Chapter 17--Vocab

Question 1

cost per inquiry (cpi)

Answer 1

The number of inquiries generated by a direct-marketing program divided by that program’s cost.

Question 2

cost per order (cpo)

Answer 2

The number of orders generated by a direct-marketing program divided by that program’s cost.

Question 3

creative selling

Answer 3

The act of assisting and persuading customers regarding purchasing decisions; creative selling typically involves products in which customers require extensive knowledge about the product before buying, such as specialty goods or higher-priced items (for example, sports equipment, cookware, insurance, or real estate).

Question 4

cross-selling

Answer 4

Marketing programs aimed at customers that already purchase other products.

Question 5

customer relationship management (crm)

Answer 5

The continual effort toward cultivating and maintaining long-term relationships with customers; many companies have recognized trust and rapport are key elements to repeated sales and thus train their sales teams to emphasize each particular customer’s needs rather than the bottom line.

Question 6

direct mail

Answer 6

A direct-marketing medium that involves using the postal service to deliver marketing materials.

Question 7

direct marketing

Answer 7

According to the Direct Marketing Association, “An interactive system of marketing which uses one or more advertising media to affect a measurable response and/or transaction at any location.”

Question 8

direct response advertising

Answer 8

Advertising that asks the receiver of the message to act immediately.

Question 9

external lists

Answer 9

Mailing lists purchased from a list compiler or rented from a list broker and used to help an organization cultivate new business.

Question 10

frequency-marketing programs

Answer 10

Direct-marketing programs that provide concrete rewards to frequent customers.

Question 11

infomercial

Answer 11

A long advertisement that looks like a talk show or a half-hour product demonstration.

Question 12

internal lists

Answer 12

An organization’s records of its customers, subscribers, donors, and inquirers, used to develop better relationships with current customers.

Question 13

mailing list

Answer 13

A file of names and addresses that an organization might use for contacting prospective or prior customers.

Question 14

marcom manager

Answer 14

A marketing-communications manager who plans an organization’s overall communications program and oversees the various functional specialists inside and outside the organization to ensure that they are working together to deliver the desired message to the customer.

Question 15

marketing database

Answer 15

A mailing list that also includes information collected directly from individual customers.

Question 16

missionary salesperson

Answer 16

A person who proactively contacts customers after a purchase has been made, in order to ensure customer satisfaction and foster goodwill, by asking if the customer has questions about the product, providing additional information, and checking to see if the customer’s current needs have changed (and may present an opportunity for further sales).

Question 17

order taking

Answer 17

The practice of accepting and processing needed customer information for pre-arranged merchandise purchase, or scheduling services that a consumer will purchase once rendered. While their role in the transaction process rarely involves communicating large amounts of information, order takers must be able to answer customer questions and be accommodating and considerate.

Question 18

personal selling

Answer 18

The face-to-face communications and persuasions process, often used with products that are higher-priced, complicated to use, must be tailored to individual user needs, involve a trade-in, or are judged at the point of purchase.

Question 19

rfm analysis

Answer 19

An analysis of how recently and how frequently a customer is buying from an organization, and of how much that customer is spending per order and over time.

Question 20

system selling

Answer 20

Selling a set of interrelated components that fulfills all or a majority of a customer’s needs in a particular area.

Question 21

telemarketing

Answer 21

A direct-marketing medium that involves using the telephone to deliver a spoken appeal.