Proactive Solution is a skincare system to help those with acne. Proactive originally started out as being sold only through
direct marketing, and the consumer had to enroll in membership in the Proactive Solution Clear Skin Club. However, now
some large malls have kiosks selling Proactive Solution products without the club membership, but the prices are much
higher. Proactive Solution has had one of the longest–running infomercials on television, and their product is also sold
through magazine ads. Through these mediums, consumers can purchase the product directly by calling, mailing, or going
through the Internet to submit an order.
108)
Mini–Case Question. Name and describe the three types of lists and explain which one is
the most important to Proactive.
108)
109)
Some companies have large databases and have examined them to determine who their
best customers are. Banks, in particular, have analyzed customer data and have learned
that the top 5 percent of their customers are very profitable for the bank and the bottom 5
percent are very unprofitable. Name and describe the concept that many marketers are
using to assess the value of customer loyalty.
109)
110)
After graduation, you plan on working in your family’s business and want to implement
some of the direct marketing principles that you learned in this class. Identify the six basic
objectives of direct marketing to convince your parents that it is the right move for the
business.
110)
TRUE/FALSE. Write ‘T’ if the statement is true and ‘F’ if the statement is false.
111)
A business responsible for making sure consumers receive whatever they requested in a timely
manner in direct–response marketing is known as a service firm.
111)
112)
Permission marketing gives customers an opportunity to opt–out of a notification service from a
company.
112)
113)
The four main players in direct–response marketing are the advertisers, agencies, the media, and
the government.
113)
114)
A two–step offer is designed to sell consumers a lower–priced item before offering them a
higher–priced, and more profitable, offer.
114)
115)
Customer relationship management (CRM) identifies and analyzes patterns in customer behavior
to maximize the profitability of each relationship.
115)
116)
More direct–marketing dollars are spent on telemarketing than on any other medium.
116)
117)
The database marketing process begins with a sale.
117)
118)
Unwanted e–mail is known as spam.
118)
119)
Advertising agencies do not play a role in direct–response marketing.
119)
120)
A direct–mail piece is a print advertising message for a product or service that is delivered by mail.
120)
121)
Only the product or service is considered part of the offer in direct marketing.
121)
122)
In newspapers, response cards may be either bind–ins or blow–ins.
122)
123)
Cloning is a technique of mining the information in databases to uncover prospective buyers whose
characteristics match those of users.
123)
124)
One advantage of direct marketing is that it affords flexibility in both form and timing.
124)
125)
The use of e–mail as a marketing tool has really only been used by the usual e–commerce
companies, such as Amazon.com.
125)
126)
One of the primary advantages of direct mail is the low cost per thousand compared to mass
media.
126)
127)
Cold call dialing techniques make it possible for telemarketing companies to call anyoneeven
those with unlisted numbers.
127)
128)
Because direct–marketing messages are constantly being measured, it is easier to learn what works
and modify succeeding campaigns based on results than with advertising.
128)
129)
Every state in the United States has a “do–not–call” list.
129)
130)
Radio is not an appropriate medium for direct–response advertising.
130)
131)
Outbound telemarketing means the call center staff are calling unqualified numbers, sometimes
just randomly selected, and this practice has a much lower response rate.
131)
132)
Combining direct–mail lists is called merging, and deleting the repeat names is called purging.
132)
133)
In direct marketing, service firms are agencies that specialize in supplying printing and mailing,
and list brokering.
133)
134)
In direct marketing, logistics is the function that gets the product to the customer who ordered it.
134)
135)
The average response rate for a direct mail offer is 10 percent.
135)
136)
In some foreign countries, government regulations of the postal service place limitations on the use
of direct mail.
136)
137)
One disadvantage of direct marketing is too many catalogs and junk mail.
137)
138)
Lifetime customer value is an estimate of how much purchase volume companies can expect to get
over time from various target markets.
138)
139)
Direct marketing is a growth area because it is easy to evaluate its effectiveness.
139)
140)
A broadsheet is a multipage direct–mail publication that shows a variety of merchandise.
140)
141)
The three types of lists are house lists, response lists, and directory lists.
141)
142)
Direct marketing is the model for e–commerce.
142)
143)
Outbound telemarketing calls are the ones that generate the most consumer resistance.
143)
144)
One limitation of infomercials is that they cannot easily be introduced into foreign markets.
144)
145)
Three basic objectives of direct marketing are lead generation, traffic generation, and maximize
profits.
145)
ESSAY. Write your answer in the space provided or on a separate sheet of paper.
146)
Name and define the three types of lists.
147)
Name and describe the four types of agencies involved in direct–response advertising.
148)
Discuss the advantages and disadvantages of direct marketing.
149)
Name and describe the seven stages of the database marketing process.
150)
Name and describe the five basic steps in direct marketing.
Answer Key
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Answer Key
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Answer Key
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