A Framework for Marketing Management, 5e (Kotler)
Chapter 17 Managing Personal Communications: Direct and Interactive Marketing,
Word of Mouth, and Personal Selling
1) 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
2) A salesperson sends e-mails to persuade prospects to buy the products of his company. This is
a type of ________ marketing.
A) buzz
B) virtual
C) word of mouth
D) direct
E) viral
3) OrdOnline, a pure click company offering online auctioning, decides to launch a promotional
program to increase its sales. The company identifies customers who have made at least three
purchases and spent at least $150 in the past six months and offers discount coupons to these
customers. Which of the following strategies is used here for targeting the customers?
A) viral marketing
B) objective screening
C) internal targeting
D) catalog marketing
E) RFM formula targeting
4) Which of the following is a major advantage of using direct mails?
A) Direct mails permit target market selectivity.
B) It is the best suited tool for selling complex products.
C) Campaign testing is not needed for direct mails.
D) Direct mails have very high conversion rates.
E) It is the best method to sell industrial products.
5) Which of the following is a factor considered when a customer is evaluated based on 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
6) 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
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) rective marketing
D) internal marketing
E) inbound telemarketing
8) In outbound telemarketing, the call center employees ________.
A) sell high-involvement products
B) initiate calls from a location closer to prospects
C) offer huge discounts to customers
D) initiate calls to prospects and customers
E) answer the queries of consumers who call for information
9) The management of Raleigh Bicycles observes that the company’s selling costs are affected by
the increased number of visits that the salespeople make to meet dealers. The company decides
to reduce its personal selling costs by making sales calls to dealers via the 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
10) The Internet provides marketers and consumers with opportunities for much greater
interaction and ________ than other marketing channels.
A) control
B) data security
C) high involvement selling
D) order conversion
E) individualization
11) Which of the following is an example of contextual ad placement?
A) advertisements that appear when a consumer types in the term “baby” in Google
B) dynamic advertisements of an automobile company appear in a newspaper’s Web site
C) descriptive listings of products and services in an online shopping Web site
D) “buy now” tags that appear near the product description in a company’s Web site
E) advertisement of a new movie that appears at the background of a news Web page
12) Which of the following channels is best suited for interactive marketing?
A) television
B) newspapers
C) Internet
D) hoardings
E) magazines
13) Which of the following is a disadvantage of using Web for interactive marketing?
A) Consumers can effectively screen out most messages.
B) An average customer spends very little time on the Internet.
C) Internet selling and advertising is costlier than other advertising media.
D) It is unable to create long-term marketing assets.
E) Online marketing limits the possibilities of personalization.
14) Companies design ________ to embody or express their purpose, history, products, and
vision and that are attractive on first viewing and interesting enough to encourage repeat visits.
A) Web sites
B) microblogs
C) banner ads
D) operating programs
E) social network pages
15) Individual Web pages or clusters of pages that function as supplements to a primary Web site
are called ________.
A) banners
B) pop-ups
C) interstitials
D) microsite
E) home pages
16) Of the seven key design elements of an effective Web site, ________ refers to layout and
design.
A) character
B) capability
C) context
D) customization
E) connection
17) Small Web pages of DTH Bank appear in the Web site of an online property brokerage firm.
The pages provide tips to home buyers and publishes its new home loan offerings. These Web
pages are examples of ________.
A) microsites
B) online banners
C) interstitials
D) paid advices
E) display advertisements
18) You are visiting FIFA’s Web site to know the schedule of the football World cup. On the top
of the Web page showing the schedule, a small picture displays the official mascot and the text
“Buy tickets for the World Cup now.” This static exhibit provides the link to the official ticket
booking Web site. Identify the type of advertisement used here.
A) pay-per-click ad
B) floating ad
C) wallpaper ad
D) superstitial
E) banner ad
19) In ________, marketers bid in a continuous auction on search terms that serve as a proxy for
the consumer’s product or consumption interests.
A) paid searches
B) pop-up advertising
C) display advertising
D) banner marketing
E) micro-advertising
20) A banner ad is a(n) ________.
A) large ad shown on the screen for complementary products
B) advertisement that appears before displaying a Web page
C) advertisement that comes up when viewing a Web site
D) small, rectangular box containing text and perhaps a picture
E) advertisement that is put up on hoardings
21) ________ are advertisements, often with video or animation, which pop up between changes
on a Web site.
A) Interstitials
B) Pay-per click ads
C) Podcasts
D) Wallpaper ads
E) Floating ads
22) You are browsing through an entertainment Web site. When you click on one of the links,
the screen turns grey and displays the advertisement of an automobile manufacturer. Clicking on
the advertisement leads to the automobile manufacturer’s Web site. This advertisement is an
example of a(n) ________.
A) interstitial
B) superstitial
C) floating ad
D) pay-per-click ad
E) wallpaper ad
23) Which of the following is a disadvantage of using e-mails in marketing?
A) Non-technical products cannot be promoted using e-mails.
B) E-mails are not a cost-effctive alternative.
C) Customers can filter the e-mails and many won’t reach them.
D) E-mails cannot be used for prospecting.
E) Customer feedback cannot be sought when using e-mails.
24) Which of the following statements is true about mobile apps?
A) They are advertisements that avoid the use of animations.
B) They are text messages sent in response to promotions.
C) They are softwares used to control basic functions such as texting.
D) They are programs designed to enhance the performance of a cell phone’s processor.
E) They are software programs that can be loaded on to smart phones.
25) Which of the following is a valid observation about word of mouth advertisements?
A) It is the one form of advertisement that cannot be controlled by companies becasue it occurs
naturally.
B) Social media can be used as a tool to generate positive word of mouth.
C) Word of mouth strategy will be less effective for smaller organziations.
D) Attempts to manage word of mouth would lead to negative consequences.
E) Organic word of mouth is always positive whereas facilitated word of mouth is negative.
26) All the PR benefits a firm receives without having directly paid for anything is called
________ media.
A) earned
B) open
C) passive
D) inherent
E) internal
27) Inception, a recent Hollywood blockbuster, had created a lot of interest among the viewers
even before its release due to the credentials of its makers. The movie was discussed in social
network pages and discussion forums. The discussions increased after its release and it helped
the movie do good business. Which of the following most closely describes the type of
marketing discussed in this example?
A) personalized marketing
B) direct marketing
C) interactive marketing
D) word of mouth marketing
E) technology marketing
28) ________ are regularly updated online journals or diaries.
A) Cliques
B) Podcasts
C) Interstitials
D) Blogs
E) Forums
29) Albert Hawkins is a famous writer. He has authored more than fifteen books in Spanish. He
publishes his thoughts online and updates the pages periodically. This online account has
generated much public interest in Spain and has many readers. Hawkins’s online journal is an
example of a(n) ________.
A) blog
B) interstitial
C) online magazine
D) buzz spot
E) microsite
30) Identify a social network that majorly targets career-minded professionals.
A) LinkedIn
B) Facebook
C) MySpace
D) Twitter
E) Orkut
31) Which of the following is an example of marketing through social media?
A) a leading brand of sports shoes sponsors the soccer world cup
B) a software company organizes a cancer awareness camp free for all
C) a new department store in your neighborhood that relies on people to spread the word
D) a newspaper article talks about the pollution control processes put in place by a steel
manufacturing giant
E) a leading car manufacturer advertises the new model on facebook
32) ________ marketing generates excitement, creates publicity, and conveys new relevant
brand-related information through unexpected or even outrageous means.
A) Live-in
B) Buzz
C) Viral
D) Guerrilla
E) Experimental
33) ________ is another form of word of mouth that encourages consumers to pass along
company-developed products and services or audio, video, or written information to others
online.
A) Buzz marketing
B) Viral marketing
C) Guerrilla marketing
D) Motivational marketing
E) Internal marketing
34) Apple created a lot of publicity before the release of its tablet computer, iPad. The product
was discussed in online communities and social networks. Many booked the product in advance,
ensuring good initial revenues for Apple. The company published periodic updates of the product
creating huge expectation in the minds of customers. This pre-launch publicity can be viewed as
________ marketing.
A) buzz
B) stealth
C) ambush
D) undercover
E) direct
35) Altruron Technologies creates a Facebook page for its new brand of LED television, Sparta.
The Facebook page provides latest updates on Sparta and key service issues of the product. It
also encourages user comments on the page and users share the information and pictures with
their contacts in Facebook. The company has been marketing the page aggressively and has been
encouraging users to “like” the product in Facebook. This social networking page and related
efforts help the company attract prospective customers. The situation discussed here is an
example of ________ marketing.
A) viral
B) deceptive
C) stealth
D) direct
E) guerilla