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Direct Chapter and Online Marketing: Building Direct Customer Relationships
GENERAL CONTENT: Multiple-Choice Questions
1. What are the two goals of direct marketing?
a. to identify a potential customer and obtain an immediate response
b. to obtain an immediate response and to facilitate a purchase
c. to obtain an immediate response and build a lasting customer relationship
d. to provide information and build a lasting customer relationship
e. to save marketing dollars and facilitate a purchase
(c; p. 415; Easy)
a.
b.
c.
d.
e.
2. Today, direct marketing relies heavily on database technologies and the Internet. Early
direct marketers primarily used direct mailers, telemarketing, and _____.
door-to-door salespeople
catalogs
C.O.D. delivery
e-mail
inside salespeople
(b; p. 415; Easy) {AACSB: Communication}
3. Direct marketing is continuing to become more ________ oriented.
a. television
b. Web
c. mail
d. telephone
e. personal selling
(b; p. 416; Moderate) {AACSB: Use of IT}
4. Which of the following is not one of the benefits for the buyer in direct marketing?
a. access to a wealth of products
b. access to comparative information
c. convenience
d. price
e. privacy
(d; p. 416; Moderate) {AACSB: Communication}
5. Which of the following is not one of the benefits for the seller in direct marketing?
a. efficiency and speed in reaching their markets
b. greater flexibility
c. mass reach
d. lower cost-per-contact
e. the opportunity to build stronger customer relationships
(c; p. 417; Moderate) {AACSB: Communication}
6. Which of the following is an advantage of direct marketing for sellers?
a. It eliminates the need for a sales force.
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Part 3: Designing a Customer-Driven Marketing Strategy and Marketing Mix
b. It avoids the expense of maintaining a store and the related costs of rent, insurance, and
utilities.
c. It can give sellers access to buyers outside their local markets.
d. It provides sellers with a wealth of comparative information about customers.
e. It gives marketers a greater measure of control over interactions with customers.
(c; p. 418; Moderate) {AACSB: Communication}
7. Which of the following is necessary for direct marketing to be effective?
a. an online presence
b. a good customer database
c. a well-trained sales force
d. inbound telephone marketing
e. use of new digital direct marketing technologies
(b; p. 418; Moderate) {AACSB: Use of IT}
a.
b.
c.
d.
e.
8. A comprehensive database is a tremendous tool for the direct marketer. It should contain
geographic, demographic, psychographic, and ________ data.
specific
culturally oriented
current and relevant
behavioral
sociological
(d; p. 418; Moderate) {AACSB: Use of IT}
9. Information about a customers age, income, and family make-up would all be considered
________ in a customer database.
a. demographics
b. psychographics
c. key contacts
d. buying behaviors
e. assessments
(a; p. 418; Challenging)
10. Information about a customers activities and interests would all be considered ________
in a customer database.
a. demographics
b. psychographics
c. key contacts
d. buying behaviors
e. assessments
(b; p. 418; Challenging)
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Chapter 14: Direct and Online Marketing: Building Direct Customer Relationships
11. Which one of the following purposes is not a common use of a direct marketing
database?
identify prospective customers
generate sales leads
profile customers based on previous purchases
gather marketing intelligence about competitors
build long-term customer relationships
(d; p. 419; Moderate) {AACSB: Use of IT}
a.
b.
c.
d.
e.
12.
Which of the following is a primary benefit to consumers from database marketing?
more offers closely matched to their interests
availability of name-brand images
better prices
faster service
instant credit
(a; p. 442; Moderate) {AACSB: Use of IT}
13.
Which of the following is not a form of direct marketing?
personal selling
advertising
telephone marketing
d.
direct-mail marketing
kiosk marketing
(b; p. 419; Easy) {AACSB: Communication}
a.
b.
c.
d.
e.
a.
b.
c.
e.
14. Which kind of marketing involves sending an offer, announcement, reminder, or other
item to a person at a particular address?
a. kiosk marketing
b. digital direct marketing
c. catalog marketing
d. direct-mail marketing
e. telephone marketing
(d; p. 419; Easy) {AACSB: Communication}
15. Catalogs, brochures, CDs, and DVDs are all examples of which type of marketing?
a. direct-response marketing
b. direct-mail marketing
c. digital direct marketing
d. kiosk marketing
e. online marketing
(b; p. 419; Easy) {AACSB: Communication}
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Part 3: Designing a Customer-Driven Marketing Strategy and Marketing Mix
a.
b.
c.
d.
e.
16. The use of which of the new forms of direct-mail marketing is booming?
fax mail
e-mail
voice mail
U.S. mail
instant messages
(b; p. 420; Moderate) {AACSB: Communication}
17. Which of the following forms of direct marketing is least likely to experience significant
growth within the next few years?
a. kiosk
b. interactive TV
c. mobile phone
d. fax mail
e. e-mail
(d; p. 420; Moderate) {AACSB: Use of IT}
18. Most companies that create print catalogs now also provide ________ catalogs.
a. video
b. e-mail
c. store
d. Web-based
e. personalized
(d; p. 421; Moderate) {AACSB: Use of IT}
19. Which of the following is an advantage of printed catalogs over digital catalogs?
a. a stronger emotional connection with customers
b. the ability to offer an almost unlimited amount of merchandise
c. less competition for customers attention
d. efficiencies in production, printing, and mailing costs
e. real-time merchandising
(a; p. 421; Moderate) {AACSB: Analytic Thinking}
20. Using ________ telephone marketing, marketers sell directly to consumers.
a. inbound
b. outbound
c. Do-Not-Call Registry
d. opt-out
e. business-to-business
(a; p. 421; Moderate) {AACSB: Communication}
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Chapter 14: Direct and Online Marketing: Building Direct Customer Relationships
21. Which of the following is an advantage of a well-designed and targeted telemarketing
plan?
a. purchasing convenience
b. emotional connections with customers
c. real-time merchandising
d. lower cost-per-contact than direct mail
e. an almost unlimited amount of merchandise can be made available
(a; p. 421; Challenging} {AACSB: Communication}
22. Instead of making print catalogs obsolete, ________ has changed their role to that of a
brand-building device.
a. telephone marketing
b. direct-mail marketing
c. e-mail
d. Internet shopping
e. direct-response television
(d; p. 422; Moderate) {AACSB: Communication}
23. Which of the following has been limited in recent years by the implementation of the
National Do-Not-Call Registry?
a. telemarketing by nonprofit groups
b. business-to-business telemarketing
c. unsolicited outbound telephone marketing by businesses
d. inbound telephone marketing
e. telemarketing by politicians
(c; p. 421; Moderate) {AACSB: Ethical Reasoning}
a.
b.
c.
d.
e.
24. Which of the following is the most accurate name for a 30-minute television advertising
program marketing a single product?
direct-response TV advertisement
infomercial
home shopping channel
integrated marketing
direct-response commercial
(b; p. 423; Easy) {AACSB: Communication}
25. What are two major forms of direct-response television marketing?
a. direct-response television advertising and infomercials
b. home-selling and toll-free response
c. home television response and attention commercials
d. call-in response and web-site response
e. home shopping channels and vodcasts
(a; p. 423; Moderate) {AACSB: Communication}
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Part 3: Designing a Customer-Driven Marketing Strategy and Marketing Mix
a.
b.
c.
d.
e.
26. Direct-response advertisements always contain ________, making it easier for marketers
to gauge the effectiveness of their sales pitches.
a mailing address for comments
a 1-800 number or Web address
a hit button to record the number of viewers
an order number
pop-ups
(b; p. 424; Moderate)
27. Why have direct-response television commercials seen an increase in popularity in recent
years?
a. It is has become simpler to replicate the success of classic direct-response TV ads that
introduced items such as the Veg-O-Matic and the Beef Jerky Machine.
b. Traditional broadcast and cable advertising has become prohibitively expensive for many
mid-sized companies.
c. Return on advertising investment can be easily measured.
d. The popularity of home shopping channels has lent direct-response commercials more
credibility.
e. Consumers are more likely to respond to this type of marketing than to other forms of
direct marketing.
(c; p. 424; Moderate)
28. A television program or entire channel dedicated to selling goods and services is known
as a(n) ________.
a. direct-response television advertisement
b. home shopping channel
c. infomercial
d. Home Shopping Network
e. digital catalog
(b; p. 424; Moderate) {AACSB: Communication}
29. As consumers become more and more comfortable with technology, many companies are
using information and ordering machines called ________ in stores, airports, and other
locations.
a.
kiosks
b.
TV monitors
c.
the Internet
d.
cell phones
e.
vending machines
(a; p. 425; Easy) {AACSB: Use of IT}
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Chapter 14: Direct and Online Marketing: Building Direct Customer Relationships
30. Which of the following is not one of the reasons that many marketers view mobile
phones as the next big marketing medium?
a. More and more consumers are using their cell phones as a third screen for text
messaging, surfing the Web, and watching videos.
b. Cell phone users can respond instantly to time-sensitive offers.
c. Unlike traditional telemarketing, mobile phone marketing is initially appealing to most
cell phone users.
d. Cell phones are very popular with the highly desirable 18-to-34-year-old demographic.
e. Consumers always have their cell phones with them.
(c; p. 425; Moderate) {AACSB: Use of IT}
31. Ring-tone giveaways, mobile games, and ad-supported content to text-in contests and
sweepstakes are all examples of ________ marketing.
a. kiosk
b. online
c. podcast
d. vodcast
e. mobile phone
(e; p. 425; Easy) {AACSB: Use of IT}
32. Which of the following is the least effective way for marketers to avoid angering already
ad-weary consumers when using a new direct marketing technology, such as mobile phones?
a. deliver messages that provide useful information that consumers want
b. provide entertaining content
c. offer discounted prices
d. begin by sending unsolicited messages and then move to permission-based programs
e. offer coupons for valued products or services
(d; p. 426; Moderate) {AACSB: Use of IT}
33. What is the fastest growing form of direct-marketing?
a. mobile-phone marketing
b. online marketing
c. Interactive TV
d. direct-response television
e. podcasts
(b; p. 428; Moderate)
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Part 3: Designing a Customer-Driven Marketing Strategy and Marketing Mix
a.
b.
c.
d.
e.
34. The ________ enables consumers and companies to access and share huge amounts of
information with just a few mouse clicks.
analog age
Digital age
Internet
extranet
intranet
(c; p. 428; Easy) {AACSB: Use of IT}
35. _____ is(are) a vast public web of computer networks that connect users of all types all
around the world to each other.
a.
Intranets
b.
Extranets
c.
The Internet
d.
Social networks
e.
Web sites
(c; p. 428; Easy) {AACSB: Use of IT}
36. Internet usage continues to ________.
a.
decline
b.
grow slowly
c.
stay the same
d.
grow steadily
e.
grow mainly among the emerging economies
(d; p. 428; Easy) {AACSB: Use of IT}
37. The Internet gave birth to _____, which operate only on the Internet.
a.
brick-and-mortar companies
b.
click-and-mortar companies
c.
old economies
d.
click-only companies
e.
Web-and-mortar companies
(d; p. 428; Easy) {AACSB: Use of IT}
38. New York Times on the Web, ESPN.com, and Encyclopedia Britannica Online provide
financial, research, and other information. They are called ________.
a.
transaction sites
b.
content sites
c.
portals
d.
ISPs
e.
click-and-mortar sites
(b; p. 428; Moderate) {AACSB: Reflective Thinking}
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Chapter 14: Direct and Online Marketing: Building Direct Customer Relationships
39. Search engines, portals, e-tailers and content sites are examples of ________, selling
products and services directly to final buyers via the Internet.
a.
click-and-mortar E-marketers
b.
brick-and mortar retailers
c.
new-age businesses
d.
click-only marketers
e.
B2B marketers
(d; p. 428; Moderate) {AACSB: Use of IT}
40. _____ is the term used to describe a company that does not use online marketing.
a.
Offline business
b.
Brick-and-mortar
c.
Click-and-mortar
d.
E-business
e.
Corporate site
(b; p. 428; Moderate)
41. In recent years, many brick-and-mortar firms eventually became ________ in response to
________.
a.
click-only firms; click-and-mortar competitors actions
b.
click-and-mortar firms; brick-and-mortar competitors actions
c.
click-and-mortar firms; click-only competitors actions
d.
obsolete; a growing number of click-and-mortar competitors
e.
obsolete; a growing number of click-only competitors
(c; p. 428; Challenging) {AACSB: Use of IT}
42. Which of the following is not one of the four major online marketing domains?
a.
B2C (business-to-consumer)
b.
B2D (business-to-door)
c.
B2B (business-to-business)
d.
C2C (consumer-to-consumer)
e.
C2B (consumer-to-business)
(b; p. 429; Easy) {AACSB: Use of IT}
43. The popular press has paid the most attention to _____ online marketingthe online
selling of goods and services to final consumers.
a.
B2C
b.
B2B
c.
C2C
d.
C2B
e.
global
(a; p. 429; Easy) {AACSB: Use of IT}
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Part 3: Designing a Customer-Driven Marketing Strategy and Marketing Mix
44. B2B includes all of the following except ________.
a.
trading networks
b.
social networks
c.
e-mail
d.
online product catalogs
e.
B2B Web sites
(b; p. 430; Moderate) {AACSB: Use of IT}
45. Online exchange of goods and information between final consumers is called ________.
a.
B2C
b.
B2B
c.
C2C
d.
C2B
e.
social marketing
(c; p. 431; Easy) {AACSB: Use of IT}
46. eBay and Amazon.com Auctions, as well as other auction sites, offer popular
marketspaces for online exchange of goods and information. These online companies are
examples of ________ online marketing.
a.
B2C
b.
B2B
c.
C2C
d.
C2B
e.
global commerce
(c; p. 431; Moderate) {AACSB: Use of IT}
47. Which of the following is a drawback of advertising on or attempting to influence content
on a blog?
a. Advertising on a blog is typically expensive.
b. It is difficult to use blogs to reach highly targeted audiences.
c. The content of a blog is difficult to control.
d. Blogs are losing popularity as consumers begin to favor newer Internet forums.
e. Blogs do not provide the kind of personalized medium that todays marketers want.
(c; p. 431; Moderate) {AACSB: Use of IT}
48. _____ online marketing sites are online exchanges in which consumers search out sellers,
learn about their offers, and initiate purchases, sometimes even driving transaction terms.
a.
B2C
b.
B2B
c.
C2C
d.
C2B
e.
B2B or C2C
(d; p. 432; Easy) {AACSB: Use of IT}
49. When consumers can drive transactions with businesses, what type of online marketing is
being used?
a.
blogs
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Chapter 14: Direct and Online Marketing: Building Direct Customer Relationships
b.
B2S (banner-to-site)
c.
C2B (consumer-to-business)
d.
Webcasting
e.
Social networking
(c; p. 432; Easy) {AACSB: Use of IT}
50. Which of the following is not one of the ways a company can conduct online marketing?
a.
creating a Web site
b.
placing ads online
c.
calling their customers to complete surveys
d.
participating in Web communities
e.
sending e-mail to interested consumers
(c; p. 432; Easy) {AACSB: Use of IT}
51. For most companies, the first step in conducting online marketing is to ________.
a.
place an ad online
b.
use online e-mail
c.
create a Web site
d.
create a Web community
e.
place search-related ads
(c; p. 432; Moderate) {AACSB: Use of IT}
52. What is the main purpose of a corporate Web site?
a.
to sell the companys products directly
b.
to build customer goodwill
c.
to show a catalog and give shopping tips
d.
to give out coupons and tell about sales events or contests
e.
to point out and explain competitors weaknesses
(b; p. 433; Easy) {AACSB: Use of IT}
53. _____ are designed to build customer goodwill and to supplement other sales channels,
rather than to sell the companys products directly.
a.
Marketing Web sites
b.
Corporate Web sites
c.
Small business Web sites
d.
Non-profit corporation web sites
e.
Rich media display ads
(b; p. 433; Moderate) {AACSB: Use of IT}
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Part 3: Designing a Customer-Driven Marketing Strategy and Marketing Mix
54. _____ are designed to engage consumers in interactions that will move them closer to a
direct purchase or other marketing outcome.
a.
Corporate Web sites
b.
Marketing Web sites
c.
Web communities
d.
Brand Web sites
e.
Affiliate programs
(b; p. 433; Moderate) {AACSB: Use of IT}
55. To attract new visitors and to encourage revisits, online marketers should pay close
attention to the seven Cs of effective Web site design. Which of the following is not one of
the seven Cs?
a.
Context: the sites layout and design
b.
Content: text, pictures, sounds, and video that the Web site contains
c.
Commerce: the sites ability to enable commercial transactions
d.
Customer: the way the customer is given incentives to use the Web site
e.
Connection: the degree that the site is linked to other sites
(d; p. 434; Moderate) {AACSB: Use of IT}
56. Of the seven Cs of effective Web site design, ________ refers to the ways that the site
enables user-to-user communication.
a.
context
b.
content
c.
community
d.
customization
e.
cause
(c; p. 434; Moderate) {AACSB: Use of IT}
57. According to the seven Cs of effective Web site design, a Websites capability to enable
commercial transactions is its level of ________.
a. customization
b. content
c. connection
d. commerce
e. communication
(d; p. 434; Moderate) {AACSB: Use of IT}
58. Marketers of which of the following types of products would likely find it most
challenging to attract visitors to a brand or marketing Web site?
a. cleaning supplies
b. financial services
c. computers
d. stereo equipment
e. cars
(a; p. 434; Moderate) {AACSB: Analytic Thinking}
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Chapter 14: Direct and Online Marketing: Building Direct Customer Relationships
59. Based on information in your text, which of the following is the least likely way a
marketer might promote a companys Web site?
a. advertisements in off-line magazines or papers
b. broadcast commercials
c. outbound telephone marketing
d. banner ads on other popular Web sites
e. links on other popular Web sites
(c; p. 434; Moderate) {AACSB: Use of IT}
60. To be effective, a corporate Web site must _________.
a.
be useful
b.
be entertaining
c.
be stylish
d.
feature information on high-end products
e.
include promotions
(a; p. 434; Moderate) {AACSB: Use of IT}
61. _____ are online ads that pop up between screen changes on a Web site, especially while
a new screen is loading.
a.
Pop-unders
b.
Interstitials
c.
Search-related ads
d.
Contextual ads
e.
Banner ads
(b; p. 435; Moderate) {AACSB: use of IT}
62. All of the following are types of display ads except ________.
a. banners
b. pop-ups
c. contextual ads
d. pop-unders
e. rich-media ads
(c; p. 435; Moderate) {AACSB: Use of IT}
63. Which of the following types of ads can users block through the use of applications
developed by Web browser providers?
a. banners
b. pop-ups
c. contextual ads
d. pop-unders
e. rich-media ads
(b; p. 435; Moderate) {AACSB: Use of IT}
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Part 3: Designing a Customer-Driven Marketing Strategy and Marketing Mix
64. Display ads that use eye-catching techniques such as float, fly, and snapback are called
________.
a. banners
b. pop-ups
c. contextual ads
d. pop-unders
e. rich-media ads
(e; p. 435; Moderate) {AACSB: Use of IT}
65. When companies work with each other online and offline to promote each other, they are
creating ________.
a. alliance and affiliate programs
b. search-related ads
c. combo advertising
d. interstitial advertising
e. content sponsorship
(a; p. 436; Moderate) {AACSB: Use of IT}
66. What does the term viral marketing mean?
a.
It is the Internet version of word-of-mouth marketing.
b.
It refers to problems that occur with viruses online.
c.
It is another term for online privacy.
d.
It is another term for online security.
e.
It is a system that allows a customers inventory levels to be accessible online
by suppliers.
(a; p. 436; Easy) {AACSB: Communication}
67. Forms of online promotion include all of the following except ________.
a.
content sponsorships
b.
viral marketing
c.
affiliate programs
d.
intranets
e.
alliances
(d; p. 436; Moderate) {AACSB: Use of IT}
68. Online communities where people socialize or exchange information and opinions are
called ________.
a. corporate Web sites
b. marketing Web sites
c. online social networks
d. interactive Web sites
e. affiliate programs
(c; p. 437; Easy) {AACSB: Use of IT}
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Chapter 14: Direct and Online Marketing: Building Direct Customer Relationships
69. Which of the following is a challenge of marketing through online social networks?
a. Existing networks are resistant to direct advertising.
b. Users may resent an intrusive marketing message.
c. It is hard to measure how frequently networks are used and by how many participants.
d. Most existing networks are already controlled by major corporations.
e. Virtual worlds are likely to soon become more popular than straightforward social
networks.
(b; p. 437; Moderate) {AACSB: Use of IT}
70. According to your textbook, what is the most likely future for online marketing?
a. Online marketing will replace magazines, newspapers, and eventually stores as sources
for information and buying.
b. The growth of online marketing will continue but at a much slower pace.
c. The use of online marketing will decline until its effectiveness can be better measured.
d. Online marketing will remain an important approach in an integrated marketing mix.
e. Online social networking will become the primary type of online marketing.
(d; p. 440; Moderate) {AACSB: Use of IT}
71. Some direct marketers have been accused of taking advantage of buyers; for example, socalled heat merchants use ________ intended to mislead buyers.
a. direct-mail marketing
b. telephone marketing
c. direct-response television marketing
d. mobile phone marketing
e. kiosk marketing
(a; p. 441; Challenging) {AACSB: Ethical Reasoning}
72. Which of the following is a type of identity theft that uses deceptive e-mails and
fraudulent web sites to fool consumers into revealing their personal data?
a. unauthorized groups
b. reverse information
c. viral feeds
d. phishing
e. spyware
(d; p. 441; Moderate) {AACSB: Ethical Reasoning}
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Part 3: Designing a Customer-Driven Marketing Strategy and Marketing Mix
73. Which of the following is not a deception or fraud concern for Internet users and
marketers?
a. phishing
b. viral marketing
c. eavesdropping
d. access by unauthorized groups
e. spyware
(b; p. 441; Moderate) {AACSB: Use of IT}
74. To prevent privacy abuses and curb excessive marketing, federal legislation has been
enacted or considered to regulate all of the following except ________.
a. telephone marketing
b. use of consumer information obtained online
c. collection of online consumer information
d. online advertising
e. online marketing to children
(c; p. 442; Moderate) {AACSB: Ethical Reasoning}
75. What happened in response to the finding that many Web sites were collecting personal
information from children without disclosure or parental permission?
a.
Children have no access to certain parts of the Internet.
b.
Congress passed the Childrens Online Privacy Protection Act.
c.
Children began to be targeted on more Web sites.
d.
The Direct Marketing Association developed a Privacy Promise to American
Consumers.
e.
Very little has happened as a result.
(b; p. 443; Moderate) {AACSB: Ethical Reasoning}
True/False
76. Direct marketing rarely occurs on a one-to-one, interactive basis.
(False; p. 415; Moderate) {AACSB: Communication}
77. Most companies use direct marketing as their primary channel.
(False; p. 415; Moderate)
78. For customers, the benefits of direct marketing are that it is an easy, private, and
convenient way to shop.
(True; p. 416; Easy)
79. Todays marketers use database marketing to promote their offerings through
personalized communications to small target groups or even individual customers.
(True; p. 417; Easy) {AACSB: Use of IT}
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Chapter 14: Direct and Online Marketing: Building Direct Customer Relationships
80. A good customer database serves as a powerful relationship-building tool.
(True; p. 418; Easy) {AACSB: Use of IT}
81. To be effective, a customer database system must be easily available to the various
marketing groups within a company.
(True; p. 419; Moderate) {AACSB: Use of IT}
82. Database marketing requires little initial investment beyond training personnel to code
and mine data.
(False; p. 419; Moderate) {AACSB: Use of IT}
83. Though direct-mail permits high target-market selectivity and can be personalized, it does
not allow easy measurement of results.
(False; p. 420; Moderate) {AACSB: Communication}
84. A catalog is currently defined as a printed, bound piece of at least eight pages that sells
multiple products and offers a direct ordering mechanism.
(False; p. 420; Easy) {AACSB: Communication}
85. Catalog marketing has grown explosively during the past 25 years, and recently the
Internet has helped boost its popularity even more.
(True; p. 421; Moderate) {AACSB: Use of IT}
86. With inbound telephone marketing, the company provides a toll-free phone number to
receive orders from television and print ads, direct mail, or catalogs.
(True; p. 421; Moderate) {AACSB: Communication}
87. Do-not-call legislation has made telemarketing an ineffective form of direct marketing.
(False; p. 422; Moderate) {AACSB: Ethical Reasoning}
88. Because of its association with somewhat questionable pitches and get-rich-quick
schemes, direct-response television is becoming less popular than traditional broadcast and
cable advertising.
(False; p. 424; Moderate)
89. Most kiosks differ from vending machines in that they do not dispense an actual product.
(True; p. 425; Moderate) {AASB: Use of IT}
90. Because several satellite broadcast systems are now offering ITV capabilities, interactive
TV is likely to become a more widely used direct marketing medium.
(True; p. 427; Moderate) {AACSB: Use of IT}
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Part 3: Designing a Customer-Driven Marketing Strategy and Marketing Mix
91. The Internet is a vast public web of computer networks that connect users to each other.
(True; p. 428; Easy) {AACSB: Use of IT}
92. Click-only companies avoid the expense of maintaining a retail store.
(True; p. 428; Easy) {AACSB: Use of IT}
93. Today, many click-and-mortar companies are experiencing more online success than their
click-only competitors.
(True; p. 429; Challenging) {AACSB: Use of IT}
94. B2C Web sites deal with exchanges between businesses and companies.
(False; p. 429; Easy) {AACSB: Use of IT}
95. Internet shoppers differ from traditional offline consumers in their approaches to buying.
(True; p. 430; Moderate) {AACSB: Use of IT}
96. Sales via B2B online marketing are expected to decrease in the next decade.
(False; p. 430; Moderate) {AACSB: Use of IT}
97. Companies such as eBay and Overstock.com facilitate C2C online marketing.
(True; p. 431; Moderate) {AACSB: Use of IT}
98. Online marketing can involve the interchange of information through Internet forums,
including customers praise for and complaints about products.
(True; p. 431; Moderate) {AACSB: Use of IT}
99. Because of their growing audience, Web logs, also known as blogs, are gaining influence.
(True; p. 431; Challenging) {AACSB: Use of IT}
100. Companies can benefit from monitoring the blogosphere even if they decide not to actively
participate in sponsoring, influencing, or creating content.
(True; p. 432; Moderate) {AACSB: Use of IT}
101. For most companies, the first step in conducting online marketing is to place an ad online.
(False; p. 432; Moderate) {AACSB: Use of IT}
102. Banners are online ads that pop up between changes on a Web site.
(False; p. 435; Moderate) {AACSB: Use of IT}
103. Unsolicited, unwanted commercial e-mail messages that clog up e-mailboxes are called
spam.
(True; p. 438; Easy) {AACSB: Use of IT}
104. Permission-based e-mail advertising allows marketers to send tailored messages to targeted
customers who actually want to receive them.
(True; p. 438; Easy) {AACSB: Use of IT}
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Chapter 14: Direct and Online Marketing: Building Direct Customer Relationships
105. Since the introduction of the Do-Not-Call Registry, fraudulent schemes such as investment
scams and phony collections for charity have been on the decline.
(False; p. 441; Moderate) {AACSB: Ethical Reasoning}
Essay
106.
Explain the major benefits of direct marketing.
For customers, direct marketing is convenient, easy to use, and private. It gives buyers ready
access to a wealth of products and information, at home or work and around the globe. It is
immediate and interactive. For sellers, direct marketing is powerful for building customer
relationships. Using database marketing, marketers can target small groups or individual
consumers, tailor offers to individual needs, and promote these offers through personalized
communications. It provides great timing and offers a low-cost, efficient alternative for
reaching markets. Direct marketing has become the fastest-growing form of marketing.
(p. 416; Moderate) {AACSB: Analytic Thinking}
107. How can a customer database by used as a relationship-building tool?
A customer database is an organized collection of data about individual customers or
prospects, including detailed geographic, demographic, psychographic, and behavioral data.
Companies can mine their databases to learn about customers in detail, and then fine-tune
their market offerings and communications to the special preferences and behaviors of target
segments or individuals. As the customer relationship continues, the company can learn more
about customer the and more accurately fine-tune its offerings to satisfy the customers
needs.
(p. 418; Moderate) {AACSB: Use of IT}
108. Identify the major advantage of the following forms of direct marketing: telephone, directmail, catalog, direct-response television, and kiosk.
Telephone marketing provides purchasing convenience and increased product and service
information. Direct mail marketing permits selectivity and personalization. Catalog
marketing allows customers to buy just about anything they desire, and through online
catalogs marketers can use real-time merchandising, adding or removing products based on
their availability. Direct-response television marketing allows live demonstrations without
salespeople coming to your home or business. Kiosk marketing places information and
ordering machines in convenient places, such as airports, stores, and malls.
(p. 421; Challenging) {AACSB: Communication}
109. How has the implementation of the National Do-Not-Call Registry changed telephone
marketing?
The National Do-Not-Call Registry was created by legislation passed in 2003; it bans most
business telemarketing calls to registered phone numbers. However, people can still receive
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall
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Part 3: Designing a Customer-Driven Marketing Strategy and Marketing Mix
calls from nonprofit groups, politicians, and companies with which they have recently done
business. Millions of customers have joined the do-not-call list, and businesses that break the
laws can be fined heavily. The use of unsolicited outbound telemarketing has greatly
decreased due to the law, but inbound consumer telemarketing and outbound business-tobusiness telemarketing remain strong and growing. Many telemarketers are shifting their
call-center activity from making unsolicited cold calls on often resentful customers to
managing existing customer relationships. They are developing opt-in calling systems, in
which they provide useful information and offers to customers who have invited the company
to contact them by phone or e-mail.
(p. 422; Moderate) {AACSB: Communication}
110. List and briefly describe the four major Internet domains.
a. B2C (business-to-consumer) online marketing involves businesses selling goods and
services online to final consumers. Today, almost anything can be purchased online.
b. B2B (business-to-business) online marketing involves businesses using Web sites, email, online product catalogs, online trading networks, and other online resources to
reach new business customers, better serve existing business customers, and obtain
buying efficiencies and better prices.
c. C2C (consumer-to-consumer) online marketing involves consumers buying or
exchanging goods or information directly with one another. Web sites such as eBay and
Craigslist.com facilitate C2C trading, and blogs are an influential source of consumer-toconsumer information sharing.
d. C2B (consumer-to-business) online marketing involves consumers searching out
online sellers, learning about their offers, and initiating purchases, sometimes even
setting the terms of a transaction.
(p. 429; Moderate) {AACSB: Use of IT}
111. How do Internet consumers differ from traditional offline consumers?
They differ in their approaches to buying and in their responses to marketing. The exchange
process via the Internet has become more customer-initiated and customer-controlled. In
traditional marketing, the audience is somewhat passive; in online marketing, customers
actively select which Web sites they will visit and what marketing information they will
receive about which products and under what conditions.
(p. 430; Challenging) {AACSB: Analytic Thinking}
112. Compare and contrast the purpose and content of a corporate Web site to that of a marketing
Web site.
Corporate Web sites are designed to build customer goodwill and to supplement other sales
channels, rather than to sell the companys products directly. They offer a rich variety of
information and other features in an effort to answer customer questions, build closer
relationships, and generate excitement about the company. In contrast, marketing Web sites
are designed to go beyond the function of a corporate Web site and actually engage
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Chapter 14: Direct and Online Marketing: Building Direct Customer Relationships
consumers in an interaction that will move them closer to a direct purchase. A marketing Web
site allows customers to view, research, and purchase specific items.
(p. 433; Challenging) {AACSB: Analytic Thinking}
113. To attract new visitors and to encourage revisits, online marketers should pay close attention
to the seven Cs of effective Web site design. Briefly describe four of these seven Cs.
a.
b.
c.
d.
Context: the sites layout and design
Content: the text, pictures, sound, and video that the Web site contains
Community: the ways that the site facilitates user-to-user communication
Customization: the sites ability to tailor itself to different users or to allow users to
personalize the site
e. Communication: the ways the site enables site-to-user, user-to-site, or two-way
communication
f. Connection: the degree that the site is linked to other sites
g. Commerce: the sites capabilities to enable commercial transactions
(p. 434; Moderate) {AACSB: Use of IT}
114. Describe two ways that marketers can participate in online social networks. What are the
challenges and advantages of these approaches?
Marketers can engage in online communities by participating in existing Web communities or
setting up their own. Many major brands have set up MySpace pages and profiles and opened
virtual stores in virtual worlds such as Second Life. Companies can efficiently market to
many potential customers as more and more people participate in online social networks.
However, participating successfully in existing online social networks presents challenges.
First, online social networks are new and results are hard to measure, and most companies
are still experimenting with how to use them effectively. Second, such Web communities are
largely user controlled, so a company must learn how to add value for consumers in order to
avoid being seen as an intrusion. To be effective, marketers must become a valued part of the
online experience. To avoid the mysteries and challenges of building a presence on existing
online social networks, many companies are now launching their own targeted Web
communities. Though marketers have control of their own targeted Web communities, they
must then independently market and maintain the network.
(p. 437; Moderate) {AACSB: Use of IT}
115. Internet marketing practices have raised a number of ethical and legal questions. Why is
invasion of privacy perhaps the number-one online marketing concern?
Web site activities provide extensive personal information. This may leave consumers open
to information abuse if companies make unauthorized use of the information in marketing
their products or exchanging databases with other companies. Critics worry that through
database marketing, marketers know too much about consumers lives and may not use that
information responsibly, taking unfair advantage of consumers.
(p. 442; Moderate) {AACSB: Ethical Reasoning}
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Part 3: Designing a Customer-Driven Marketing Strategy and Marketing Mix
APPLICATION CONTENT: Multiple-Choice Questions
116. Adams Cutlery has always relied upon advertising to market its products to final customers.
However, now the marketing team at Adams Cutlery is considering beginning a direct
marketing campaign consisting of a company Web site, e-mail to current customers, and an
online catalog. Which of the following would the marketing team expect to gain as a result of
implementing this direct marketing plan?
a. the ability to increase the range of products the company offers
b. the ability to learn more about their customers and tailor offerings to fit their needs
c. more control over customers interactions with the company
d. a higher cost-per-contact that could prove to be more cost effective than advertising in
mass media
e. a wealth of information about competitors and their products
(b; p. 417; Moderate) {AACSB: Reflective Thinking}
117. Financial services provider USAA delivers materials related to teaching teenagers how to
drive safely whenever a customer has a child who is about to turn 16 and be eligible to obtain
a drivers license. This is an example of using ________ information from a customer
database.
a. demographic
b. geographic
c. psychographic
d. behavioral
e. key contact
(a; p. 418; Moderate) {AACSB: Reflective Thinking}
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Chapter 14: Direct and Online Marketing: Building Direct Customer Relationships
118. Fiona Lambrech is the marketing director of a charity that raises funds to help provide
educational services to children and families in developing countries. Fiona wants to reach a
selective market of individuals who have recently donated to international charities. Which of
the following types of direct marketing is Fiona most likely to use?
a. direct-mail marketing
b. catalog marketing
c. telephone marketing
d. direct-response television marketing
e. kiosk marketing
(a; p. 419; Moderate) {AACSB: Reflective Thinking}
119. Organic Designs is a small, successful chain of stores offering stylish clothes made of allorganic materials for infants, toddlers, and young children. Most of the Organic Designs
stores are located in urban areas. Now Organic Designs is considering using direct marketing
to reach potential customers who live outside of the companys existing markets, with the
goal of creating emotional connections and long-term relationships with a new group of
customers. Which of the following methods of direct marketing would likely be most
effective in accomplishing this goal?
a. direct-mail marketing
b. telephone marketing
c. catalog marketing
d. direct-response television marketing
e. podcast marketing
(c; p. 420; Moderate) {AACSB: Reflective Thinking}
a.
b.
c.
d.
e.
120. Neal Murphy sells his companys unique gift items on television programs and entire
channels dedicated to selling goods and services. Neal is using ________.
infomercials
home shopping channels
Internet-based infomercials
prime-time selling
public relations
(b; p. 424; Moderate) {AACSB: Reflective Thinking}
121. Green Gardens is a click-and-mortar seller of gardening and landscaping goods and
equipment. The marketing department wants to encourage shoppers at the physical stores to
use the companys online catalog to order items that are not available at a given retail
location. Which of the following marketing devices is the best match for this goal?
a.
kiosks
b.
e-mail
c.
mobile phones
d.
telemarketing
e.
catalog marketing
(a; p. 425; Moderate) {AACSB: Reflective Thinking}
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Part 3: Designing a Customer-Driven Marketing Strategy and Marketing Mix
122. A producer of beverages and snack foods wants to market its products to the 18-to-34-yearold demographic, providing incentives to respond instantly to time-sensitive offers. Which of
the following forms of direct marketing would this producer most likely choose?
a. interactive TV
b. direct-response TV
c. mobile phone
d. direct mail
e. telephone
(c; p. 425; Challenging) {AACSB: Reflective Thinking}
123. Company X began as a brick-and-mortar company. Which of the following statements must
be true?
a.
By adding online marketing options, Company X would become a click-andmortar company.
b.
Company X is also considered a click-only dot-com.
c.
Company X should not be concerned about consumer-to-consumer online
marketing.
d.
Company X is probably not making a profit.
e.
By adding online marketing options, Company X would become a click-only
company.
(a; p. 428; Moderate) {AACSB: Reflective Thinking}
124. ABC Company sells directly to final consumers and avoids intermediaries, while catering to
a broad group of demographic segments. This marketer falls under which online marketing
domain?
a.
B2C
b.
B2B
c.
C2C
d.
C2B
e.
A or C
(a; p. 429; Easy) {AACSB: Reflective Thinking}
125. Office Depot is a click-and-mortar company. Which of the following is least likely to be an
advantage that Office Depot has over click-only competitors?
a.
Office Depot is a known name with greater financial resources.
b.
Office Depot has a large, established customer base.
c.
By offering online marketing, Office Depot offers customers more options.
d.
Customers can find a local store and check its available stock online.
e.
Office Depot focuses on large accounts through its online presence and small
businesses through its retail stores.
(e; p. 429; Challenging) {AACSB: Analytic Thinking}
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Chapter 14: Direct and Online Marketing: Building Direct Customer Relationships
126. Jane Cheatham, a stay-at-home mother, regularly posts new entries on a widely read blog. In
these entries, she often reviews consumer products that she uses during the course of her day.
This is an example of ________.
a.
C2B online marketing
b.
C2C online marketing
c.
viral marketing
d.
content sponsorship
e.
online social networks
(b; p. 431; Easy) {AACSB: Reflective Thinking}
127. Using Priceline.com, would-be buyers can bid for airline tickets, hotel rooms, rental cars,
cruises, and vacation packages. It is then up to sellers to decide whether or not to accept an
offered bid. This is an example of ________.
a.
B2B online marketing
b.
C2C online marketing
c.
B2C online marketing
d.
C2B online marketing
e.
multi-channel marketing
(d; p. 432; Easy) {AACSB: Reflective Thinking}
128. Converse has a Web site that welcomes consumers to the Converse Century, invites readers
to post their Converse stories, and offers a wide variety of Converse shoes for direct
purchase. The site even allows customers to individually design their own shoes. The
Converse site is most accurately categorized as which of the following types of Web sites?
a.
a B2B site
b.
a C2B site
c.
a C2C site
d.
a corporate site
e.
a marketing site
(e; p. 433; Moderate) {AACSB: Reflective Thinking}
129. Oscar Aviation has a corporate Web site. Prospective customers are likely able to do all of the
following on the site except ________.
a.
learn about Oscars philosophy
b.
ask online questions
c.
enjoy entertainment features on the site
d.
purchase products
e.
register to receive more information from the company
(d; p. 433; Moderate) {AACSB: Reflective Thinking}
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Part 3: Designing a Customer-Driven Marketing Strategy and Marketing Mix
130. In attempting to design an effective Web site, Company A tried to address all of the seven Cs.
The site, however, has a weak layout and design. Which C does this represent?
a.
customization
b.
content
c.
context
d.
connection
e.
community
(c; p. 434; Moderate) {AACSB: Reflective Thinking}
131. You are looking up airline schedules on the Internet. A bar at the top of the screen reads,
Stay at Holiday Inn and get a 25 percent discount! This is a(n) ________.
a.
banner
b.
pop-under
c.
content sponsorship
d.
pop-up
e.
interstitial
(a; p. 435; Moderate) {AACSB: Reflective Thinking}
132. You have accessed fare information on Northwest Airlines Web site. You want to compare it
with United Airlines fares. In between screen changes, an ad appears from Alamo Car
Rental. This is a(n) ________.
a.
banner
b.
pop-under
c.
content sponsorship
d.
pop-under
e.
interstitial
(e; p. 435; Moderate) {AACSB: Reflective Thinking}
133. Your Cleaning Team is a company that provides house cleaning services in major urban and
suburban areas. Marketers at Your Cleaning Team developed a short, humorous video
promoting the companys services and hope that customers who see the video will be so
entertained that they will pass it on to their friends and colleagues. The marketers at Your
Cleaning Team are using ________.
a. a content sponsorship
b. viral marketing
c. C2B marketing
d. rich media ads
e. a marketing Web site
(b; p. 436; Moderate) {AACSB: Reflective Thinking}
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Chapter 14: Direct and Online Marketing: Building Direct Customer Relationships
134. www.consumerist.com, where people can exchange views and obtain information on
products, is an example of a ________.
content Web site
Web community
content sponsorship
contextual advertisement
marketing Web site
(b; p. 437; Moderate) {AACSB: Reflective Thinking}
a.
b.
c.
d.
e.
135. Charlie Putnam received an e-mail promoting a new financial services institution that offers
surprisingly low mortgage rates. The e-mail simply asked customers to provide their address,
date of birth, social security number, and current mortgage information in order to receive a
free loan quote. Suspicious of the offer, Charlie researched the company and discovered that
the e-mail was a fraud. This is an example of ________.
a.
online eavesdropping
b.
phishing
c.
malware
d.
heat marketing
e.
viral marketing
(b; p. 441; Moderate) {AACSB: Reflective Thinking}
Short Answer
136. Give two examples of companies that use direct marketing as their primary or only marketing
approach. What are two advantages these companies have over competitors?
Answers will vary, but may include Dell, Amazon.com, eBay, and GEICO. Click-only
companies save money on retail space and are more efficient in handling inventory and
distribution.
(p. 415; Moderate) {AACSB: Reflective Thinking}
137. How does direct marketing give buyers access to more comparative information about
companies, products, and competitors?
Catalogs and Web sites, both forms of direct marketing, can provide extensive product
information and helpful product reviews. Customers can easily research companies, products,
and competitors by comparing information in catalogs or on business-to-consumer and
consumer-to-consumer Web sites.
(p. 417; Moderate) {AACSB: Analytic Thinking}
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall
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Part 3: Designing a Customer-Driven Marketing Strategy and Marketing Mix
138. How does online marketing provide flexibility for sellers?
Online marketing allows the marketer to make ongoing adjustments to its offers and
programs. Online catalogs, if used, can be adjusted daily or even hourly if needed. Because
the Internet is a global tool, it allows buyers and sellers to click from one country to another
country in seconds.
(p. 417; Moderate) {AACSB: Use of IT}
139. What kind of information is likely to be included in a business-to-business customer
database?
Data might include products and services purchased by the customer, projected customer
spending, competing suppliers, status of current contracts, key contacts and personal
information, and assessments of competitive strengths and weaknesses in selling and
servicing the account.
(p. 418; Moderate) {AACSB: Use of IT}
140. Why are people reached by direct mail better prospects for a company than those reached by
mass media such as television or magazines?
Unlike mass media, direct mail allows for high target-market selectivity, so only consumers
who are likely to become customers can be contacted; in addition, direct mail can be
personalized for each individual, which helps to build customer relationships.
(p. 420; Moderate) {AACSB: Analytic Thinking}
141. How do todays e-mail advertisements grab the attention of consumers?
To capture the attention and interest of potential customers, e-mail advertisements use
animation, interactive links, streaming video, and personalized audio messages.
(p. 420; Moderate) {AACSB: Use of IT}
142. Why are printed catalogs still thriving in the face of the growing popularity of Web-based
catalogs?
Printed catalogs are more effective at creating an emotional connection with customers and
continue to be one of the best ways to lead customers to online catalogs.
(p. 421; Moderate) {AACSB: Analytic Thinking}
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Chapter 14: Direct and Online Marketing: Building Direct Customer Relationships
143. Explain how the creation of the National Do-Not-Call Registry may have helped
telemarketers more than it hurt them.
Instead of making cold calls to people who are likely to resent the intrusion, telemarketers
have switched gears and now focus on managing existing customer relationships through
opt-in calling systems that provide useful information and offers to customers who have
given the company permission to contact them.
(p. 423; Moderate) {AACSB: Analytic Thinking}
144. Why is the use of direct-response television growing in popularity?
Direct-response TV commercials are usually less expensive to produce than traditional
television advertisements, and the media purchase is less costly; also, it is easy for marketers
to track the effectiveness of a direct-response TV commercial because the ads always include
a 1-800 number or Web address.
(p. 423; Challenging; Analytic Thinking}
145. Provide an example of how a marketer uses kiosk marketing.
Answers will vary. Many airlines and hotels use kiosks as self-service check-in devices;
many retail stores offer in-store ordering kiosks; kiosks in Target stores connect customers to
relevant articles from Consumer Reports magazine.
(p. 425; Moderate) {AACSB: Reflective Thinking}
146. What are two reasons that podcasts and vodcasts are becoming more popular direct
marketing tools?
The U.S. podcast audience is expected to grow tremendously in the next few years, and a
significant percentage of that audience is relatively affluent, so podcasts and vodcasts offer
marketers access to desirable potential customers.
(p. 426; Moderate) {AACSB: Use of IT}
147. What two steps should marketers using new direct marketing technologies take to avoid
backlash from consumers who may resent such marketing as an invasion of their privacy?
Marketers should always target their direct marketing offers carefully and bring real value to
customers through direct marketing.
(p. 428; Moderate)
148. What are click-and-mortar companies?
A click-and-mortar company likely began as a traditional brick-and-mortar company and
then began to incorporate online marketing
(p. 429; Easy) {AACSB: Use of IT}
149. What types of services do B2B marketers offer online?
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Part 3: Designing a Customer-Driven Marketing Strategy and Marketing Mix
Most major B2B marketers now offer product information, customer purchasing, and
customer support services online.
(p. 430; Moderate) {AACSB: Reflective Thinking}
150. What types of information are typically exchanged through a blog?
A blog is a Web log, where daily journal entries can be posted about anything, from broad
topics such as baseball, politics, money, and narrow topics such as a popular television show
or new movie. Blogs give individuals a chance to discuss whatever they want to discuss.
(p. 431; Moderate) {AACSB: Analytic Thinking}
151. Explain how a company might benefit from monitoring the blogosphere.
By staying up-to-date with the content on relevant blogs, a company can gain insights from
its consumers and adjust its marketing programs accordingly; for example, a company might
learn about the weaknesses or strengths of a new marketing campaign by monitoring
reactions on blogs.
(p. 432; Moderate) {AACSB: Analytic Thinking}
152. Provide two reasons that many companies are shifting more of their marketing dollars to
online advertising.
More companies are increasing the portion of their marketing budget spent on online
advertising because consumers are spending more and more time on the Internet. Rich media
ads are particularly effective in engaging viewers, and search-related ads reach an audience
likely to be interested in the product.
(p. 435; Moderate) {AACSB: Use of IT}
153. Explain the goal of viral marketing.
Viral marketing is the Internet version of word-of-mouth marketing. Viral marketing involves
creating a Web site, e-mail message, or other event that is so infectious that customers will
want to pass it along to their friends.
(p. 436; Moderate) {AACSB: Use of IT}
154. What is involved with a content sponsorship?
Content sponsorships are a form of Internet promotion; many companies gain exposure on
the Internet by sponsoring special content on various Web sites, such as news and financial
information. Sponsorships are best placed in carefully targeted sites where they can offer
relevant information or service to the audience.
(p. 436; Moderate) {AACSB: Analytic Thinking}
155. How has the direct marketing industry taken steps to address privacy and security concerns?
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Chapter 14: Direct and Online Marketing: Building Direct Customer Relationships
Some companies use a nonprofit self-regulatory organization that audits a companys
security and privacy measures and then approves Web sites that meet its privacy and security
standards. The Direct Marketing Association has started a Privacy Promise that asks member
companies to agree to notify customers about the use of their private information and to
honor customer requests to opt-out of receiving further solicitations.
(p. 442; Challenging) {AACSB: Ethical Reasoning}
Scenario
The Treble Clef offers a complete line of sheet music, musical instruments, and novelty
gifts of a musical nature. In recent years, owner Gary Zahn has even served as the local
representative of several musical instrument manufacturers, providing a contact person for three
local school districts. If we dont have it, chances are excellent that we can get it for you, Gary
tells all Treble Clef visitors and customers.
Most walk-ins are particularly interested in a specific piece of sheet music from a
particular era or just browsing among the hundreds of musical knick-knacks in the store. Gary
spends most of his time making presentations to beginning music students at the local schools
and making bi-weekly visits to the schools in order to deliver instruments, to make minor repairs
when possible, or to pick up instruments to ship to the manufacturer for more complicated
repairs.
After dragging his feet for quite some time, Gary was convinced that a Treble Clef Web
site could benefit a variety of customers. He began with a simple site explaining store hours and
depicting types of gifts and services available. The site received so much response that Gary
added a question-and-answer option. Questions poured in, ranging from Where can I get the
sheet music for Hello, Dolly? to Do you carry clarinet reeds? to My saxophone needs two
new pads. When will you be at Elmhurst school to repair it? Eventually, customers found the
capability of ordering musical novelties online with a credit card as well. A gift could now be
wrapped and sent to the recipient at no extra charge.
I dont know how we did it without our Web site, Gary admitted. It allows us to be so
responsive. And our novelties sales have doubled!
156. How are The Treble Clefs buyers benefiting from the direct marketing via the Internet?
The customers appear to be extremely satisfied with the very short response time to orders
and online questions.
(p. 416; Easy) {AACSB: Reflective Thinking}
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall
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Part 3: Designing a Customer-Driven Marketing Strategy and Marketing Mix
157. In what way(s) is The Treble Clef a click-and-mortar company?
The Treble Clef began as a brick-and-mortar company but added Web access, becoming a
click-and-mortar company with a brand and marketing Web site.
(p. 429; Moderate) {AACSB: Reflective Thinking}
158. How is The Treble Clef benefiting from its Web site?
The Treble Clefs Web site allows a tremendously shorter response time to customer
questions. In addition, novelties and sheet music can be ordered online for greater
convenience, and basic information regarding store hours and available inventory can be
accessed.
(p. 432; Easy) {AACSB: Reflective Thinking}
159. In what way could The Treble Clef engage in customer relationship building through the
Internet?
Customer relationship building has apparently already begun with The Treble Clefs Web
site. Gary may consider sending follow-up messages after answering customers questions.
Beginning music students at the local schools may appreciate occasional messages from The
Treble Clef, asking about their progress or satisfaction with their instruments.
(p. 433; Challenging) {AACSB: Analytic Thinking}
160. In your opinion, what is the most critical element The Treble Clef should include in the Web
site?
Answers will vary. Most will agree that the question-and-answer option is critical. Also, a
schedule of school visits may be appreciated. Finally, because novelties sales have doubled,
many students will recognize the importance of online ordering.
(p. 433; Moderate) {AACSB: Analytic Thinking}
161. What types of online advertising might benefit The Treble Clef?
Answers will vary. Rich media search-related ads that move across the screen when musicrelated information is sought may be effective. Content sponsorships could possibly be
arranged with the instrument manufacturers.
(p. 435; Moderate) {AACSB: Analytic Thinking}
162. Would The Treble Clef benefit from viral marketing? Explain.
The Treble Clef could benefit by viral marketing with clever e-mails, Web sites, or videos
sent to the schools band members and/or online customers. Customer testimonials could also
be forwarded to targeted groups.
(p. 436; Challenging) {AACSB: Analytic Thinking}
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Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 14: Direct and Online Marketing: Building Direct Customer Relationships
163. In what way might this marketer want to use e-mail as a means to communicate with
customers and build relationships?
Follow-up comments or questions to previously asked and answered customer questions can
be effective. Monthly newsletters to the schools band students, for example, may also be
important, especially in relationship building.
(p. 438; Moderate) {AACSB: Analytic Thinking}
164. How could spam harm this marketer?
Because Gary Zahn is becoming very reliant on The Treble Clefs Web site and Internet
technology for the success of his business, he will want to avoid becoming intrusive with the
use of e-mail and other online promotions. Using a permission-based e-mail marketing
system is the best way for Gary to communicate with customers who have opted in.
(p. 438; Challenging) {AACSB: Analytic Thinking}
165. In what area(s) might online privacy be important for this marketer?
Customers have to feel secure in ordering online via a credit card. In addition, because so
many customers are relying on the Internet to communicate with Gary, he has to assure them
that their information is protected and not being supplied to other marketers.
(p. 442; Challenging) {AACSB: Ethical Reasoning}
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall
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