Exam
Name___________________________________
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1)
MMT, Inc., a pharmaceutical company, considered using direct marketing. An important need the
company had was to respond to the customers’ responses by getting the product to the customers
who ordered it. What step in the direct marketing process is MMT concerned about?
1)
A)
Message Strategy
B)
Targeting
C)
The Offer
D)
Objectives
E)
Fulfillment
2)
Which type of offer is designed to gather leads, answer consumer questions, visit a store, or set up
appointments?
2)
A)
direct offer
B)
primary offer
C)
indirect offer
D)
one–step offer
E)
two–step offer
3)
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?
3)
A)
advertising agencies
B)
U.S. Postal Service
C)
independent agencies
D)
service firms
E)
fulfillment houses
Explanation:
4)
Combining lists is known as ________.
4)
A)
sourcing
B)
purging
C)
merging
D)
consolidating
E)
database marketing
5)
Laurie is a college professor who teaches a course in direct marketing. She is a member of the
Direct Marketing Association (DMA), which is a trade association for businesses in the direct
marketing industry, because she finds it useful for attaining information for her course. However,
she receives direct mail offers, e–mails, and telemarketing calls that are also sent to the other,
practitioner, members of the DMA. What type of list is Laurie’s name on?
5)
A)
business list
B)
response list
C)
compiled list
D)
professional list
E)
house list
6)
Which of the following is a key player in direct–response marketing?
6)
A)
agencies that specialize in direct–response advertising
B)
advertisers who use direct response to sell products or services
C)
consumers, who are the recipients of the information and sometimes initiators
of the contract
D)
media that deliver messages by phone, mail, or the web
E)
all of the above
Explanation:
7)
Which type of list is the most valuable list to a marketer?
7)
A)
prospect list
B)
house list
C)
compiled list
D)
response list
E)
data list
8)
Which of the following is a basic objective of direct marketing?
8)
A)
create sales
B)
traffic generation
C)
develop leads
D)
A and B
E)
A, B, and C
9)
Why is direct marketing a growth area for marketing?
9)
A)
because response rates have increased dramatically in the past 10 years
B)
effectiveness is easy to evaluate
C)
because consumers feel more confident in marketers’ concerns for their privacy
D)
consumers are more accepting of it
E)
all of the above
10)
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?
10)
A)
fifth
B)
fourth
C)
second
D)
seventh
E)
first
11)
What is the second step in the direct marketing process?
11)
A)
fulfillment
B)
relationship building
C)
setting objectives and making strategic decisions
D)
communication of the offer
E)
response, or customer ordering
12)
________ is a technique of mining the information in databases to uncover prospective buyers
whose characteristics match those of users.
12)
A)
Prospecting
B)
Searching
C)
Skimming
D)
Data mining
E)
Relationship marketing
13)
Anthony working on an account interested in direct marketing targeting men who own sports cars.
Anthony needs a ________ list?
13)
A)
marketing
B)
house
C)
response
D)
compiled
E)
satisfaction
14)
What is a concern regarding data–driven communications?
14)
A)
lack of processes to take advantage of its benefits
B)
consumer privacy
C)
lack of hardware to take advantage of its benefits
D)
lack of software to take advantage of its benefits
E)
cost
15)
The Pampered Soul is a new women‘s shoe store in Birmingham, Alabama, and the owners want to
target women between the ages of 30 and 45 with a household income greater than $50,000 with a
special promotion. They have purchased two mailing lists: one with demographic information for
their retail area and one with psychographic information. They want one list that combines both
types of information, but they don’t want to mail someone twice. What should they do?
15)
A)
purge, then merge the lists
B)
purge, the defile the lists
C)
combine the two lists and then visually scan them to remove duplicates
D)
merge, then purge the lists
E)
merge, then defile the lists
16)
As described in the opening vignette who is the leading direct–response auto insurer?
16)
A)
USAA
B)
Shelter
C)
Allstate
D)
GEICO
E)
State Farm
17)
Which type of list is rented from a direct–mail list broker and is usually a list of some specific
category, such as sports car owners, new homebuyers, graduating seniors, or subscribers to a
magazine?
17)
A)
house list
B)
prospect list
C)
compiled list
D)
response list
E)
data list
18)
A toll–free phone number, an order coupon, a web site, or an e–mail address are examples of
________.
18)
A)
contact elements that can be included in a direct–response advertisement
B)
direct marketing
C)
measures of effectiveness in direct marketing
D)
the offer in direct marketing
E)
steps in the direct marketing process
A
19)
Which of the following is NOT a part of a helpful guide for creating effective direct mail?
19)
A)
Use an incentive to encourage a fast response.
B)
Provide critical information about product use.
C)
Use the word free as often as possible.
D)
Inspire confidence, minimize risk, and establish that the company is reputable.
E)
Get the attention of the targeted prospect as the envelope comes from the mailbox.
C
C
20)
Which of the following is a tool of direct marketing?
20)
A)
telemarketing
B)
direct–response advertising
C)
catalogs
D)
direct mail
E)
all of the above
21)
The term or phrase that refers to the way that marketers identify prospective customers is
________.
21)
A)
hunting
B)
phishing
C)
customer identification
D)
prospecting
E)
lead generation
E
22)
Which basic objective of direct marketing provides basic information on companies or individuals
who are potential customers?
22)
A)
traffic generation
B)
enhancing attitude
C)
enhancing awareness
D)
develop leads
E)
action
D
23)
In which type of telemarketing does the call originate with the customer?
23)
A)
inbound
B)
external
C)
opt–out
D)
outbound
E)
opt–in
A
E
Explanation:
24)
During the ________ step of the direct–marketing process, the DM campaign must communicate
benefits to buyers by answering the enduring question: “What’s in it for me?”
24)
A)
Fulfillment
B)
Relationship Building
C)
Objectives/Strategy
D)
Response/Order
E)
Offer
25)
Deleting the repeated names on lists that have been combined is known as ________.
25)
A)
elimination
B)
parsing
C)
purging
D)
merging
E)
consolidating
C
26)
What is the focus of most direct marketing communications?
26)
A)
producing a sale
B)
increasing awareness
C)
gaining acceptance among several stakeholders
D)
enhancing attitudes
E)
encourage switching from a competitor’s product or service
A
E
Explanation:
27)
________ occurs when a seller and customers deal with each other directly rather than through an
intermediary, such as a wholesaler or retailer.
27)
A)
Integrated marketing
B)
Basic marketing
C)
Effective marketing
D)
Direct marketing
E)
Simplified marketing
28)
Service firms in direct marketing specialize in ________.
28)
A)
mailing
B)
printing
C)
list brokering
D)
A and B
E)
A, B, and C
29)
Josh is a broker who sells retirement investments to individuals. He uses direct marketing, but he
uses it primarily to get customers to inquire for more information and set up an appointment to
discuss investment options with him. That is, he doesn’t use direct marketing to create a sale
directly. Which type of offer is this?
29)
A)
two–step
B)
secondary
C)
indirect
D)
one–step
E)
primary
30)
Which of the following is a type of list used in direct marketing?
30)
A)
response list
B)
house list
C)
compiled list
D)
A and B
E)
A, B, and C
31)
Which of the following is NOT an objective of a marketing database?
31)
A)
to provide a vehicle for storing and then measuring results of direct–response advertising
B)
to record TV commercials
C)
to record names of customers, expires, and prospects
D)
to provide a vehicle for continuing direct communication by mail or phone
E)
to provide a vehicle for storing and then measuring purchasing information
32)
Which of the following is a disadvantage of catalogs?
32)
A)
targeted
B)
positive perceptions
C)
high response rates
D)
low cost per thousand
E)
all of the above
33)
Alvin wants to develop database marketing capabilities for his business, but he doesn‘t even know
where to begin. Which of the following is the first stage of the database marketing process?
33)
A)
enter data
B)
assess data
C)
get to know your customers by name
D)
cluster data
E)
collect information
34)
Which process identifies and analyzes patterns in customer behavior to maximize the profitability
of each relationship?
34)
A)
customer relationship management
B)
integrated marketing communications
C)
contact marketing
D)
database direct marketing
E)
direct marketing
35)
In which type of telemarketing does the call originate with the marketer?
35)
A)
outbound
B)
inbound
C)
external
D)
opt–out
E)
opt–in
36)
Which of the following is NOT a type of list?
36)
A)
response list
B)
house list
C)
compiled list
D)
data list
E)
All of the above are types of lists.
37)
Which of the following is a contact element that can be included in a direct–response
advertisement?
37)
A)
web site address
B)
email address
C)
toll–free phone number
D)
order coupon
E)
all of the above
38)
A ________ is a multipage direct–mail publication that shows a variety of merchandise.
38)
A)
catalog
B)
letter
C)
brochure
D)
self–mailer
E)
broadsheet
39)
The database marketing process begins with an ________ that could include the completion of a
warranty card, entering a contest or sweepstake, opting in on a Web site.
39)
A)
information collection point
B)
data assessment
C)
data sharing
D)
data clustering
E)
data entry
40)
Which of the following is a weakness of direct marketing?
40)
A)
unable to reach everyone in the marketplace
B)
annoyances associated with direct marketing
C)
consumers are still reluctant to purchase a product sight unseen
D)
A and B
E)
A, B, and C
41)
Mini–Case Question. Which of the three primary direct marketing objectives does this ad illustrate?
41)
A)
action
B)
enhance attitudes
C)
traffic generation
D)
increase awareness
E)
lead generation
A
42)
Fraudulently using a company’s identity to send out spam is known as ________.
42)
A)
spoofing
B)
vampire advertising
C)
zapping
D)
copy–cat advertising
E)
zipping
A
43)
Which type of list is derived from people who respond to something such as a direct–mail offer or
solicitation?
43)
A)
compiled list
B)
prospect list
C)
house list
D)
response list
E)
data list
D
44)
Knight–Abbey Commercial Printers and Direct Mailers is a large commercial printer in the
southeastern United States. They develop, print, and prepare for mailing direct mail pieces for
several businesses. One of their largest customers is Beau Rivage casino in Gulfport, Mississippi,
and they personalize and print eight variations of a direct mail offer to customers. In terms of the
types of firms in direct–response advertising, which type is Knight–Abbey?
44)
A)
service firm
B)
print brokerage
C)
independent agency
D)
advertising agency
E)
fulfillment house
45)
Which of the following is an advantage of direct mail?
45)
A)
positive perceptions
B)
high response rates
C)
low cost per thousand
D)
reaches the unreachable
E)
all of the above
46)
Mini–Case Question. Which of the following best describes the type of advertising this print ad
illustrates?
46)
A)
direct–to–consumer advertising
B)
direct–response advertising
C)
retail advertising
D)
national advertising
E)
directory advertising
47)
Which of the following is NOT an advantage of direct mail?
47)
A)
builds in feedback
B)
tells a story
C)
reaches the unreachable
D)
personalizes the message
E)
low cost per thousand
48)
Procter & Gamble has developed and purchased huge databases and has more than 30 million
consumers in their current database. P&G routinely mines the information in the database to
uncover potential buyers whose characteristics match those of their current customers for a given
product and brand. What technique is P&G using?
48)
A)
searching
B)
prospecting
C)
skimming
D)
relationship marketing
E)
data mining
B
49)
Mini–Case Question. What type of offer does this ad represent?
49)
A)
indirect
B)
secondary
C)
primary
D)
two–step
E)
one–step
D
E
50)
What is the first step in the direct marketing process?
50)
A)
communication of the offer
B)
fulfillment
C)
response, or customer ordering
D)
setting objectives and making strategic decisions
E)
relationship building
51)
Which of the following is NOT an advantage of direct marketing over indirect marketing?
51)
A)
marketer controls the product until delivery
B)
purchase not restricted to a location
C)
ability to reach everyone in the marketplace
D)
reduced waste
E)
flexibility in both form and timing
52)
Which of the following is NOT a variable that is intended to satisfy the needs of the consumer and
considered part of the offer?
52)
A)
cost of shipping and handling
B)
future obligations
C)
price
D)
response device
E)
guarantees and warranties
53)
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?
53)
A)
third
B)
fifth
C)
fourth
D)
seventh
E)
first
54)
Which of the following is the last step in the direct marketing process?
54)
A)
setting objectives and making strategic decisions
B)
response, or customer ordering
C)
communication of the offer
D)
relationship building
E)
fulfillment
55)
Rooms with large banks of phones and computers where workers send and receive calls are known
as ________.
55)
A)
phone centers
B)
call centers
C)
telephone pits
D)
call floors
E)
call pits
56)
Which of the following is an advantage of direct marketing over indirect marketing?
56)
A)
marketer controls the product until delivery
B)
purchase not restricted to a location
C)
easier to evaluate
D)
flexibility in both form and timing
E)
all of the above
57)
Combining lists is called ________, and deleting the repeated names is called ________.
57)
A)
elimination; consolidating
B)
consolidating; elimination
C)
compiling; parsing
D)
purging; merging
E)
merging; purging
58)
What type of response cards are attached to the magazine after it is printed by special machinery
that puffs open the pages?
58)
A)
supplements
B)
puff–ins
C)
blow–ins
D)
bind–ins
E)
tie–ins
59)
Which of the following is NOT a main player in direct–response marketing?
59)
A)
agencies that specialize in direct–response advertising
B)
consumers, who are the recipients of the information and sometimes initiators of the contract
C)
advertisers who use direct response to sell products or services
D)
federal and state governments, which monitor who is contacted and how personal
information is safeguarded
E)
media that deliver messages by phone, mail, or the web
D
60)
Which basic objective of direct marketing focuses on getting customers to order products and make
payments or take some other action, such as visiting a dealer, returning a response card, or visiting
a web site?
60)
A)
lead generation
B)
enhancing awareness
C)
traffic generation
D)
create sales
E)
enhancing attitude
D
C
Explanation:
61)
The financial contribution through sales volume of an individual customer or customer segment
over a length of time is known as ________.
61)
A)
customer contribution
B)
customer loyalty
C)
customer relationship assessment
D)
return on investment
E)
lifetime customer value
62)
Which of the following is a general guideline that applies to message development in direct
marketing?
62)
A)
copy tends to be written in an impersonal, formal style
B)
message is often longer and contains more explanation and detail than regular advertising
C)
message should NOT include the return policy
D)
message should be very brief, usually less than 5 words
E)
message should NOT reflect if the offer is a one–step offer
63)
Scott is developing the offer in a direct marketing campaign. What should he include?
63)
A)
other information such as price, optional features, future obligations, etc.
B)
description of the product
C)
payment and delivery information
D)
terms of sale
E)
all of the above
64)
Delivering ads through phone calls is known as ________.
64)
A)
phone marketing
B)
predictive marketing
C)
one–to–one marketing
D)
telemarketing
E)
inbound telemarketing
65)
In a marketing database, expires means ________.
65)
A)
names no longer valid
B)
the customer is dead
C)
the customer has not purchased from the marketer for more than 18 months
D)
the direct marketer can no longer communicate to this prospect because of the list agreement
E)
the marketer no longer has permission to communicate with this customer
A
66)
Which type of offer asks for a direct sales response?
66)
A)
direct offer
B)
primary offer
C)
indirect offer
D)
two–step offer
E)
one–step offer
E
67)
During the ________ step in the direct marketing process the DM message must make it as easy as
possible for customers to respond.
67)
A)
Relationship Building
B)
Response/Order
C)
Objectives/Strategy
D)
Fulfillment
E)
Offer
B
D
Explanation: