Deck 14: Direct Marketing

Question 1

A company can use direct marketing to build a favorable image.
Many organizations use direct marketing to build an image, maintain customer satisfaction, and inform and/or educate customers in an attempt to lead to future actions.

Answer 1

True

Question 2

It is the sole objective of direct marketing to obtain a direct behavioral response.
Not all direct marketing seeks a behavioral response. Many organizations use direct marketing to build an image, maintain customer satisfaction, and inform and/or educate customers in an attempt to lead to future actions.

Answer 2

False

Question 3

The program vehicles used for direct-response TV advertising are usually very expensive. Hence, a marketer cannot afford to purchase repeat times.
The program vehicles used for direct-response TV advertising are usually the most inexpensive available, so a marketer can afford to purchase repeat times.

Answer 3

False

Question 4

By running the same ad on different stations, a direct marketer can determine the relative effectiveness of a medium itself.
By running the same ad on different stations, a direct marketer can determine the relative effectiveness of a medium itself.

Question 5

Adding a promotional product to a direct mailer increases response rates.
Adding a promotional product to a direct mailer has proven to increase response rates.

Question 6

Unlike nonprofit organizations, profit centric organizations do not use telemarketing.
Nonprofit organizations like charities often use telemarketing to solicit funds. For-profit companies are also using telemarketing with much greater frequency to screen and qualify prospects (which reduces selling costs) and to generate leads.

Question 7

Keys to the success of direct mail are the mailing lists.
Keys to the success of direct mail are the mailing list, which constitutes the database from which names are generated, and the ability to segment markets and, of course the offer.

Question 8

It is not possible to generate a behavioral response by relying solely on direct marketing.
While some organizations rely on direct marketing solely to generate a behavioral response, for many others, direct marketing is an integral part of the IMC program.

Question 9

Telemarketing and direct selling are two methods of personal selling used to generate sales.
Telemarketing and direct selling are two methods of personal selling used to generate sales.

Question 10

Unlike traditional marketing, the typical goal of direct marketing is to:

A)create brand image.
B)generate an immediate behavioral response.
C)utilize telephone communication exclusively.
D)create awareness.
E)convey detailed information.

Question 11

Direct marketing:

A)is synonymous to word-of-mouth marketing.
B)seeks the same objectives as personal selling strategies in an IMC plan.
C)is one of the slowest growing forms of promotion in terms of dollar expenditures.
D)is a valuable tool in the integrated communications program.
E)cannot be combined with other forms of promotional media.

Question 12

Direct marketing is a form of advertising.
Direct marketing is in itself a form of advertising. Whether through mail, print, or TV, the direct-response offer is an ad.

Question 13

Direct marketing is typically restricted to small companies seeking business.
Direct mail is not restricted to small companies seeking business. Respected large companies and organizations in the retail financial services, and fund-raising sectors (among others) commonly employ this medium.

Question 14

Direct-marketing activities are supported by the other elements of the promotional mix.
Direct-marketing activities support and are supported by other elements of the promotional mix.

Question 15

Both direct marketing and advertising could support one another.
Whether through mail, print, or TV, the direct-response offer is an ad. Sometimes the ad supports the direct-selling effort.

Question 16

One disadvantage associated with direct marketing is that it results in waste coverage.
Direct marketing lets an advertiser reach a large number of people and reduces or eliminates waste coverage.

Question 17

Direct marketing is synonymous to direct-response media.
Direct marketing is an aspect of total marketing-that is, it involves marketing research, segmentation, evaluation, and the like. Direct marketing uses a set of direct-response media, including direct mail, telemarketing, interactive TV, print, the Internet, and other media.

Question 18

The two-step approach to direct marketing essentially relies on only one medium to generate a sales response.
The two-step approach may involve the use of more than one medium. The first effort is designed to screen, or qualify, potential buyers. The second effort generates the response .

Question 19

In the two-step approach to direct marketing, the first effort generates sales, and the second effort reduces the post purchase dissonance.
The two-step approach may involve the use of more than one medium. The first effort is designed to screen, or qualify, potential buyers. The second effort generates the response.

Question 20

One of the major factors contributing to the success of direct marketing is that so many Americans are now "money-rich and time-poor."
One of the major factors contributing to the success of direct marketing is that so many Americans are now "money-rich and time-poor."

Question 21

A magazine ad for pet health insurance contains both a toll-free number and a website URL in order to enable readers to obtain further information. This ad is an example of combining direct marketing with:

A)trade promotions.
B)public relations.
C)advertising.
D)personal selling.
E)consumer promotions.

Question 22

_____ and direct selling are two methods of personal selling used to generate sales.

A)Public relations
B)Sales promotion
C)Infomercials
D)Telemarketing
E)Advertising specialties

Question 23

Joy receives print ads from Beryl Inc., a manufacturer of computer printers, marketing its ink cartridges to him as he is a regular buyer of Beryl ink cartridges. Which of the following combinations of promotional media is Beryl using?

A)Advertising and sales promotion
B)Direct marketing and advertising
C)Sales promotion and public relations
D)Direct marketing and sales promotion
E)Public relations and support media

Question 24

The two methods of personal selling used to generate sales are:

A)advertising and infomercials.
B)sales promotion and publicity.
C)telemarketing and direct selling.
D)public relations and support media.
E)home shopping and cross selling.

Question 25

Which of the following events is considered one of the major impetuses behind the growth of direct marketing?

A)Increase in the number of working women
B)Invention of the printing press
C)Development and expansion of the U.S.Postal Service
D)Development of multinational companies and international markets
E)Law that mandates public education

Question 26

The Florence County Museum called a press conference to inform the public of the need for major repairs to prevent water damage to the museum's collection of primitive paintings. During the conference, the museum representative announced that each family in Florence County and neighboring counties could expect to receive a donation envelope in the mail within the next few days. This is an example of combining direct marketing with:

A)trade promotions.
B)public relations.
C)advertising.
D)personal selling.
E)consumer promotion.

Question 27

_____ is an interactive system of marketing which uses one or more advertising media to effect a measurable response and/or transaction at any location.

A)Trade advertising
B)Publicity
C)Public relations
D)Direct marketing
E)Synchro marketing

Question 28

Britney sees an infomercial for a home fitness machine. The infomercial provides a website address that one can access for further product information. Additionally, the website contains an order form where customers can fill in their mailing address. This is an example of combining:

A)support media with public relations.
B)sales promotion with support media.
C)personal selling with direct marketing.
D)advertising with personal selling.
E)direct marketing with advertising.

Question 29

Bianca receives an e-mail notifying her of the end-of-season sale at Hop & Shop, a popular retail chain. The e-mail also informs her that she is invited to enter into a sweepstakes contest. In this scenario, Hop & Shop is using a combination of:

A)publicity and public relations.
B)advertising and personal selling.
C)direct marketing with sales promotion.
D)support media and advertising.
E)direct marketing and personal selling.

Question 30

A print ad of Accelerant Corp., a courier delivery service provider, read "Call 1-800-ACCEL (toll free) to send gifts this Christmas to your loved ones anywhere in the world." Which of the following promotional media is combined with direct marketing in the print ad?

A)Advertising
B)Sales promotion
C)Publicity
D)Public relations
E)Personal selling

Question 31

Which of the following is an example of direct-response media?

A)Billboards
B)Place-based media
C)The Internet
D)Product placement
E)Guerrilla media

Question 32

Which of the following statements is true about direct marketing?

A)Direct marketing is suitable only for consumer-to-consumer advertising.
B)Direct marketing involves marketing research, segmentation, and evaluation.
C)Direct marketing has the same objectives as that of other promotional-mix tools.
D)Direct marketing as a promotional media is suitable only for small retailers.
E)Rapid increase in dual income families in America has led to a reduction in the use of direct marketing as a promotional media.

Question 33

Tristan Inc., a manufacturer of consumer appliances, engages in social responsibility activities. In order to solicit funds to charitable organizations, it uses telemarketing to contact its high-income, upscale customers and requests them to make donations. Tristan is using a combination of:

A)publicity and public relations.
B)direct marketing and public relations.
C)direct marketing and personal selling.
D)advertising and support media.
E)personal selling and publicity.

Question 34

_____ is a system of marketing by which organizations communicate without intermediaries to the target customers to generate a response or transaction.

A)Sales promotion
B)Word-of-mouth marketing
C)Synchro marketing
D)Direct marketing
E)Publicity

Question 35

Venus Airlines sends out mailers and e-mails to its customers announcing promotional airfares. Which of the following combinations of promotional media is Venus using?

A)Advertising and sales promotion
B)Advertising and direct marketing
C)Sales promotion and direct marketing
D)Sales promotion and public relations
E)Direct marketing and personal selling

Question 36

One of the reasons for the recent, rapid growth of direct marketing in American society is the:

A)fact that the U.S.has moved from an industrialized nation to a service nation.
B)increase in the number of hours individuals spend on watching television.
C)non-proliferation of cellular phones.
D)increased use of consumer credit cards.
E)development of four-color printing presses.

Question 37

A television commercial for Vesta hair styling appliance features a toll-free number, which customers can call for additional product information. This commercial is an example of the combining direct marketing with:

A)public relations.
B)advertising.
C)personal selling.
D)sales promotion.
E)support media.

Question 38

_____ are the tools by which direct marketers implement the communication process.

A)Directional pull strategies
B)Sweepstakes
C)Direct-response media
D)Directional push strategies
E)Direct encoders

Question 39

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

A)Direct marketing is being used as a promotional media tool only after the invention of the Internet.
B)Typically, most purchases being made with the use of credit cards are as a result of direct marketing.
C)The fast-paced and changing values and lifestyles of consumers are decreasing the effectiveness of direct marketing in urban areas.
D)The rapid decrease in dual-income families has led to growth in direct marketing.
E)The Internet has made it easier for consumers to shop and for marketers to be successful in reaching the desired target markets.

Question 40

The customer response to direct marketing can take the form of:

A)inquiries.
B)product diversification.
C)product segmentation.
D)sales promotions.
E)push promotions.

Question 41

Atkins Auto, a dealer of automobiles, sends direct-mail pieces to its prospective customers, inviting them to visit its auto showroom to test-drive new cars. Customers who respond to the direct mail by visiting the showroom are provided with thorough information about the cars. Salespersons of the company receive extensive training and assume responsibility for the selling efforts in the showroom. This is an example of combining direct marketing with:

A)advertising.
B)personal selling.
C)public relations.
D)sales promotions.
E)support media.

Question 42

To encourage customers to open a mail offering them a subscription to Home Companion, a home furnishings magazine, the front of the envelope suggested that there was a gift inside. The envelope contained an attractively laminated bookmark. This is an example of combining direct marketing with:

A)personal selling.
B)support media.
C)place-based media.
D)product placement.
E)advertising.

Question 43

Which of the following is an objective of direct marketing?

A)To make use of celebrity endorsements
B)To maintain customer satisfaction
C)To engage in social responsibility initiatives
D)To make innovative products
E)To increase market diversification

Question 44

The _____ approach of direct marketing involves the use of more than one medium to screen potential buyers, leading to a response.

A)two-step
B)switch-and-bait
C)RFM scoring
D)indirect
E)all-in-one

Question 45

In direct marketing situations, when it is necessary to screen or qualify potential buyers, it is advisable to use:

A)the two-step approach.
B)the one-step approach.
C)direct mail rather than telemarketing.
D)direct-response television.
E)SMRB's data on direct marketing purchasers.

Question 46

Sophia watches a TV commercial for Missy 21, a women's magazine. The commercial asks viewers to call a toll-free number to place an order for a one-year subscription to the magazine. It also announces that the first 200 callers to place an order will receive an additional subscription of three months at no extra charge. This is an example of using the _____ approach of direct marketing.

A)two-step
B)outbound
C)buzz
D)one-step
E)bulls-eye

Question 47

The two-step approach to direct marketing:

A)urges customers to make an immediate purchase.
B)uses the first effort to screen potential buyers.
C)is commonly found in direct sales.
D)is typically followed by a sweepstakes contest.
E)is similar to missionary selling.

Question 48

The announcer on a television commercial said, "Get your credit card and call now to order an autographed copy of the Summer Dreams DVD." This is an example of using the _____ approach of direct marketing.

A)two-step
B)group
C)one-to-one
D)one-step
E)three-step

Question 49

Erika sees an infomercial for Luster skin care products. During the infomercial, a toll-free number flashes on her television screen. She immediately picks her phone and dials the number to place an order for a body lotion and hair shampoo. This is an example of:

A)party plan approach to direct marketing.
B)two-step approach to direct marketing.
C)one-step approach to direct marketing.
D)repetitive person-to-person selling.
E)nonrepetitive person-to-person selling.

Question 50

Creative Crew is a direct-marketing company that sells merchandise such as T-shirts, customized coffee mugs, calendars, key chains, bags, and the like. It uses telemarketing to inform prospective customers about the range of products offered by the company. Interested customers are provided with a website URL, which contains a form where they place their purchase orders. This is an example of using:

A)sweeps marketing.
B)direct marketing in combination with support media.
C)specialty advertising.
D)the one-step approach to direct marketing.
E)the two-step approach to direct marketing.

Question 51

To purchase cookware, music CDs, and exercise videos advertised on television, consumers are asked to call a toll-free telephone number. Viewers are instructed to have their credit cards handy when they call to place an order. This form of direct marketing is referred to as:

A)outbound telemarketing.
B)video texting.
C)the one-step approach.
D)the two-step approach.
E)support marketing.

Question 52

Under the two-step approach of direct marketing, the first effort is designed to screen, or qualify, potential buyers, and the second effort:

A)generates the response.
B)creates brand awareness.
C)reduces the post purchase dissonance.
D)increases source bolsters.
E)creates interest in a product.

Question 53

Which of the following is true of telemarketing as an advertising medium?

A)It is not used by for-profit organizations to screen and qualify prospects.
B)It is considered an ineffective medium of direct selling by most national advertisers.
C)It is typically expensive and increases advertising overheads substantially.
D)It is typically used by nonprofit organizations to solicit funds.
E)It is considered to be an important component of sales promotion.

Question 54

In the _____ approach of direct marketing, a medium is used directly to obtain an order.

A)three
B)one-to-many
C)indirect
D)one-step
E)two-step

Question 55

Amanda, a florist, is the owner of Flush Inc. She receives a mail from Pluto Corp., a manufacturer of foam products, offering a water-soluble foam brick frequently used for arranging fresh flowers. According to the offer, if Amanda places an order with Pluto, she would be automatically registered to win $10,000 in a customer appreciation contest. This is an example of combining direct marketing with:

A)sales promotion.
B)public relations.
C)advertising.
D)personal selling.
E)support media.

Question 56

The goal of the _____ approach of direct marketing is to generate an immediate sale when an ad is shown.

A)two-step
B)one-step
C)RFM scoring
D)indirect
E)all-in-one

Question 57

To successfully implement direct-marketing programs, a company must:

A)concentrate on market diversification to expand its customer base.
B)conduct a competitor analysis to assess the strengths and weaknesses of its competitors.
C)determine which markets to target through the use of a list or marketing database.
D)use unconventional techniques such as guerrilla marketing to attract customers.
E)engage in extensive bait-and-switch marketing.

Question 58

Which of the following is employing a one-step approach to direct marketing?

A)An infomercial for a workout equipment urging viewers to phone a toll-free number to place an order immediately.
B)A magazine subscription service that sends an announcement of an upcoming sweepstakes.
C)An ad advising television viewers to watch their mailboxes for a way to earn free calling cards.
D)A company asking if a homeowner is interested in an estimate for a vinyl siding.
E)An advertisement for an adhesive bandage announcing free gifts on purchase of bandages worth $50 and abovE.In the one-step approach, a medium is used directly to obtain an order.TV commercials for products like wrench sets, workout equipment, or magazine subscriptions urge viewers to phone a toll-free number to place an order immediately.

Question 59

The most common direct marketing objective that is typically expected by companies is to:

A)seek a behavioral response.
B)reduce source derogations.
C)generate goodwill.
D)reduce post purchase dissonance.
E)sell a product at a higher pricE.A direct marketer usually seeks a direct response.The objectives of direct marketing are normally behaviors-for example, test drives, votes, contributions, and/or sales.

Question 60

All the television commercials and print ads that urge customers to pick up their phone and call a toll free number to place an order immediately make use of the _____ approach of direct marketing.

A)one-step
B)two-step
C)one-to-one
D)indirect
E)telemarketing

Question 61

_____ is the electronic equivalent of a junk mail that is less-targeted and is considered as an unwanted e-mail.

A)Add-on
B)Trojan
C)Mnemonic
D)Spam
E)Plug-in

Question 62

Cassandra sees a 30-minute TV show on an entertainment channel which advertises various types of kitchen appliances manufactured by Evolve, a brand of home appliances. In the show, the host demonstrates the usage of different appliances and describes the features and benefits of each product. This is an example of:

A)a sales promotion.
B)personal selling.
C)specialty advertising.
D)buzz advertising.
E)an infomercial.

Question 63

Which of the following statements is true of a direct mail?

A)Direct mail is often called "treasure mail"-the solicited mail one receives.
B)Direct mail has been rendered ineffective with the advent of the Internet.
C)Direct mail is useful only for low-cost products.
D)Direct mail is not restricted to small companies seeking business.
E)Direct mail is ineffective in targeting high-income, upscale consumers.

Question 64

Jason receives a call from a sales representative of Bell Chime Inc., a manufacturer of inflatable sofabeds. When Jason shows an interest in purchasing a 5-in-1 inflatable sofabed, the sales representative urges Jason to come over to the company's retail outlet. Bell Chime is utilizing:

A)a buzz approach to personal selling.
B)a repetitive person-to-person selling.
C)specialty advertising.
D)the one-step approach to direct marketing.
E)the two-step approach to direct marketing.

Question 65

Which of the following media has lower cost and convenience that has raised concerns among traditional direct-mail marketers but at the same time created better opportunities?

A)Television
B)Radio
C)Internet
D)Outdoor advertising
E)Transit advertising

Question 66

Which of the following statements best defines an infomercial?

A)It is a tool used by marketers as a part of the publicity campaign.
B)It is a form of direct mail which consists of consumer mailing lists.
C)It is a strategy used in public relations to inform the public of a company's policies.
D)It is a print advertisement which provides detailed information about a product.
E)It is a long commercial that is designed to fit into a 30-minute or 1-hour time slot.

Question 67

The U.S. government has passed laws regulating the use of e-mail marketing because:

A)it results in high volumes of spam and many consumers consider it a nuisance.
B)of the huge costs involved in monitoring Internet traffic.
C)it violates the privacy of online users and makes unauthorized use of consumer data.
D)it makes use of comparative advertising.
E)it involves sharing of a company's confidential data with the consumers.

Question 68

Which of the following statements is true of mailing lists?

A)They lead to a lot of waste coverage.
B)They have the ability to segment markets on the basis of lifestyles.
C)They are used in combination with infomercials.
D)They constitute a payroll database of a company's employees.
E)They are typically considered to be an unethical strategy.

Question 69

A television ad for Savory Sandwich instructs its viewers to look in their mailbox for coupon offers that will save them money on their next sandwich order. This is an example of:

A)ambient promotion.
B)support advertising.
C)a one-step direct marketing approach.
D)add-on marketing.
E)sweeps marketing.

Question 70

Which of the following statements is true of infomercials?

A)Infomercials are only useful for marketing trends.
B)Typically infomercials only use the two-step approach to direct marketing.
C)The lower costs on cable and satellite channels have led to the growth of infomercials.
D)According to broadcast standards, infomercials cannot exceed 30 minutes.
E)Infomercials typically move consumers into the conviction stage of the hierarchy of effects model.

Question 71

Keys to the success of direct mail are the _____, which constitutes a database from which names are generated, and the ability to segment markets and, of course an offer.

A)mailing list
B)infomercials
C)TV spots
D)web pages
E)mail shopping network

Question 72

Which of the following factors has increased the effectiveness of mailing lists?

A)Rapid technological development and new product innovations
B)Social networking sites
C)Segmentation on the basis of geography and demographics
D)Limiting consumer segregation
E)Improved lifestyle characteristics and increased purchasing power of consumers

Question 73

Which of the following statements is true of the use of catalogs in the direct-marketing industry?

A)One of the disadvantages of catalogs is that they can be used only in the form of traditional hard copies; they cannot be used in conjunction with the Internet.
B)The number of catalogs mailed and the number of traditional catalog shoppers has increased in the recent years.
C)The emotional appeal of a traditional catalog exceeds that of online catalogs, and ultimately is one of the best ways to drive consumers online.
D)Catalogs are ineffective due to their limited segmentation characteristics.
E)Catalogs are designed for stimulating an immediate purchase behavior in customers; however, they are ineffective in attracting publicity.

Question 74

Which of the following is true of direct mail?

A)Direct mail marketing has waned due to excessive use of the Internet.
B)Traditional direct-mail business has experienced higher response rates from many consumers with the advent of the Internet.
C)It is synonymous with personal selling.
D)Keys to the success of direct mail are the mailing list.
E)It depends extensively on the U.S.Postal ServicE.Keys to the success of direct mail are the mailing list, which constitutes a database from which names are generated, and the ability to segment markets and, of course an offer.

Question 75

Infomercials are:

A)primarily designed to sell products that are classified as trends.
B)always televised during off-viewing hours.
C)those ads that appear only in print media.
D)a part of specialty advertising.
E)ads that use both one- and two-step approaches.

Question 76

A television commercial for an apparel brand urges viewers to call its toll-free number to place an order, immediately. The commercial announces a free gift hamper to consumers who place an order before midnight. The apparel brand is making use of:

A)ambient advertising.
B)publicity.
C)direct-response advertising.
D)sales promotion.
E)support advertising.

Question 77

Which of the following statements is true of the use of direct mail on the Internet (e-mail) in the direct-marketing industry?

A)It is less targeted than traditional direct mail.
B)It does not make use of mailing lists because such lists lead to spam messages.
C)It attempts to reach consumers with specific needs through targeted messages.
D)It is used only by business-to-business marketers.
E)It has higher cost and lower effectiveness than traditional direct mail.

Question 78

In _____, a product or service is offered and a sales response is solicited, through either the one- or two-step approach to direct marketing.

A)direct-response advertising
B)direct support advertising
C)direct ambient advertising
D)personal selling
E)sales promotion

Question 79

Which of the following statements is true of the use of broadcast media by the direct-marketing industry?

A)Direct marketing in the broadcast industry does not use support advertising.
B)The majority of direct-marketing broadcast advertising occurs through radio as opposed to TV.
C)The use of broadcast media by the direct-marketing industry has witnessed a decline in the recent years.
D)The two-step approach to direct marketing is common on radio particularly with local companies.
E)When a toll-free number is included in a direct-response ad, it is called support advertising.

Question 80

Direct marketing in the broadcast industry involves:

A)public relations and supplementary promotions.
B)direct-response advertising and support advertising.
C)a one-step direct marketing approach to sales.
D)add-on marketing.
E)ambient advertising and aerial advertising.