Chapter 16 Flashcards

1
Q
  1. _____ is any direct to a consumer or business recipient that is designed to generate a response in the form of an order, a request for further information, and/or a visit to a store or other place of business for the purchase of a specific good or service.
A

Direct marketing

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2
Q
  1. _____ is a measurable system of marketing that uses one of more advertising media to affect a measurable response and/or transaction at any location, with this activity stored in a database.
A

Direct marketing

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3
Q
  1. Direct marketing is virtually synonymous with:
A

database marketing

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4
Q
  1. Which of the following statements about direct marketing is true?
A

Direct marketing is a measurable system of marketing.

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5
Q
  1. Sierra South sells whitewater ratting and kayaking trips, and related merchandise. The company uses a Web site to gather information from potential customers of its products. This information is entered into the company’s database. Names and information in this database are used to determine who should receive a personalized sales e-mail from the company. Sierra South is using:
A

database marketing

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6
Q
  1. _____ advertising is always aimed at stimulating some action or response from its recipient.
A

Direct-response

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7
Q
  1. Sierra South sells whitewater ratting and kayaking trips, and related merchandise. Sierra South uses the Internet as its _____ to connect its customers and prospects with the company–to provide them with information on upcoming trips, new gear, and sales.
A

linkage media

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8
Q
  1. _____ is the oldest marketing method, and it is growing incredibly fast today as a result of social and technological changes.
A

Direct marketing

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9
Q
  1. The growth of direct marketing has been fueled by:
A

the expanding use of credit cards

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10
Q
  1. Rite Aid announced the launch of a _____ called Living More that provides benefits and savings to customers at least 60 years of age. Every time members use their card they are automatically entered into a quarterly sweepstakes plus getting a ten percent discount off all cash prescriptions as well as a ten percent discount off Rite Aid-brand products.
A

loyalty program

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11
Q
  1. _____ is the process of gathering, consolidating, updating, and enhancing the information about customers and prospects that resides in an organization’s database.
A

Data management

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12
Q
  1. A database enables marketers to make _____ to manipulate, analyze, and rank all the information to make better marketing decisions.
A

feedback requests

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13
Q
  1. Direct marketing expert Bob Stone recommends using the RFM formula to identify a company’s best customers. The letters “RFM” are an acronym for:
A

recency, frequency, and monetary

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14
Q
  1. Which of the following statements about the importance of direct marketing to integrated marketing communications (IMC) is true?
A

By providing a tangible response, direct marketing offers accountability.

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15
Q
  1. Which of the following statements describes a reason why an advertiser might decide against using direct marketing?
A

Many customers like to be able to use more than their visual senses when they are buying.

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16
Q
  1. All direct marketers must make two basic strategy decisions. The first is the extent to which they will use direct sales. The second is:
A

the extent to which they will use direct-response advertising

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17
Q
  1. What are the two primary methods for implementing a direct-sales strategy?
A

person-to-person and group sales

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18
Q
  1. _____ is face-to-face selling away from a fixed retail location.
A

Direct selling

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19
Q
  1. _____ includes selling and prospecting by telephone, answering phone inquires, and providing sales-related services to callers.
A

Telemarketing

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20
Q
  1. Advertising that asks the reader, viewer, or listener to provide feedback straight to the sender is called:
A

direct-response advertising

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21
Q
  1. In 2005, the airwaves of KFI-AM were saturated with commercials that asked listeners to dial advertisers’ toll-free numbers or visit their Web sites. The approach accounted for nearly half the advertising on KFI, and it’s a big reason why the station has climbed nearly to the top of the Los Angeles market in revenues and to No. 4 nationwide. In this example, a broadcast medium is prospering from the use of:
A

direct-response advertising

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22
Q
  1. When Leona got her most recent copy of the Mysteries by Mail catalog, she was pleased to find that the catalog contained a short story by her favorite author, Margaret Maron. The catalog promised that short stories would be a regular feature of the catalog, and Leona is looking forward to receiving her next one. Which of the following describes the most likely reason why the catalog plans to include short stories by popular authors?
A

to help it stand out from the glut of catalogs

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23
Q
  1. Which of the following is the best example of direct-response print advertising?
A

a magazine ad that asks you to call a toll-free number for more information

24
Q
  1. Which of the following is the best example of direct-response broadcast advertising?
A

a TV infomercial for exercise equipment

25
Q
  1. Which of the following is the best marketing communication tool for relationship building?
A

personal selling

26
Q
  1. _____ is the interpersonal communications process by which a seller ascertains and then satisfies the needs of the buyer, to the mutual, long-term benefit of both parties.
A

Personal selling

27
Q
  1. Which of the following is an example of personal selling?
A

All of the above are examples of personal selling.

28
Q
  1. What is the greatest strength of personal selling?
A

its personal nature

29
Q
  1. Personal selling does a better job of gaining distribution for _____ better than any other communication tool.
A

new products

30
Q
  1. Personal selling is the most costly way to communicate with prospects because:
A

it is very labor intensive

31
Q
  1. A marketer can reduce the cost of personal selling by:
A

communicating relevant information about the company and its product before the sales call

32
Q
  1. What communications functions does personal selling perform in an integrated marketing communications (IMC) program?
A

all of the above

33
Q
  1. _____ is a direct inducement offering extra incentives anywhere along the marketing route to enhance the movement or accelerate the product’s movement from producer to consumer.
A

Sales promotion

34
Q
  1. Which of the following statements about sales promotion is true?
A

Sales promotion may be used anywhere along the marketing route.

35
Q
  1. To create effective sales promotions, a company should:
A

make sure the sales promotion reinforces the brand’s advertising message

36
Q
  1. While sales promotions play an important part in the marketing mix, they also:
A

tend to draw the competition into a promotion war

37
Q
  1. Barton Beers invited its retailers to celebrate “Fiestas Patrias,” a traditional Mexican holiday that celebrates the country’s independence from Spain. The marketing vice president for Barton announced that the company has developed posters, displays, and banners for retailers to use during the celebration period. The purpose of this _____ is to encourage Mexican customers to buy Barton beer.
A

sales promotion

38
Q
  1. A sales promotion aimed at members of the distribution channel is called a:
A

trade promotion

39
Q
  1. Barton Beers invited its retailers to celebrate “Fiestas Patrias,” a traditional Mexican holiday that celebrates the country’s independence from Spain. The marketing vice president for Barton announced that the company has developed posters, displays, and banners for retailers to use during the celebration period. Barton Beers is using a:
A

trade promotion

40
Q
  1. Rather than ultimately building a new power plant, which costs hundreds of millions of dollars, a TX-based energy company is offering customers a rebate of up to $15,000 to install home solar energy systems. This would be an example of a _____ strategy.
A

pull

41
Q
  1. A _____ strategy is primarily designed to secure the cooperation of retailers.
A

push

42
Q
  1. Trade concentration refers to:
A

more products going through fewer retailers

43
Q
  1. A(n) _____ is paid by a manufacturer for the privilege of obtaining shelf or floor space for its new product.
A

a.

slotting allowance

44
Q
  1. A trade deal is a(n):
A

short-term discount on the cost of a product offered to members of the trade

45
Q
  1. The maker of Behr paints is offering supermarkets a one-month deal, which allows hardware and do-it-yourself stores to purchase its paints at 25 percent off the regular price. The paint manufacturer hopes supermarkets will pass along these savings to consumers in the form of “specials.” Assume buyers for a small regional chain of hardware retailers have purchased enough Behr paint to last the chain for the next five months. This chain is engaging in:
A

forward buying

46
Q
  1. In the Moosehead Cabin Fever Rescue Promotion, beer retailers were sent an inflatable bush plane with 30-inch wingspan that appeared to be dropping a parachute that holds a Moosehead 12-pack box . Moosehead probably had to pay a ______ to encourage retailers to use this rather large promotional material in their stores
A

display allowance

47
Q
  1. Automakers began rewarding dealers with financial incentives long before dealership customers started getting them, too. Recipients are employees of multi-franchise dealerships. Automakers offer these salespeople _____ to get them to pitch their brand of vehicles over a competitor’s product sold at the same store.
A

spiffs

48
Q
  1. Which of the following is NOT an example of a consumer sales promotion?
A

spiffs

49
Q
  1. Adrienne Faith & Co. offered retailers of spas a four-tiered acrylic shelf unit that holds 36 bottles (2.4 ounces each) of spa fragrance or spa crystals. The unit is to be placed on the counter, next to the cash register and would be an example of:
A

point-of-purchase material

50
Q
  1. Which of the following trends has increased the importance of P-O-P materials?
A

self-service retailing

51
Q
  1. While shopping at the supermarket, Juana noticed a box of Tide detergent with a banner on the label indicating it was “$1 off the regular price.” Obviously, the manufacturer of Tide is using a:
A

cents-off promotion

52
Q
  1. Research indicates that many people purchase a product because of an advertised rebate but never collect the rebate because of the inconvenience. This phenomenon is called:
A

spillage

53
Q
  1. If you buy a case of Friskies dry cat food, you can send the UPC with $2.00 and receive a metal comb specially designed for removing loose cat hair. The comb is an example of a(n):
A

premium

54
Q
  1. For which of the following products would sampling be LEAST suitable?
A

Broilmaster premium gas grills

55
Q
  1. The manufacturer of NIVEA skin care products conducted a _____ in which a winner was selected by a drawing. Each entrant had the same probability of winning a day of pampering at his or her local spa.
A

contest