Building Direct Customer Relationships Answer Key Part 4

113) Fiona Lambrech is the marketing director of a charity that raises funds to help provide educational services to children and families in developing countries. Fiona wants to reach a select market of individuals who have recently donated to international charities. Which of the following types of direct marketing will Fiona most likely use? direct-mail marketing B) catalog marketing C) telephone marketing D) kiosk marketing E) direct-response television marketing Answer: A 114) Organic Designs is a small, successful chain of stores offering stylish clothes made of allorganic materials for infants, toddlers, and young children. Most of the Organic Designs stores are located in urban areas. Now Organic Designs is considering using direct marketing to reach potential customers who live outside of the company's existing markets, with the goal of creating emotional connections and long-term relationships with a new group of customers. Which of the following methods of direct marketing would most likely be effective in accomplishing this goal? A) mobile phone marketing B) interactive TV marketing catalog marketing D) kiosk marketing E) direct-response television marketing Answer: C 115) Gutter Guys is a gutter installation company in Southern California that used to generate most of its sales through telemarketing but now uses direct mail to reach prospective customers. Which of the following most likely explains the reason that Gutter Guys switched from telemarketing to direct mail? A) Federal Trade Commission's Anti-Spam Act B) Privacy Promise to American Consumers C) California Online Privacy Protection Act D) Children's Online Privacy Protection Act ) National Do Not Call Registry Answer: E 116) Neal Murphy sells his company's unique gift items on television programs and entire channels dedicated to selling goods and services. Neal is using ________. direct-response television advertising B) Internet-based infomercials C) B2B online marketing D) prime-time selling E) vodcasting Answer: A 117) A producer of beverages and snack foods wants to market its products to the 18-to-34-yearold demographic by providing incentives to respond instantly to time-sensitive offers. Which of the following forms of direct marketing would this producer most likely choose? A) interactive TV B) direct-response TV ) mobile phone D) direct mail E) podcasting Answer: C 118) Company X began as a brick-and-mortar company. Which of the following statements MUST be true? By adding online marketing options, Company X would become a click-and-mortar company. B) Company X is also considered a click-only dot-com. C) Company X should not be concerned about consumer-to-consumer online marketing. D) Company X is probably not making a profit. E) By adding online marketing options, Company X would become a click-only company. Answer: A 119) Office Depot is a click-and-mortar company. Which of the following is LEAST likely to be an advantage that Office Depot has over click-only competitors? A) Office Depot is a known name with greater financial resources. B) Office Depot has a large, established customer base. C) By offering online marketing, Office Depot offers customers more options. D) Customers can find a local store and check its available stock online. ) Office Depot focuses on large accounts through its online presence and small businesses through its retail stores. Answer: E 120) Green Gardens is a click-and-mortar seller of gardening and landscaping goods and equipment, but the marketing department wants to promote the Green Gardens Web site. When customers are unable to find a product they need on the shelves of their local Green Gardens, the marketing department wants them to search for the product on the Green Gardens Web site. Which of the following marketing devices is the best match for this goal? ) kiosks B) e-mail C) mobile phones D) telemarketing E) catalog marketing Answer: A 121) ABC Company sells directly to final consumers and avoids intermediaries, while catering to a broad group of demographic segments. This marketer falls under which online marketing domain? ) B2C B) B2B C) C2C D) C2B E) A or C Answer: A 122) Jane Cheatham, a stay-at-home mother, regularly posts new entries on a widely read blog. In these entries, she often reviews consumer products that she uses during the course of her day. Jane participates in ________. A) C2B online marketing ) C2C online marketing C) viral marketing D) content sponsorship E) online social networks Answer: B 123) By using Priceline.com, potential buyers can bid for airline tickets, hotel rooms, rental cars, cruises, and vacation packages. It is then up to sellers to decide whether or not to accept an offered bid. This is an example of ________. A) B2B online marketing B) C2C online marketing C) B2C online marketing ) C2B online marketing E) multi-channel marketing Answer: D 124) Converse has a Web site that welcomes consumers to "the Converse Century," invites readers to post their Converse stories, and offers a wide variety of Converse shoes for direct purchase. The site even allows customers to individually design their own shoes. The Converse site is most accurately categorized as which of the following types of Web sites? A) a B2B site B) a C2B site C) a C2C site D) a corporate site ) a marketing site Answer: E 125) Oscar Aviation has a corporate Web site. Prospective customers are most likely able to do all of the following on the site EXCEPT ________. A) learn about Oscar's philosophy B) ask online questions ) enjoy entertainment features on the site E) register to receive more information from the company Answer: D 126) In attempting to design an effective Web site, Company A tried to address all of the seven Cs. The site, however, has a weak layout and design. Which C does this represent? A) customization B) content ) context D) connection E) community Answer: C 127) You are looking up airline schedules on the Internet. A bar at the top of the screen reads, "Stay at Holiday Inn and get a 25 percent discount!" This is a(n) ________. ) banner B) pop-under C) content sponsorship D) pop-up E) interstitial Answer: A 128) You have accessed fare information on Northwest Airlines' Web site. You want to compare it with United Airlines' fares. In between screen changes, an ad appears from Alamo Car Rental. This is a(n) ________. A) banner B) pop-up C) content sponsorship D) pop-under ) interstitial Answer: E 129) Uptown Cleaning Crew is a company that provides house cleaning services in major urban and suburban areas. Marketers at Uptown Cleaning Crew developed a short, humorous video promoting the company's services, and they hope that customers who see the video will be so entertained that they will pass it on to their friends and colleagues. The marketers at Uptown Cleaning Crew are using ________. A) a content sponsorship ) viral marketing C) C2B marketing D) rich media ads E) a marketing Web site Answer: B 130) Runners can compare performances, set up profiles, and meet new friends on Nike's Nike Plus Web site. Nike Plus is an example of a ________. A) C2C marketing site B) viral marketing site Web community D) alliance and affiliate program E) contextual advertisement Answer: C 131) After selecting a sweater on the Land's End Web site, Kelly Oldham filled out the required customer and credit card information. A box with a checkmark inside was next to the following statement :"Yes, I would like to receive promotional information via e-mail from Land's End." The statement suggests that Land's End is using which of the following marketing tools? A) spam B) phishing C) catalog marketing D) niche marketing ) permission-based e-mail marketing Answer: E 132) Charlie Putnam received an e-mail promoting a new financial services institution that offers surprisingly low mortgage rates. The e-mail simply asked customers to provide their address, date of birth, social security number, and current mortgage information in order to receive a free loan quote. Suspicious of the offer, Charlie researched the company and discovered that the email was a fraud. This is an example of ________. A) online eavesdropping ) phishing C) malware D) heat marketing E) viral marketing Answer: B Refer to the scenario below to answer the following questions. The Treble Clef offers a complete line of sheet music, musical instruments, and novelty gifts of a musical nature. In recent years, owner Gary Zahn has even served as the local representative of several musical instrument manufacturers, providing a contact person for three local school districts. "If we don't have it, chances are excellent that we can get it for you," Gary tells all Treble Clef visitors and customers. Most walk-ins are particularly interested in a specific piece of sheet music from a particular era or just browsing among the hundreds of musical knick-knacks in the store. Gary spends most of his time making presentations to beginning music students at the local schools and making bi-weekly visits to the schools in order to deliver instruments, to make minor repairs when possible, or to pick up instruments to ship to the manufacturer for more complicated repairs. After dragging his feet for quite some time, Gary was convinced that a Treble Clef Web site could benefit a variety of customers. He began with a simple site explaining store hours and depicting types of gifts and services available. The site received so much response that Gary added a question-and-answer option. Questions poured in, ranging from "Where can I get the sheet music for 'Hello, Dolly'?" to "Do you carry clarinet reeds?" to "My saxophone needs two new pads. When will you be at Elmhurst school to repair it?" "I don't know how we did it without our Web site," Gary admitted. "It allows us to be so responsive. And our novelties sales have doubled!" 133) What type of online marketing is Gary Zahn using to promote the Treble Clef? A) B2B ) B2C C) viral marketing D) social networking E) contextual advertising Answer: B 134) Which of the following BEST describes the Treble Clef? A) a brick-and-mortar company that is now a click-only retailer ) a dot-com that has added a storefront to service local customers D) a brick-and-mortar retailer that is struggling to compete with click-only firms E) a brick-and-mortar company that established a Web community for musicians Answer: C 135) Many Treble Clef customers are seeking specific sheet music that Gary does not always have in-stock. Gary would like to provide a link on the store's Web site to a sheet music supplier with which he does business. On which of the following Web site design elements should Gary focus? A) context B) community C) customization ) connection E) content Answer: D 136) How does direct marketing give buyers access to more comparative information about companies, products, and competitors? Answer: Catalogs and Web sites, both forms of direct marketing, can provide extensive product information and helpful product reviews. Customers can easily research companies, products, and competitors by comparing information in catalogs or on business-to-consumer and consumer-to-consumer Web sites. 137) How does online marketing provide flexibility for sellers? Answer: Online marketing allows the marketer to make ongoing adjustments to its offers and programs. Online catalogs, if used, can be adjusted daily or even hourly if needed. Because the Internet is a global tool, it allows buyers and sellers to click from one country to another country in seconds. 138) What kind of information is likely to be included in a business-to-business customer database? Answer: Data might include products and services purchased by the customer, projected customer spending, competing suppliers, status of current contracts, key contacts and personal information, and assessments of competitive strengths and weaknesses in selling and servicing the account. 139) Why are people reached by direct mail better prospects for a company than those reached by mass media such as television or magazines? Answer: Unlike mass media, direct mail allows for high target-market selectivity, so only consumers who are likely to become customers can be contacted; in addition, direct mail can be personalized for each individual, which helps to build customer relationships. 140) Why are printed catalogs still thriving in the face of the growing popularity of Web-based catalogs? Answer: Printed catalogs are more effective at creating an emotional connection with customers and continue to be one of the best ways to lead customers to online catalogs. 141) Explain how the creation of the National Do-Not-Call Registry may have helped telemarketers more than it hurt them. Answer: Instead of making cold calls to people who are likely to resent the intrusion, telemarketers have switched gears and now focus on managing existing customer relationships through "opt-in" calling systems that provide useful information and offers to customers who have given the company permission to contact them. 142) Why is the use of direct-response television growing in popularity? Answer: Direct-response TV commercials are usually less expensive to produce than traditional television advertisements, and the media purchase is less costly; also, it is easy for marketers to track the effectiveness of a direct-response TV commercial because the ads always include a 1800 number or Web address. 143) Provide an example of how a marketer uses kiosk marketing. Answer: Answers will vary. Many airlines and hotels use kiosks as self-service check-in devices; many retail stores offer in-store ordering kiosks; kiosks in Target stores connect customers to relevant articles from Consumer Reports magazine. 144) How can firms that use new direct marketing technologies avoid backlash from consumers who view such marketing as an invasion of privacy? Answer: Marketers should always target their direct marketing offers carefully and bring real value to customers through direct marketing. 145) What types of services do B2B marketers offer online? Answer: Most major B2B marketers now offer product information, customer purchasing, and customer support services online. 146) Explain how a company benefits from monitoring the blogosphere. Answer: By staying up-to-date with the content on relevant blogs, a company can gain insights from its consumers and adjust its marketing programs accordingly; for example, a company might learn about the weaknesses or strengths of a new marketing campaign by monitoring reactions on blogs. 147) Provide two reasons that many companies are shifting more of their marketing dollars to online advertising. Answer: More companies are increasing the portion of their marketing budget spent on online advertising because consumers are spending more and more time on the Internet. Rich media ads are particularly effective in engaging viewers, and search-related ads reach an audience likely to be interested in the product. 148) What is the purpose of content sponsorship? Provide an example of content sponsorship. Answer: Content sponsorships are a form of Internet promotion; many companies gain exposure on the Internet by sponsoring special content on various Web sites, such as news and financial information. Sponsorships are best placed in carefully targeted sites where they can offer relevant information or service to the audience. Scotts, the lawn-and-garden company sponsors the Local Forecast section on WeatherChannel.com. 149) Explain the goal of viral marketing. Answer: Viral marketing is the Internet version of word-of-mouth marketing. Viral marketing involves creating a Web site, e-mail message, or other event that is so infectious that customers will want to pass it along to their friends. 150) How has the direct marketing industry taken steps to address privacy and security concerns? Answer: Some companies use a nonprofit self-regulatory organization that audits a company's security and privacy measures and then approves Web sites that meet its privacy and security standards. The Direct Marketing Association has started a Privacy Promise that asks member companies to agree to notify customers about the use of their private information and to honor customer requests to "opt-out" of receiving further solicitations.