Exam 10: Direct Marketing and Personal Selling

Infomercials were made possible by

The advantage of direct mail as a communication medium stems from its ____.

One advantage that direct marketing holds over more conventional forms of mass marketing is that it can identify and serve more-specific segments of the population.

A person is concerned with issues of privacy and doesn't want his or her name being on mailing lists. This person can call ____ and have his or her name removed.

Scenario 10-4 Telemarketers say they'll honor the wildly popular but legally besieged Do-Not-Call list until the court battles are over. Those whose telephone numbers have already been submitted to the national Do-Not-Call registry should have noticed a substantial decrease in calls. You know it's a good law by the sheer volume of gnashing teeth emanating from the Direct Marketing Association and other groups representing telemarketers, who would be required to purge their databases of registry phone numbers at least quarterly. Though the DMA continues to pursue legal avenues to block the list, it promises to respect consumers' wishes. (Liz Pullman Weston, Free at last from telemarketing invasions, MSN Online, February 15, 2005). -(Scenario 10-4) Weider Publications has a file of about 75,000 names of people who have given one or more of Weider's nine publications as a gift. In December, Weider undergoes an intensive one-week effort to call former gift givers who have not yet renewed. If the list that Weider is using consists of only the names, addresses, and phone numbers of former gift givers, it would be referred to as

Scenario 10-1 Coca-Cola Co., Atlanta, launched a nostalgia-filled retail concept space in Nashville, TN., in the Cracker Barrel Old Country Store location, directly across from the Gaylord Opryland Hotel and Convention Center. Coca-Cola advertising and artwork is known throughout the world and frequently displayed in museums and in the homes of nostalgic collectors. Visitors could now view holiday artwork in Nashville and at Cracker Barrel Old Country Store sales personnel would greet customers and inform them about both brands. This is a natural connection for both brands. For 35 years, Cracker Barrel has served Coca-Cola in its restaurants and the company honored Coca-Cola's heritage alongside its own nostalgic memorabilia. (Jim Taylor, Rare Coca-Cola Holiday Artwork on Display at Cracker Barrel Old Country Store ," http://www.crackerbarrel.com, November 15, 2004.) -(Scenario 10-1) within the Cracker Barrel Old Country Store site there is a big fishbowl inviting visitors to leave a business card and announcing that once a month there will be a drawing for free memorabilia for both brands. Those whose cards are drawn will receive their prize items by mail. What are Cracker Barrel and Coca Cola doing with this fishbowl activity?

In some cases, marketing databases are enhanced using ____-data that reveals the characteristics of the neighborhood in which a person resides.

The popularity of direct marketing has been growing among consumers and business organizations for quite a while. Describe three factors driving this growing popularity.

A local Elks Club contacts each member that holds an Elks golf membership and inquires as to whether the member would also like to purchase an Elks pool membership for the family. This is known as using a marketing database for

Firms can use an RFM analysis to isolate their best customers. RFM stands for

A business interviews customers to determine their wants and needs. This company is in the process of developing

Scenario 10-3 You have decided that, after being exposed to a bit of advertising and marketing theory and practice, that "ad biz" thrives on abbreviations. To make life easier for the students that follow behind you, and perhaps to make a bit of money for yourself, you are going to write and publish the Encyclopedia of Advertising Abbreviations and Terminology (the EAT). The following questions are drawn from information included under the entry entitled "Direct Marketing." -(Scenario 10-3) An RFM analysis is used to

Scenario 10-3 You have decided that, after being exposed to a bit of advertising and marketing theory and practice, that "ad biz" thrives on abbreviations. To make life easier for the students that follow behind you, and perhaps to make a bit of money for yourself, you are going to write and publish the Encyclopedia of Advertising Abbreviations and Terminology (the EAT). The following questions are drawn from information included under the entry entitled "Direct Marketing." -(Scenario 10-3) A commonly used calculation for assessing the measurable effects of a direct marketing program is

Direct marketing is convenient in that it provides consumers access to a range of products in their homes.

A company wants to sell a fire-resistant car wax in a 30-minute infomercial. What does experience this medium suggest this company would be wise to do?

Scenario 10-4 Telemarketers say they'll honor the wildly popular but legally besieged Do-Not-Call list until the court battles are over. Those whose telephone numbers have already been submitted to the national Do-Not-Call registry should have noticed a substantial decrease in calls. You know it's a good law by the sheer volume of gnashing teeth emanating from the Direct Marketing Association and other groups representing telemarketers, who would be required to purge their databases of registry phone numbers at least quarterly. Though the DMA continues to pursue legal avenues to block the list, it promises to respect consumers' wishes. (Liz Pullman Weston, Free at last from telemarketing invasions, MSN Online, February 15, 2005). -(Scenario 10-4) Most of Time magazine's holiday gift-giving subscriptions are a result of potential gift givers seeing a television commercial for Time, then calling an 800 number. The practice of using a Time representative to contact a potential customer by phone is used on only about 5 to 10 percent of gift-giving renewals. One advantage of using television over this type of telemarketing is that

What are the disadvantages associated with a telemarketing effort? How can telemarketing improve be used successfully?

Telemarketing is probably the direct marketer's most invasive tool and as such must be used with discretion so as not to alienate customers.

An emphasis on producing measurable effects is one of the noted appeals of direct marketing, where it is not uncommon to find cost per inquiry (CPI) calculations. What other calculation is commonly computed by direct marketers?

Scenario 10-2 Folio in an e-technology company. As e-businesses move to the Web, their technology platform allows companies to search and navigate gigabytes of data, categorize disparate content, and gain secure access to information, regardless of where it resides - all from their Web browser. So, Folio can share content across connected servers with partners, suppliers, customers and employees to form an e-business Content Network. And it all happens in real time. -(Scenario 10-2) Some visitors may be reluctant to provide personal information at a website due to privacy concerns. Individual companies can alleviate these concerns by making sure consumers are contacted only with meaningful messages and by