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Principles of Marketing, 17e, Global Edition (Kotler/Armstrong) Chapter 17 Direct, Online, Social Media, and Mobile Marketing 1) Amazon.com and GEICO approach customers via Web sites or mobile apps. This is an example of ________ marketing. A) mass B) niche C) individual D) multi-level E) direct Answer: E AACSB: Information technology Skill: Concept Objective: LO 17.1: Define direct and digital marketing and discuss their rapid growth and benefits to customers and companies. Difficulty: Easy 2) All of the following are benefits of online direct marketing for buyers EXCEPT ________. A) access to numerous products B) access to product reviews C) live product demonstrations D) convenience E) privacy Answer: C AACSB: Information technology Skill: Concept Objective: LO 17.1: Define direct and digital marketing and discuss their rapid growth and benefits to customers and companies. Difficulty: Easy 3) Advantages of direct and digital marketing for sellers include all of the following EXCEPT ________. A) low cost B) efficiency C) speed D) need for sales training E) flexibility Answer: D AACSB: Information technology Skill: Concept Objective: LO 17.1: Define direct and digital marketing and discuss their rapid growth and benefits to customers and companies. Difficulty: Easy

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4) Which of the following statements is true of direct marketing? A) Direct marketing is also referred to as referral marketing. B) Salespersons are compensated for other salespeople they recruit. C) Direct marketing offers sellers a low-cost alternative for reaching their markets. D) Direct marketing involves two or more intermediaries. E) In direct marketing, consumers earn a commission every time they buy a product. Answer: C AACSB: Analytical thinking Skill: Concept Objective: LO 17.1: Define direct and digital marketing and discuss their rapid growth and benefits to customers and companies. Difficulty: Moderate 5) With direct marketing, companies can interact with customers in all of the following ways EXCEPT ________. A) in person B) learning more about customers' needs C) personalizing products and services D) answering questions from customers E) by phone or online Answer: A AACSB: Information technology Skill: Concept Objective: LO 17.1: Define direct and digital marketing and discuss their rapid growth and benefits to customers and companies. Difficulty: Easy 6) Which of the following is true about online direct marketing? A) Online direct marketing is also referred to as multi-level marketing. B) Salespersons are compensated for other salespeople they recruit. C) Online direct marketing allows sellers to create immediate, timely, and personal offers. D) Online direct marketing involves two or more intermediaries. E) In online direct marketing, outside and inside sales forces coordinate to provide value products to customers. Answer: C AACSB: Information technology Skill: Concept Objective: LO 17.1: Define direct and digital marketing and discuss their rapid growth and benefits to customers and companies. Difficulty: Moderate

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7) All of the following are benefits of direct marketing for sellers EXCEPT ________. A) access to small groups or individuals B) program flexibility C) mass reach and immediate returns D) low cost E) easy to personalize products Answer: C Skill: Concept Objective: LO 17.1: Define direct and digital marketing and discuss their rapid growth and benefits to customers and companies. Difficulty: Easy 8) Direct and digital marketing involve targeting broad segments of customers. Answer: FALSE AACSB: Information technology Skill: Concept Objective: LO 17.1: Define direct and digital marketing and discuss their rapid growth and benefits to customers and companies. Difficulty: Easy 9) Most companies use direct marketing as a supplementary channel or medium. Answer: TRUE Skill: Concept Objective: LO 17.1: Define direct and digital marketing and discuss their rapid growth and benefits to customers and companies. Difficulty: Easy 10) Direct marketing seldom occurs on a one-to-one, interactive basis. Answer: FALSE Skill: Concept Objective: LO 17.1: Define direct and digital marketing and discuss their rapid growth and benefits to customers and companies. Difficulty: Easy 11) Direct marketing through catalogs and direct mailers is still the primary method used by marketing professionals. Answer: FALSE Skill: Concept Objective: LO 17.1: Define direct and digital marketing and discuss their rapid growth and benefits to customers and companies. Difficulty: Easy

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12) For customers, the benefits of direct marketing are being able to shop online anytime and anywhere. Answer: TRUE Skill: Concept Objective: LO 17.1: Define direct and digital marketing and discuss their rapid growth and benefits to customers and companies. Difficulty: Easy 13) Direct marketing is an expensive way of reaching target markets. Answer: FALSE AACSB: Information technology Skill: Concept Objective: LO 17.1: Define direct and digital marketing and discuss their rapid growth and benefits to customers and companies. Difficulty: Easy 14) How does direct marketing give buyers access to more comparative information about companies, products, and competitors? Answer: 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 various Web sites. AACSB: Information technology Skill: Concept Objective: LO 17.1: Define direct and digital marketing and discuss their rapid growth and benefits to customers and companies. Difficulty: Easy 15) How does online marketing provide flexibility for sellers? Answer: Online marketing allows the marketer to make ongoing adjustments to its prices and programs or make immediate, timely, and personal announcements and offers. Online catalogs, if used, can be adjusted daily or even hourly if needed. AACSB: Information technology Skill: Concept Objective: LO 17.1: Define direct and digital marketing and discuss their rapid growth and benefits to customers and companies. Difficulty: Easy

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16) Explain the major benefits of direct marketing for customers and for sellers. Answer: 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. 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 lowcost, efficient alternative for reaching markets. AACSB: Application of knowledge Skill: Concept Objective: LO 17.1: Define direct and digital marketing and discuss their rapid growth and benefits to customers and companies. Difficulty: Moderate 17) Which of the following is the fastest growing form of direct marketing? A) ambush marketing B) digital marketing C) direct-mail marketing D) kiosk marketing E) telemarketing Answer: B AACSB: Information technology Skill: Concept Objective: LO 17.2: Identify and discuss the major forms of direct and digital marketing. Difficulty: Easy

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Refer to the scenario below to answer the following question(s). The Treble Clef sells music books, musical instruments, and novelty gifts of a musical nature. In recent years, owner Gary Zahn has served as the local representative of several musical instrument manufacturers, providing a contact person for three local schools. He sends a sample of a manufacturer's products to schools that request a demonstration or presentation. "If we don't have it, we can definitely 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 music knick-knacks in the store. Gary spends most of his time making presentations to beginners at the local schools and making biweekly visits to the schools to deliver instruments, make minor repairs, or pick up instruments to ship to the manufacturer for more complicated repairs. After establishing a loyal customer base, Gary was convinced that a Treble Clef Web site could benefit a variety of customers. He began with a simple Web site that provided information about the store and the 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 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?" The Web site is now able to accept credit card orders, and gifts can even be wrapped and shipped for no extra charge. "This Web site idea was fantastic!" Gary admitted. "It allows us to be so responsive. And our novelties sales have doubled!" 18) Which kind of Web site does Treble Clef use? A) branded community Web site B) corporate Web site C) investor relations Web site D) marketing Web site E) online Web site Answer: D AACSB: Analytical thinking Skill: Application Objective: LO 17.2: Identify and discuss the major forms of direct and digital marketing. Difficulty: Challenging 19) Digital and traditional direct marketing forms must be blended into an integrated marketing communications program for best results. Answer: TRUE Skill: Concept Objective: LO 17.2: Identify and discuss the major forms of direct and digital marketing. Difficulty: Easy

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20) Identify the traditional direct marketing tools and differentiate them from the digital direct marketing tools. What is their importance? Answer: Traditional direct marketing tools include face-to-face selling, direct-mail marketing, catalog marketing, telemarketing, direct-response television marketing, and kiosk marketing. In recent years, however, digital direct marketing tools have burst onto the marketing scene, including online marketing (Web sites, online ads and promotions, e-mail, online videos, and blogs), social media marketing, and mobile marketing. It's important to remember that all of these tools—both the new digital and the more traditional forms—must be blended into a fully integrated marketing communications program. Skill: Concept Objective: LO 17.2: Identify and discuss the major forms of direct and digital marketing. Difficulty: Easy 21) Online companies include all of the following EXCEPT ________. A) content sites B) online social media C) search engines and portals D) transaction sites E) brick-and-mortar Answer: E AACSB: Information technology Skill: Concept Objective: LO 17.3: Explain how companies have responded to the Internet and the digital age with various online marketing strategies. Difficulty: Easy 22) Companies such as Amazon.com and Expedia.com that sell products and services directly to final buyers exclusively over the Internet are known as ________. A) transaction sites B) content sites C) search engines and portals D) e-tailers E) online social media Answer: D AACSB: Information technology Skill: Concept Objective: LO 17.3: Explain how companies have responded to the Internet and the digital age with various online marketing strategies. Difficulty: Easy

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23) Which term best describes sites such as the New York Times on the Web and ESPN.com? A) search engine B) content site C) online social network D) transaction site E) e-tailer Answer: B AACSB: Information technology Skill: Concept Objective: LO 17.3: Explain how companies have responded to the Internet and the digital age with various online marketing strategies. Difficulty: Easy 24) ________ companies use both offline and online marketing channels. A) Start-up B) Click-only C) Omni-channel retailing D) Brick-and-mortar E) Brick-only Answer: C AACSB: Information technology Skill: Concept Objective: LO 17.3: Explain how companies have responded to the Internet and the digital age with various online marketing strategies. Difficulty: Easy 25) Online marketing includes marketing via the Internet using company Web sites, e-mail marketing, blogs, and ________. A) direct mail brochures B) live demonstrations C) samples D) online video E) focus groups Answer: D AACSB: Information technology Skill: Concept Objective: LO 17.3: Explain how companies have responded to the Internet and the digital age with various online marketing strategies. Difficulty: Easy

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26) ________ are designed to engage consumers in interactions that will move them closer to a direct purchase or other marketing outcome. A) Online magazines B) Marketing Web sites C) Search engines D) Digital catalogs E) Podcasts Answer: B AACSB: Information technology Skill: Concept Objective: LO 17.3: Explain how companies have responded to the Internet and the digital age with various online marketing strategies. Difficulty: Easy 27) Gant Hardware is a huge chain of hardware stores. GantHardware.com helps customers conduct product research and also lets them order directly online or redirects them to the nearest Gant retail store. Which of the following best describes GantHardware.com? A) marketing Web site B) digital catalog C) social network D) podcast E) blog Answer: A AACSB: Analytical thinking Skill: Application Objective: LO 17.3: Explain how companies have responded to the Internet and the digital age with various online marketing strategies. Difficulty: Moderate 28) A(n) ________ is designed to present brand content that engages consumers and creates customer-brand community. A) podcast B) branded community Web site C) search engine D) digital catalog E) online magazine Answer: B AACSB: Information technology Skill: Concept Objective: LO 17.3: Explain how companies have responded to the Internet and the digital age with various online marketing strategies. Difficulty: Easy

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29) Oscarz Aviation's Web site, GoOscarzAv.com, informs customers about a wide variety of services offered by the firm. It also has a guestbook where customers can provide feedback on their experiences with Oscarz Aviation. They can also view videos Oscarz Aviation posts, as well as read and respond to blogs and ask questions. GoOscarzAv.com is an example of a(n) ________. A) online social network B) blog C) kiosk D) branded community Web site E) digital catalog Answer: D AACSB: Analytical thinking Skill: Application Objective: LO 17.3: Explain how companies have responded to the Internet and the digital age with various online marketing strategies. Difficulty: Moderate 30) Spartan Sportsgear is a company that sells sports equipment for adventure sports. It recently launched ExtremeSpartan.com to showcase products and provide testimonials of famous adventure sports athletes who use Spartan's products. It also includes videos and blogs. Which of the following best describes ExtremeSpartan.com? A) branded community Web site B) digital catalog C) social network D) podcast E) blog Answer: A AACSB: Analytical thinking Skill: Application Objective: LO 17.3: Explain how companies have responded to the Internet and the digital age with various online marketing strategies. Difficulty: Moderate

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31) Runner Sprintz, a particular brand of shoes, has its own Web site, myrunnersprintz.com that welcomes consumers to "the Runner Sprintz Century," invites readers to post their Runner Sprintz stories, and offers a wide variety of shoes for direct purchase. The site even allows customers to individually design their own shoes and share them among their circles on the Web site. Which of the following best describes myrunnersprintz.com? A) Web directory B) blog C) corporate Web site D) digital catalog E) branded community Web site Answer: E AACSB: Analytical thinking Skill: Application Objective: LO 17.3: Explain how companies have responded to the Internet and the digital age with various online marketing strategies. Difficulty: Moderate 32) Which of the following is NOT a specific goal of branded community Web sites? A) present brand content that engages consumers B) build closer customer relationships C) generate engagement with and between the brand and its customers D) increase online sales E) allows visitors to interact with likeminded people to explore and communicate experiences with the brand Answer: D AACSB: Information technology Skill: Concept Objective: LO 17.3: Explain how companies have responded to the Internet and the digital age with various online marketing strategies. Difficulty: Easy 33) Companies must attract visitors to their Web sites. Which of the following is a method companies use to entice visitors not just to visit but also to return to a site? A) using flashy graphics, bright colors and vivid pictures B) aggressively promoting the site in broadcast advertising and through ads and links on other sites C) offering prizes for visiting the site D) providing rewards for visitors connecting their friends to the site E) requiring registration on the first visit to the site Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 17.3: Explain how companies have responded to the Internet and the digital age with various online marketing strategies. Difficulty: Easy

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34) Effective Web sites contain interactive tools that help find and evaluate content of interest, links to other related sites, useful information, changing promotional offers, and ________. A) celebrity endorsers B) respected columnists C) advertising for unrelated products D) enticements for customers to include their friends and contacts E) entertaining features that lend excitement Answer: E AACSB: Information technology Skill: Concept Objective: LO 17.3: Explain how companies have responded to the Internet and the digital age with various online marketing strategies. Difficulty: Easy 35) Online ads that incorporate animation, video, sound, and interactivity are called ________. A) search-related ads B) rich media ads C) content-based ads D) digital catalogs E) parody ads Answer: B AACSB: Information technology Skill: Concept Objective: LO 17.3: Explain how companies have responded to the Internet and the digital age with various online marketing strategies. Difficulty: Easy 36) In ________, text-based ads and links appear alongside search engine results on sites such as Google, Yahoo!, and Bing. A) content sponsorships B) digital billboards C) digital catalogs D) contextual advertisements E) RSS feeds Answer: D AACSB: Information technology Skill: Concept Objective: LO 17.3: Explain how companies have responded to the Internet and the digital age with various online marketing strategies. Difficulty: Easy

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37) While comparing hotel rates on Google's search engine, Brenda came across text-based ads and links alongside the search results. This form of advertising is known as ________. A) contextual advertising B) rich media ads C) content sponsorship D) catalog advertising E) social media advertising Answer: A AACSB: Analytical thinking Skill: Application Objective: LO 17.3: Explain how companies have responded to the Internet and the digital age with various online marketing strategies. Difficulty: Moderate 38) Which of the following is true about e-mail marketing messages? A) E-mail marketing messages involve sending an offer, announcement, reminder, or sample to a person living at a particular address. B) E-mail marketing messages involve connecting directly with carefully targeted consumers, exclusively on a one-to-one, interactive basis. C) E-mail marketing messages are effective in re...