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Refer to the scenario below to answer the following questions.



       The Treble Clef offers a complete line of sheet music, musical instruments, and novelty gifts of a musical nature. In recent years, owner Gary Zahn has even served as the local representative of several musical instrument manufacturers, providing a contact person for three local school districts. "If we don't have it, chances are excellent that we can 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 musical knick-knacks in the store. Gary spends most of his time making presentations to beginning music students at the local schools and making bi-weekly visits to the schools in order to deliver instruments, to make minor repairs when possible, or to pick up instruments to ship to the manufacturer for more complicated repairs.

       After dragging his feet for quite some time, Gary was convinced that a Treble Clef Web site could benefit a variety of customers. He began with a simple site explaining store hours and depicting 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 the 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.

       "I don't know how we did it without our Web site," Gary admitted. "It allows us to be so responsive. And our novelties sales have doubled!"

 

133) What type of online marketing is Gary Zahn using to promote the Treble Clef?

A) B2B

B) B2C

C) viral marketing

D) social networking

E) contextual advertising

Answer: B

Diff: 1        Page Ref: 505

AACSB: Analytic Skills

Skill: Application

Objective: 17-3

134) Which of the following BEST describes the Treble Clef?

A) a brick-and-mortar company that is now a click-only retailer

B) a dot-com that has added a storefront to service local customers

C) a click-and-mortar company that used to be a brick-and-mortar retailer

D) a brick-and-mortar retailer that is struggling to compete with click-only firms

E) a brick-and-mortar company that established a Web community for musicians

Answer: C

Diff: 2        Page Ref: 504

AACSB: Analytic Skills

Skill: Application

Objective: 17-3

 

135) Many Treble Clef customers are seeking specific sheet music that Gary does not always have in-stock. Gary would like to provide a link on the store's Web site to a sheet music supplier with which he does business. On which of the following Web site design elements should Gary focus?

A) context

B) community

C) customization

D) connection

E) content

Answer: D

Diff: 1        Page Ref: 510

AACSB: Analytic Skills

Skill: Application

Objective: 17-4

 

136) 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 business-to-consumer and consumer-to-consumer Web sites.

Diff: 2        Page Ref: 492

AACSB: Analytic Skills

Skill: Application

Objective: 17-1

 

137) How does online marketing provide flexibility for sellers?

Answer: Online marketing allows the marketer to make ongoing adjustments to its offers and programs. Online catalogs, if used, can be adjusted daily or even hourly if needed. Because the Internet is a global tool, it allows buyers and sellers to click from one country to another country in seconds.

Diff: 2        Page Ref: 492-493

AACSB: Analytic Skills

Skill: Application

Objective: 17-1

138) What kind of information is likely to be included in a business-to-business customer database?

Answer: Data might include products and services purchased by the customer, projected customer spending, competing suppliers, status of current contracts, key contacts and personal information, and assessments of competitive strengths and weaknesses in selling and servicing the account.

Diff: 2        Page Ref: 493-494

Skill: Application

Objective: 17-1

 


139) Why are people reached by direct mail better prospects for a company than those reached by mass media such as television or magazines?

Answer: Unlike mass media, direct mail allows for high target-market selectivity, so only consumers who are likely to become customers can be contacted; in addition, direct mail can be personalized for each individual, which helps to build customer relationships.

Diff: 2        Page Ref: 496

AACSB: Analytic Skills

Skill: Application

Objective: 17-2

 

140) Why are printed catalogs still thriving in the face of the growing popularity of Web-based catalogs?

Answer: Printed catalogs are more effective at creating an emotional connection with customers and continue to be one of the best ways to lead customers to online catalogs.

Diff: 2        Page Ref: 497

AACSB: Analytic Skills

Skill: Application

Objective: 17-2

 

141) Explain how the creation of the National Do-Not-Call Registry may have helped telemarketers more than it hurt them.

Answer: Instead of making cold calls to people who are likely to resent the intrusion, telemarketers have switched gears and now focus on managing existing customer relationships through "opt-in" calling systems that provide useful information and offers to customers who have given the company permission to contact them.

Diff: 2        Page Ref: 498-499

AACSB: Analytic Skills

Skill: Application

Objective: 17-2

 

142) Why is the use of direct-response television growing in popularity?

Answer: Direct-response TV commercials are usually less expensive to produce than traditional television advertisements, and the media purchase is less costly; also, it is easy for marketers to track the effectiveness of a direct-response TV commercial because the ads always include a 1-800 number or Web address.

Diff: 3        Page Ref: 500

AACSB: Analytic Skills

Skill: Application

Objective: 17-2

143) Provide an example of how a marketer uses kiosk marketing.

Answer: Answers will vary. Many airlines and hotels use kiosks as self-service check-in devices; many retail stores offer in-store ordering kiosks; kiosks in Target stores connect customers to relevant articles from Consumer Reports magazine.

Diff: 2        Page Ref: 501

Skill: Application

Objective: 17-2

144) How can firms that use new direct marketing technologies avoid backlash from consumers who view such marketing as an invasion of privacy?

Answer: Marketers should always target their direct marketing offers carefully and bring real value to customers through direct marketing.

Diff: 2        Page Ref: 504

AACSB: Analytic Skills

Skill: Application

Objective: 17-2

 

145) What types of services do B2B marketers offer online?

Answer: Most major B2B marketers now offer product information, customer purchasing, and customer support services online.

Diff: 2        Page Ref: 506

Skill: Application

Objective: 17-3

 

146) Explain how a company benefits from monitoring the blogosphere.

Answer: By staying up-to-date with the content on relevant blogs, a company can gain insights from its consumers and adjust its marketing programs accordingly; for example, a company might learn about the weaknesses or strengths of a new marketing campaign by monitoring reactions on blogs.

Diff: 2        Page Ref: 507-508

AACSB: Reflective Thinking

Skill: Application

Objective: 17-3

 

147) Provide two reasons that many companies are shifting more of their marketing dollars to online advertising.

Answer: More companies are increasing the portion of their marketing budget spent on online advertising because consumers are spending more and more time on the Internet. Rich media ads are particularly effective in engaging viewers, and search-related ads reach an audience likely to be interested in the product.

Diff: 2        Page Ref: 511

Skill: Application

Objective: 17-4

148) What is the purpose of content sponsorship? Provide an example of content sponsorship.

Answer: Content sponsorships are a form of Internet promotion; many companies gain exposure on the Internet by sponsoring special content on various Web sites, such as news and financial information. Sponsorships are best placed in carefully targeted sites where they can offer relevant information or service to the audience. Scotts, the lawn-and-garden company sponsors the Local Forecast section on WeatherChannel.com.

Diff: 2        Page Ref: 512

Skill: Application

Objective: 17-4

 


149) Explain the goal of viral marketing.

Answer: Viral marketing is the Internet version of word-of-mouth marketing. Viral marketing involves creating a Web site, e-mail message, or other event that is so infectious that customers will want to pass it along to their friends.

Diff: 2        Page Ref: 512-513

Skill: Application

Objective: 17-4

 

150) How has the direct marketing industry taken steps to address privacy and security concerns?

Answer: Some companies use a nonprofit self-regulatory organization that audits a company's security and privacy measures and then approves Web sites that meet its privacy and security standards. The Direct Marketing Association has started a Privacy Promise that asks member companies to agree to notify customers about the use of their private information and to honor customer requests to "opt-out" of receiving further solicitations.

Diff: 3        Page Ref: 519

Skill: Application

Objective: 17-5

 


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