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Which of the following is a basic objective of direct marketing?


A) develop leads
B) create sales
C) traffic generation
D) a and b
E) a, b, and c

F) B) and D)
G) A) and B)

Correct Answer

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MINI-CASE Solumbria, a company that sells medically recommended sun protective clothing, has ads in several different magazines that give consumers information about their products. The headline says "Serious Sun Protection" surprinted over a man and a woman dressed head to toe in the protective clothing. The body copy then goes on to tout the benefits of sun protection, their clothing, and how dermatologists have recommended Solumbria for their patients. The last paragraph of the copy says "For a FREE catalog of Solumbria hats, shirts, pants and accessories for men, women and children, call Sun Precautions: 1-800-882-7860." The ad also provides a web address. -Refer to Mini-Case. Which of the following best describes the type of advertising this print ad illustrates?


A) retail advertising
B) national advertising
C) directory advertising
D) direct-response advertising
E) direct-to-consumer advertising

F) A) and D)
G) A) and E)

Correct Answer

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Combining lists is known as ________.


A) purging
B) merging
C) database marketing
D) sourcing
E) consolidating

F) All of the above
G) None of the above

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MINI-CASE Proactive Solution is a skincare system to help those with acne. Proactive originally started out as being sold only through direct marketing, and the consumer had to enroll in membership in the Proactive Solution Clear Skin Club. However, now some large malls have kiosks selling Proactive Solution products without the club membership, but the prices are much higher. Proactive Solution has had one of the longest-running infomercials on television, and their product is also sold through magazine ads. Through these mediums, consumers can purchase the product directly by calling, mailing, or going through the Internet to submit an order. -Refer to Mini-Case. Name and describe the type of advertising that Proactive Solution uses to promote and sell its product.

Correct Answer

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Which of the following is a type of list used in direct marketing?


A) house list
B) compiled list
C) response list
D) a and b
E) a, b, and c

F) C) and E)
G) All of the above

Correct Answer

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As described in the opening vignette who is the leading direct-response auto insurer?


A) GEICO
B) Allstate
C) State Farm
D) USAA
E) Shelter

F) A) and B)
G) B) and D)

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Which of the following is NOT an objective of a marketing database?


A) to record names of customers, expires, and prospects
B) to provide a vehicle for storing and then measuring results of direct-response advertising
C) to provide a vehicle for storing and then measuring purchasing information
D) to provide a vehicle for continuing direct communication by mail or phone
E) to record TV commercials

F) A) and D)
G) B) and E)

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E

Which basic objective of direct marketing attempts to motivate customers to visit an event or retail outlet?


A) lead generation
B) generate traffic
C) action
D) enhancing awareness
E) enhancing attitude

F) B) and D)
G) D) and E)

Correct Answer

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MINI-CASE Proactive Solution is a skincare system to help those with acne. Proactive originally started out as being sold only through direct marketing, and the consumer had to enroll in membership in the Proactive Solution Clear Skin Club. However, now some large malls have kiosks selling Proactive Solution products without the club membership, but the prices are much higher. Proactive Solution has had one of the longest-running infomercials on television, and their product is also sold through magazine ads. Through these mediums, consumers can purchase the product directly by calling, mailing, or going through the Internet to submit an order. -Refer to Mini-Case. Name and describe the three types of lists and explain which one is the most important to Proactive.

Correct Answer

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Alvin wants to develop database marketing capabilities for his business, but he doesn't even know where to begin. Which of the following is the first stage of the database marketing process?


A) get to know your customers by name
B) collect information
C) enter data
D) assess data
E) cluster data

F) A) and C)
G) C) and D)

Correct Answer

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Which of the following is NOT a main player in direct-response marketing?


A) advertisers who use direct response to sell products or services
B) agencies that specialize in direct-response advertising
C) media that deliver messages by phone, mail, or the web
D) consumers, who are the recipients of the information and sometimes initiators of the contract
E) federal and state governments, which monitor who is contacted and how personal information is safeguarded

F) A) and D)
G) None of the above

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Because direct-marketing messages are constantly being measured, it is easier to learn what works and modify succeeding campaigns based on results than with advertising.

A) True
B) False

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True

Scott is developing the offer in a direct marketing campaign. What should he include?


A) description of the product
B) terms of sale
C) payment and delivery information
D) other information such as price, optional features, future obligations, etc.
E) all of the above

F) B) and E)
G) A) and B)

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As described in "The Inside Story," what was the objective for the direct mail campaign developed for Texins-Activity Centers?


A) encouraging activity and changing the targets' health and wellness habits
B) reach high school girls with a message that the T-I Centers are the place to be
C) reach high school boys whose parents are members of other fitness centers
D) pull members of other fitness centers away from their current fitness centers
E) encourage families with household incomes greater than $500,000 to become members of Texins-Activity Centers

F) B) and C)
G) C) and D)

Correct Answer

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A

MINI-CASE Proactive Solution is a skincare system to help those with acne. Proactive originally started out as being sold only through direct marketing, and the consumer had to enroll in membership in the Proactive Solution Clear Skin Club. However, now some large malls have kiosks selling Proactive Solution products without the club membership, but the prices are much higher. Proactive Solution has had one of the longest-running infomercials on television, and their product is also sold through magazine ads. Through these mediums, consumers can purchase the product directly by calling, mailing, or going through the Internet to submit an order. -Refer to Mini-Case. Jill is a member of the Proactive Solution Clear Skin Club, and she received a telephone sales call trying to get her to purchase Proactive make-up, too. Jill registered her phone number with the National Do-Not-Call List and is upset that she received this call. Can Proactive call her? Explain any restrictions they must be aware of.

Correct Answer

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Outbound telemarketing calls are the ones that generate the most consumer resistance.

A) True
B) False

Correct Answer

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Which process identifies and analyzes patterns in customer behavior to maximize the profitability of each relationship?


A) integrated marketing communications
B) customer relationship management
C) database direct marketing
D) direct marketing
E) contact marketing

F) A) and E)
G) A) and D)

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Which of the following is NOT a type of list?


A) data list
B) house list
C) compiled list
D) response list
E) All of the above are types of lists.

F) C) and D)
G) A) and E)

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Your job at work is to develop and execute direct marketing campaigns. Direct marketers conduct a lot of testing before launching a big campaign. Explain how direct marketing professionals are able to continually evaluate and accurately measure the effectiveness of various offers in a single campaign.

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Unwanted e-mail is known as spam.

A) True
B) False

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