?

A) unwanted and misleading messages
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 7

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) reactive marketing
D) internal marketing
E) inbound telemarketing

Question 8

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

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

Question 9

Business-to-consumer telemarketing is increasing.

Question 10

The offer strategy for direct mail has five elements: the product, the offer, the medium, the distribution method, and the ________.

A) outside envelope
B) creative strategy
C) sales letter
D) circular
E) reply form

Question 11

Direct marketing has not been growing as fast as U.S. retail sales.

Question 12

Greta is marketing a product that is technologically advanced and requires a great deal of explanation. Which direct response tool should she use?

A) direct mail
B) e-mail
C) infomercial
D) inbound telemarketing
E) outbound telemarketing

Question 13

The management of Raleigh Bicycles observes that the company's selling costs are affected by the increased number of visits that salespeople make to meet dealers. The company decides to reduce its personal selling costs by making sales calls to dealers via 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 14

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

Question 15

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

Question 16

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

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

Question 17

The Internet and catalog retailing industry includes 20,000 companies with combined annual revenue of $350 billion.

Question 18

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 19

If a specific campaign does not break even in the short run, it will not be profitable in the long run, even if we factor in customer lifetime value.

Question 20

Which of the following is a factor considered when a customer is evaluated based on the 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 21

The original and oldest form of direct marketing is ________.

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

Question 22

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 23

In which of the following cases is building a database worthwhile for the company?

A) Clare's creates personalized sculptures for special occasions.
B) Sales of Clarity soap have fallen over the past few months in all regions.
C) 2Wheels sells its most profitable products to repeat customers.
D) Uncle Jim's sells its range of snacks in stores throughout the country.
E) Ready-to-wear clothes brand Zeep targets the teen and tween market throughout the United States.

Question 24

Which of the following is most likely to use database marketing?

A) an airline targeting frequent fliers
B) a candy bar manufacturer
C) a seller that doesn't have direct contact with the ultimate buyer
D) a marketer of soap to customers who aren't brand loyal
E) a seller of pianos

Question 25

The darker side of direct marketing, from a consumer perspective, includes all of the following EXCEPT ________.

A) irritation
B) unfairness
C) deception and fraud
D) federal regulation
E) invasion of privacy

Question 26

What situations are not conducive to database marketing?

Question 27

What are the five main challenges associated with database marketing?

Question 28

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

Question 29

What are the five elements of an offer strategy in direct marketing?

Question 30

Describe the five ways companies use database marketing.

Question 31

Describe the use of the RFM formula in selecting customers for direct marketing.

Question 32

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

Question 33

Why do companies use infomercials?

Question 34

Which of the following is an example of a situation that is NOT conducive to database marketing?

A) Rushbury Theater relies on the generosity of donors to keep functioning.
B) Kenilworthy retails luxury handbags and leather accessories to a select clientele.
C) 2Wheels sells its most profitable products to repeat customers.
D) Uncle Jim's sells its range of snacks in stores throughout the country.
E) PetZone offers obedience classes, a doggie daycare, and other services for pets in the Manhattan area.

Question 35

Why is direct mail popular among marketers?

Question 36

What are the elements of a direct-mail offer?

Question 37

Describe the darker side of direct marketing solicitations.

Question 38

How well do direct mail response rates represent a campaign's long-term impact? How do marketers take this into account?

Question 39

In which of the following cases is building a database worthwhile for the company?

A) where the product is a once-in-a-lifetime purchase
B) where customers show little loyalty to a brand
C) where the company has a long relationship with its customers
D) where the unit sale is very small
E) where the cost of gathering the information is high

Question 40

Which of the following is a positive factor when considering the development of a customer database?

A) The product is a once-in-a-lifetime purchase.
B) There is no contact between the buyer and seller.
C) There is a lot of customer churn.
D) The unit sale is very small.
E) Customer lifetime value is high.

Question 41

Which of the following is an advantage of inside selling?

A) Inside selling is less expensive than in-person selling.
B) Inside salespeople need to be in the office.
C) Inside salespeople spend more time selling to major accounts.
D) Inside salespeople focus on systems contracts.
E) Outside reps free inside salespeople to convert new major prospects.

Question 42

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 43

Key indicators of sales performance include all of the following EXCEPT ________.

A) average number of sales calls per salesperson per day
B) average revenue per sales call
C) advanced marketing cost per sales call
D) average cost per sales call
E) entertainment cost per sales call

Question 44

________ helps sales representatives understand how they spend their time and how they might increase their productivity.

A) Time-and-duty analysis
B) A sales quota
C) A feed-forward approach
D) An expense allowance
E) A norm for prospect calls

Question 45

Which of the following is NOT a main part of managing the sales force?

A) recruiting and selecting sales representatives
B) identifying prospects for sales representatives
C) training sales representatives
D) motivating sales representatives
E) evaluating sales representatives

Question 46

A medical "detailer" that represents an ethical pharmaceutical house, who builds goodwill or educates the actual or potential user but is not permitted to take an order, is an example of a ________.

A) missionary salesperson
B) technician
C) demand creator
D) solution vendor
E) deliverer

Question 47

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

Question 48

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

A) a high ratio of selling to nonselling 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 49

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

Question 50

To manage costs, most companies are choosing a leveraged sales force that focuses reps on selling the company's more complex and customized products to large accounts and uses inside salespeople and online ordering for low-end selling.

Question 51

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 52

Which of the following sales positions is most likely to have fixed compensation?

A) an FMCG salesperson selling to supermarkets
B) a salesperson who handles the industrial customers
C) an insurance agent who works part time
D) a service representative in charge of handling incoming customer queries
E) a telemarketer calling up existing customers to bring in additional sales

Question 53

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

A) virtual
B) domestic
C) contingent
D) contractual
E) decentralized

Question 54

Which of the following statements about technology support for salespeople is NOT True?

A) Computer-based decision support systems have been created for sales managers and sales representatives.
B) Social media sites make it easier to sell with few, if any face-to-face meetings.
C) Going online, salespeople can prime themselves on backgrounds of clients.
D) Salespeople often have online access to brochures and prewritten sales letters.
E) All of the above are True.

Question 55

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 medical 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 56

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 sales force
E) leveraged sales force

Question 57

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

Question 58

Kate is coaching members of her field sales team to help them understand how they spend their time and how they might increase their productivity. A tool that would help her provide feedback for this is ________.

A) time-and-duty analysis
B) a sales quota
C) a feed-forward approach
D) an expense allowance
E) a norm for prospect calls

Question 59

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 60

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

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

Question 61

Ways of closing a sale include asking for the order and getting the buyer to make minor choices such as color or size.

Question 62

Jack is the sales representative of a company that designs and installs modular kitchens. The company's sales force is trained to customize their offerings as per customer requirements. After analyzing factors such as the space available and the budget, Jack provides personalized designs to individual customers. What kind of a salesperson is Jack? Briefly explain your answer.

Question 63

What key indicators of sales performance do sales managers extract from call reports?

Question 64

You work as a sales representative in a company that manufactures surgical equipment. Before calling on an important prospect, you decide to search the Internet and find out details about him. What step in the selling process is being carried out here? What is involved in this step?

Question 65

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 66

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

Question 67

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

Question 68

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 and qualifying
C) presentation and demonstration
D) following up
E) overcoming objections

Question 69

What are the six steps in personal selling?

Question 70

List the various tasks that the salespeople of an organization may perform to achieve sales force objectives.

Question 71

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

Question 72

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.

Question 73

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

Question 74

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

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

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

A) preapproach
B) prospecting and qualifying
C) presentation and demonstration
D) closing
E) overcoming objections

Question 77

Which of the following questions is LEAST relevant during the preapproach stage of the sales process?

A) How is the buying process conducted at the company?
B) Who is involved in buying?
C) How can I handle objections?
D) What are buyers' personal characteristics?
E) What does the prospect need?

Question 78

You are the sales manager of a company that manufactures and markets server computers. The company's products require high-involvement from the sellers and require salespeople to provide complex and technical information. What kind of a compensation structure do you select for your sales representatives?

Question 79

What can you learn from John Smith from the sales report reflected in the table?

Question 80

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