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Direct mail, telemarketing, and catalog sales are all common examples of: A)direct marketing.B)downline selling.C)multilevel marketing. D)direct selling.Answer: ALG: 5/LL: 1Page: 415 15-97.Any marketing method that directly links manufacturers or intermediaries with the ultimate consumer could be classified as: A)direct selling. B)online marketing. C)direct marketing.D)kiosk-based. Answer: CLG: 5/LL: 1Page: 415 26Nickels, McHugh & McHugh, Understanding Business, Eighth Edition
Level of Learning 2(Understands concepts and principles)15-98.The characteristic that all forms of direct marketing have in common is that they: A)are carried out by agents or brokers. B)involve face-to-face contact with the customer.C)Include some type of activity that directly links manufacturers to the ultimate consumer.D)make use of exclusive distribution systems with a network of traditional “bricksand mortar” stores. Answer: CLG: 5/LL: 2Page: 415 Rationale: Direct marketing includes any activity that directly links manufacturers tothe ultimate consumers. Electronic retailing, telemarketing, multilevel marketing, anddirect selling are all common ways producers can use direct selling.15-99.In multilevel marketing, salespeople have an incentive to: A)recruit new salespeople, because they receive a commission on the sales made by the people they recruit. B)perform as many of the marketing functions as possible, because each function they perform adds to their commission. C)sell the product using both direct and indirect marketing methods in order to reach different types of customers. D)limit the number of salespeople in their franchise area so that they can maximize their own sales. Answer: ALG: 5/LL: 2Page: 415 Rationale: In multilevel marketing the salespeople work as independent contractors. They earn commissions not only on their own sales, but also on sales of other salespeople they recruit.15-100.Nickels, McHugh & McHugh, Understanding Business, Eighth Edition27
15-101.In the terminology of multilevel marketing, which of the following statements about the relationship between upliners and downliners is most accurate? In multilevel marketing, A)upliners are intermediaries who deal directly with final customers, while downliners are intermediaries who coordinate the transportation and storage services the upliners need to move the goods they sell through the channel of distribution. B)upliners are salespeople who act as independent contractors, earning commissions on their own sales and also on the sales of downliners, who are additional salespeople that they recruit. C)upliners sell through electronic retailing arrangements, while downliners use more traditional methods of retail selling. D)upliners use intensive distribution strategies to sell a good, while downliners use either a selective or exclusive distribution strategy to sell the same type ofgood.