wells15_webreview - Chapter 15 Direct Response WEB REVIEW...

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342 Chapter 15 Direct Response WEB REVIEW QUESTIONS 1. What are the five advantages and three disadvantages of direct marketing? Advantages include: Direct marketing technology allows for the collection of relevant information about the customer, contributing to the development of a useful database and selective reach, which reduces waste. Products have added value, through the convenient purchase process and reliable/quick delivery mechanisms of direct marketing. Purchase is not restricted to a location. The marketer controls the product (rather than the wholesaler or retailer) until delivery. Advertising carrying direct-marketing components is more effective. It affords flexibility both in form and timing. Weaknesses include: Consumers are still reluctant to purchase a product sight unseen. Annoyance is associated with direct marketing, such as too many catalogs, junk mail, and calls during dinner. Direct marketing tends to be attuned to driving immediate sales, creating tension between creating a long-term brand image and driving immediate sales. 2. What is lead generation and why is it important to direct marketing? Direct marketing includes one or more components that allow for lead generation which refers to the way marketers identify prospective customers—as well as actual purchase. It is a way of doing business that produces sales as the result of a direct contact between the marketer and the customer without any intermediaries. 3. How does direct-response advertising differ from general advertising?
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Chapter 15: Direct Response 343 Direct-response advertising combines the characteristics of advertising—attention- getting visuals, interesting copy, and relevant timing—but also includes an element that allows the reader, viewer, or listener to make a direct response to the advertiser. 4. What is the difference between lead generation and traffic generation? Lead generation means providing basic information on companies or individuals who are potential customers. Traffic generation relates to motivating customers to visit an event, retail outlet, or
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This note was uploaded on 11/19/2011 for the course ECON 101 taught by Professor Smith during the Spring '11 term at AIB College of Business.

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wells15_webreview - Chapter 15 Direct Response WEB REVIEW...

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