14.5 Traditional Direct Marketing Forms

Question 1

What are the major traditional forms of direct marketing?

Answer 1

The major traditional forms of direct marketing are

face-to-face or personal selling,

direct-mail marketing,

catalogue marketing,

telemarketing,

direct-response television (DRTV) marketing,

and kiosk marketing.

Question 2

What are the advantages of direct-mail marketing?

Answer 2

Advantages of direct-mail marketing include

high target market selectivity,

personalization,

flexibility,

and easy measurement of results.

Question 3

How has technology affected catalogue marketing?

Answer 3

Technology has led to the creation of digital catalogues that eliminate printing and mailing costs, allow real-time merchandising, offer unlimited merchandise space, provide interactivity, and offer various presentation formats.

However, printed catalogues still thrive because they create emotional connections with customers and drive in-store, online, and mobile sales.

Question 4

What is telemarketing?

Answer 4

Telemarketing involves using the telephone to sell directly to consumers and business customers. It includes both outbound telephone marketing to sell products or services and inbound toll-free numbers to receive orders referred from various channels.

Question 5

What is the purpose of the National Do Not Call List in Canada?

Answer 5

The National Do Not Call List (DNCL) in Canada aims to reduce the number of unsolicited telemarketing calls received by consumers. Consumers can register their phone numbers on the DNCL, and marketers are required to remove registered numbers from their telemarketing databases and follow specific procedures when making legal telemarketing calls.

Question 6

What is direct-response television (DRTV) marketing?

Answer 6

Direct-response television (DRTV) marketing involves airing television spots, often 60 or 120 seconds in length, that persuasively describe a product and provide customers a toll-free number or an online site for ordering. It also includes full 30-minute or longer advertising programs called infomercials, dedicated to promoting a single product.

Question 7

What is kiosk marketing?

Answer 7

Kiosk marketing involves placing information and ordering machines, called kiosks, in various locations such as stores, airports, hotels, and university campuses. Kiosks can range from self-service check-in devices to in-store ordering systems and product vending machines. Modern kiosks may also be wireless-enabled and use facial recognition software for personalized product recommendations.

Question 8

What are the main categories of public policy issues in direct and digital marketing?

Answer 8

The main categories of public policy issues in direct and digital marketing are

irritation,

unfairness,

deception,

fraud,

privacy concerns,

and internet and mobile security issues.

Question 9

What are examples of irritating direct marketing tactics?

Answer 9

Examples of irritating direct marketing tactics include loud and insistent TV commercials, unwanted junk mail, and intrusive online or mobile display ads, pop-ups, or pop-unders.

Question 10

What is phishing?

Answer 10

Phishing is a type of identity theft that uses deceptive emails and fraudulent web and online mobile sites to trick users into divulging their personal data, such as account numbers, passwords, and social insurance numbers.

Question 11

What is one concern regarding internet marketing and vulnerable groups?

Answer 11

One concern regarding internet marketing and vulnerable groups is the difficulty of restricting access by minors to adult-oriented materials and sites, as well as protecting children from online dangers such as identity theft schemes and negative experiences.

Question 12

What is the main concern regarding consumer privacy in direct marketing?

Answer 12

The main concern is that marketers may know too much about consumers’ lives, which can lead to the potential abuse of personal information and intrusion on consumer privacy.

Question 13

What is microtargeting in direct marketing?

Answer 13

Microtargeting is the practice of using sophisticated big data analytics to mine consumer databases and tailor marketing efforts to specific consumer profiles and behaviors.

Question 14

What is the Personal Information Protection and Electronic Documents Act (PIPEDA)?

Answer 14

PIPEDA is a Canadian law enacted in 2001 and fully enforced in 2004, which regulates the collection, use, and disclosure of personal information by businesses and protects consumer privacy.

Question 15

What are the four key principles of PIPEDA?

Answer 15

The four key principles are: consumer knowledge and consent, limitations, accuracy, and the right to access.

Question 16

What is the Electronic Commerce Protection Act (ECPA)?

Answer 16

ECPA is a proposed Canadian legislation aimed at protecting consumers and businesses from spam, counterfeit websites, and spyware, as well as boosting confidence in online commerce.

Question 17

What is the Privacy Promise to American Consumers by the Data & Marketing Association (DMA)?

Answer 17

The Privacy Promise is a set of consumer privacy rules that DMA members must adhere to, which include notifying customers when their personal information is shared, honoring opt-out requests, and abiding by the DMA’s Preference Service.

Question 18

What is the role of TRUSTe in addressing consumer privacy and security concerns?

Answer 18

TRUSTe is a nonprofit self-regulatory organization that works with corporate sponsors to audit privacy and security measures, helping consumers navigate the internet safely and lending its privacy seal to compliant online channels.