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A marketer can reduce the cost of personal selling by:
communicating relevant product information before the sales call.
 
Which term refers to an interactive process of addressable communication that uses one or more advertising media to effect, at any location,
a measurable sale, lead, retail purchase, or charitable donation, with this activity analyzed on a database for the development of ongoing mutually
beneficial relationships between marketers and customers, prospects, or donors?
Direct marketing
 
Which of the following is a form of direct marketing that involves tracking and analyzing the purchase patterns of specific customers?
Database marketing
 
Purchasing large quantities of an item at a regional promotional discount and shipping portions to areas of the country where the discount isn't being offered.
diverting
 
Offer benefits similar to paper coupons, but they are distributed at the point of purchase, based on customer information stored in an electronic database.
electronic coupons
 
Which of the following statements about direct marketing is true?
Direct marketing is a measurable system of marketing.
 
Sierra South sells whitewater rafting trips and related merchandise. The company has built a pool of
data on current and prospective customers and sends postcards and e-mails to those individuals to announce sales and upcoming rafting trips. Sierra South is most likely using:
database marketing.
 
_____ advertising is always aimed at stimulating some action or response from its recipient.
Direct-response
 
__________ 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.
Personal selling
 
What is the greatest strength of personal selling?
Personal nature
 
Personal selling is the most costly way to communicate with prospects because:
it is very labor-intensive.
 
As more companies use IMC and mass audiences continue to fragment, which of the following most likely enables companies to retain and grow customers?
Databases developed through direct marketing
 
_____ is the oldest marketing method and it is growing quickly today as a result of social and
technological changes.
Direct marketing
 
The growth of direct marketing has most likely been triggered by the:
expanding use of credit cards.
 
Rite-Aid announced the launch of a program called Living More that provides benefits and savings to customers at least 60 years of age.
Every time Living More members make purchases at Rite-Aid, they receive an automatic ten percent discount.
Which term best describes Living More?
Loyalty program
 
Which statement about direct marketing is most likely true?
Many customers dislike the clutter associated with direct marketing.
 
What are the two primary methods for implementing a direct-sales strategy?
Face-to-face and telemarketing
 
_____ is face-to-face selling away from a fixed retail location.
Direct selling
 
_____ includes selling and prospecting by telephone, answering phone inquiries, and providing sales- related services to callers.
Telemarketing
 
Advertising that asks the viewer or listener to provide feedback immediately to the advertiser is called:
direct-response advertising.
 
A marketing or public relations approach that involves preparing displays that tell about an organization or its products; exhibits may be used at fairs, colleges and universities, or trade shows.
Exhibits
 
The message is conveyed through _____________ such as a salesperson, advertising media, or public relations tools.
channel of communication
 
A retailer's stocking up on a product when it is discounted and buying smaller amounts when it is at list price.
forward buying
 
KFFI-AM runs frequent commercials that ask listeners to dial advertisers' toll-free numbers or visit their Web sites
for information about ordering the advertised products or services.
Which of the following is most likely used on KFFI-AM?
Direct-response advertising
 
Which of the following is the best example of direct-response print advertising?
A magazine ad for pet food that asks you to call a toll-free number for more information
 
Which of the following is the best example of direct-response broadcast advertising?
An infomercial for exercise equipment
 
Which of the following is the best marketing communication tool for relationship building?
Personal selling
 
Coupons distributed through inserts in newspapers.
freestanding inserts (FSIs)
 
A sales promotion activity in which prizes are offered based on chance.
Game
 
What does "360° solution" mean in Communication Planning?
A comprehensive approach that includes various communication channels and strategies
 
The handing out of free product samples to passing shoppers.
in-store sampling
 
Trade concentration refers to:
more products going through fewer retailers.
 
A(n) _____ is paid to a retailer by a manufacturer for the privilege of obtaining shelf space for a new product.
slotting allowance
 
A trade deal is a(n):
short-term dealer discount on the cost of a product.
 
Goode Paint is offering hardware stores a one-month deal to purchase its paints at 25 percent off the regular price.
Goode hopes retailers will pass along these savings to consumers in the form of specials. Harmon Hardware,
a small regional chain, purchases enough paint from Goode to last the chain for the next five months.
Harmon Hardware is most likely engaging in:
forward buying.
 
In the Moose Head Cabin Fever Rescue promotion, beer retailers were sent an inflatable bush plane
with a 30-inch wingspan that appeared to be dropping a parachute holding a 12-pack of Moose Head beer.
Moose Head probably had to pay a(n) _____ to encourage retailers to use the large promotional material.
display allowance
 
Chad is a sales representative at Great Electronics, an appliance retailer. Every time Chad sells an HG appliance, he receives $1.00 from HG.
HG is most likely using _____ to encourage salespeople to pitch the HG brand over other brands.
spiffs
 
Which of the following is an example of consumer sales promotion?
Coupons
 
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(n):
point-of-purchase material.
 
_____ are coupons that reach consumers through colorful preprinted newspaper ads.
Freestanding inserts
 
Push strategy focuses on _______ and _________ were/are offered to stimulate demand.
personal selling; sales promotion
 
Ford provides incentives to reward dealers for meeting sales goals. This is an example of a __________.
push strategy
 
Meetings held by companies with their authorized brokers, distributors, and/or retailers to announce new products, policies, and marketing programs.
dealer meetings
 
A system of marketing in which companies build their own database of customers and use a variety of media to communicate with them directly such as through ads and catalogs.
direct marketing
 
_____ are exhibitions where manufacturers, dealers, and buyers get together for demonstration and discussion.
Trade shows
 
What is direct marketing?
An interactive form of strategic communication that is transmitted via a medium or media directly to the target market and is used to create or maintain a relationship with those who respond to the message.
 
An advertising message that asks the reader, listener, or viewer to provide feedback straight to the sender. It can take the form of direct mail, or it can use a wide range of other media, from matchbook covers or magazines, to radio, TV, Internet links or billboards.
direct-response advertising
 
Selling to customers directly, at home or at work, rather than through a retail establishment or other intermediary.
direct sales
 
Face-to-face selling away from a fixed retail location. Usually refers to a method of marketing consumer goods—everything from encyclopedias and insurance to cosmetics and nutritional products.
direct selling
 
What are some examples of direct marketing?
Direct mail, telemarketing, sponsorship & events, etc.
 
Fees paid to retailers to make room for and set up manufacturers' displays.
display allowances
 
Which of the following trends has most likely increased the importance of point-of-purchase (P-O-P) materials?
Self-service retailing
 
Keisha received a stiff cardboard mailer that contained a free sample of Advil PM, a pain reliever
formulated to help people sleep. The mailer also included a certificate for $2 off the purchase of the over-the-counter drug.
The manufacturer of Advil PM is most likely using a:
coupon.
 
Procter & Gamble created one of the most outrageous promotions in marketing history.
The offer itself was the soul of simplicity: Buy one giant-size box of Spic and Span and you can fill a clear plastic container
with two free goldfish. The display even had its own net for scooping the little fish out. The fish were examples of:
premiums.
 
For a limited time, a Crest toothbrush is attached to a box of Crest toothpaste for the regular price
of the toothpaste. Crest wants to encourage consumers to try the toothbrush. This is an example of a(n):
on-pack premium.
 
If you buy a case of Hanover kidney beans, you can mail eight UPC labels to Hanover and receive a "Kid Bean" stuffed toy.
The toy is an example of a:
premium.
 
By mailing in $3.95 and two proofs of purchase from Dannon yogurt, Laura can receive a digital calorie counter.
Each counter costs Dannon $3.75 and is most likely an example of a(n):
self-liquidating premium.
 
What is the most expensive type of sales promotion?
Sampling
 
_____ is generally considered the most effective method for generating consumer trial of a new product.
Sampling
 
A(n) _____ offers prizes based on entrants' skill whereas a(n) _____ offers prizes based solely on a
chance drawing of entrants' names.
contest; sweepstakes
 
The manufacturer of Advil PM, a new pain reliever formulated to aid people sleep, conducted a _____ in which a winner was
selected by a chance drawing of entrants' names. Contestants registered by visiting the Advil PM Web site.
Each entrant had the same probability of winning the $10,000 grand prize.
sweepstakes
 
To promote a new Malibu Rum flavor, Pernod Ricard U.S.A. used a promotion called "How Do You Banana Malibu,"
which encouraged those of legal drinking age to submit video interpretations of the classic song, "Banana Boat," better known as "Day-O,"
on YouTube.com. The winner of the _____ won $25,000 in cash.
contest
 
To introduce its new line of sugar-free gum, Britannia distributed free packs of gum to consumers in Chicago grocery stores.
Which type of promotion did Britannia employ?
Sampling
 
The delivery of a free sample of Advil PM, a new pain reliever designed to aid in sleeping, in the same plastic bag
as the Atlanta Journal was delivered in is an example of:
polybagging.
 
The process of building and strengthening relationships by creating and coordinating a strategic communications program through a variety of media is known as _____.
integrated marketing communications IMC
 
What advantages does direct marketing have that mass advertising does not?
accountability
higher return on investment
accumulation of data
 
The oldest marketing method is _____, which has seen significant growth due to recent social and technological changes.
direct marketing
 
_____ encompasses the physical appearance of the container and includes design, color, shape, labeling, and materials.
Packaging
 
_____ 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.
Sales promotion
 
Barton Beer invited its retailers to celebrate March Madness, the NCAA basketball tournament that occurs every year.
Barton Beer provided displays and banners for retailers to use during March, and it encouraged consumers to participate
in a Barton Beer March Madness Tournament on the firm's Web site.
The purpose of this _____ is to encourage customers to buy Barton Beer.
sales promotion
 
Which of the following statements about sales promotion is most likely true?
Sales promotion may be used anywhere along the marketing route.
 
To create effective sales promotions, a company should most likely:
ensure that the sales promotion reinforces the brand's advertising message.
 
Which of the following would most likely result from overly aggressive sales promotion?
A price war between competitors
 
A government agency would LEAST likely be concerned about which of the following aspects of food product packaging?
Size and weight
 
A _____ strategy is primarily designed to secure the cooperation of retailers.
push
 
An energy company offers customers rebates of up to $500 for installing energy efficient water
heaters, windows, and doors. This is most likely an example of a _____ strategy.
pull
 
Procter & Gamble created one of the most outrageous promotions in marketing history. Nobody blinked when some unknown brand assistant suggested giving away free goldfish in stores with the purchase of any king-size box of Spic and Span cleaner. The offer itself was the soul of simplicity: Buy one giant-size box of Spic and Span and you can fill a clear plastic container with two free goldfish. The display even had its own net for scooping the little fish out. This promotion was intended to be an example of a _____ strategy.
pull
 
Integrated marketing communications (IMC)
the concept of designing marketing communications programs that coordinate all promotional activities - advertising, personal selling, sales promotion, public relations, and direct marketing - to provide a consistent message across all audiences
 
Communication
process of conveying a message to others
 
What is the goal of IMC?
to build and reinforce relationships by developing and coordinating a
strategic communications program through a variety of media or contacts
 
What is a system of marketing in which companies build their own databases of customers to use in a variety of media to communicate with them directly?
Direct Media
 
Database market:
a form of direct marketing that uses a database of current and
prospective customers to generate personalized communications
 
Direct marketing:
informs
creates awareness
spurs purchase behavior
creates an ongoing mutually beneficial relationship
is addressable
is measured and marketing is accountable to see what works and creates an action (can measure an ads efficiency and effectiveness this way)
Offers convenience to time sensitive customers
more personable and customized
 
What is an advertising message that asks the reader, listener and viewer to provide feedback straight to the sender?
This is direct-response advertising
 
What is the oldest marketing method?
Direct marketing
 
What are the most heavily used methods of direct marketing?
Direct mail and telemarketing
 
What started the growth of direct marketing worldwide?
The growth of telecommunications and computer technology helped direct marketing grow
 
what rewards people for their continued business?
Continuity or loyalty program compensate consumers for their loyalty.
 
What enables marketers to target, segment, and grade customers?
The database
 
What is a customer lifetime value?
LTV or customer lifetime value is the total salves/profit value of a
customer to a marketer over the course of that customer's lifetime
 
Cons to Direct Marketing:
bad reputation of being sales oriented rather than people orientated.
doesn't have a prestigious affiliation of other media such as television
there is a lot that is being advertised via direct marketing. the marketplace is cluttered.
Privacy issues of direct marketing
 
What is selling to customers directly from something other than an established middleman?
Direct-sales
 
______ is face to face selling away from a fixed retail location
direct selling
 
What is selling products using the telephone called?
Telemarketing
 
Reasons why people use telemarketing:
cheaper than personal selling
more convenient for buyers
very effective when combined with other types of media
 
A laptop manufacturer introduces a new and advanced model in the market. The company's website lists toll-free numbers that customers can call to inquire about the updated features of the laptop or to make a purchase. This is an example of _____.
direct-response advertising
 
The oldest marketing method is _____, which has seen significant growth due to recent social and technological changes.
direct marketing
 
A sales method based on person-to-person contact, such as by a salesperson at a retail establishment or by a telephone solicitor is known as _____.
personal selling
 
What are the two primary methods used in direct sales?
face-to-face
telemarketing
 
What is a reference book mailed to a prospective customer that lists, describes, and pictures products sold by a manufacturer, retailer, or wholesaler?
Catalogs
 
Next to personal selling and telemarketing______ is the most effective method for closing a sell
direct mail
 
Direct Response print advertising includes:
coupons, list of toll free phone numbers, magazine inserts
 
Direct Response broadcast advertising includes:
Infomercials
 
What is the goal of personal selling?
To build a relationship that will provide long term benefits to both buyer and seller
 
Pros of Personal Selling:
personal in nature. More persuasive. Can read body language, etc. Can demonstrate product.
if a relationship is made, a sale can be made at a later date.
personal selling is better with more expensive products anyway.
 
Cons to Personal Selling:
labor intensive
poor reputation of personal selling with people
 
Role of Personal Sellers-
They should father information (listen to customer feedback)
They should deliver info they hear to management.
They should recommend solutions to customers and fulfill orders
 
What is an exhibit where manufacturers, dealers, and buyers of an industry's products can get together for demonstrations and discussion?
Trade show
 
What are displays that tell about an organization or its products?
An exhibit at a trade show.
 
What six elements are required for communication to occur?
a source, a message, a channel of communication, a receiver, and the process of encoding and decoding
 
Source:
may be a company or person who has information to convey
 
Message:
description of product
 
Booths should....
be attractive, impactful
be thought about in terms of the budget, the brand image, the frequency of the shows, and the booth layout
 
What encompasses teh physical appearance of a container and includes
design, color, shape, labeling and materials?
Packaging
 
Packaging can:
reinforce the brand image
should stand out, communicate verbally and nonverbally, and give a desired image.
 
Country, government, and other factors on packaging:
European countries often need greener packaging
FDA requires labeling on the back of foods
 
What is a direct inducement that offers extra incentives anywhere along the marketing route to enhance or improve the product's movement from producer to consumer?
Sales promotion
 
Considerations of sales promotions:
can be used anywhere within the marketing channel
designed to change the timing of a purchase
normally involves a direct inducement that gives an incentive to buy now, visit a store, etc
it is expensive
 
Effective Sales Promotions:
adds value to the product it sells
sales promotions maximize sales volume for the short term
can be effective in motivating customers to try a new brand
 
What is a type of strategy that is aimed at getting products into the dealer pipeline and and accelerating sales by offering inducements to retailers, etc? It is usually a strategy designed to secure the cooperation of retailers?
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What is a type of strategy that is designed to attract customer and increase product demand?
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What are promotions aimed at consumers to stimulate product interest, trial, or repurchase?
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What is the advertising of goods/services to middleman to stimulate wholesalers and retailers to buy goods for resale to their customers for use in their own businesses?
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What are short term discounts of a product to promote a product?
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What is it called when a retailer stocks up on a product when it is on sale, and then buys smaller amounts when it is regular priced?
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What is it called when you pay to make room for and set up for displays?
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What is it called when large quantities of something is purchased at a regional promotional discount and then it is shipped to areas where there is no discount?
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What is the sharing of ad costs by a manufacturer and retailer known as?
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What are materials that are set up at a retail location to build traffic?
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What is a certificate with a state value presented to the retail store for a price reduction on a specific item?
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What are larger cash refunds on items called?
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What is it called when an item is offered for free or at a bargain price
to consumer people to buy it?
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What is the most costly of all sales promotions?
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Programs used by marketers to reward customers with discounts and free products in return for frequent and continuous patronage are known as _____.
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The best way to reach small B2B markets is through ______.
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For IMC to be effective, communication must be ______.
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In order to be effective in maintaining customer loyalty, direct marketers should always _____.
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An interactive process of communication that typically uses multiple media to communicate with customers and create or maintain a relationship with those who respond to the message is _____.
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The convenience and availability of which of the following have been important factors in the growth of direct marketing.
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Typically, loyalty programs are used to reward _____.
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In a _____ strategy, the representatives of marketers directly sell products and services to consumers, either at home or at work, instead of going through an intermediary.
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Identify the benefits offered by direct marketing.
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Identify the current drawbacks of direct marketing.
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_____ is the best way to develop a strong customer database.
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A characteristic of personal selling is that it _____.
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In order to be effective in maintaining customer loyalty, direct marketers should always _____.
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The most costly way to communicate with prospects is through the use of ______.
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Identify an accurate statement about personal selling.
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A customer's impression of the salesperson often dictates the customer's perception of the firm.
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In trade shows, _____ refer to a marketing or public relations approach that involves preparing displays that tell about an organization or its products.
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Identify tasks that personal selling accomplishes better than any other communications tool.
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In planning an exhibit booth program, what four areas must be taken into consideration?
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Identify the drawbacks of personal selling.
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In an integrated marketing communications program, a salesperson provides which communication functions?
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What is the primary goal of a trade-show booth?
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Exhibitions where manufacturers, dealers, and buyers of an industry's products get together for demonstrations and discussion are known as _____.
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When are the efforts of a company's salespeople in a trade show wasted?
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Identify the advantages of personal selling.
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In planning for a trade show exhibit, the best booths are ones that ______.
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Trade show booth representatives should exhibit which characteristics?
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Identify an accurate statement about product packaging.
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Marketers change a package for which of the following reasons?
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In what way have government agencies influenced package design?
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Identify an accurate statement about sales promotion.
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Identify the advantages of sales promotion.
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In the context of product packaging, marketers should _____.
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In trade concentration, _____.
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Foaming Fun introduced a new range of soaps. It approached various supermarkets for shelf space and floor space for which they charged a hefty fee. This fee known as a _____.
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What is a trade deal?
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Display materials and advertising-like devices that are designed to increase traffic, draw attention to a product, and promote impulse buying are collectively referred to as _____.
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Identify the main consequence of trade concentration.
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At trade shows, a major factor in sales promotion plans. To stop traffic, it must be simple and attractive and have good lighting and a large visual.
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A manufacturer's offer to pay for an old product so that it will be taken off the shelf to make room for a new product.
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Reference books mailed to prospective customers that list, describe, and often picture the products sold by a manufacturer, wholesaler, jobber, or retailer.
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A short-term reduction in the price of a product designed to induce trial and usage.
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A sales promotion device in which two related products are packaged together at a special price, such as a razor and a package of blades.
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Meetings held by companies with their employees, sales representatives, and/or customers to announce new products, policies, and marketing programs.
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Promotions aimed at consumers to stimulate product interest, trial, or repurchase.
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A sales promotion device for creating consumer involvement in which prizes are offered based on the skill of the entrants.
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Cards issued by retailers that allow them to track their customers' purchasing habits and demographic profiles.
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May be required by the FTC for a period of time to explain and correct offending ads.
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A certificate with a stated value that is presented to a retail store for a price reduction on a specified item.
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The total sales or profit value of a customer to a marketer over the course of that customer's lifetime.
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The corporate memory of all important customer information: name and address, telephone number, NAIC code (if a business firm), source of inquiry, cost of inquiry, history of purchases, and so on.
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Tracking and analyzing the purchasing patterns of specific customers in a computer database and then targeting advertising to their needs.
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Programs that reward customers with discounts and free products in return for frequent and continuous patronage. Consumer purchases are tracked on a company's database.
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The container for a product—encompassing the physical appearance of the container and including the design, color, shape, labeling, and materials used.
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A sales method based on person-to-person contact, such as by a salesperson at a retail establishment or by a telephone solicitor.
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Materials set up at a retail location to build traffic, advertise the product, and promote impulse buying.
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Samples that are delivered in plastic bags with the daily newspaper or a monthly magazine.
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An item offered free or at a bargain price to encourage the consumer to buy an advertised product.
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Marketing, advertising, and sales promotion activities aimed at inducing trial purchase and repurchase by consumers.
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Monetary inducements for salespeople to push the sale of particular products. Also called spiffs.
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Marketing, advertising, and sales promotion activities aimed at getting products into the dealer pipeline and accelerating sales by offering inducements to dealers, retailers, and salespeople.
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Cash refunds on items from groceries to household appliances to cars, offered as incentives to purchase the products.
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A direct inducement offering extra incentives all along the marketing route—from manufacturers through distribution channels to customers—to accelerate the movement of the product from the producer to the consumer.
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Offering consumers a free trial of a product, hoping to convert them to habitual use.
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Rebate offers that are never redeemed and coupons that are never submitted because people forget, find them inconvenient, or don't follow the instructions.
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Fees that manufacturers pay to retailers for the privilege of obtaining shelf or floor space for a new product.
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Also called push money. Monetary inducement for retail salespeople to push the sale of particular products.
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A sales promotion activity in which prizes are offered based on a chance drawing of entrants' names.
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Selling products and services by using the telephone to contact prospective customers.
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The advertising of goods and services to intermediaries to stimulate wholesalers and retailers to buy goods for resale to their customers or for use in their own businesses.
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More products being sold by fewer retailers.
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Short-term dealer discounts on the cost of a product or other dollar inducements to promote a product.
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Promotion activities aimed at wholesalers and retailers to induce product purchase, display, and consumer sales promotion.
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Exhibitions where manufacturers, dealers, and buyers of an industry's products can get together for demonstrations and discussion;
expose new products, literature, and samples to customers; and meet potential new dealers for their products.
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