Exam 10: Direct Marketing and Personal Selling

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Direct marketing is an interactive system that uses one or more advertising media to effect a measurable response at any location.

(True/False)
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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) A magazine publisher collects data at its website about readers of one of its health and fitness magazines. The publisher uses direct mail to try to get these readers to subscribe to another of its publications regarding nutrition. This practice is known as

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Direct marketers do not use mailing lists because they are expensive and outdated.

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A good way to isolate a firm's best customers from a marketing database is with ____ analysis.

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If a company is willing to spend a lot of money per customer contact in exchange for the highest response rate around, it should choose telemarketing.

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The most common use of direct marketing is to raise brand awareness.

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External mailing lists are typically bought or rented from sources outside the organization doing the mailing.

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There are two broad categories of mailing lists that should be recognized by marketers. ____ lists are the starting point for developing better relationships with current customers, whereas ____ lists help an organization cultivate new business.

(Multiple Choice)
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Scenario 10-6 Jostens manufactures products for high schools and colleges that serve as memories for students and their loved ones. These products include yearbooks, class rings, graduation announcements, and several other related items. Traditionally, these products have been sold by Jostens sales representatives into individual schools. Recently, the company has decided to develop a marketing database of the names of students and parents in key school districts and at certain colleges and universities. The databases begin with basic demographic information, including names of younger siblings, that is sold to Jostens by school district offices and college admissions offices. With this information, Jostens hopes to begin a direct marketing effort whereby students and their parents receive marketing materials at their homes direct from the company. -(Scenario 10-6) Jostens is considering using a number of different direct marketing media applications. Which of the following is the most potent tool available to the firm because it produces the best response rates?

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A problem with direct marketing is that consumers are concerned that personal information is being gathered and exchanged between businesses.

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Which of the following societal factors is driving the growth of direct marketing today?

(Multiple Choice)
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Mailing list enhancement can be achieved by adding the following information to basic name and address data

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You are the marketing manager for a mail-order company that ships spices from all over the world to all over the world. Given a choice between access to a mailing list and access to a marketing database, which would you choose? What are the advantages of your choice? Be as specific as possible.

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There are three basic elements, each with a specific purpose, in frequency marketing programs. Which of the following is among them?

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All conventional media can be used to deliver direct response advertising. However, when conventional media are used, the effort is no longer considered to be part of a direct marketing program.

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Cross-selling is the practice of contacting a competitors' customers and attempting to get them to try your product.

(True/False)
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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) Direct marketing is "interactive" which refers to the following marketer activity

(Multiple Choice)
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A business is considering using a direct mail piece to reach potential customers. Management of the company should realize that two of the negatives of doing so are a high cost per contact and

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Although privacy issues continue to be a hot topic in the national media, research has shown that only about one in five consumers expresses concerns about privacy issues.

(True/False)
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From a consumer's standpoint, the growth in popularity of direct marketing is fostered by

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