Advertising and promotion (FINAL)

Adding a promotional product to a direct mailer increases response rates.

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

Direct marketing is a form of advertising.

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

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

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

Keys to the success of direct mail are the mailing lists.

TRUE 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.

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

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

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 The above scenario is an example of combining direct marketing with advertising. Direct marketing is in itself a form of advertising. Whether through mail, print, or TV, the direct-response offer is an ad. It usually contains a toll-free number or a form that requests mailing information. Sometimes the ad supports the direct-selling effort.

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. 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.

Which of the following measures aids direct marketers in evaluating the relative effectiveness of an ad based on the number of calls generated?

A. Cost per order (CPO) Using the cost per order (CPO), advertisers can evaluate the relative effectiveness of an ad in only a few minutes based on the number of calls generated.

Which of the following is true of repetitive person-to-person selling?

A. It involves the sale of frequently purchased products. In case of repetitive person-to-person selling, a salesperson visits a buyer's home, job site, or other location to sell frequently purchased products or services.

Which of the following is a form of direct selling?

A. Party plans The three forms of direct selling are repetitive person to person selling, non-repetitive person-to-person selling, and party plans.

Which of the following is an advantage offered by direct marketing to advertisers?

A. Personalization of messages One of the advantages of direct marketing is its ability to offer personalized messages. No other advertising medium can personalize a message as well as direct media.

Which of the following is a disadvantage associated with direct marketing?

A. Poor image Direct-response ads on TV are often low-budget ads for lower-priced products, which contributes to the image that something less than the best products are marketed in this way. The mail segment of the direct marketing industry is often referred to as junk mail. Many people believe unsolicited mail promotes junk products, and others dislike being solicited.

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

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. he 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 (e.g., the order).

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

A. inquiries. Direct marketing is a system of marketing by which organizations communicate directly with target customers to generate a response or transaction. This response may take the form of an inquiry, a purchase, or even a vote.

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. Because of the high volumes of spam and the fact that many consumers consider it a nuisance, the U.S. government has passed laws regulating the use of e-mail marketing.

Due to clutter and relatively high costs, the use of _____ by direct marketers does not result in returns as high as those for other forms of direct marketing media.

A. magazines and newspapers Magazines and newspapers are difficult media to use for direct marketing. Because these ads have to compete with the clutter of other ads and because the space is relatively expensive, response rates and profits may be lower than in other media.

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 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

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 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. Their goal is to generate an immediate sale when the ad is shown.

In case of _____, a salesperson visits a buyer's home, job site, or other location to sell frequently purchased products or services.

A. repetitive person-to-person selling In case of repetitive person-to-person selling, a salesperson visits a buyer's home, job site, or other location to sell frequently purchased products or services.

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. The above scenario is an example of combining direct marketing with sales promotion. Airlines send out mailers or e-mails announcing promotional airfares. Nordstrom and other retail outlets call their existing customers to notify them of special sales promotions. Each of these is an example of a company using direct-marketing tools to inform customers of sales promotions.

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

A. seek a behavioral response. 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.

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

A. the two-step approach. 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 (e.g., the order).

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

A. two-step 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 (e.g., the order).

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?

B. Direct marketing and advertising The above scenario is an example of combining direct marketing with advertising. Direct marketing is in itself a form of advertising. Whether through mail, print, or TV, the direct-response offer is an ad. It usually contains a toll-free number or a form that requests mailing information. Sometimes an advertisement will be sent through direct mail.

Which of the following statements is true about direct marketing?

B. Direct marketing involves marketing research, segmentation, and evaluation. Direct marketing is an aspect of total marketing—that is, it involves marketing research, segmentation, evaluation, and the like.

Which of the following statements is true of mailing lists?

B. They have the ability to segment markets on the basis of lifestyles. 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. Lists have become more current and more selective, eliminating waste coverage. Segmentation on the basis of geography (usually through Zip codes), demographics, and lifestyles has led to increased effectiveness.

Which of the following is an objective of direct marketing?

B. To maintain customer satisfaction 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.

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:

B. advertising. The above scenario is an example of combining direct marketing with advertising. Direct marketing is in itself a form of advertising. Whether through mail, print, or TV, the direct-response offer is an ad. It usually contains a toll-free number or a form that requests mailing information. Sometimes the ad supports the direct-selling effort.

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:

B. direct marketing and public relations. The above scenario is an example of combining direct marketing with public relations. Public relations activities often employ direct-response techniques. Private companies may use telemarketing activities to solicit funds for charities or co-sponsor charities that use these and other direct response techniques to solicit funds.

Direct marketing in the broadcast industry involves:

B. direct-response advertising and support advertising. Direct marketing in the broadcast industry involves both direct-response advertising and support advertising.

As postal rates increase, direct-mail advertising is replaced with

B. e-mail. As postal rates increase, direct-mail profits are immediately and directly impacted. The same is true for print costs, which drives up the costs of mailers and catalogs. The low cost of e-mail has led many companies to switch to this medium.

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

B. generate an immediate behavioral response. Companies believe that while promotional mix tools such as advertising, sales promotion, support media, and personal selling are effective in creating brand image, conveying information, and/or creating awareness, going direct can generate an immediate behavioral response. Direct marketing is a valuable tool in the integrated communications program, though it usually seeks somewhat different objectives.

In case of _____, a salesperson visits a buyer's home, job site, or other location to sell infrequently purchased products or services.

B. non-repetitive person-to-person selling In case of non-repetitive person-to-person selling, a salesperson visits a buyer's home, job site, or other location to sell infrequently purchased products or services.

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

B. one-step 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. Their goal is to generate an immediate sale when the ad is shown.

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:

B. personal selling. The above scenario is an example of combining direct marketing with personal selling. Direct-mail pieces are often used to invite prospective customers to visit auto showrooms to test-drive new cars; the salesperson then assumes responsibility for the selling effort. Automobile manufacturers and their dealers have both made effective use of this approach.

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:

B. public relations. The above scenario is an example of combining direct marketing with public relations. Public relations activities often employ direct-response techniques. Private companies may use telemarketing activities to solicit funds for charities or co-sponsor charities that use these and other direct response techniques to solicit funds.

Direct marketing lets an advertiser:

B. reach a large number of people and reduce or eliminate waste coverage. Direct marketing lets an advertiser reach a large number of people and reduce or eliminate waste coverage.

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:

B. support advertising. Support advertising is designed to do exactly that—support other forms of advertising. Ads for Publishers Clearing House or Reader's Digest or other companies telling customers to look in their mailbox for a sweepstakes entry are examples of support advertising.

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.

B. support media. The above scenario is an example of combining direct marketing with support media. Adding a promotional product to a direct mailer has proved to increase response rates.

The two-step approach to direct marketing:

B. uses the first effort to screen potential buyers. 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 (e.g., the order).

_____ is a simple formula that is used to assist marketers in determining the dollar value associated with a long-term relationship with a customer, thus evaluating his or her worth.

C. Customer Lifetime Value A commonly employed measure of effectiveness is Customer Lifetime Value (CLTV). CLTV is a simple formula that is used to assist marketers in determining the dollar value associated with a long-term relationship with a customer, thus evaluating his or her worth.

Tyche Inc., an electronics manufacturer, wants to assess future revenues and profit streams from each of its customers. It is focusing on the satisfaction and retention of its more profitable customers instead of spending its marketing efforts on attracting uninterested customers. Tyche is using _____ as a measure of effectiveness.

C. Customer Lifetime Value Companies use Customer Lifetime Value (CLTV) to assist them in assessing future revenues and profit streams from a customer, so that they can focus more on the satisfaction and retention of their more profitable customers. Thus, a company can focus more attention on profitable customers while spending less marketing effort on those with a low CLTV score.

_____ is a measure of effectiveness used to determine whether or not a customer should be acquired, as well as to optimize service levels to existing customers.

C. Customer Lifetime Value Customer Lifetime Value is used to determine whether or not a customer should be acquired, as well as to optimize service levels to existing customers.

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

C. Development and expansion of the U.S. Postal Service The major impetus behind the growth of direct marketing may have been the development and expansion of the U.S. Postal Service, which made catalogs available to both urban and rural dwellers.

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

C. Direct-response media Direct marketing uses a set of direct-response media, including direct mail, telemarketing, interactive TV, print, the Internet, and other media. These media are the tools by which direct marketers implement the communication process.

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?

C. Internet The lower cost of e-mail and the convenience of the Internet have raised concerns among traditional direct-mail marketers. Interestingly, the Internet is both a threat and an opportunity, as Internet companies have increased their expenditures in direct mail to drive potential customers to their sites.

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

C. It attempts to reach consumers with specific needs through targeted messages. Direct mail on the Internet (e-mail) is essentially an electronic version of regular mail. Like regular mail, it is highly targeted, relies heavily on lists, and attempts to reach consumers with specific needs through targeted messages.

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?

C. Sales promotion and direct marketing The above scenario is an example of combining direct marketing with sales promotion. Airlines send out mailers or e-mails announcing promotional airfares.

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

C. Segmentation on the basis of geography and demographics Mailing lists have become more current and more selective, eliminating waste coverage. Segmentation on the basis of geography (usually through zip codes), demographics, and lifestyles has led to increased effectiveness.

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

C. The Internet Direct marketing uses a set of direct-response media, including direct mail, telemarketing, interactive TV, print, the Internet, and other media

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

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. The emotional appeal of the traditional catalog exceeds that of online catalogs, and ultimately is one of the best ways to drive consumers online.

Which of the following statements is true of infomercials?

C. The lower costs on cable and satellite channels have led to the growth of infomercials. The lower cost of commercials on cable and satellite channels has led advertisers to a new form of advertising. An infomercial is a long commercial that is designed to fit into a 30-minute or 1-hour time slot.

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:

C. advertising. The above scenario is an example of combining direct marketing with advertising. Direct marketing is in itself a form of advertising. Whether through mail, print, or TV, the direct-response offer is an ad. It usually contains a toll-free number or a form that requests mailing information. Sometimes the ad supports the direct-selling effort.

To successfully implement direct-marketing programs, a company must

C. determine which markets to target through the use of a list or marketing database. To successfully implement direct-marketing programs, companies must make a number of decisions. As in other marketing programs, they must determine (1) what the program's objectives will be, (2) which markets to target (through the use of a list or marketing database), (3) what direct-marketing strategies will be employed, and (4) how to evaluate the effectiveness of the program.

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:

C. direct marketing with sales promotion. The above scenario is an example of combining direct marketing with sales promotion. Hop & Shop sends e-mail announcements of special end-of-season sales and invites to enter into a sweepstakes contest. Each of these is an example of a company using direct-marketing tools to inform customers of sales promotions.

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:

C. direct-response advertising. The above scenario is an example of direct response advertising. In direct-response advertising, a product or service is offered and a sales response is solicited, through either the one- or two-step approach. Examples include ads for apparel, exercise equipment, and collectables, and so on. Toll-free phone numbers are included so that a receiver can immediately call to order.

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:

C. one-step approach to direct marketing. The above scenario is an example of the one-step approach to direct marketing. In the one-step approach, a medium is used directly to obtain an order. TV commercials for products like workout equipment, skin care products, or magazine subscriptions urge viewers to phone a toll-free number to place an order immediately. Their goal is to generate an immediate sale when the ad is shown.

In case of _____, a salesperson offers products or services to groups of people through home or office gatherings and demonstrations.

C. party plans In case of party plans, a salesperson offers products or services to groups of people through home or office parties and demonstrations.

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

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

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:

C. the one-step approach. The above scenario is an example of the one-step approach to direct marketing. 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. Their goal is to generate an immediate sale when the ad is shown.

Which of the following products is likely to be sold using a non-repetitive person-to-person selling technique?

D. Animal encyclopedias In case of non-repetitive person-to-person selling, a salesperson visits a buyer's home, job site, or other location to sell infrequently purchased products or services

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

D. Direct mail is not 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.

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

D. Direct marketing Direct marketing is a system of marketing by which organizations communicate directly with target customers to generate a response or transaction.

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

D. Direct marketing The Direct Marketing Association (DMA) defines direct marketing as an interactive system of marketing which uses one or more advertising media to effect a measurable response and/or transaction at any location.

Which of the following is true of non-repetitive selling?

D. It involves selling products at a customer's workplace. In case of non-repetitive person-to-person selling, a salesperson visits a buyer's home, job site, or other location to sell infrequently purchased products or services.

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

D. It is typically used by nonprofit organizations to solicit funds. Telemarketing and direct selling are two methods of personal selling used to generate sales. 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.

Which of the following is true of direct mail?

D. Keys to the success of direct mail are the mailing list. 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.

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

D. Spam Sometimes users may also receive less-targeted and unwanted e-mails. The electronic equivalent of junk mail, these messages are referred to as spam.

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

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

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

D. The two-step approach to direct marketing is common on radio particularly with local companies. It should be noted that the two-step approach is still very common on the radio, particularly with local companies.

Advertisers can measure the relative effectiveness of a direct marketing program quickly by using:

D. cost per order (CPO). Because they generate a direct response, measuring the effectiveness of direct marketing programs is not difficult. Using the cost per order (CPO), advertisers can evaluate the relative effectiveness of an ad in only a few minutes based on the number of calls generated.

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

D. increased use of consumer credit cards. There are now more than 1 billion credit cards—bank, oil company, retail, and so on—in circulation in the United States. This makes it feasible for consumers to purchase both low- and high-ticket items through direct-response channels and assures sellers that they will be paid.

Direct marketing

D. is a valuable tool in the integrated communications program. Direct marketing is a valuable tool in the integrated communications program, though it usually seeks somewhat different objectives.

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

D. one-step 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. Their goal is to generate an immediate sale when the ad is shown.

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.

D. one-step The above scenario is an example of the one-step approach of direct marketing. 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. Their goal is to generate an immediate sale when the ad is shown.

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.

D. one-step The above scenario is an example of the one-step approach to marketing. 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. Their goal is to generate an immediate sale when the ad is shown.

____ is the personal presentation, demonstration, and sales of products to consumers in their homes.

E. Direct selling Direct selling is the direct, personal presentation, demonstration, and sales of products and services to consumers in their homes.

Which of the following statements best defines an infomercial?

E. It is a long commercial that is designed to fit into a 30-minute or 1-hour time slot. An infomercial is a long commercial that is designed to fit into a 30-minute or 1-hour time slot

Which of the following statements is true of telemarketing?

E. Telemarketing is effective for charitable organizations. Both profit and charitable organizations have employed telemarketing effectively in both one- and two-step approaches.

Which of the following statements is true about the growth of 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. The rapid technological advancement of the electronic media and the Internet has made it easier for consumers to shop and for marketers to be successful in reaching the desired target markets and hence led to the growth of direct marketing.

Which of the following factors has led to a dramatic increase in home shopping?

E. The widespread use of credit cards The development of toll-free telephone numbers, combined with the widespread use of credit cards, has led to a dramatic increase in the number of people who shop via their TV sets through home shopping channels.

Infomercials are:

E. ads that use both one- and two-step approaches. Today's infomercials use both one- and two-step approaches to direct marketing.

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:

E. an infomercial. The above scenario is an example of an infomercial. An infomercial is a long commercial that is designed to fit into a 30-minute or 1-hour time slot. Many infomercials are produced by advertisers and are designed to be viewed as regular TV shows.

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:

E. direct marketing with advertising. The above scenario is an example of combining direct marketing with advertising. Direct marketing is in itself a form of advertising. Whether through mail, print, or TV, the direct-response offer is an ad. It usually contains a toll-free number or a form that requests mailing information.

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:

E. the two-step approach to direct marketing. The above scenario is an example of the two-step approach to direct marketing. 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 (e.g., the order).

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:

E. the two-step approach to direct marketing. The above scenario is an example of the two-step approach to direct marketing. 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 (e.g., the order).

Direct marketing is typically restricted to small companies seeking business.

FALSE 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.

Direct marketing is synonymous to direct-response media.

FALSE 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.

One disadvantage associated with direct marketing is that it results in waste coverage.

FALSE Direct marketing lets an advertiser reach a large number of people and reduces or eliminates waste coverage.

Unlike nonprofit organizations, profit centric organizations do not use telemarketing.

FALSE 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.

It is the sole objective of direct marketing to obtain a direct behavioral response.

FALSE 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.

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

FALSE The program vehicles used for direct-response TV advertising are usually the most inexpensive available, so a marketer can afford to purchase repeat times.

The two-step approach to direct marketing essentially relies on only one medium to generate a sales response.

FALSE 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 (e.g., the order).

In the two-step approach to direct marketing, the first effort generates sales, and the second effort reduces the post purchase dissonance.

FALSE 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.

It is not possible to generate a behavioral response by relying solely on direct marketing.

FALSE 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.

A company can use direct marketing to build a favorable image.

TRUE 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.

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

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

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

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

Both direct marketing and advertising could support one another.

TRUE Whether through mail, print, or TV, the direct-response offer is an ad. Sometimes the ad supports the direct-selling effort.