Q&A Hero

Q: Public relations is the only tool that can provide damage control in the face of negative publicity. a. Trueb. False

Q: Public relations cannot work for dedicated brand-building in a digital and social media environment. a. Trueb. False

Q: Public relations manages corporate communications and helps image management in times of noncrisis. a. Trueb. False

Q: At present, the field of public relations does much more than its traditional role of managing goodwill with a company's stakeholders and customers.a. Trueb. False

Q: Public relations can be used to activate social media, as well as engage mainstream media. a. Trueb. False

Q: Scenario 17-1If you walk into a Cracker Barrel Old Country Store, you"ll see many items once found in general stores, like porcelain signs, ceramic jugs, tin boxes, and Coca-Cola trays and plaques. Since 2004, Coca-Cola Co. has maintained a larger display of unique Coca-Cola memorabilia at the Cracker Barrel in Nashville, right next to the Opryland Hotel. Visitors will find a number of rare holiday paintings, prints, and calendars featuring the familiar Santa Claus figure and a bottle of Coke. In 1931, the company had commissioned professional illustrator Haddon Sundblom to create illustrations for its advertising. This resulted in the warm and jolly image of Santa that has endured in American culture ever since. The soft drink has been served in Cracker Barrel stores for 40 years, so this is a natural connection for both brands. In fact, for its 40th anniversary in 2009, Cracker Barrel featured Black Cherry Coke in limited-edition glasses bearing logos of both brands.(http://www.crackerbarrel.com/about-decor.cfm?doc_id=51. Accessed January 17, 2011.)(original press release by Jim Taylor, "Rare CocaColaHoliday Artwork on Display at Cracker Barrel Old Country Store," http://www.crackerbarrel.com/mediaroomnewsreleases, November 15, 2004.)If Coca-Cola employed someone to call on frequent buyers of its memorabilia to guarantee their satisfaction and update their needs; but not necessarily to pitch new products or close another sale, this employee would be considered as a(n):a. order taker.b. missionary salesperson. c. system solutions person. d. creative salesperson.

Q: Scenario 17-1If you walk into a Cracker Barrel Old Country Store, you"ll see many items once found in general stores, like porcelain signs, ceramic jugs, tin boxes, and Coca-Cola trays and plaques. Since 2004, Coca-Cola Co. has maintained a larger display of unique Coca-Cola memorabilia at the Cracker Barrel in Nashville, right next to the Opryland Hotel. Visitors will find a number of rare holiday paintings, prints, and calendars featuring the familiar Santa Claus figure and a bottle of Coke. In 1931, the company had commissioned professional illustrator Haddon Sundblom to create illustrations for its advertising. This resulted in the warm and jolly image of Santa that has endured in American culture ever since. The soft drink has been served in Cracker Barrel stores for 40 years, so this is a natural connection for both brands. In fact, for its 40th anniversary in 2009, Cracker Barrel featured Black Cherry Coke in limited-edition glasses bearing logos of both brands.(http://www.crackerbarrel.com/about-decor.cfm?doc_id=51. Accessed January 17, 2011.)(original press release by Jim Taylor, "Rare CocaColaHoliday Artwork on Display at Cracker Barrel Old Country Store," http://www.crackerbarrel.com/mediaroomnewsreleases, November 15, 2004.)When consumers drop their business cards into a fishbowl at a Cracker Barrel store, they are entering a contest. However, in essence, the marketers at Cracker Barrel may see this move as a(n):a. opt-in for bulk email and other promotions. b. form of direct response advertising.c. way to promote system solutions. d. way to foster creative selling.

Q: Scenario 17-1If you walk into a Cracker Barrel Old Country Store, you"ll see many items once found in general stores, like porcelain signs, ceramic jugs, tin boxes, and Coca-Cola trays and plaques. Since 2004, Coca-Cola Co. has maintained a larger display of unique Coca-Cola memorabilia at the Cracker Barrel in Nashville, right next to the Opryland Hotel. Visitors will find a number of rare holiday paintings, prints, and calendars featuring the familiar Santa Claus figure and a bottle of Coke. In 1931, the company had commissioned professional illustrator Haddon Sundblom to create illustrations for its advertising. This resulted in the warm and jolly image of Santa that has endured in American culture ever since. The soft drink has been served in Cracker Barrel stores for 40 years, so this is a natural connection for both brands. In fact, for its 40th anniversary in 2009, Cracker Barrel featured Black Cherry Coke in limited-edition glasses bearing logos of both brands.(http://www.crackerbarrel.com/about-decor.cfm?doc_id=51. Accessed January 17, 2011.)(original press release by Jim Taylor, "Rare CocaColaHoliday Artwork on Display at Cracker Barrel Old Country Store," http://www.crackerbarrel.com/mediaroomnewsreleases, November 15, 2004.)The marketers of Coca Cola collectibles offer their most loyal customers a program in which they are allowed to preview and purchase limited-edition items one month before the general public is informed of the sale. This assures key customers that they won't miss out on a valued collectible due to unusually high demand. This is an example of:a. an effective use of external lists. b. a CPO program.c. a frequency-marketing program. d. marcom management.

Q: Scenario 17-1If you walk into a Cracker Barrel Old Country Store, you"ll see many items once found in general stores, like porcelain signs, ceramic jugs, tin boxes, and Coca-Cola trays and plaques. Since 2004, Coca-Cola Co. has maintained a larger display of unique Coca-Cola memorabilia at the Cracker Barrel in Nashville, right next to the Opryland Hotel. Visitors will find a number of rare holiday paintings, prints, and calendars featuring the familiar Santa Claus figure and a bottle of Coke. In 1931, the company had commissioned professional illustrator Haddon Sundblom to create illustrations for its advertising. This resulted in the warm and jolly image of Santa that has endured in American culture ever since. The soft drink has been served in Cracker Barrel stores for 40 years, so this is a natural connection for both brands. In fact, for its 40th anniversary in 2009, Cracker Barrel featured Black Cherry Coke in limited-edition glasses bearing logos of both brands.(http://www.crackerbarrel.com/about-decor.cfm?doc_id=51. Accessed January 17, 2011.)(original press release by Jim Taylor, "Rare CocaColaHoliday Artwork on Display at Cracker Barrel Old Country Store," http://www.crackerbarrel.com/mediaroomnewsreleases, November 15, 2004.)Cracker Barrel stores feature a big fishbowl inviting visitors to leave a business card and announcing a monthly drawing for free memorabilia from both brands. The prizes are delivered to the home addresses of those whose cards are drawn. What are Cracker Barrel and Coca Cola attempting to do with this fishbowl activity?a. Develop a mailing list b. Promote brand loyalty c. Cross-sellingd. Conduct personal selling

Q: A marketer wonders why salespeople no longer simply approach their prospects with the direct intention of making a sale. Instead, they spend time analyzing all the possible needs and desires of the prospects. The marketer realizes that, today, salespeople are expected to:a. be problem solvers who work in partnership with customers.b. be technical experts with experience in database management and analysis. c. take orders only after confirming the appropriateness of each sale.d. understand the operations and output of several departments.

Q: Verdure Systems, an electronics company, sells a finance and payroll application to a corporate buyer. In addition to the software; Verdure offers to install the hardware required to run, install, and maintain the software. It will also train the employees on the usage of the software, and provide engineers to fix any problem that may arise in the software. In this way, Verdure manages to eliminate the buyer's worries related to the software package. In this scenario, Verdure is involved in ____.a. system sellingb. frequency marketing c. cross sellingd. CPO marketing

Q: Which of the following is the least complex form of personal selling?a. Creative selling b. System sellingc. Missionary services d. Order taking

Q: Personal selling is:a. the process of face-to-face communication and persuasion. b. virtually, the only way to close the deal.c. easier to conduct than any other marketing function. d. the most controversial form of direct marketing.

Q: The role of a marcom manager is to:a. ensure efficient and timely delivery of products ordered. b. monitor contacts, sales, and return sales.c. schedule the media for marketing communications.d. plan overall communications and oversee the functional specialists.

Q: A fast-growing frozen yogurt chain discovers the need to create a proper advertising message that will result in increased sales. In order to do this, it needs to coordinate all of its communications programs with all of its specialists' efforts. At this point in its growth, the company would be wise to hire a ____.a. missionary salesperson b. marcom managerc. list enhancerd. functional specialist

Q: In which of the following ways would the the establishment of a marketing database create problems between a company and its advertising agency?a. Implying that the ad agency is unable to gather and track reliable customer informationb. Using funds for direct marketing that would have otherwise supported traditional ad agency campaigns c. Purchasing mailing lists from competing promotional agenciesd. Forcing the ad agency to use the data that the company has on its own mailing lists

Q: Organizations are looking to achieve the synergy that can come when various advertising and IBP options reach the consumer with a common and compelling message. However, the difficulty that organizations face when deploying various media is that:a. salespersons have to be engaged in order taking, creative selling, as well as supportive communication. b. they have to decrease the budget of conventional advertising campaigns and other IBP techniques.c. they cannot communicate large amounts of information through their advertising messages.d. functional specialists inside and outside the organizations will find it difficult to coordinate with each other.

Q: A company wants to sell a window cleaning kit in a 30-minute infomercial. Which of the following would an experienced public relations specialist suggest to the company?a. Wait till the end of the informercial to provide contact information in order to make a climax. b. Repeat the phone number and website throughout the broadcast.c. Spend adequate money and hire a celebrity to attest the effectiveness of the kit. d. Avoid using consumer testimonials.

Q: Which of the following is a key to success for an infomercial?a. Keeping the broadcast under five minutes b. Avoiding the use of celebritiesc. Promoting only nationally known brand names d. Including testimonials from satisfied users

Q: Infomercials were made possible by:a. the advent of video cameras in mobile marketing. b. increasingly gullible consumers.c. less expensive ad space on satellite and cable systems. d. relaxed network standards for television programs.

Q: A nationally distributed fashion magazine regularly acts as a vehicle for direct marketing. This occurs when companies use the magazine to promote their products or services by:a. having feature stories about products published in the magazine. b. sending press releases to the magazine.c. getting free publicity in advice columns of the magazine. d. paying for bind-in insert cards in the magazine.

Q: Which of the following forms of direct marketing is currently considered to be most controversial?a. Direct mailb. Telemarketing c. Bulk emaild. Infomercial

Q: Sarah's phone rings one evening at dinnertime. A man says he's calling from a nationwide magazine subscription service; and wants to know about Sarah's hobbies and interests, and her reading preferences. He proceeds to tell Sarah about a special deal if she orders three magazines. This type of telemarketing will most likely:a. provide no information about the company.b. annoy consumers and alienate them from the company. c. create a favorable image of the company.d. promote the company in an cost-effective manner.

Q: Which of the following direct marketing mediums currently have the highest response rate?a. Telemarketing b. Infomercialc. Direct mail d. Advertorial

Q: The two advantages of direct mail as a medium of communication is its:a. cost and response rate. b. selectivity and flexibility.c. mailing lists and consumer data. d. timing and delivery.

Q: A nationwide restaurant chain is considering the use of a direct mail piece to reach potential customers. Managers of the company should realize that two disadvantages related to this tactic are: the high cost per contact, and the:a. limited ability to test executions. b. lack of creative options.c. inaccuracy of addresses on mailing lists. d. consumers' distrust in mailed advertising.

Q: Companies can address customers' privacy concerns if they remember two fundamental premises about database marketing. Which of the following is one of those premises?a. Customers should be provided with the option of replying to a lead card.b. Information gained for databases should only be used for mailing purposes. c. Information collected should not be sold to other companies.d. Customers should be offered something they value.

Q: A busy mother of four is concerned with issues of privacy, and doesn't want her family phone number on mailing lists. Which of the following should she consider? a. Be aware of legislation that limit businesses' access to personal information b. Sign up for the Direct Marketing Association's optout program c. Contact the FTC's Do Not Call Registry d. Call the state Better Business Bureau

Q: Which of the following is the largest concern for consumers regarding direct marketing?a. Telemarketingb. Invasion of privacy c. Increased junk mail d. Credit card debt

Q: A suburban country club contacts each member who holds a golf membership to enquire if they would also be interested to purchase a pool membership for the entire family. The country club personnel are using their marketing database for ______ .a. personal selling b. creative selling c. marcom selling d. cross-selling

Q: Cross-selling involves marketing:a. additional products to current customers.b. the same product across different consumers.c. products to different members of the same household. d. only to one geo-demographic segment.

Q: Which of the following is one of the basic elements of any frequency-marketing program?a. An internal mailing list b. A benefit packagec. An external mailing list d. A salesperson

Q: A shoe retailer uses its marketing database to run a recency, frequency, monetary analysis on its customers. In this context, frequency refers to the number of times a customer:a. was reached with any kind of advertising message. b. was reached through a direct marketing medium.c. bought a product from the company.d. bought a product from a certain product category.

Q: An RFM analysis is used to:a. determine which products or services are most popular. b. identify the most loyal customers.c. track the replies from direct mail pieces.d. compare the efficiencies of various direct marketing programs.

Q: Xercise1, a nationwide fitness center chain, interviews its customers to determine their wants and needs regarding their local center's services, classes, equipment, facilities, business hours, etc. The marketers at Xercise1 are in the process of developing:a. a marketing database. b. an external mailing list.c. a geo-demographic data source. d. a single-source tracking study.

Q: Marketing databases can be expanded by adding _____ data, which reveals the characteristics of the neighborhood in which a person resides.a. demographicb. psychographic c. telegraphicd. geo-demographic

Q: A real estate firm has a name-and-address file. It now chooses to incorporate into the file the demographic, geo- demographic, psychographic and behavioral data of its customers. Through this type of list enhancement, the real estate firm will:a. get a larger number of customer names and addresses in its database. b. contribute to the ease of payment for its customers.c. have a more complete description of who its customers are.d. allow consumers convenient access to compare product features on its website.

Q: A direct marketer promoting a service industry uses both internal and external lists. Which of the following is a difference between internal and external lists? a. Internal lists contain all types of consumer information, whereas external lists consist of names and addresses. b. Internal lists help to develop relationships with current customers, whereas external lists help to attract new customers. c. Internal lists are drawn from the general population, whereas external lists are drawn from competitors' customer lists. d. Internal lists cannot be enhanced, whereas external lists can be enhanced.

Q: Before cultivating new business, marketers should begin with ____mailing lists as the starting point for developing better relationships with current customers.a. internalb. demographic c. externald. psychographic

Q: One characteristic of direct marketing that distinguishes it from other tactics is that it:a. depends on consumer response for its success. b. emphasizes developing a customer database.c. has a lower cost per contact.d. relies on audience segmentation.

Q: An emphasis on producing measurable effects is one of the noted appeals of direct marketing. In evaluating direct marketing programs, which of the following are frequently used parameters?a. Cost per contact and cost per consumer b. Cost per rating point and cost per share c. Cost per thousand and cost per milliond. Cost per inquiry and cost per order

Q: The sudden, widespread availability of _____ is among the several societal factors that are driving the growing popularity of direct marketing today.a. technologyb. intangible assets c. mail-order firmsd. door-to-door sales

Q: Which of the following is the main factor that has contributed to the popularity of direct marketing with consumers?a. Convenience b. Privacyc. Technology d. Quality

Q: Which of the following are the three main purposes of direct marketing programs?a. To close the sale, identify prospects, and engage consumersb. To identify target markets, tailor the message, and support brand identity c. To provide information, answer questions, and foster brand loyaltyd. To reward customers, furnish information, and generate brand preference

Q: A marketing manager for a company that packages vacations to exotic locations uses a variety of media to promote these trips; including upscale magazines, infomercials, and direct mail. One of the primary objectives is integration. This is because if these programs are integrated, the manager can:a. cut the cost of communicating with audiences. b. easily measure for their results.c. make the program more effective than the sum of their parts.d. eliminate the need to tailor specific messages to specific audiences.

Q: Which of the following should be a key goal of direct marketing in for-profit businesses and not-for-profit organizations?a. To build a widespread mail-order operation b. To create an image for the brandc. To integrate the program with all other advertising effortsd. To reach customers across the board rather than consumers in specific markets

Q: Which of the following is true of building customer relationship through direct marketing?a. Word-of-mouth advertising is the best way to build a marketing base. b. Long-term customer relationships must be based on trust.c. Closing the sale comes first, followed by commitment to customer satisfaction. d. Customers are willing to pay for catalogs if given the proper incentive.

Q: Which of the following is the primary reason for direct marketing to grow in popularity?a. It uses only one type of media to get a response. b. It has a long-term sales promotion goal.c. It has an immediate measurement of responsed. It relies on technology rather than human behavior

Q: The concept of ____ marketing is interactive because the marketer attempts to develop an ongoing dialogue with the customer based on the idea that one contact will lead to another, and the message is continually refined. a. massb. directc. social media d. partnership

Q: Direct marketing is defined as an interactive system that uses one or more advertising media to:a. develop a one-time communication with customers. b. push a product through the distribution channel.c. sustain a brand image.d. get a measurable response or transaction at any location.

Q: Customer relationship management, or CRM, involves cultivating long-term relationships with customers. a. Trueb. False

Q: The missionary salesperson is required to handle the hardest part of selling which is closing the sale. a. Trueb. False

Q: The most complex and demanding type of creative selling is seen in telemarketing efforts directed toward consumers at home. a. True b. False

Q: Creative selling involves answering questions and providing basic benefits of the goods being offered, but it rarely requires communicating large amounts of information or advice. a. True b. False

Q: Order taking involves accepting orders for merchandise or scheduling services. It also requires answering basic questions, and communicating effectively so that a quality relationship with the customer is established and maintained. a. True b. False

Q: There two types of personal selling are order taking and creative selling. a. Trueb. False

Q: Failure to get the consumer dialogue right in the personal selling part of the direct marketing process can be easily rectified by accelerating and stressing on the other direct marketing efforts of a business. a. True b. False

Q: Products that are higher priced, complicated to use, or require demonstration are heavily dependent on personal selling in order to close the deal. a. True b. False

Q: The job of a marcom manager is to provide technical assistance by ensuring that the IT department is functioning efficiently. a. True b. False

Q: The development of a marketing database commonly leads to interdepartmental rivalries and can create major conflicts between a company and its advertising agency. a. True b. False

Q: Infomercials that use celebrity testimonials have a definite advantage over those featuring ordinary people, though this adds significantly to overall cost. a. True b. False

Q: Perhaps the least controversial tool deployed recently by direct marketers has been the unsolicited email message, also called bulk email. a. True b. False

Q: If a company is looking for the lowest cost-per-contact, it should choose telemarketing. a. Trueb. False

Q: Direct mail is probably the direct marketer's most invasive tool, and as such must be used with discretion so as not to alienate customers. a. True b. False

Q: All conventional media such as television, radio, newspapers, and magazines can be used to deliver direct response advertising. a. True b. False

Q: To get more personal data of consumers, companies can use advanced technology to merge offline data, like credit ratings and home value, with online data, like ordinary search activities and Internet navigation. a. True b. False

Q: One disadvantage of direct marketing is that consumers may become uneasy about the ways in which their personal information is being gathered and used. a. True b. False

Q: Cross-selling is the practice of identifying past purchasers of one product and suggesting that they purchase other products. a. True b. False

Q: Keeping a date of birth in a customer database allows companies to do something a little special and contact customers on their birthdays. a. True b. False

Q: A home decor catalog is trying to use its marketing database to identify and isolate its best customers to determine their decision making and purchasing behavior. A CPO analysis is an excellent tool to help accomplish this. a. True b. False

Q: A marketing database allows a firm to measure how much business it is actually doing with its best customers through an analysis of recency, frequency, and monetary factors. a. True b. False

Q: Streamlined catalogs are a great way to make timely offerings to targeted households in a cost-effective manner. a. Trueb. False

Q: The difference between a marketing database and a mailing list is that the mailing list also includes information collected directly from a marketer's own customers.a. Trueb. False

Q: A marketing database represents an organization's collective memory, which allows the organization to make a personalized offer to the customer. a. Trueb. False

Q: External lists are the starting point for developing better relations with current customers. a. Trueb. False

Q: Internal mailing lists are created by accessing the organization's own records of its customers, donors, subscribers, or inquirers. a. Trueb. False

Q: Direct marketers employ mailing lists because they are easy to use and inexpensive. a. Trueb. False

Q: One disadvantage of direct marketing is that it has no way to identify and target specific segments of the population. a. True b. False

Q: The appeal of direct marketing is the ease with which marketers can measure resultsby calculating cost per inquiry (CPI) or cost per order (CPO).a. Trueb. False

Q: Direct marketing can provide consumers access to a range of products and services right in their own homes, which many customers consider to be a valuable trait nowadays. a. True b. False