Centel computers has tried selling its personal computers through the traditional retail distribution system. However, it has been difficult finding retailers who will provide the company shelf space, as most retailers prefer to stock up on the largest selling brands. While not entirely abandoning a retail strategy, Centel wants to explore direct marketing as a way of selling to consumers. Brian, the brand manager at Centel, considers several options for bypassing retailers and selling directly to consumers.
1. One important option available to Centel is contacting consumers directly. Brian runs some numbers and finds that personal selling is simply too expensive for Centel. But he realizes that a less expensive way to contact consumers and still deal with consumers with individualized messages is
a. billboards.
b. direct mail.
c. magazine advertising.
d. catalogs.
e. sponsorship.
2. Brian regularly listens to the radio program of top-rated host Gene Hastings. After contacting the company that produces Hastings' show, he finds out that the demographics of his audience are a close match with the target audience of Centel. If Brian decides to have Hastings talk about Centel during his show and then share a website listeners can go to in order to place orders, it will be an example of
a. telemarketing.
b. awareness advertising.
c. direct-response broadcast advertising.
d. direct-mail advertising.
e. direct-response print advertising.
3. Brian gets a call from Hulu, a web company that allows users to watch top TV shows on the web. Hulu explains that Centel can place ads in top-rated TV shows for a fraction of the price it would cost if the company were to buy time on broadcast or cable TV. Additionally, the ads allow Centel to ask consumers questions if they respond to the commercial. This type of opportunity is described in your text as
a. interactive TV.
b. telemarketing.
c. awareness advertising.
d. direct mail advertising.
e. direct-response broadcast advertising.
4. Brian also intends to run ads in Google’s Adwords program. As described in Chapter 15, in an Adwords campaign, small text ads appear next to the results returned during searches on Google. When consumers click on a Centel text ad they are taken to the Centel website where they can order a computer. This type of ad _____ because ______.
a. is NOT direct-response advertising; it does not involve email
b. is direct-response advertising; consumers click on the Adwords ads
c. is NOT direct-response advertising; it is intended to build brand loyalty
d. is direct-response advertising; consumers can buy at the website
e. is NOT direct-response advertising; digital ads are not relevant to direct response
5. Each time Brian makes a direct sale of a Centel computer he creates a database of many qualities of the customer, including demographics, the nature of the sale, the product sold, etc. The database allows him to track how often a customer orders Centel products over time. In turn, he expects to target the best customers heavily in future ad campaigns. His least frequent customers will be dropped from marketing campaigns entirely. This is an illustration of analyzing
a. CPM.
b. how effective Centel creative work is.
c. telemarketing.
d. customer lifetime value.
e. the expense of direct response advertising.