Direct Marketing Midterm Review

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1.What is 50%+?
Media and a list are given that at least of this percentage weight in terms of their relative importance to copy layout, offer or timing.

2.What is Life Time Value?
Total profit (or loss) estimated to result from an ongoing business relationship with a customer over the life of relationship. Goods or services with high lifetime value may justify comparatively higher marketing expenditure and/or salesperson compensation.

3.What is Allowable Margin?
Short hand for the number that accounts for promotional expense+what profit remains.

4.What is a Vision Statement?
The type of statement in the strategic business plan, this one provides” the big picture” about what an organization hopes to achieve going forward

5.What is SWOT analysis?
Strength, Weakness, Opportunity, Threat.

6.What is a Key Fact?
When developing the message strategy for a productive or service this term is “the single most important reason why the advertising will be developed.”

7.What is a Strategic Plan?
A “Blueprint” for both short- and long-term activities, this comprehensive document defines all tactical elements and highlights the financial performance for direct marketing.

8.What is a “Flat” File?
A flat file is a collection of information stored and accessed sequentially in a database, often created to store information in a non-structured way.

9.What is a Data Warehouse?
This type of “facility” stores information about customers and their transactions into a central depository.

10.What is a Data Mart?
This Data Warehouse is an extracted subset. It houses aggregated data into a smaller, more nimble database for marketing.

11.What is a Compiled List?
Lists that can be rented for direct marketing fall into two categories. One is a Response List. The other is Compiled List.

12.What are product buyer lists, attendee lists, donor lists, credit card holder lists or subscriber lists? Product buyer lists, attendee lists, donor lists, credit card holder lists, subscriber lists.

13.What is Cost Per Thousand?
CPM is used by Internet marketers to price ad banners. Sites that sell advertising will guarantee an advertiser a certain number of impressions, then set a rate based on that guarantee times the CPM rate.

14. What statistic is more valuable for assessing lead quality? CPL or CPR? CPL. It is an online advertising pricing model, where the advertiser pays for an explicit sign-up from an interested consumer interested in the advertiser offer.

15. Which of these CPs is used only for comparing media/list efficiency: CPR, CPL, CPO or CPM? CPM.

16. What is media cost divided by target population that’s reached by that medium times 1000? CPM.

17.What are Hotline Customers?
Term used for selecting recent purchasers from a list, such as customers who purchased within the last 90 days?

18.What is Merge/Purge?
Is the term for eliminating duplicates from two or more lists.

19.What is NCOA(National Change of Address)?
This database contains almost 200 million records of movers. Updating customer records so you don’t mail bad addresses

20. What is Data Mining?
Cluster Analysis, Neural Networks and Market Basket Analysis. It is the process of analyzing data from different perspectives and summarizing it into useful information - information that can be used to increase revenue, cuts costs, or both.

21.What is List Hygiene?
A term used for cleaning, updating or freshening lists, it almost sounds rather personal.

22.What are Zip Plus Four zip codes? Carrier Route Codes? Bar codes? Undeliverable Addresses?

23.What are Opt-in and Opt-out?
Opt-in and Opt-out are ways that consumers can either elect to receive or not receive e-mail, mail or phone solicitations.

24.What is Customer profiling?
This term is the process of understanding/identifying customers according to their demographics, firmographics or lifestyle attributes.

25.What is a Guarantee?
Offer that is rarely...
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