BUAD 332 EXAM 4 ACTUAL QUESTIONS
AND CORRECT ANSWERS (GRADED A+)
| NEW UPDATE 2025
Direct Marketing - ANSWER Connecting directly with carefully targeted
individual consumers to both obtain an immediate response and cultivate lasting
customer relationships
New Direct-Marketing Model - ANSWER -Direct marketing has undergone a
dramatic transformation
-Most firms use direct marketing as a supplemental channel or medium
-For many companies, direct marketing constitutes a new and complete model for
doing business
-Some firms employ the direct model as their only approach
Growth of Direct Marketing - ANSWER -*Fastest growing form of marketing*
-10% of US economy ($2.1 trillion) is generated by direct marketing sales
-Direct marketing sales are expected to grow at 5.3% annually through 2017
-Direct marketing continues to become more web-oriented and internet
marketing is the fast-growing form of direct sales
Forms of Direct Marketing - ANSWER -Face-to-Face Selling
-Direct-Mail Marketing
-Catalog Marketing
,-Telemarketing
-Direct-Responsive Television Marketing
-Kiosk Marketing
-New Digital Technologies
-Online Marketing
Forms of Direct Marketing: Direct-Mail Marketing - ANSWER -Involves sending
an offer, announcement, reminder, or other item to a person at a particular or
virtual address
-*Largest direct marketing medium*
-Well-suited to one-to-one communication
-Use of traditional forms may decline as marketers switch to newer digital forms
-Can be used effectively in combination with other media such as websites
-Often perceived as "junk mail"
Direct-Mail Marketing Example - ANSWER -JDA combining direct mail with
personalized URLs for each recipient
-Cost JDA $60,000 but yielded a high response rate and $13 million in sales
Forms of Direct Marketing: Catalog Marketing - ANSWER -Direct marketing
through print, video, or digital catalogs that are mailed to select customers, made
available in stores, or presented online
Catalog Marketing Trends - ANSWER -More and more catalogs are going digital
--Minimizes costs and web space is unlimited
--Allows real-time merchandising
,-*Print catalogs are still the primary medium*
--Drives web traffic and can create an emotional connection to the consumer
Catalog Marketing Example - ANSWER -Grainger sells cleaning supplies for
industrial companies
-Have an online catalog set up where customers can select and browse products
-Can select in real time what is on the front page of the site as a way to influence
demand
Forms of Direct Marketing: Telephone Marketing - ANSWER -*Accounts for
17% of all direct-marketing driven sales*
-Used in both consumer and B2B markets
-Marketers use outbound and inbound calls
-Do-Not-Call Legislation has impacted the telemarketing industry
-Many telemarketers have shifted to other forms of direct marketing
New Digital Direct Marketing Technologies - ANSWER -Mobile Phone
Marketing: Mobile ad spending is expected to grow
New Digital Direct Marketing Technologies Example - ANSWER -Beacons at
Urban Outfitters Concept Store NY: send customers promotions/information
based upon location within the store
-85% of retailers could be using the technology by 2016 - 3.5 million
Online Marketing - ANSWER Company efforts to market products and services
and build relationships over the internet
, Online Marketing Stats 2011-2015 - ANSWER -Newspapers: 20.3% - 15.9%
-Magazines: 9.4% - 7.3%
-Radio: 7.1% - 6.6%
-TV: 39.9% - 40.0%
-Cinema: 0.5% - 0.6%
-Outdoor: 6.7% - 6.3%
-Internet: 16.1% - 23.4%
*US - Spent more on online advertising than TV today*
Online Marketing: Click-Only Companies - ANSWER So called dot-coms, which
operate only online without and brick-and-mortar presence
Types of Click-Only Firms - ANSWER -E-tailers: Amazon
-Search Engines and Portals: Google
-Transaction Sites: eBay
-Content Sites: ESPN
Online Marketing: Click-and-Mortar Companies - ANSWER -Traditional brick-
and-mortart companies that have added online marketing to their operations
-Best Buy
Omni-Channel - ANSWER Walmart customer ordering online and picking up in
the store, gives customers multiple choices for how they are going to shop
AND CORRECT ANSWERS (GRADED A+)
| NEW UPDATE 2025
Direct Marketing - ANSWER Connecting directly with carefully targeted
individual consumers to both obtain an immediate response and cultivate lasting
customer relationships
New Direct-Marketing Model - ANSWER -Direct marketing has undergone a
dramatic transformation
-Most firms use direct marketing as a supplemental channel or medium
-For many companies, direct marketing constitutes a new and complete model for
doing business
-Some firms employ the direct model as their only approach
Growth of Direct Marketing - ANSWER -*Fastest growing form of marketing*
-10% of US economy ($2.1 trillion) is generated by direct marketing sales
-Direct marketing sales are expected to grow at 5.3% annually through 2017
-Direct marketing continues to become more web-oriented and internet
marketing is the fast-growing form of direct sales
Forms of Direct Marketing - ANSWER -Face-to-Face Selling
-Direct-Mail Marketing
-Catalog Marketing
,-Telemarketing
-Direct-Responsive Television Marketing
-Kiosk Marketing
-New Digital Technologies
-Online Marketing
Forms of Direct Marketing: Direct-Mail Marketing - ANSWER -Involves sending
an offer, announcement, reminder, or other item to a person at a particular or
virtual address
-*Largest direct marketing medium*
-Well-suited to one-to-one communication
-Use of traditional forms may decline as marketers switch to newer digital forms
-Can be used effectively in combination with other media such as websites
-Often perceived as "junk mail"
Direct-Mail Marketing Example - ANSWER -JDA combining direct mail with
personalized URLs for each recipient
-Cost JDA $60,000 but yielded a high response rate and $13 million in sales
Forms of Direct Marketing: Catalog Marketing - ANSWER -Direct marketing
through print, video, or digital catalogs that are mailed to select customers, made
available in stores, or presented online
Catalog Marketing Trends - ANSWER -More and more catalogs are going digital
--Minimizes costs and web space is unlimited
--Allows real-time merchandising
,-*Print catalogs are still the primary medium*
--Drives web traffic and can create an emotional connection to the consumer
Catalog Marketing Example - ANSWER -Grainger sells cleaning supplies for
industrial companies
-Have an online catalog set up where customers can select and browse products
-Can select in real time what is on the front page of the site as a way to influence
demand
Forms of Direct Marketing: Telephone Marketing - ANSWER -*Accounts for
17% of all direct-marketing driven sales*
-Used in both consumer and B2B markets
-Marketers use outbound and inbound calls
-Do-Not-Call Legislation has impacted the telemarketing industry
-Many telemarketers have shifted to other forms of direct marketing
New Digital Direct Marketing Technologies - ANSWER -Mobile Phone
Marketing: Mobile ad spending is expected to grow
New Digital Direct Marketing Technologies Example - ANSWER -Beacons at
Urban Outfitters Concept Store NY: send customers promotions/information
based upon location within the store
-85% of retailers could be using the technology by 2016 - 3.5 million
Online Marketing - ANSWER Company efforts to market products and services
and build relationships over the internet
, Online Marketing Stats 2011-2015 - ANSWER -Newspapers: 20.3% - 15.9%
-Magazines: 9.4% - 7.3%
-Radio: 7.1% - 6.6%
-TV: 39.9% - 40.0%
-Cinema: 0.5% - 0.6%
-Outdoor: 6.7% - 6.3%
-Internet: 16.1% - 23.4%
*US - Spent more on online advertising than TV today*
Online Marketing: Click-Only Companies - ANSWER So called dot-coms, which
operate only online without and brick-and-mortar presence
Types of Click-Only Firms - ANSWER -E-tailers: Amazon
-Search Engines and Portals: Google
-Transaction Sites: eBay
-Content Sites: ESPN
Online Marketing: Click-and-Mortar Companies - ANSWER -Traditional brick-
and-mortart companies that have added online marketing to their operations
-Best Buy
Omni-Channel - ANSWER Walmart customer ordering online and picking up in
the store, gives customers multiple choices for how they are going to shop
