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Scenario 17-3 as the Number of Firms Utilizing Direct Marketing Continues to Continues

question 42

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Scenario 17-3
As the number of firms utilizing direct marketing continues to grow, so too does the number of consumers opposed to the methods often described as "intrusive." To combat the growing number of opposed consumers, marketers need to find creative new ways to optimize their direct marketing campaigns. One outlet firms are beginning to experiment with is social media. Executives understand that many consumers view a company's Facebook page more often than the company's home page, so they've grown to realize that setting up some form of an email opt-in on social media sites is a great way to build marketing databases. In addition to opt-in sections, social media allows businesses to interact with consumers, which may make them less inclined to respond negatively to a company's direct marketing efforts. By utilizing social media more often in the future, a number U.S.companies hope to build stronger and more useful marketing databases.
-(Scenario 17-3) Emailing consumers is considered what type of advertising?

Definitions:

Working Capital Needs

The funds required to finance the day-to-day operations of a business, including managing its short-term assets and liabilities.

Explicit Interest

The stated interest rate on a loan or financial instrument, not including the effects of compounding or any hidden charges.

Factoring

Financing method where a firm sells its accounts receivables, usually to a specialized financing company, at a discount to their full value.

Receivables

Payments due from clients to a business for the delivery of goods or services that have not yet been compensated.