Chapter 13

Question 1

Direct and digital marketing

Answer 1

Interacting with known customers and others in the marketing channel, on a one-to-one basis, mostly in real time, using electronic network tools and technologies ranging from the internet to mobile phone networks

Question 2

Internet/World Wide Web

Answer 2

A vast public web of computer networks that connects users of all types all around the world to each other and to an amazingly large ‘information repository’

Question 3

Mobile marketing

Answer 3

Marketing conducted through mobile phones, smartphones, tablets and other mobile communication devices interconnected to the internet via data-capable mobile phone networks and/or WIFi

Question 4

Direct print and reproduction

Answer 4

Mail-outs of letters, product lists, samples, and paper-based and digital catalogues on CD-ROM or DVD sent to a list or a known database of customers, or to a targeted group that the marketer wishes to convert to a database entry

Question 5

Direct-response television and radio

Answer 5

Where commercials are put to air that persuasively describe a product and then give a toll-free number for viewers to call and place an order

Question 6

Telemarketing

Answer 6

Where either viewers are invited to call a 1-800, 0055 or 1300 number and place their order - inbound telemarketing - or human telephone operators or computers with voice recognition capabilities, ‘cold call’, seeking an order or perhaps a donation - outbound telemarketing

Question 7

Telesales

Answer 7

Usually involves a permanent part-time bank of telephone operators who routinely call known customers, such as retailers, to take their orders

Question 8

Kiosks

Answer 8

Machines used to place information and take orders of such offerings as insurance policies

Question 9

Electronic dispensing machines and card-reading telephones

Answer 9

Dispense and receive cash, as do the EFTPOS machines used by retailers

Question 10

Customer database

Answer 10

An organised collection of comprehensive data about individual customers or prospects, including geographic, demographic, psychographic and behavioural data

Question 11

List

Answer 11

Direct and digital marketing entails hiring lists containing names and contact details of qualified potential customers

Question 12

Intranet

Answer 12

A secure web service for employees only or, in the case of a university, for staff only

Question 13

Extranet

Answer 13

An online service provided to key customers using a secure information base or transacting website on the public internet

Question 14

Privacy guidelines

Answer 14

Some countries, including Australia, have extended privacy legislation that applies to most profit and non-profit organisations

Question 15

Location-based marketing

Answer 15

Delivering targeted marketing communication to customers in particular locations, through mobile devices such as smartphones and tablets, thereby taking advantage of the GPS features of such devices

Question 16

Data mining

Answer 16

Checking databases for patterns and trends that might exist, or to find new connections between data items

Question 17

Online marketing

Answer 17

Company efforts to market products and services and build customer relationships over the internet

Question 18

Corporate and/or brand website

Answer 18

Website designed to build customer goodwill, collect customer feedback, and supplement other sales channels, rather than to sell the company’s products directly

Question 19

Marketing website

Answer 19

Website designed to engage consumers in an interaction that will move them closer to a direct purchase or other marketing outcome, or hold them as loyal customers

Question 20

Search marketing

Answer 20

Marketing effort to gain prominence for a website on search engine listings, with the aim of attracting visitors who search on keywords via their favourite search engine, portal or directory to this website

Question 21

Online advertising

Answer 21

Advertising that appears while consumers are browsing the web, including display ads, search-related ads, online classifieds and other forms

Question 22

Pass -it-on marketing

Answer 22

The internet version of word-of-mouth marketing - websites, videos, email messages, or other marketing events that are so infectious that customers will want to pass them along to friends

Question 23

Social media networks

Answer 23

Online social communities - blogs, social networking websites or even virtual worlds - where people socialise or exchange information and opinions

Question 24

Spam

Answer 24

Unsolicited, unwanted commercial email messages

Question 25

Customer-to-customer interaction

Answer 25

Interaction whereby customers can buy or exchange goods or information directly from one another. Such interaction may also involve interchanges of information through internet forums that appeal to specific special-interest groups

Question 26

Blog

Answer 26

An online journal where people post their thoughts, usually on a narrowly defined topic

Question 27

Customer-to-business interaction

Answer 27

Interaction whereby customers communicate with companies

Question 28

Fulfilment response

Answer 28

Order processing, delivery response times and accuracy of delivery must be considered when responding to product offers

Question 29

Cookies

Answer 29

Short identifier pieces of text deposited on a visitor’s computer by a website. On subsequent visits, the website software records the cookie response and thus measures repeat guest visits

Question 30

Clickstream analysis

Answer 30

Analysis of the path followed by website visitors

Question 31

Customer lifetime value

Answer 31

The amount by which revenues from a customer over time exceed the company’s costs of attracting, selling and servicing that customer

Question 32

RFM

Answer 32

Direct and digital marketing giants manage customer databases employing three criteria: recency of purchase, frequency of purchase and monetary value of purchase

Question 33

Internet fraud

Answer 33

Fraudulent activity including identity theft and financial scams. These activities extend to phishing, snooping on online transactions, picking up personal information, or intercepting credit and debit card numbers. They can also include the release of harmful viruses, spyware and other ‘malware’.

Question 34

Cross-referencing of data

Answer 34

A privacy issue arises when an individual’s personal information, such as health status or work attendance level, is interconnected and used without permission