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Chapter 19:Managing Personal Communications:Direct Marketing and Personal SellingGENERAL CONCEPT QUESTIONSMultiple Choice 1.Direct marketing is the use of consumer-direct channels to reach and deliver goods and services to customers without using marketing middlemen. These channels include direct mail, catalogs, Web sites, interactive TV, and _. a. telemarketing b.bounce-back coupons c.billboardsd.coupons e.none of the above Answer: aPage: 604Level of difficulty: Easy2.Direct marketers seek a measurable response, typically a customer order. This is sometimes called _. a.benchmarkingb.direct marketing c.first time ordering d.direct-order marketing e.direct-access marketing Answer: dPage: 604 Level of difficulty: Easy 3. The extraordinary growth of direct marketing is the result of many factors. These include higher costs of driving, traffic congestion, parking headaches, and _. a.retailers not having interesting sales b.too few new retailers c.too many new items to choose from d.lack of interest in shopping malls e.lack of time Answer: ePage: 604Level of difficulty: Easy 4.Direct marketers can use a number of channels to reach individual prospects and customers. These include _. a.direct mail b.telemarketingc. catalog marketing d. kiosk marketing e. all of the above Answer: ePage: 606Level of difficulty: Easy5.Direct marketing permits the _ of alternative media and messages in search of the most cost-effective approach. a.accent b.use of c.testing d.outsourcing e.implementation Answer: cPage: 606Level of difficulty: Easy6.In constructing an effective direct-mail campaign, marketers must decide on their objectives, target markets, and prospects; offer elements, means of testing the campaign, and _. a.measures of campaign success b.advertising campaign c.sales promotionsd.salespeoples input e.managements input Answer: aPage 607 Level of difficulty: Easy7.A direct mail campaign that has an order-response rate of _ is considered a success. a.5 percentb.3 percent c.2 percent d.10 percent e.15 percent Answer: cPage 607Level of difficulty: Easy8. Direct marketers need to identify the characteristics of prospects and customers who are most able, willing, and _.a.ready to buyb. skilled at buying c.allowed to buy d.permitted to buy e.authorized to buy Answer: aPage: 607Level of difficulty: Easy9.Direct-mail prospects can be identified on the basis of such variables as age, sex, income, education and _. a. banking practicesb.previous mail-order purchases c.previous purchases d.response to mail-order catalogse.telemarketing response Answer: bPage: 608 Level of difficulty: Easy10.Once the target market is defined, the marketer needs to obtain specific names. The companys best prospects are customers who have bought in the past. Additional names can be obtained by purchasing a list of names. The better lists include overlays of _ and _ informationa.financial/buying groups b.demographic/financial c.opinions/interestsd.demographic/attitudese.demographic/psychographic Answer: ePage: 608 Level of difficulty: Hard 11. One of the great advantages of direct marketing is the ability to test, under real marketplace conditions, different elements of an offer strategy. An example of an offer strategy would be a(n) _. a.copy platform b.test marketc.list d.consumer response e.order Answer: aPage: 609 Level of difficulty: Medium12. Catalog shopping is big business, about _ of Americans shop from home using catalogs. a.90 percent b.60 percentc.50 percentd.45 percent e.71 percentAnswer: ePage: 609Level of difficulty: Easy13. Call centers that receive calls from customers are called _.a. teleprospecting b.telesalesc.telecoveraged.outbound telemarketing e.inbound telemarketing Answer: ePage: 611Level of difficulty: Easy14. Call centers that initiate calls to prospects and customers are called _.a. teleprospecting b.telesalesc.telecoveraged.outbound telemarketing e.inbound telemarketing Answer: dPage: 611 Level of difficulty: Easy15.Companies conduct four types of telemarketing. These four types are: customer services and technical support, teleprospecting, telesales, and _. a.telemarketingb.telecoverage c.direct response d.outbound callinge.none of the above Answer: bPage: 611 Level of difficulty: Medium16.Other media for direct-response marketing includes television. Television is used by direct marketers in conducting or producing “infomercials,” videotext and interactive TV, and _. a.ad campaigns b.direct response c.at-home shopping channels d.commercials e.kiosksAnswer: cPages: 611612Level of difficulty: Medium 17.The exchange process in the age of information has become increasingly customer-initiated and _. a.market specificb.customer-controlled c.marketer-orientated d.privatee.marketer-controlled Answer: bPage: 612Level of difficulty: Hard 18.The Internet provides marketers and consumers with opportunities for much greater interaction and _.a.ease of use b.speedc.specificity d.conveniencee.individualization Answer: ePage: 612Level of difficulty: Easy 19.One of the benefits of interactive marketing is that it is highly accountable and its _ can be easily traced. a.buyersb.sales c.effects d.sellerse.costs Answer: cPage: 613 Level of difficulty: Medium20.All companies need to consider and evaluate e-marketing and e-purchasing opportunities. Visitors to a Web site will judge its performance on its ease of use and its physical attractiveness. Ease-of-use breaks down into three attributes: the Web site downloads quickly, the first page is easy to understand, and _. a. the Web site interacts with the visitor in some manner b.the visitor finds it easy to orderc.the visitor finds it easy to navigate to other pages that open quickly d.the visitor can easily see the product selected e.the visitor is entertained Answer: cPage: 613Level of difficulty: Medium 21. For a Web site, physical attractiveness is determined by three factors. These are: good use of color and sound, b) pages are clean and not overly crammed, and _. a. the site has ease of navigation b.use of quickly loading pagesc.use of attractive colors and music d.the site has plenty of color photos e.the typefaces and fonts are very readable Answer: e Page: 613 Level of difficulty: Medium 22.The definition of “banner ads” is _. a.large ads shown on the screen for complementary products b.ads that appear in the users e-mail c.ads that the user “clicks” to see d.small, rectangular boxes containing text and perhaps a picture e.ads that “pop up” on the users screen from time to time Answer: dPage: 614Level of difficulty: Medium23.A _ is a limited area on the Web managed and paid for by an external advertisers/company. a.related ad b.pop-up ad c.banner ad d.microsite e.interstitials Answer: dPage: 614 Level of difficulty: Easy 24.In the world of the Internet, the hottest growth area right now is in the area of search terms. Search terms are a proxy for the consumers consumption interests and relevant links to product or service offerings are listed along side the search results. These ads are called _.a.search-related ads b.pop-up adsc.interstitialsd.content advertising e.none of the above Answer: aPage: 614Level of difficulty: Easy 25.An important guideline to be followed in conducting an e-mail campaign (to do it right) is to _. a.personalize the e-mail with the subscribers first and last name b.make the consumer the same offering as in your direct-mail campaignc.make it difficult for the consumer to “unsubscribe” from your listd.update your e-mail lists once or twice a year e.offer something the customer could not get via direct mail Answer: ePage: 615 Level of difficulty: Hard26.The original and oldest form of direct marketing is the _. a.billboards b.Internet commercec.direct mail d.telephone sales e.field sales calls Answer: ePage: 616 Level of difficulty: Easy 27. Nearly _ of the total workforce work full-time in sales occupations. a.12 percent b.20 percent c.30 percent d.5 percent e.2 percent Answer: aPage: 616Level of difficulty: Easy28.The term “sales representative” covers a broad range of positions. A _ is an individual whose major task is the delivery of a product. a.order takerb.demand creator c.techniciand.deliverer e.missionary Answer: dPage: 616Level of difficulty: Easy29.The term “sales representative” covers a broad range of positions. We call a sales representative whose expertise is in the solving of a customers problem a _. a.order taker b.missionary c.technician d.solution vendore.demand creator Answer: dPage: 616 Level of difficulty: Medium30.The sales force performs a number of specific tasks. _ is conducting market research and doing intelligence work. a.Servicing b.Communicating c. Targeting d.Prospectinge.Information gathering Answer: ePage: 617 Level of difficulty: Easy 31.Most companies today are moving to the concept of a “leveraged sales force” which is defined as _. a.using overseas inbound sales centers and a direct sales force b.using a combination of telemarketers and the Web for ordering c.using a combination of inside salespeople and telemarketers d.using a direct sales force, a representative sales force, and inside salespeople e.using a combination of sales force, inside salespeople, and through the Web ordering Answer: ePage: 617Level of difficulty: Hard32.A _ consists of full- or part-time paid employees who work exclusively for the company. a. independent contractors b.agentsc.brokersd.direct sales force e.manufacturer representatives Answer: dPage: 617Level of difficulty: Easy 33.To attract top-quality sales reps a company must develop an attractive compensation program. The four components of sales force compensation includes _.a.variable amount (bonuses) b.fixed amount (salary c.expense allowances d.benefits e.all of the aboveAnswer: ePage: 619 Level of difficulty: Easy34._ compensation receives more emphasis in jobs with a high ratio of nonselling to selling duties and in jobs where the selling task is technically complex and involves team work a.Commission b.Estimated c.Combination d.Variable e.Fixed Answer: ePage: 620 Level of difficulty: Medium 35._ compensation receives more emphasis in jobs where sales are cyclical or depend on individual initiative. a.Variable b.Fixed c.Commission d.Ratioe.None of the above Answer: aPage: 620 Level of difficulty: Medium36. At the heart of a successful sales force is the selection of effective representatives. One survey revealed that the top 27 percent of the sales force brought in _ of all sales. a.60 percentb.20 percentc.80 percentd.52 percent e.45 percentAnswer: dPage: 620 Level of difficulty: Medium 37.The average sales person turnover rate for all industries almost _. a.60 percentb.20 percentc.80 percentd.52 percent e.45 percentAnswer: bPage: 620 Level of difficulty: Easy 38.Todays customers expect a salesperson have deep product knowledge, to be efficient and reliable and, to _ ideas to improve the customers operations, are forcing companies to make higher investments in training. a.add b. listen to new c. promote new d. foster new e. none of the above Answer: aPage: 620 Level of difficulty: Medium39.Training of salespeople vary by industry and the complexity of the products. For example, the medium training period is _ in industrial-products companies versus four for consumer-products companies. a.30 weeksb.8 weeksc.10 weeksd.28 weekse.12 weeksAnswer: dPage: 621Level of difficulty: Medium40.Studies have shown that the best salespeople are those who manage their time efficiently. Face-to-face selling time has decreased to as little as _ of total working time. a.29 percent b.45 percent c.10 percent d.60 percent e.none of the above Answer: aPage: 622 Level of difficulty: Hard41.Inside salespeople are of three types. These include the technical support people, the sales assistants, and the _ who use the phone to find new leads and pass these leads onto the sales representatives. a.marketing assistants b.office assistants c.telemarketers d.support people e. sales assistants Answer: cPage: 622Level of difficulty: Easy42.The majority of sales representatives require encouragement and special incentives. To increase motivation, marketers reinforce intrinsic and _ rewards of all types. a.extrinsic b.external c.personal d.financial e.none of the above Answer: aPage: 623Level of difficulty: Hard43.Many companies set annual sales quotas. Quotas can be set on dollar sales, selling effort or activity, margin, product type, and _. a.attendance b.close ratio c.call ratio d.unit volumee.selling price Answer: dPage: 623 Level of difficulty: Hard44.A downside of sales quotas is that they _ reps to get as much business as possible often at the expense of customer satisfaction. a.drive b.allow c.ignore d. compensatee. none of the above Answer: aPage: 623Level of difficulty: Medium 45.The most important source of information about reps is sales reports. Sales reports are divided between activity plans and _. a.call reports b.written objectives c.daily plans of action d.activity reports e. write-ups of activity results Answer: ePage: 624Level of difficulty: Medium46. Many companies require representatives to develop an annual territory-marketing plan in which they outline their program for increasing business in the existing accounts. Sales managers use these to develop _. a.performance standards b.company objectives c.sales quotas d.sales objectives e.estimate the number of salespeople neededAnswer: cPage: 624Level of difficulty: Medium 47.The sales forces reports along with other observations supply the raw material for evaluation. One type of evaluation compares past performance to _. a.mean performance b.managers performancec.current performance d.group performance e.key individuals performanceAnswer: cPage: 624 Level of difficulty: Easy 48. Performance evaluations can also assess the salespersons knowledge of the company, products, customers, territory, responsibilities, and _. a.customers b.managers c.competitors d.colleagues e.markets Answer: cPage: 625Level of difficulty: Medium49. Effective salespeople have more than instinct; they are trained in methods of _ and _. a.profitability/analysis b.analysis/customer management c.customer management/time management d.pricing/time management e.time/territory management Answer: bPage: 625Level of difficulty: Medium 50. The first step in the process of selling is to find _. a.prospectsb.preapproachc.approachd. presentatione.closing Answer: aPage: 626 Level of difficulty: Easy 51. If the salesperson is learning about the prospect and sets call objectives to qualify the prospect, the salesperson is in what step in the selling process?a.Preapproach b.Prospects c.Presentation d.Closinge.Follow-up Answer: aPage: 626 Level of difficulty: Medium52. In this step, the salesperson is “telling the story” of his product or service. a.Preapproach b.Prospects c.Presentation d.Closinge.Follow-up Answer: cPage: 626 Level of difficulty: Medium 53. Using the formula of AIDA the salesperson tells the “story” to the buyer. AIDA stands for?a.Attributes, interest, demands, action b.Attributes, interest, desire, decision c.Attention, interest, desire, attributesd.Action, interest, attention, decisione.Attention, interest, desire, action Answer: ePage: 626 Level of difficulty: Medium54. Customers typically pose objections during the presentation or when asked for the order. _resistance includes resistance to interference or a reluctance to give up something. a.Promotingb.Brandingc.Logical d.Psychological e.Normal Answer: dPage: 626 Level of difficulty: Medium55. Marketing is concerned with exchange activities and the manner in which the terms of exchange are established. In _ exchange, the terms are established by administered programs of pricing and distribution. a.mutually accepted b.traditional c.established d.negotiated e.routinized Answer: ePage: 627Level of difficulty: Hard56. In a _ exchange, price and other terms are set via bargaining behavior. a.normalb.commonc.routinized d.negotiated e.traditional Answer: dPage: 627 Level of difficulty: Medium 57. Today many companies are not trying to seek an immediate sale, but rather to build a _ supplier-customer relationship. a.potential b.long-term c.transactional d.short-term e.mutually beneficial Answer: bPage: 628 Level of difficulty: Medium58. When a relationship management program is properly implemented, the organization will begin to focus as much on managing its customers as on managing its _. a.financesb.products c.personnel d. marketse.brandsAnswer: bPage: 628Level of difficulty: Medium59.Follow-up and _ are necessary if the salesperson wants to ensure customer satisfaction and repeat business. a.maintenance b.contactc.servicing d.follow-through e.none of the above Answer: aPage: 627 Level of difficulty: Medium60. Salespeople need to know how to recognize closing signs from the buyer, including physical actions, statements or comments, and _. a.products b.questions c.concernsd.actionse.statements Answer: bPage: 626 Level of difficulty: Hard True/False 61. Direct marketing is the use of consumer-direct channels to reach and deliver goods and services to customers without using marketing intermediariesAnswer: True Page: 604Level of difficulty: Easy62. Direct marketing is one of the fastest growing avenues for serving customers. Answer: TruePage: 604 Level of difficulty: Easy 63. The term “market demassification” refers to the growth and concentration of large retailers in a market. Answer: FalsePage: 604 Level of difficulty: Medium64. Direct-mail marketing involves sending an offer, announcement, reminder, or other items to a person. Answer: True Page: 606 Level of difficulty: Easy65. One of the shortcomings of direct marke
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