True/False
Indicate whether the sentence or statement is true or
false.
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1.
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It has
been estimated that the cost of acquiring a new customer is double that of keeping an existing
customer.
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2.
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Direct
e-mail marketing describes a technique where the receiver has agreed to receive e-mail messages from
the advertiser.
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3.
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The
best measure of a Web site’s success is known as “hits”.
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4.
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Direct
marketing is particularly important to businesses that have a high proportion of frequent-repeat
customers.
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Multiple Choice
Identify the letter of the choice that best
completes the statement or answers the question.
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1.
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Among
the key advantages of direct marketing are a. | low-cost, and precision
targeting. | b. | mass-market
coverage in a very short period of time. | c. | impersonal contact thereby allowing improved
prospecting. | d. | all of the
above. | | |
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2.
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Direct
response advertising a. | refers to advertising through any medium where the
intention is to generate a response, and, that degree of response is
measurable. | b. | can include direct
mail and DRTV. | c. | is underdeveloped
in Canada. | d. | is accurately
described by all three statements above. | | |
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3.
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The
single most important step in a direct mail campaign is a. | partnering with other companies in a cooperative direct
mail program. | b. | conceiving and
producing the mail piece. | c. | obtaining a high-quality prospect
list. | d. | following up with
a telephone call to close the sale. | | |
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4.
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Telemarketing a. | has the advantage of being able to complete a sale for less
cost than face-to-face or mass advertising. | b. | is being used more often in Canada and is well-received by
most Canadians. | c. | has yet to be used in the Canadian hospitality and tourism
industry. | d. | has been very
successful for organizations such as The Shopping Channel. | | |
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5.
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A
recent study by the Canadian Marketing Association (CMA) found that approximately 60% of Canadian
businesses have a Web presence. This study also found that a. | banner ads are the most common e-marketing
tactic. | b. | although most
Canadian companies gather and store consumer information, most fail to use it in planning future
strategies. | c. | over 99% of
companies responding to the survey said they used outbound e-mail as a marketing
tactic. | d. | CRM is a
well-developed Internet marketing tactic. | | |
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6.
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One of
the ten tips for developing an effective Web site is to a. | make navigation simple and eliminate any interactive
features as they only annoy Web users. | b. | use only the most common fonts and be sure to look at your
Web site using both Netscape and Internet Explorer. | c. | be sure one’s logo is full-screen and catchy and that
the look of each page varies in order to keep the viewer interested. | d. | All of the above. | | |
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7.
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Canadians currently use the Internet and Web primarily for a. | research, comparison, and
purchasing. | b. | requesting further
information from an organization. | c. | research, planning, and avoiding long-distance telephone
costs. | d. | research and
planning purposes. | | |
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8.
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“Permission marketing” refers to an approach in which consumers agree to be
marketed to via the Internet, usually in return for some kind of reward. This
approach a. | is based upon the
concept of CRM. | b. | is gaining popularity primarily because it avoids
lawsuits. | c. | is designed to be
used for a single promotion as opposed to a long-term relationship. | d. | is a good compliment to mailed mass media
brochures. | | |
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9.
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Marketing research conducted through the use of e-mail or the Web a. | has been shown, in some instances, to cause response bias,
multiple entry, and unwanted entries. | b. | has the advantage of speed and
flexibility. | c. | can make use of
software to automatically collect responses and tabulate results. | d. | All of the above. | | |
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10.
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The
family-owned “Ripley Ridge Retreat”, near Calgary, found that a. | word-of-mouth and the Internet were the primary sources of
information when searching for accommodation, and that advertising brochures failed to bring the
retreat any business. | b. | both printing and distribution costs for brochures are very
high. | c. | customers say they
heard of the retreat through … “the Internet, but none of them knows exactly
how!” | d. | All of the
above. | | |
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11.
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The
four main advantages of online advertising are: a. | anonymity, immediacy, low cost, and
graphics. | b. | interactivity,
high degree of personalization, brand recognition, and customer acceptance. | c. | targetability, tracking, deliverability, and
interactivity. | d. | the opportunity to
have sponsors, ease of delivery, targetability, and universality. | | |
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12.
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Author
Kevin Sinclair stated that one of the key factors for selling on the Web is credibility. Among
his suggestions for maximizing Web site credibility are to: a. | make the ordering process quick and easy, and provide a
toll-free phone number. | b. | have a privacy statement, provide a strong guarantee, and
publish customer testimonials. | c. | make your site look commercial, not amateurish, and be sure
your product is what the customer wants. | d. | All of the above. | | |
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13.
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Online
partnerships for distributing travel products are growing in number. One such partnership is
between the CTC and the Railway Association of Canada (RAC). Their Web site, www.canadabyrail.ca a. | competes directly with Air Canada’s travel Web site,
www.Destina.ca . | b. | has direct links to all major hotel and airline Web sites
in Canada. | c. | offers a one-stop
resource for all rail-related leisure travel to all regions of Canada. | d. | has, wisely avoided use of any photographs because they
take too long to download and just annoy the Web site visitor. | | |
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Matching
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a. | banner ad | g. | infomercial | b. | call centre | h. | permission marketing | c. | cooperative direct mail | i. | solo direct mail | d. | direct mail | j. | spam | e. | direct marketing | k. | telemarketing | f. | direct response advertising | | | | |
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1.
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a
marketing system, fully controlled by the marketer, that develops products, promotes them directly to
the final consumer through a variety of media options, accepts direct orders from customers, and
distributes products directly to the consumer
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2.
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advertising through any medium, designed to generate a response by any means that is
measurable (e.g., mail, television, telephone, fax, or Internet)
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3.
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a type
of direct response advertising that sends an offer to a prospective customer by mail
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4.
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a
direct mail piece sent out by one company and delivered by the company itself
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5.
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a
direct mail offer delivered as part of a package that includes offers from other
companies
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6.
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using
the telephone to reach customers or prospective customers
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7.
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a
central operation from which a company operates its inbound and outbound telemarketing
programs
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8.
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a
commercial, usually 30 minutes long, that presents in great detail the benefits of a product or
service on the television
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9.
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e-mail
advertisements sent to lists of recipients who have not agreed to receive them
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10.
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an
advertisement placed as a narrow band across the top of a Web page; the most common form of
advertising on the Internet
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11.
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marketing in which consumers volunteer to be marketed to on the Internet in return for
some kind of reward
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