Solumbria, a company that sells medically recommended sun protective clothing, has ads in several different magazines that
give consumers information about their products. The headline says “Serious Sun Protection” surprinted over a man and a
woman dressed head to toe in the protective clothing. The body copy then goes on to tout the benefits of sun protection, their
clothing, and how dermatologists have recommended Solumbria for their patients. The last paragraph of the copy says “For a
FREE catalog of Solumbria hats, shirts, pants and accessories for men, women and children, call Sun Precautions:
1–800–882–7860.” The ad also provides a web address.
68)
Mini–Case Question. Once a consumer calls the phone number or visits the web site, he or she can
purchase products by phone, mail, or the Internet. Which step of the direct marketing process gets
the product to the customer who ordered it?
68)
A)
the offer
B)
response/order
C)
relationship building
D)
objectives/strategy
E)
fulfillment
69)
What does CRM stand for?
69)
A)
customer relationship management
B)
continuity, retention, and monetary value, which are measures of direct marketing success
C)
customer relationship marketing
D)
customer retention marketing
E)
customer retention management
A
70)
In direct marketing, getting the product to the customer who ordered it is known as ________.
70)
A)
distribution
B)
back–end activity
C)
logistics
D)
fulfillment
E)
consummation
D
E
71)
Which basic objective of direct marketing attempts to motivate customers to visit an event or retail
outlet?
71)
A)
lead generation
B)
enhancing awareness
C)
generate traffic
D)
enhancing attitude
E)
action
72)
Where does the database marketing process begin?
72)
A)
data sharing
B)
data assessment
C)
information collection point
D)
data clustering
E)
data entry
C
73)
As described in the “Hands–On” case at the end of the chapter, what is the purpose of the Federal
Do–Not–Call Registry?
73)
A)
to allow consumers to receive telemarketing calls only from marketers that they want to call
them
B)
to allow consumers to “opt–out” of telemarketing calls
C)
to stop telemarketers from calling cell phone numbers because consumers must pay for those
calls
D)
to stop telemarketers from calling people at work
E)
to make businesses using telemarketing register all the numbers that they call
B
C
74)
Which of the following is a disadvantage of direct mail?
74)
A)
cannot personalize the message
B)
negative perceptions
C)
must sell the product in the first two lines because most audiences will not read beyond that
point
D)
cannot reach audiences who are inaccessible by other media
E)
consumer avoidance
75)
________ is a type of marketing communication that combines the characteristics of advertising but
also includes an element that allows the audience to make a direct response to the advertiser.
75)
A)
Direct–to–consumer advertising
B)
Direct–response advertising
C)
Direct–marketing advertising
D)
Direct–focus advertising
E)
Integrated marketing communications
76)
Direct marketers purchase or rent lists from ________.
76)
A)
list retailers
B)
list distributors
C)
list owners
D)
list managers
E)
list brokers
77)
Which of the following is NOT a general guideline that applies to message development in direct
marketing?
77)
A)
message must, by law, include return policy
B)
message should reflect whether the offer is a one–step offer of a two–step offer
C)
message is often longer and contains more explanation and detail than regular advertising
D)
copy tends to be written in a personal, one–to–one conversational style
E)
All of the above are general guidelines that apply to message development in direct
marketing
78)
Which type of list consists of the marketer’s own customers or members?
78)
A)
prospect list
B)
data list
C)
compiled list
D)
response list
E)
house list
79)
Description of the product, terms of sale, and payment and delivery information are all part of the
________ in direct marketing.
79)
A)
offer
B)
message
C)
media
D)
fulfillment
E)
all of the above
80)
What do direct marketers use to keep track of customers, to identify prospective customers, and as
a segmentation tool for communicating offers to customers and prospects?
80)
A)
one–step offers
B)
two–step offers
C)
consultants
D)
fulfillment
E)
databases
81)
Which of the following is NOT a type of agency involved in direct marketing?
81)
A)
independent direct marketing agencies
B)
fulfillment houses
C)
U.S. Postal Service
D)
advertising agencies
E)
service firms
82)
Which type of database contains information useful in segmenting as well as contact information?
82)
A)
relational databases
B)
clustered databases
C)
response databases
D)
compiled databases
E)
customer databases
Explanation:
83)
What challenge did the GEICO campaign as described in the chapter’s opening vignette?
83)
A)
to generate inquiries for rate quotes and to motivate people to call or go online to find out
how they can save money
B)
to reach out to young women and convince them they want home insurance from GEICO
C)
to increase sagging sales
D)
to change GEICO’S image from the number one direct–response auto insurer
E)
to gain acceptance in foreign countries
84)
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?
84)
A)
Step 3
B)
Step 2
C)
Step 1
D)
Step 5
E)
Step 4
C
85)
Which of the following is typically part of the offer in direct marketing?
85)
A)
description of the product
B)
delivery information
C)
payment information
D)
terms of sale
E)
all of the above
E
86)
Sandy likes to read magazines while she works out on the elliptical machine at her health club.
However, she hates the cards that fall out when she turns the pages, so the first thing she does
when she gets a magazine is shake all those out into the trash. What are those cards called?
86)
A)
puff–ins
B)
bind–ins
C)
blow–ins
D)
tie–ins
E)
supplements
C
A
Explanation:
87)
Which of the following are the two types of telemarketing?
87)
A)
toll and toll–free
B)
opt–in and opt–out
C)
business and consumer
D)
inbound and outbound
E)
internal and external
88)
________ is a practice that uses databases to predict trends and monitor consumers to more
effectively implement direct–marketing strategies.
88)
A)
Behavior–based marketing
B)
Response marketing
C)
Direct marketing
D)
Database marketing
E)
Integrated marketing
89)
As described in “The Inside Story,” what was the objective for the direct mail campaign developed
for Texins–Activity Centers?
89)
A)
reach high school girls with a message that the T–I Centers are the place to be
B)
encouraging activity and changing the targets’ health and wellness habits
C)
pull members of other fitness centers away from their current fitness centers
D)
reach high school boys whose parents are members of other fitness centers
E)
encourage families with household incomes greater than $500,000 to become members of
Texins–Activity Centers
90)
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) ________.
90)
A)
direct–response program
B)
direct–response spot
C)
promotional program
D)
home shopping network
E)
infomercial
SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.
91)
Many companies have developed databases and have begun database marketing. Explain
what this means.
91)
92)
Mini–Case Question. The infomercials and print ads allow consumers to purchase directly
from the ad itself. There is a mail–in coupon order form, a toll–free phone number, and a
web address given in the print ad that states, “Call Now!” Some infomercials even state that
“calls received within the next 30 minutes will receive ‘2 Free Bonuses’ when ordering.”
Name and describe the type of offer this is, and explain how it is different from the other
type of offer.
92)
93)
You are developing the offer for a direct marketing campaign. Explain what is included in
the “offer.”
93)
94)
Mini–Case Question. Name and describe the type of advertising that Proactive Solution
uses to promote and sell its product.
94)
95)
Your job at work is to develop and execute direct marketing campaigns. Direct marketers
conduct a lot of testing before launching a big campaign. Explain how direct marketing
professionals are able to continually evaluate and accurately measure the effectiveness of
various offers in a single campaign.
95)
96)
Although e–mail marketing is a very cost–effective way to reach millions of consumers,
many people view it negatively and call it spam. Explain what spam is, and how can
legitimate direct marketers respond to the criticisms surrounding e–mail marketing.
96)
97)
Some advertising students are visiting your agency on a field trip and have asked you to
provide some guidance on creating effective direct mail. Give them five of the ideas that
were given in the text.
97)
98)
Barbara is the owner of a gift shop and is considering developing a catalog to increase her
sales. Although there are several advantages of using catalogs, there are also some
disadvantages. Discuss the disadvantages of catalogs that Barbara needs to be aware of.
98)
99)
We all love to make fun of infomercials, but the fact remains that they have been around
since the emergence of the cable industry in the 1980s and have become a
multibillion–dollar industry. Explain what an infomercial is and why, today, it is viewed
as a viable medium.
99)
100)
As described in opening vignette, the leading direct–response auto insurer in a
low–involvement category dominated by major brands was successful in overcoming
consumer inertia, driving customers to their phones and the Internet and attained the
highest level of inquiries in company history. Describe the campaign that produced these
results.
100)
101)
Converges is a nationwide call center operator and has several call centers in college
towns. They are recruiting on campus, and your roommate is interested because the pay
is pretty good and the hours are flexible. However, she doesn’t know much about
telemarketing, except that people don’t really like it, so she asked you about it because you
are taking this class. Briefly describe the two types of telemarketing.
101)
102)
Identify the four primary tools of direct marketing.
102)
103)
Mini–Case Question. What do you think Proactive Solution uses to track consumer
purchases? How can they use this to restart customers who have joined the club but later
quit?
103)
104)
Jack, a successful businessman, is annoyed by the barrage of junk mail from credit card
companies. What would you recommend that Jack do to reduce the credit card solicitations
he receives?
104)
105)
Mini–Case Question. Jill is a member of the Proactive Solution Clear Skin Club, and she
received a telephone sales call trying to get her to purchase Proactive make–up, too. Jill
registered her phone number with the National Do–Not–Call List and is upset that she
received this call. Can Proactive call her? Explain any restrictions they must be aware of.
105)
106)
What marketing challenge faced the GEICO campaign as described in the chapter’s
opening vignette?
106)
107)
Identify the primary objectives of a marketing database.
107)