chapter 13

Question 1

what is direct marketing?

Answer 1

a system of marketing by which organisations communicate directly with target customers to generate a response or transaction.

a form of advertising

Question 2

what are the direct-response media?

Answer 2

direct mail, telemarketing, interactive tv, print, and the internet (social media and others).

Question 3

what has lead to the rapid increased attractiveness of direct marketing

Answer 3

1) catalogues
2) credit cards
3) growing expertise of direct marketers
4) changing structure of society and the market
5) technological advances
6) its measurable

Question 4

what can direct marketing support/be supported by?

Answer 4

1) advertising
2) pr
3) personal selling
4) sales promotions
5) support media
6) internet
i. e. just ad a direct response thingo to your ad/pitch/ etc. and you got direct marketing.

Question 5

what is database marketing

Answer 5

the use of a database of customer info to implement more effective and efficient communication

Question 6

what functions are databases used to perform?

Answer 6

1) improving the selection of target markets
2) stimulate repeat purchases
3) cross-sell
4) customer relationship management

Question 7

what are some sources of information for direct marketing databases?

Answer 7

1) ABS
2) Australia Post
3) Service providers
4) Australian direct marketing association
5) build your own

Question 8

what does RFM stand for?

Answer 8

R) Recency (of purchase)
F) Frequency (of purchase)
M) monetary transactions

Question 9

what is RFM method used for

Answer 9

tracking the effectiveness of databases

Question 10

whats a one-step approach?

Answer 10

the medium is used directly to obtain an order. Goal is to generate an immediate sale. Eg, reply paid coupons, 1-800 numbers.

Question 11

what is the two-step approach?

Answer 11

involves the use of more than one medium
first effort is used to screen, or qualify, potential buyers. the second generates the response

aka permission marketing

Question 12

what are catalogues used for?

Answer 12

inform consumers and sell directly

Question 13

what is direct response advertising?

Answer 13

the product or service is offered, and a sales response is solicited either through one or two-step approaches.

e.g. danos direct

Question 14

what is support advertising?

Answer 14

advertising support for direct marketing…

e.g. advertisements telling you to look out for direct marketing in the mail

Question 15

electronic teleshopping = ?

Answer 15

e-commerce

Question 16

advantages of direct marketing

Answer 16

1) selective reach
2) segmentation capabilities
3) frequency
4) creative flexibility
5) timing
6) personalisation
7) costs
8) measures of effectiveness

Question 17

limitations of direct marketing

Answer 17

1) Image factors
2) accuracy
4) content support
5) rising costs
6) interactivity

Question 18

What are the 3 different direct selling techniques?

Answer 18

1. Repetitive person to person selling
2. Non-repetitive person to person selling
3. Party plans.