MKTG 373: Chapter 14

Identify a form of advertising that uses broadcast media.

Home shopping

In the context of direct marketing, a difference between regular mail and e-mail is that e-mail ______.

has lower advertising costs

Identify an example of support advertising.

A terminal poster highlighting the benefits of online shopping

True or false: Direct marketing is used exclusively to generate a transaction.

False

Identify the products that are commonly sold through direct selling.

Family durables Wellness products

Direct marketing allows for a strong ability to test the effectiveness of ______.

the overall program and specific elements

Direct marketing is much more ______ than other media.

timely

A technique of direct marketing that involves the use of telephones to make sales is known as

telemarketing

Due to it's immediate and generally accurate feedback, direct marketing can measure the of its efforts as well as direct response.

effectiveness

Infomercials increase direct-to-consumer purchases, but harm retail stores.

False

In general, TV spots include ______.

direct-response commercials

Which of the following are types of direct-response media?

Telemarketing Internet Direct mail Print

Identify a form of broadcast media most commonly used in direct-response advertising.

TV commercials

Identify the broadcast media that is available to direct marketers.

Television Radio

Unsolicited correspondence through post is known as ______.

direct mail

Which of the following is a limitation of direct-response advertising?

It limits mood creation to the surrounding program and/or editorial content.

Identify the media which are difficult to use for direct marketing.

Magazines Newspapers

Identify a sales promotion technique that companies combine with direct marketing.

Organizing sweepstakes

Which of the following is a limitation of direct-mail marketing?

The costs of mailers and catalogs increase as print costs increase.

Identify a limitation of direct marketing.

The effectiveness of the marketing methods depends on the accuracy of the mailing lists used.

In the context of direct marketing, identify a negative aspect of infomercials.

They are criticized for being disguised as TV shows.

Which of the following factors in American society have led to the increased attractiveness of direct marketing?

An increase in the use of credit cards Technological advancement of the electronic media An increase in "money-rich" and "time-poor" families

Which of the following is an example of direct selling?

An independent contractor sells products to consumers in their homes.

True or false: Do Not Call lists exist for landlines but not for cell phones.

False

Which of the following factors have increased the attractiveness of direct purchases?

Increase in dual-income families Sophisticated marketing techniques

Identify an accurate statement about direct marketing.

It involves marketing research.

Which of the following is a benefit of direct marketing?

It is able to test the effectiveness of the overall marketing program.

Identify a true statement about spam in direct marketing.

It is less targeted.

Which of the following is a form of broadcast media?

Radio

Identify the characteristics of direct marketing. (Check all that apply.)

The CPM for direct mail may be very high on an absolute and a relative basis. E-mail advertising is an inexpensive medium.

Which of the following statements are true about the direct-marketing strategy called the two-step approach?

The first step is designed to screen, or qualify, potential buyers. The second step can be carried out using personal selling.

Identify an accurate statement about print media.

They face the problem of advertising clutter.

Identify a characteristic of mailing lists.

They have become increasingly selective.

Identify an accurate statement about infomercials in direct marketing.

They tend to be criticized for being deceptive.

Identify a reason why companies use Customer Lifetime Value.

To optimize service levels to existing customers

Identify an example of a company combining direct marketing with support media.

A car manufacturer sending out mailers that include key chains to its customers

Identify an example of a company using the two-step approach to direct marketing.

A fitness center using telemarketing to identify customers and following up with more information to interested parties

Identify an example of companies combining direct marketing with personal selling.

A fitness center using telemarketing to identify potential customers

Which of the following are typical elements of a direct-response offer?

A link to online content A form that requests mailing information

Identify an example of telemarketing.

A makeup company selling its products to consumers over the phone

Which of the following are true in regards to catalogs? (Check all that apply.)

A sizable portion of marketers expect to increase their catalog mailings in the next few years. The number of catalogs mailed has decreased every year since 2007.

Which of the following statements about direct mail are correct?

Advertisers spend more on direct mail than on almost any other advertising medium. Direct mail is commonly called "junk mail." Financial services commonly use direct mail.

Which of the following statements about combining direct marketing with advertising is true?

Advertising has been shown to support both direct and in-store sales positively.

Identify an example of home shopping.

An ad on a shopping channel urging viewers to place an order using a toll-free number

Identify a similarity between regular mail and e-mail in direct marketing.

Both are highly targeted.

In the context of direct marketing, what are the similarities between regular mail and e-mail?

Both can use targeted messages. Both rely heavily on mailing lists. Both attempt to achieve demographic selectivity.

Identify a disadvantage of direct marketing.

Consumers can be annoyed by the unsolicited mail received.

What is a disadvantage of direct marketing?

Direct-mail and online services are unlikely to create a desirable mood.

Which of the following is a disadvantage of direct-mail marketing?

Direct-mail profits are directly impacted by an increase in postal rates.

In the context of direct marketing, what is a difference between regular mail and e-mail?

E-mail is more effective in terms of return on investment

What is a benefit of direct marketing?

Each sale generated in direct-response advertising is extremely inexpensive.

Identify the customer who purchases a product via direct selling.

Linda buys a product from a door-to-door salesperson.

Which of the following is an advantage of direct marketing?

Mailing lists enable marketers to achieve demographic selectivity.

An airline sending out e-mails to its customers to notify them about ticket discounts and frequent-flier programs is an example of combining direct marketing with ______.

sales promotions

True or false: The objective of a one-step approach to direct marketing is to generate an immediate sale.

True

Which of the following type of products is commonly sold through direct selling?

Weight-loss drinks

One reason direct mail is still a favorite medium of many advertisers even in the age of e-mail is that ______.

retailers believe those who do not read all e-mails still read mail that is delivered to them

A direct-marketing strategy where a medium is used to obtain an order is known as ______.

a one-step approach

A sales technique in which a salesperson offers products or services to groups of people through a home or office get-together and demonstration is known as ______.

a party plan

In direct marketing, a typical objective is defined through ______.

a sought response

Apart from seeking behavioral responses, direct marketing is used by many organizations to ______.

build a favorable image

From a marketer's perspective, a disadvantage of direct-mail marketing is that ______.

consumers can choose not to receive unsolicited mail

Direct mail marketers are facing a threat from the Internet primarily due to the ______ of e-mail.

cost

A formula used by marketers to evaluate a customer's worth by determining the dollar value associated with a long-term relationship with the customer is known as ______.

customer lifetime value

A system of marketing by which organizations communicate with target customers to generate a response or transaction is known as ______.

direct marketing

The sales of products and services to consumers in their homes using personal presentation and demonstration is known as ______.

direct selling

A form of direct marketing in which the one- or two-step approach is used to offer a product or service and a sales response is solicited is known as ______.

direct-response advertising

From a marketer's perspective, an advantage of direct marketing is that ______.

direct-response advertising can be much more timely than other media

Mailing lists used in direct mail have become more current and specific, which has ______.

eliminated waste coverage

A characteristic of direct marketing is that it ______.

eliminates waste coverage

Direct advertising allows marketers to build levels because the program vehicles for direct-response TV advertising are usually the most inexpensive available.

frequency

Compared with online catalogs, traditional catalogs ______.

have a higher emotional appeal

Disadvantages of direct marketing include factors, which are negatively impacted by the perceived low quality of junk mail or low-budget TV advertising.

image

Frequency is most easily achieved in direct marketing through ______.

inexpensive TV advertisements

A long advertisement designed to be viewed as regular TV shows that fit into a 30-minute or 1-hour time slot is known as a(n) ______.

infomercial

An important benefit of direct marketing is that ______.

it is the best advertising medium to personalize a message

Assume that an advertiser incurs a cost of $2,800 to develop a broadcast commercial and targets a $4 return per order. In this scenario, the ad is considered effective if it generates ______.

more than 700 orders

A dinnerware manufacturer sends salespersons to potential customers' homes, where they demonstrate the quality and durability of their products. In this scenario, the company is using ______.

nonrepetitive person-to-person selling

A form of direct selling in which a salesperson visits a buyer's home, job site, or other location to sell infrequently purchased products and services is known as ______.

nonrepetitive person-to-person selling

Eufrez, an electronic equipment manufacturer, has employed salespersons to sell its products to customers. The salespersons arrange demonstrations for groups of people at social gatherings in homes and offices. In this scenario, Eufrez is using ______ to make a sale.

party plans

Summit Corp., an electronics store, sends out direct-mail pieces to individual customers in its neighborhood inviting them to a demonstration of its products at the store. The store's salespersons then assume responsibility for generating sales. In this scenario, the company is combining direct marketing with ______.

personal selling

Direct marketing allows more than any other medium, for example by approaching parents with children at different age levels or including the child's name in the appeal.

personalization

Lattice Inc., an oil manufacturing company, has undertaken an initiative to support a non-profit organization that promotes recycling. The company uses telemarketing and direct-mail in order to inform consumers of its efforts and request for funds. In this scenario, the company is combining direct marketing with ______ in order to promote its initiative.

public relations

Eva Inc., a fast-moving consumer goods manufacturer, employs salespersons to sell frequently purchased products, such as detergents, packaged foods, and personal hygiene items. The salespersons visit consumers at home or at work to make the sale. In this scenario, the company is using ______.

repetitive person-to-person selling

Renting or purchasing lists of recent product purchasers, bank-card holders, and so on gives marketers increased capabilities on the basis of diverse measures including geographic area and job title.

segmentation

reach allows the advertiser to reach a large number of people, but avoid waste coverage.

selective

In the direct-marketing industry, TV spots are referred to as ______.

short-form programs

Companies use direct-response techniques as part of their public relations activities by ______.

soliciting funds for charities

The electronic equivalent of junk mail that is considered a nuisance by consumers is referred to as .

spam

A form of advertising that is designed to aid and assist other forms of advertising is known as ______.

support advertising

Starboard Inc., an electronics brand, includes a promotional product in mailers sent to its customers. The company is using a combination of direct marketing and ______ in order to promote its products.

support media

A limitation of direct marketing is that ______.

the cost of generating a lead or a mailing list can be high

The relative effectiveness of an ad based on the number of calls generated can be evaluated by advertisers by using ______.

the cost per order

Repetitive person-to-person selling involves a salesperson ______.

visiting the customer's home or job to sell frequently purchased products