Kotler Chapter17

8/11/2019 Kotler Chapter17

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Chapter 17 Direct and Online Marketing: Building Direct Customer Relationships

1) Amazon.com was the first company to use ________, which is technology that sorts throughcustomer purchasing patterns to create personalized site content.

A) mass marketing

B) personalized marketingC) records management

D) customer filtering

) colla!orati"e filteringAnswer#

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AAC*B# +se of -

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$) 2hat are the two main goals of direct marketing3

A) to identify a potential customer and o!tain an immediate responseB) to o!tain an immediate response and to facilitate a purchase

C) to o!tain an immediate response and !uild a lasting customer relationshipD) to pro"ide information and !uild a lasting customer relationship

) to sa"e marketing dollars and facilitate a purchase

Answer# CDiff# $ %age &ef# '4

*kill# Concept

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5) 6odern direct marketers rely hea"ily on data!ase technologies and the nternet, while early

direct marketers primarily used direct mailers, telemarketing, and ________.A) doortodoor salespeopleB) catalogs

C) %% promotions

D) email) inside salespeople

Answer# B

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') Amazon.com, eBay, and :C employ ________ as the only method of doing !usiness with

customers.

A) mass marketingB) sales promotion

C) direct marketing

D) pu!lic relations) personal selling

Answer# C

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;) Direct marketing is continuing to !ecome more ________ oriented.A) tele"ision

B) 2e!

C) mail

D) telephone) radio

Answer# BDiff# $ %age &ef# '1

AAC*B# +se of -


7) All of the following are !enefits of direct marketing for !uyers


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() ne of the ad"antages of direct marketing for sellers is that direct marketing ________.

A) offers access to !uyers outside local markets

B) eliminates the need for a company to employ a sales forceC) pro"ides statistical information a!out industry !uying ha!its

D) pro"ides comparati"e information a!out customers and competitors

) a"oids e=penses related to a storefront, such as rent, insurance, and utilitiesAnswer# A


AAC*B# &eflecti"e -hinking*kill# Concept

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) 2hich of the following is essential for direct marketing to !e effecti"e3A) an online presence

B) a good customer data!ase

C) a welltrained sales force

D) in!ound telephone marketing) digital direct marketing technologies


*kill# Concept

!/ecti"e# 101

14) A customer data!ase is an organized collection of geographic, demographic, psychographic,

and ________ data a!out indi"idual customers or prospects.

A) ethicalB) cultural

C) medical

D) !eha"ioral) sociological

Answer# D

Diff# $ %age &ef# '5*kill# Concept

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11) nformation a!out a customer?s age, income, and family makeup is in the ________ categoryof a customer data!ase.

A) demographic

B) psychographicC) geographic

D) !eha"ioral

) assessmentAnswer# A

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1$) %sychographics data in a customer data!ase used !y direct marketers includes information

regarding a customer?s ________ and ________.

A) interests@ incomeB) acti"ities@ opinions

C) age@ !uying preferences

D) opinions@ age) ho!!ies@ income

Answer# B


!/ecti"e# 101

15) All of the following are common uses for a direct marketing customer data!ase


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17) 2hich kind of marketing in"ol"es sending an offer, announcement, reminder, or other item

to a person at a particular address3

A) kiosk marketingB) digital direct marketing

C) catalog marketing

D) directmail marketing) telephone marketing

Answer# D

Diff# 1 %age &ef# ';*kill# Concept

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10) Catalogs, !rochures, CDs, and DDs are all e=amples of which type of marketing3A) directresponse marketing

B) directmail marketing

C) digital direct marketing

D) kiosk marketing) online marketing

Answer# BDiff# 1 %age &ef# ';

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1() 2hich of the following reasons is A*- likely to e=plain why directmail marketing dri"es

more than a third of all +.*. direct marketing sales3

A) less e=pensi"e than - and magazine adsB) high target market selecti"ity

C) a!ility to !e personalized

D) measura!le results) fle=i!ility

Answer# A

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1) -he use of which of the new forms of directmail marketing is !ooming3A) fa= mail

B) email

C) "oice mailD) +.*. mail

) instant messages


*kill# Concept

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$4) 6ost companies that create print catalogs now also pro"ide ________ catalogs to eliminate

production, printing, and mailing costs.

A) DDB) email

C) store

D) 2e!!ased) personalized

Answer# D


!/ecti"e# 10$

$1) 2hich of the following is an ad"antage of printed catalogs o"er digital catalogs3A) the a!ility to offer an almost unlimited amount of merchandise

B) efficiencies in production, printing, and mailing costs

C) a stronger emotional connection with customers

D) less competition for customers? attention) realtime merchandising

Answer# CDiff# $ %age &ef# '0

AAC*B# &eflecti"e -hinking

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$$) 6arketers use ________ telephone marketing to recei"e orders from tele"ision ads and

catalogs.A) in!ound

B) out!ound

C) interacti"eD) directresponse

) !usinessto!usiness

Answer# ADiff# 1 %age &ef# '0

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$5) 2hich of the following is an ad"antage of a welldesigned and targeted telemarketing plan3

A) realtime merchandising

B) high recruitment and referral rateC) purchasing con"enience for customers

D) emotional connections with customers

) limitless merchandise a"aila!le to customersAnswer# C


AAC*B# &eflecti"e -hinking*kill# Concept

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$') 9ow has the ational Do ot Call &egistry changed the telemarketing industry3

A) -elemarketing for nonprofit groups has !ecome none=istent.

B) -elemarketing is no longer used !y small and medium sized companies.C) -elemarketing has replaced direct mail and personal selling !ecause of low costs.

D) -elemarketers are more effecti"ely de"eloping relationships with new customers.

) -elemarketers are more effecti"ely managing relationships with e=isting customers.Answer#

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$;) 2hy are historically online shops such as appos.com and EohnandFiras.com adding

catalogs to their marketing methods3A) to entertain customers with interesting products

B) to offer a wider array of merchandise

C) to sa"e money and increase profitsD) to attract the attention of new customers

) to reduce the need for telemarketers

Answer# DDiff# 5 %age &ef# '(

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$7) 2hich of the following is the most accurate name for a 54minute tele"ision ad"ertising

program marketing a single product3

A) directresponse - ad"ertisementB) home shopping channel

C) integrated marketing

D) directresponse commercial) infomercial

Answer#

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$0) 2hat are two ma/or forms of directresponse tele"ision marketing3

A) home tele"ision response and directresponse - ad"ertising

B) home shopping channels and infomercialsC) homeselling and tollfree response

D) callin response and we!site response

) home shopping channels and podcastsAnswer# B

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$() Directresponse ad"ertisements always contain ________, making it easier for marketers togauge the effecti"eness of their sales pitches.

A) a mailing address for comments

B) a 1(44 num!er or 2e! addressC) a hit !utton to record the num!er of "iewers

D) an order num!er

) popupsAnswer# B

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$) 2hy ha"e directresponse tele"ision commercials seen an increase in popularity in recent

years3A) t is has !ecome simpler to replicate the success of classic directresponse - ads that

introduced items such as the eg6atic.

B) -raditional !roadcast and ca!le ad"ertising has !ecome prohi!iti"ely e=pensi"e for manyma/or corporations.

C) -he a!ility to track phone calls and 2e!site hits makes it easy to measure the return on

ad"ertising in"estment.D) -he sophisticated image of home shopping channels has gi"en directresponse commercials

more credi!ility.

) Consumers are more likely to respond to this type of marketing than to other forms of direct

marketing.Answer# C

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54) A tele"ision program or entire channel dedicated to selling goods and ser"ices is known as

aGn) ________.

A) directresponse tele"ision ad"ertisementB) home shopping channel

C) infomercial

D) digital catalog) kiosk

Answer# B

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51) Hirms , such as Fodak and Hu/i, are placing ________ in stores, airports, and other locations

to pro"ide people with information a!out products and ser"ices or to ena!le customers to place

orders.A) kiosks

B) - monitors

C) wireless networksD) cell phones

) "ending machines

Answer# A

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5$) &ingtone gi"eaways, mo!ile games, and te=tin contests are all e=amples of ________

marketing.A) kiosk

B) online

C) podcastD) "odcast

) mo!ile phone

Answer#

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55) 6arketers "iew mo!ile phones as the ne=t !ig marketing medium for all of the following

reasons


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57) 2hat is the fastest growing form of directmarketing3

A) mo!ilephone marketing

B) online marketingC) interacti"e -

D) directresponse tele"ision

) podcastsAnswer# B

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50) -he nternet ga"e !irth to ________, which operate only on the nternet.

A) !rickandmortar companiesB) clickandmortar companies

C) !ig !o= companies

D) clickonly companies

) 2e!andmortar companiesAnswer# D

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5() As one of the first ________, Amazon.com changed the rules of marketing and set the !ar

high for the online customer e=perience.A) etailers

B) transaction sites

C) content sitesD) search engines

) clickandmortar companies

Answer# ADiff# $ %age &ef# ;4'

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5)New York Timeson the 2e!, *%.com, and ncyclopedia Britannica nline are known as

________ !ecause they pro"ide financial, research, and other information.

A) search enginesB) content sites

C) portals

D) *%s) etailers

Answer# B

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'4) ________ is the term used to descri!e a company that does not use online marketing.

A) ffline !usiness

B) Brickandmortar

C) ClickandmortarD) !usiness

) Corporate siteAnswer# B



'1) -he growth of the nternet caused many !rickandmortar firms to ________ in response to

customer demands and a changing marketplace.A) !ecome clickonly firms

B) send out more catalogs

C) !ecome clickandmortar firmsD) de"elop more infomercials

) e=pand their outside sales forces

Answer# CDiff# $ %age &ef# ;4'

AAC*B# +se of -

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'$) 2hich of the following is - one of the four ma/or online marketing domains3A) B$C G!usinesstoconsumer)

B) B$& G!usinesstoretailer)

C) B$B G!usinessto!usiness)D) C$C Gconsumertoconsumer)

) C$B Gconsumerto!usiness)

Answer# B

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'5) -he popular press has paid the most attention to ________ online marketing, which is the

online selling of goods and ser"ices to final consumers.

A) B$CB) B$B

C) C$C

D) C$B) glo!al

Answer# A

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'') B$B uses all of the following online resources to reach new !usiness customers


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'0) 2hat is the !enefit to companies of using !logs as marketing tools3

A) Blogs pro"ide companies with additional re"enue.

B) Blog content is easy to filter, monitor, and control.C) ongterm customer relationships can !e de"eloped through !logs.

D) Demographic information a!out customers can !e easily tracked.

) Blogs are an ine=pensi"e yet personal way to reach a fragmented audience.Answer#

Diff# 5 %age &ef# ;4(


'() 2hich of the following is a potential draw!ack to ad"ertising on a !log3

A) -he content of a !log is difficult to control.B) Ad"ertising on a !log is typically e=pensi"e.

C) t is difficult to use !logs to reach highly targeted audiences.

D) Blogs are losing popularity as consumers !egin to fa"or newer nternet forums.

) Blogs do not pro"ide the kind of personalized medium that today?s marketers want.Answer# A

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') ________ online marketing sites are online e=changes in which consumers search out sellers,

learn a!out their offers, and initiate purchases.

A) B$C

B) B$BC) C$C

D) C$B

) B$&Answer# D

Diff# $ %age &ef# ;4(


;4) 2hen consumers can dri"e transactions with !usinesses, what type of online marketing is!eing used3

A) !logs

B) podcastingC) social networking

D) !usinesstoconsumer

) consumerto!usinessAnswer#


*kill# Concept

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;1) Hor most companies, the first step in conducting online marketing is to ________.

A) send emails

B) create a 2e! siteC) create a 2e! community

D) place promotions online

) de"elop searchrelated adsAnswer# B


*kill# Concept!/ecti"e# 10'

;$) 2hat is the main purpose of a corporate 2e! site3

A) to sell the company?s products directlyB) to !uild customer goodwill

C) to show a catalog and gi"e shopping tips

D) to gi"e out coupons and tell a!out sales e"ents or contests

) to point out and e=plain competitors? weaknessesAnswer# B

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;5) ________ are designed to !uild customer goodwill and to supplement other sales channels,

rather than to sell the company?s products directly.

A) 6arketing 2e! sites

B) Corporate 2e! sitesC) *mall !usiness 2e! sites

D) onprofit corporation we! sites

) &ich media display adsAnswer# B



;') ________ are designed to engage consumers in interactions that will mo"e them closer to adirect purchase or other marketing outcome.

A) Corporate 2e! sites

B) 6arketing 2e! sitesC) 2e! communities

D) Brand 2e! sites

) Affiliate programsAnswer# B


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;;) -o attract new "isitors and to encourage re"isits, online marketers should pay close attention

to the se"en Cs of effecti"e 2e! site design. 2hich of the following is - one of the se"en Cs3

A) conte=t# the site?s layout and designB) content# te=t, pictures, sounds, and "ideo that the 2e! site contains

C) commerce# the site?s a!ility to ena!le commercial transactions

D) customer# the way the customer is gi"en incenti"es to use the 2e! site) connection# the degree that the site is linked to other sites

Answer# D

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;7) f the se"en Cs of effecti"e 2e! site design, ________ refers to the ways that the site

ena!les usertouser communication.

A) conte=t

B) contentC) community

D) customization) cause

Answer# C

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;0) According to the se"en Cs of effecti"e 2e! site design, a 2e!site?s capa!ility to ena!le

commercial transactions is its le"el of ________.

A) customizationB) content

C) connection

D) commerce) communication

Answer# D



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;() ________ are online ads that appear !etween screen changes on a 2e! site, especially while

a new screen is loading.

A) %opundersB) nterstitials

C) *earchrelated ads

D) Conte=tual ads) Banner ads

Answer# B


*kill# Concept

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;) 2hich of the following types of ads can users !lock through the use of applications

de"eloped !y 2e! !rowser pro"iders3

A) !anners

B) popupsC) conte=tual ads

D) popunders) richmedia ads

Answer# B


*kill# Concept

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74) Display ads that use eyecatching techni>ues such as float, fly, and snap!ack are called

________.

A) !annersB) popups

C) conte=tual ads

D) popunders) richmedia ads

Answer#

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71) A large percentage of online ad"ertising e=penditures goes towards ________, which are

te=t!ased ads and links that appear alongside search engine results.

A) content sponsorshipsB) reminder ad"ertisements

C) informati"e ad"ertisements

D) conte=tual ad"ertisements) corporate sponsorships

Answer# D

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7$) 2hen companies work with each other online and offline to promote each other, they are

creating ________.

A) searchrelated ad"ertisements

B) conte=tual ad"ertisementsC) interstitial relationships

D) content sponsorships) alliance and affiliate programs

Answer#

Diff# $ %age &ef# ;1$*kill# Concept

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75) 2hat does the term viral marketingmean3A) t is another term for online privacy.

B) t is another term for online security.

C) t refers to pro!lems associated with computer "iruses.D) t refers to wordofmouth marketing that occurs online.

) t refers to negati"e pu!licity associated with company !logs.

Answer# DDiff# 1 %age &ef# ;1$

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7') 2hich of the following is a primary disad"antage of "iral marketing3

A) -he costs of "iral marketing are too high for most companies.

B) -he !rand associated with the "iral message is usually forgotten.C) 6arketers ha"e little control o"er who recei"es the "iral message.

D) iral messages are offensi"e to many potential customers.

) iral messages are !locked !y most search engines.Answer# C



!/ecti"e# 10'

7;) All of the following are e=amples of online social networks


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70) 2hich of the following is a challenge of marketing through online social networks3

A) +sers often resent an intrusi"e marketing message.

B) =isting networks are resistant to direct ad"ertising.C) 6ost e=isting networks are already controlled !y ma/or corporations.

D) irtual worlds will most likely replace social networks in the near future.

) 6easuring the fre>uency and "olume of network usage is difficult.Answer# A

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7() 2hat characteristic of niche sites makes the medium 6*- appealing to marketers3A) audience sizes larger than those of social networking sites

B) wide "ariety of demographics and purchasing patterns

C) audiences of people with similar interests

D) commercial transaction capa!ilities) podcasting and "odcasting capa!ilities

Answer# CDiff# 5 %age &ef# ;1';1;

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7) +nsolicited and unwanted commercial email is known as ________.

A) phishingB) etailing

C) display ads

D) popunders) spam

Answer#


!/ecti"e# 10'

04) According to your te=t!ook, what is the most likely future for online marketing3A) nline marketing will replace magazines, newspapers, and e"entually stores as sources for

information and products.

B) -he growth of online marketing will continue !ut at a much slower pace.C) -he use of online marketing will decline until its effecti"eness can !e !etter measured.

D) nline marketing will remain an important approach in an integrated marketing mi=.

) nline social networking will !ecome the primary type of online marketing.Answer# D


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01) n an attempt to take ad"antage of impulsi"e !uyers, heat merchants use ________ to decei"e

customers.

A) directmail marketingB) telephone marketing

C) directresponse tele"ision marketing

D) mo!ile phone marketing) kiosk marketing

Answer# A


!/ecti"e# 10;

0$) 2hich of the following is a type of identity theft that uses decepti"e emails and fraudulentwe! sites to fool consumers into re"ealing their personal data3

A) unauthorized groups

B) re"erse information

C) "iral feedsD) phishing

) spywareAnswer# D


*kill# Concept!/ecti"e# 10;

05) 2hich of the following is - a deception or fraud concern for nternet users andmarketers3

A) phishing

B) "iral marketingC) ea"esdropping

D) access !y unauthorized groups

) spywareAnswer# B


*kill# Concept

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0') 2hat happened in direct response to the H-C finding that many 2e! sites were collecting

personal information from children without disclosure or parental permission3A) California enacted the California nline %ri"acy %rotection Act.

B) Congress passed the Children?s nline %ri"acy %rotection Act.

C) Children !egan to !e targeted !y more 2e! sites.D) -he Direct 6arketing Association de"eloped a J%ri"acy %romise to American Consumers.J

) onprofit organizations !egan auditing companies? pri"acy and security measures.

Answer# B


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0;) All of the following are the likely results of direct marketing a!uses uests for more nternet o"ersight and legislation

) re>uests for more restricti"e legislation of direct marketingAnswer# D



07) Direct marketing rarely occurs on a onetoone, interacti"e !asis.

Answer# HA*Diff# $ %age &ef# '4

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00) 6ega 6usic sells products to customers only through its 2e!site. 6ega 6usic employs the

direct model as its marketing approach.Answer# -&+


AAC*B# Analytic *kills*kill# Application

!/ecti"e# 101

0() Hor customers, the !enefits of direct marketing are that it is an easy, pri"ate, and con"enient

way to shop.

Answer# -&+Diff# 1 %age &ef# '$

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0) -oday?s marketers use data!ase marketing to promote their offerings through personalized

communications to small target groups or e"en indi"idual customers.

Answer# -&+Diff# 1 %age &ef# ''

*kill# Concept

!/ecti"e# 101

(4) -he marketing manager of Charlie?s Car %arts uses a customer data!ase to email

promotional information to customers. -he demographic information in the data!ase pro"idesthe manager with the data he needs regarding his customers? !uying preferences.

Answer# HA*



!/ecti"e# 101

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(1) Data!ase marketing re>uires little initial in"estment !eyond training personnel to code and

mine data.

Answer# HA*Diff# $ %age &ef# ';

AAC*B# +se of -


($) -hough directmail permits high targetmarket selecti"ity and can !e personalized, it doesnot allow easy measurement of results.

Answer# HA*



(5) Catalog marketing has grown e=plosi"ely during the past $; years, and recently the nternet

has helped !oost its popularity e"en more.Answer# -&+


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(') 2ith in!ound telephone marketing, the company pro"ides a tollfree phone num!er to

recei"e orders from tele"ision ads, print ads, direct mail, and catalogs.

Answer# -&+Diff# $ %age &ef# '0

*kill# Concept

!/ecti"e# 10$

(;) Donotcall legislation has made telemarketing an ineffecti"e form of direct marketing,

especially for nonprofit groups.Answer# HA*

Diff# $ %age &ef# '(

*kill# Concept

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(7) Because of its association with somewhat >uestiona!le pitches and getrich>uick schemes,

directresponse tele"ision is !ecoming less popular than traditional !roadcast and ca!lead"ertising.

Answer# HA*


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(0) Iou recei"e a te=t message from +pscale Hurnishings a!out an upcoming sale on custom

furniture. +pscale Hurnishings is de"eloping a direct customer relationship with you through

kiosk marketing.Answer# HA*



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(() Because se"eral satellite !roadcast systems are now offering - capa!ilities, interacti"e -

is likely to !ecome a more widely used direct marketing medium.

Answer# -&+


*kill# Concept

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() -oday, many clickandmortar companies are e=periencing more online success than their

clickonly competitors.Answer# -&+

Diff# 5 %age &ef# ;4'


4) B$C 2e! sites deal with e=changes !etween !usinesses and companies.Answer# HA*

Diff# 1 %age &ef# ;4;


1) +nlike nternet consumers, traditional offline consumers initiate and control contact withmarketers.

Answer# HA*



$) *ales "ia B$B online marketing are e=pected to decrease in the ne=t decade.Answer# HA*





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5) Business customers of Dell Computer ha"e access to customized 2e! sites that include

purchasing and asset management reports and systemspecific technical information. Dell uses

B$B online marketing.Answer# -&+

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!/ecti"e# 105

') Companies such as eBay and "erstock.com facilitate C$C online marketing.

Answer# -&+



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;) C$B online marketing often in"ol"es the interchange of information through nternet forums,including customers? praise for and complaints a!out products.

Answer# -&+Diff# $ %age &ef# ;4(

AAC*B# +se of -


7) Companies conduct online marketing !y creating a 2e! site, placing ads and promotions

online, setting up or participating in online social networks, or mailing catalogs to potentialcustomers.

Answer# HA*


*kill# Concept

!/ecti"e# 10'

0) atalie Brennan has !een sa"ing her money to !uy a B62 con"erti!le. atalie has spent

hours on the B62 2e! site choosing the e=terior and interior colors and studying the "ariousoptions and models. atalie has !een using B62?s marketing 2e! site.

Answer# -&+

Diff# 5 %age &ef# ;4*kill# Application

!/ecti"e# 10'

() Banners are online ads that pop up !etween changes on a 2e! site.

Answer# HA*



!/ecti"e# 10'

1((Copyright 8 $414 %earson ducation, nc. %u!lishing as %rentice 9all


26/42

) %ermission!ased email ad"ertising allows marketers to send tailored messages to targeted

customers who choose to ha"e chosen to recei"e them.

Answer# -&+Diff# 1 %age &ef# ;17

AAC*B# +se of -


144) *ince the introduction of the DootCall &egistry, fraudulent schemes such as in"estmentscams and phony collections for charity ha"e !een on the decline.

Answer# HA*



141) n a !rief essay, e=plain the ma/or !enefits of direct marketing to !oth customers and

sellers.Answer# Hor customers, direct marketing is con"enient, easy to use, and pri"ate. t gi"es !uyers

ready access to a wealth of products and information, at home or work and around the glo!e. t isimmediate and interacti"e. Hor sellers, direct marketing is powerful for !uilding customer

relationships. +sing data!ase marketing, marketers can target small groups or indi"idual

consumers, tailor offers to indi"idual needs, and promote these offers through personalizedcommunications. t pro"ides great timing and offers a lowcost, efficient alternati"e for reaching

markets. Direct marketing has !ecome the fastestgrowing form of marketing.

Diff# $ %age &ef# '$

AAC*B# &eflecti"e -hinking*kill# Application

!/ecti"e# 101

14$) 9ow can a customer data!ase !e used as a relationship!uilding tool3

Answer# A customer data!ase is an organized collection of data a!out indi"idual customers orprospects, including detailed geographic, demographic, psychographic, and !eha"ioral data.

Companies can mine their data!ases to learn a!out customers in detail, and then finetune their

market offerings and communications to the special preferences and !eha"iors of target segments

or indi"iduals. As the customer relationship continues, the company can learn more a!out thecustomer and can more accurately finetune its offerings to satisfy the customer?s needs.

Diff# $ %age &ef# '5''


!/ecti"e# 10$



27/42

145) n a short essay, identify the ma/or ad"antage of the following forms of direct marketing#

telephone, directmail, catalog, directresponse tele"ision, and kiosk.

Answer# -elephone marketing pro"ides purchasing con"enience and increased product andser"ice information. Direct mail marketing permits selecti"ity and personalization. Catalog

marketing allows customers to !uy /ust a!out anything they desire, and through online catalogs

marketers can use realtime merchandising, adding or remo"ing products !ased on theira"aila!ility. Directresponse tele"ision marketing allows li"e demonstrations without salespeople

coming to your home or !usiness. Fiosk marketing places information and ordering machines in

con"enient places, such as airports, stores, and malls.Diff# 5 %age &ef# ';;41

*kill# Application

!/ecti"e# 10$

14') 9ow has the implementation of the ational DootCall &egistry changed telephone

marketing3

Answer# -he ational DootCall &egistry was created !y legislation passed in $445@ it !ans

most !usiness telemarketing calls to registered phone num!ers. 9owe"er, people can still recei"ecalls from nonprofit groups, politicians, and companies with which they ha"e recently done

!usiness. 6illions of customers ha"e /oined the donotcall list, and !usinesses that !reak thelaws can !e fined hea"ily. -he use of unsolicited out!ound telemarketing has greatly decreased

due to the law, !ut in!ound consumer telemarketing and out!ound !usinessto!usiness

telemarketing remain strong and growing. 6any telemarketers are shifting their callcenteracti"ity from making unsolicited cold calls on often resentful customers to managing e=isting

customer relationships. -hey are de"eloping JoptinJ calling systems, in which they pro"ide

useful information and offers to customers who ha"e in"ited the company to contact them !y

phone or email.Diff# $ %age &ef# '(

AAC*B# Analytic *kills

*kill# Application!/ecti"e# 10$



28/42

14;) ist and !riefly descri!e the four ma/or online marketing domains.

Answer# a. B$C G!usinesstoconsumer) online marketing in"ol"es !usinesses selling goods

and ser"ices online to final consumers. -oday, almost anything can !e purchased online.!. B$B G!usinessto!usiness) online marketing in"ol"es !usinesses using 2e! sites, email,

online product catalogs, online trading networks, and other online resources to reach new

!usiness customers, !etter ser"e e=isting !usiness customers, and o!tain !uying efficienciesand !etter prices.

c. C$C Gconsumertoconsumer) online marketing in"ol"es consumers !uying or

e=changing goods or information directly with one another. 2e! sites such as eBay andCraigslist.com facilitate C$C trading, and !logs are an influential source of consumerto

consumer information sharing.

d. C$B Gconsumerto!usiness) online marketing in"ol"es consumers searching out online

sellers, learning a!out their offers, and initiating purchases, sometimes e"en setting theterms of a transaction.

Diff# $ %age &ef# ;4;;4(

*kill# Application

!/ecti"e# 105

147) 9ow do nternet consumers differ from traditional offline consumers3Answer# -hey differ in their approaches to !uying and in their responses to marketing. -he

e=change process "ia the nternet has !ecome more customerinitiated and customercontrolled.

n traditional marketing, the audience is somewhat passi"e@ in online marketing, customersacti"ely select which 2e! sites they will "isit and what marketing information they will recei"e

a!out which products and under what conditions.



!/ecti"e# 105

140) Compare and contrast the purpose and content of a corporate 2e! site to that of a marketing

2e! site.

Answer# Corporate 2e! sites are designed to !uild customer goodwill and to supplement othersales channels, rather than to sell the company?s products directly. -hey offer a rich "ariety of

information and other features in an effort to answer customer >uestions, !uild closer

relationships, and generate e=citement a!out the company. n contrast, marketing 2e! sites are

designed to go !eyond the function of a corporate 2e! site and actually engage consumers in aninteraction that will mo"e them closer to a direct purchase. A marketing 2e! site allows

customers to "iew, research, and purchase specific items.

Diff# 5 %age &ef# ;4AAC*B# Analytic *kills

*kill# Application

!/ecti"e# 10'



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14() -o attract new "isitors and to encourage re"isits, online marketers should pay close

attention to the se"en Cs of effecti"e 2e! site design. Briefly descri!e four of these se"en Cs.

Answer# a. Conte=t# the site?s layout and design!. Content# the te=t, pictures, sound, and "ideo that the 2e! site contains

c. Community# the ways that the site facilitates usertouser communication

d. Customization# the site?s a!ility to tailor itself to different users or to allow users topersonalize the site

e. Communication# the ways the site ena!les sitetouser, usertosite, or twoway

communicationf. Connection# the degree that the site is linked to other sites

g. Commerce# the site?s capa!ilities to ena!le commercial transactions


AAC*B# +se of -*kill# Application

!/ecti"e# 10'

14) Descri!e two ways that marketers can participate in online social networks. 2hat are thechallenges and ad"antages of these approaches3

Answer# 6arketers can engage in online communities !y participating in e=isting 2e!communities or setting up their own. 6any ma/or !rands ha"e set up 6y*pace pages and

profiles and opened "irtual stores in "irtual worlds such as *econd ife. Companies can

efficiently market to many potential customers as more and more people participate in onlinesocial networks. 9owe"er, participating successfully in e=isting online social networks presents

challenges. Hirst, online social networks are new and results are hard to measure, and most

companies are still e=perimenting with how to use them effecti"ely. *econd, such 2e!

communities are largely user controlled, so a company must learn how to add "alue forconsumers in order to a"oid !eing seen as an intrusion. -o !e effecti"e, marketers must !ecome a

"alued part of the online e=perience. -o a"oid the mysteries and challenges of !uilding a

presence on e=isting online social networks, many companies are now launching their owntargeted 2e! communities. -hough marketers ha"e control of their own targeted 2e!

communities, they must then independently market and maintain the network.

Diff# $ %age &ef# ;15;1;AAC*B# &eflecti"e -hinking

*kill# Application

!/ecti"e# 10'

1$Copyright 8 $414 %earson ducation, nc. %u!lishing as %rentice 9all


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114) nternet marketing practices ha"e raised a num!er of ethical and legal >uestions. 2hy is

in"asion of pri"acy perhaps the num!erone online marketing concern3

Answer# 2e! site acti"ities pro"ide e=tensi"e personal information. -his may lea"e consumersopen to information a!use if companies make unauthorized use of the information in marketing

their products or e=changing data!ases with other companies. Critics worry that through

data!ase marketing, marketers know too much a!out consumers? li"es and may not use thatinformation responsi!ly, taking unfair ad"antage of consumers.


AAC*B# thical &easoning*kill# Application

!/ecti"e# 10;

111) Adams Cutlery has always relied upon ad"ertising to market its products to final customers.

9owe"er, the marketing team at Adams Cutlery now wants to !egin a direct marketing campaign

consisting of a company 2e! site, emails to current customers, and an online catalog. 2hich ofthe following would the marketing team e=pect to gain as a result of implementing this direct

marketing plan3

A) the a!ility to increase the range of products the company offersB) a wealth of information a!out competitors and their products

C) more control o"er customers? interactions with the company

D) the a!ility to learn more a!out their customers and tailor offerings to fit their needs

) a higher costpercontact that could pro"e to !e more cost effecti"e than ad"ertising in massmedia

Answer# D

Diff# $ %age &ef# '$AAC*B# Analytic *kills

*kill# Application

!/ecti"e# 101

11$) Hinancial ser"ices pro"ider +*AA sends materials a!out teaching teenagers how to dri"e

safely to +*AA customers who ha"e children approaching dri"ing eligi!ility age. +*AA is using________ information from a customer data!ase to determine which customers should recei"e

the materials.

A) demographic

B) geographicC) psychographic

D) !eha"ioral

) key contactAnswer# A



!/ecti"e# 101



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115) Hiona am!rech is the marketing director of a charity that raises funds to help pro"ide

educational ser"ices to children and families in de"eloping countries. Hiona wants to reach a

select market of indi"iduals who ha"e recently donated to international charities. 2hich of thefollowing types of direct marketing will Hiona most likely use3

A) directmail marketing

B) catalog marketingC) telephone marketing

D) kiosk marketing

) directresponse tele"ision marketingAnswer# A

Diff# $ %age &ef# ';



11') rganic Designs is a small, successful chain of stores offering stylish clothes made of all

organic materials for infants, toddlers, and young children. 6ost of the rganic Designs stores

are located in ur!an areas. ow rganic Designs is considering using direct marketing to reachpotential customers who li"e outside of the company?s e=isting markets, with the goal of creating

emotional connections and longterm relationships with a new group of customers. 2hich of the

following methods of direct marketing would most likely !e effecti"e in accomplishing this

goal3A) mo!ile phone marketing

B) interacti"e - marketing

C) catalog marketingD) kiosk marketing

) directresponse tele"ision marketing

Answer# CDiff# $ %age &ef# '7'0



11;) :utter :uys is a gutter installation company in *outhern California that used to generate

most of its sales through telemarketing !ut now uses direct mail to reach prospecti"e customers.2hich of the following most likely e=plains the reason that :utter :uys switched from

telemarketing to direct mail3

A) Hederal -rade Commission?s Anti*pam ActB) %ri"acy %romise to American Consumers

C) California nline %ri"acy %rotection Act

D) Children?s nline %ri"acy %rotection Act) ational Do ot Call &egistry

Answer#

Diff# 1 %age &ef# '0'(


!/ecti"e# 10$



32/42

117) eal 6urphy sells his company?s uni>ue gift items on tele"ision programs and entire

channels dedicated to selling goods and ser"ices. eal is using ________.

A) directresponse tele"ision ad"ertisingB) nternet!ased infomercials

C) B$B online marketing

D) primetime selling) "odcasting

Answer# A

Diff# $ %age &ef# 'AAC*B# Analytic *kills

*kill# Application

!/ecti"e# 10$

110) A producer of !e"erages and snack foods wants to market its products to the 1(to5'year

old demographic !y pro"iding incenti"es to respond instantly to timesensiti"e offers. 2hich ofthe following forms of direct marketing would this producer most likely choose3

A) interacti"e -

B) directresponse -C) mo!ile phone

D) direct mail

) podcasting

Answer# CDiff# 5 %age &ef# ;4$



11() Company < !egan as a !rickandmortar company. 2hich of the following statements6+*- !e true3

A) By adding online marketing options, Company < would !ecome a clickandmortar company.

B) Company < is also considered a clickonly dotcom.C) Company < should not !e concerned a!out consumertoconsumer online marketing.

D) Company < is pro!a!ly not making a profit.

) By adding online marketing options, Company < would !ecome a clickonly company.

Answer# ADiff# $ %age &ef# ;4'


*kill# Application!/ecti"e# 105

1;Copyright 8 $414 %earson ducation, nc. %u!lishing as %rentice 9all


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11) ffice Depot is a clickandmortar company. 2hich of the following is A*- likely to !e

an ad"antage that ffice Depot has o"er clickonly competitors3

A) ffice Depot is a known name with greater financial resources.B) ffice Depot has a large, esta!lished customer !ase.

C) By offering online marketing, ffice Depot offers customers more options.

D) Customers can find a local store and check its a"aila!le stock online.) ffice Depot focuses on large accounts through its online presence and small !usinesses

through its retail stores.

Answer# Diff# 5 %age &ef# ;4';4;


*kill# Application

!/ecti"e# 105

1$4) :reen :ardens is a clickandmortar seller of gardening and landscaping goods ande>uipment, !ut the marketing department wants to promote the :reen :ardens 2e! site. 2hen

customers are una!le to find a product they need on the shel"es of their local :reen :ardens, the

marketing department wants them to search for the product on the :reen :ardens 2e! site.2hich of the following marketing de"ices is the !est match for this goal3

A) kiosks

B) email

C) mo!ile phonesD) telemarketing

) catalog marketing

Answer# ADiff# $ %age &ef# ;4;



1$1) ABC Company sells directly to final consumers and a"oids intermediaries, while catering toa !road group of demographic segments. -his marketer falls under which online marketing

domain3

A) B$C

B) B$BC) C$C

D) C$B

) A or CAnswer# A



!/ecti"e# 105



34/42

1$$) Eane Cheatham, a stayathome mother, regularly posts new entries on a widely read !log.

n these entries, she often re"iews consumer products that she uses during the course of her day.

Eane participates in ________.A) C$B online marketing

B) C$C online marketing

C) "iral marketingD) content sponsorship

) online social networks

Answer# BDiff# 1 %age &ef# ;40


*kill# Application

!/ecti"e# 105

1$5) By using %riceline.com, potential !uyers can !id for airline tickets, hotel rooms, rental cars,cruises, and "acation packages. t is then up to sellers to decide whether or not to accept an

offered !id. -his is an e=ample of ________.

A) B$B online marketingB) C$C online marketing

C) B$C online marketing

D) C$B online marketing

) multichannel marketingAnswer# D



!/ecti"e# 105

1$') Con"erse has a 2e! site that welcomes consumers to Jthe Con"erse Century,J in"ites

readers to post their Con"erse stories, and offers a wide "ariety of Con"erse shoes for direct

purchase. -he site e"en allows customers to indi"idually design their own shoes. -he Con"ersesite is most accurately categorized as which of the following types of 2e! sites3

A) a B$B site

B) a C$B site

C) a C$C siteD) a corporate site

) a marketing site

Answer# Diff# $ %age &ef# ;4


*kill# Application!/ecti"e# 10'



35/42

1$;) scar A"iation has a corporate 2e! site. %rospecti"e customers are most likely a!le to do

all of the following on the site uestions

C) en/oy entertainment features on the site

D) purchase products) register to recei"e more information from the company

Answer# D

Diff# $ %age &ef# ;4AAC*B# Analytic *kills

*kill# Application

!/ecti"e# 10'

1$7) n attempting to design an effecti"e 2e! site, Company A tried to address all of the se"en

Cs. -he site, howe"er, has a weak layout and design. 2hich C does this represent3A) customization

B) content

C) conte=tD) connection

) community

Answer# C


*kill# Application

!/ecti"e# 10'

1$0) Iou are looking up airline schedules on the nternet. A !ar at the top of the screen reads,

J*tay at 9oliday nn and get a $; percent discountKJ -his is aGn) ________.A) !anner

B) popunder

C) content sponsorshipD) popup

) interstitial

Answer# A


*kill# Application

!/ecti"e# 10'



36/42

1$() Iou ha"e accessed fare information on orthwest Airlines? 2e! site. Iou want to compare

it with +nited Airlines? fares. n !etween screen changes, an ad appears from Alamo Car &ental.

-his is aGn) ________.A) !anner

B) popup

C) content sponsorshipD) popunder

) interstitial

Answer# Diff# $ %age &ef# ;11


*kill# Application

!/ecti"e# 10'

1$) +ptown Cleaning Crew is a company that pro"ides house cleaning ser"ices in ma/or ur!anand su!ur!an areas. 6arketers at +ptown Cleaning Crew de"eloped a short, humorous "ideo

promoting the company?s ser"ices, and they hope that customers who see the "ideo will !e so

entertained that they will pass it on to their friends and colleagues. -he marketers at +ptownCleaning Crew are using ________.

A) a content sponsorship

B) "iral marketing

C) C$B marketingD) rich media ads

) a marketing 2e! site

Answer# BDiff# $ %age &ef# ;1$



154) &unners can compare performances, set up profiles, and meet new friends on ike?s ike%lus 2e! site. ike %lus is an e=ample of a ________.

A) C$C marketing site

B) "iral marketing site

C) 2e! communityD) alliance and affiliate program

) conte=tual ad"ertisement

Answer# CDiff# $ %age &ef# ;1;





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151) After selecting a sweater on the and?s nd 2e! site, Felly ldham filled out the re>uired

customer and credit card information. A !o= with a checkmark inside was ne=t to the following

statement #JIes, would like to recei"e promotional information "ia email from and?s nd.J-he statement suggests that and?s nd is using which of the following marketing tools3

A) spam

B) phishingC) catalog marketing

D) niche marketing

) permission!ased email marketingAnswer#




15$) Charlie %utnam recei"ed an email promoting a new financial ser"ices institution that offers

surprisingly low mortgage rates. -he email simply asked customers to pro"ide their address,

date of !irth, social security num!er, and current mortgage information in order to recei"e a freeloan >uote. *uspicious of the offer, Charlie researched the company and disco"ered that the e

mail was a fraud. -his is an e=ample of ________.

A) online ea"esdropping

B) phishingC) malware

D) heat marketing

) "iral marketingAnswer# B



!/ecti"e# 10;

$44Copyright 8 $414 %earson ducation, nc. %u!lishing as %rentice 9all


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Refer to the scenario below to answer the following questions

-he -re!le Clef offers a complete line of sheet music, musical instruments, and no"eltygifts of a musical nature. n recent years, owner :ary ahn has e"en ser"ed as the local

representati"e of se"eral musical instrument manufacturers, pro"iding a contact person for three

local school districts. Jf we don?t ha"e it, chances are e=cellent that we can get it for you,J :arytells all -re!le Clef "isitors and customers.

6ost walkins are particularly interested in a specific piece of sheet music from a

particular era or /ust !rowsing among the hundreds of musical knickknacks in the store. :aryspends most of his time making presentations to !eginning music students at the local schools

and making !iweekly "isits to the schools in order to deli"er instruments, to make minor repairs

when possi!le, or to pick up instruments to ship to the manufacturer for more complicated

repairs.After dragging his feet for >uite some time, :ary was con"inced that a -re!le Clef 2e!

site could !enefit a "ariety of customers. 9e !egan with a simple site e=plaining store hours and

depicting types of gifts and ser"ices a"aila!le. -he site recei"ed so much response that :ary

added a >uestionandanswer option. Luestions poured in, ranging from J2here can get thesheet music for ?9ello, Dolly?3J to JDo you carry clarinet reeds3J to J6y sa=ophone needs two

new pads. 2hen will you !e at lmhurst school to repair it3J -he 2e! site is now a!le to acceptcredit card orders, and gifts can e"en !e wrapped and shipped for no e=tra charge.

J don?t know how we did it without our 2e! site,J :ary admitted. Jt allows us to !e so

responsi"e. And our no"elties sales ha"e dou!ledKJ

155) 2hat type of online marketing is :ary ahn using to promote the -re!le Clef3

A) B$B

B) B$CC) "iral marketing

D) social networking

) conte=tual ad"ertisingAnswer# B



!/ecti"e# 105

15') 2hich of the following B*- descri!es the -re!le Clef3

A) a !rickandmortar company that is now a clickonly retailer

B) a dotcom that has added a storefront to ser"ice local customersC) a clickandmortar company that used to !e a !rickandmortar retailer

D) a !rickandmortar retailer that is struggling to compete with clickonly firms

) a !rickandmortar company that esta!lished a 2e! community for musiciansAnswer# C






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15;) 6any -re!le Clef customers are seeking specific sheet music that :ary does not always

ha"e instock. :ary would like to pro"ide a link on the store?s 2e! site to a sheet music supplier

with which he does !usiness. n which of the following 2e! site design elements should :aryfocus3

A) conte=t

B) communityC) customization

D) connection

) contentAnswer# D




157) 9ow does direct marketing gi"e !uyers access to more comparati"e information a!out

companies, products, and competitors3Answer# Catalogs and 2e! sites, !oth forms of direct marketing, can pro"ide e=tensi"e product

information and helpful product re"iews. Customers can easily research companies, products,and competitors !y comparing information in catalogs or on !usinesstoconsumer and

consumertoconsumer 2e! sites.

Diff# $ %age &ef# '$AAC*B# Analytic *kills

*kill# Application

!/ecti"e# 101

150) 9ow does online marketing pro"ide fle=i!ility for sellers3

Answer# nline marketing allows the marketer to make ongoing ad/ustments to its offers and

programs. nline catalogs, if used, can !e ad/usted daily or e"en hourly if needed. Because thenternet is a glo!al tool, it allows !uyers and sellers to click from one country to another country

in seconds.

Diff# $ %age &ef# '$'5AAC*B# Analytic *kills

*kill# Application

!/ecti"e# 101

15() 2hat kind of information is likely to !e included in a !usinessto!usiness customer

data!ase3Answer# Data might include products and ser"ices purchased !y the customer, pro/ected

customer spending, competing suppliers, status of current contracts, key contacts and personal

information, and assessments of competiti"e strengths and weaknesses in selling and ser"icingthe account.

Diff# $ %age &ef# '5''

*kill# Application

!/ecti"e# 101

$4$Copyright 8 $414 %earson ducation, nc. %u!lishing as %rentice 9all


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15) 2hy are people reached !y direct mail !etter prospects for a company than those reached

!y mass media such as tele"ision or magazines3

Answer# +nlike mass media, direct mail allows for high targetmarket selecti"ity, so onlyconsumers who are likely to !ecome customers can !e contacted@ in addition, direct mail can !e

personalized for each indi"idual, which helps to !uild customer relationships.

Diff# $ %age &ef# '7AAC*B# Analytic *kills

*kill# Application

!/ecti"e# 10$

1'4) 2hy are printed catalogs still thri"ing in the face of the growing popularity of 2e!!ased

catalogs3

Answer# %rinted catalogs are more effecti"e at creating an emotional connection with customersand continue to !e one of the !est ways to lead customers to online catalogs.




1'1) =plain how the creation of the ational DootCall &egistry may ha"e helped

telemarketers more than it hurt them.

Answer# nstead of making cold calls to people who are likely to resent the intrusion,telemarketers ha"e switched gears and now focus on managing e=isting customer relationships

through JoptinJ calling systems that pro"ide useful information and offers to customers who

ha"e gi"en the company permission to contact them.

Diff# $ %age &ef# '('AAC*B# Analytic *kills

*kill# Application

!/ecti"e# 10$

1'$) 2hy is the use of directresponse tele"ision growing in popularity3

Answer# Directresponse - commercials are usually less e=pensi"e to produce than traditionaltele"ision ad"ertisements, and the media purchase is less costly@ also, it is easy for marketers to

track the effecti"eness of a directresponse - commercial !ecause the ads always include a 1

(44 num!er or 2e! address.

Diff# 5 %age &ef# ;44AAC*B# Analytic *kills

*kill# Application

!/ecti"e# 10$

1'5) %ro"ide an e=ample of how a marketer uses kiosk marketing.Answer# Answers will "ary. 6any airlines and hotels use kiosks as selfser"ice checkin

de"ices@ many retail stores offer instore ordering kiosks@ kiosks in -arget stores connect

customers to rele"ant articles from Consumer Reportsmagazine.

Diff# $ %age &ef# ;41*kill# Application

!/ecti"e# 10$



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1'') 9ow can firms that use new direct marketing technologies a"oid !acklash from consumers

who "iew such marketing as an in"asion of pri"acy3

Answer# 6arketers should always target their direct marketing offers carefully and !ring real"alue to customers through direct marketing.



!/ecti"e# 10$

1';) 2hat types of ser"ices do B$B marketers offer online3

Answer# 6ost ma/or B$B marketers now offer product information, customer purchasing, and

customer support ser"ices online.

Diff# $ %age &ef# ;47*kill# Application

!/ecti"e# 105

1'7) =plain how a company !enefits from monitoring the !logosphere.Answer# By staying uptodate with the content on rele"ant !logs, a company can gain insights

from its consumers and ad/ust its marketing programs accordingly@ for e=ample, a companymight learn a!out the weaknesses or strengths of a new marketing campaign !y monitoring

reactions on !logs.

Diff# $ %age &ef# ;40;4(AAC*B# &eflecti"e -hinking

*kill# Application

!/ecti"e# 105

1'0) %ro"ide two reasons that many companies are shifting more of their marketing dollars to

online ad"ertising.

Answer# 6ore companies are increasing the portion of their marketing !udget spent on onlinead"ertising !ecause consumers are spending more and more time on the nternet. &ich media ads

are particularly effecti"e in engaging "iewers, and searchrelated ads reach an audience likely to

!e interested in the product.Diff# $ %age &ef# ;11

*kill# Application

!/ecti"e# 10'

1'() 2hat is the purpose of content sponsorship3 %ro"ide an e=ample of content sponsorship.

Answer# Content sponsorships are a form of nternet promotion@ many companies gain e=posureon the nternet !y sponsoring special content on "arious 2e! sites, such as news and financial

information. *ponsorships are !est placed in carefully targeted sites where they can offer

rele"ant information or ser"ice to the audience. *cotts, the lawnandgarden company sponsorsthe ocal Horecast section on 2eatherChannel.com.

Diff# $ %age &ef# ;1$

*kill# Application

!/ecti"e# 10'

$4'Copyright 8 $414 %earson ducation, nc. %u!lishing as %rentice 9all


42/42

1') =plain the goal of "iral marketing.

Answer# iral marketing is the nternet "ersion of wordofmouth marketing. iral marketing

in"ol"es creating a 2e! site, email message, or other e"ent that is so infectious that customerswill want to pass it along to their friends.

Diff# $ %age &ef# ;1$;15


1;4) 9ow has the direct marketing industry taken steps to address pri"acy and security concerns3Answer# *ome companies use a nonprofit selfregulatory organization that audits a company?s

security and pri"acy measures and then appro"es 2e! sites that meet its pri"acy and security

standards. -he Direct 6arketing Association has started a %ri"acy %romise that asks mem!er

companies to agree to notify customers a!out the use of their pri"ate information and to honorcustomer re>uests to JoptoutJ of recei"ing further solicitations.


*kill# Application

!/ecti"e# 10;

Kotler Chapter17

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Transcript of Kotler Chapter17