Shell Mastercard, Created Cooperatively By Shell Oil Company And Mastercard, Is An Example Of
Options:
A. co-branding.
B. brand extraction.
C. brand collusion.
D. a generic brand.
E. brand dilution.
The Correct Answer Is:
- A. co-branding.
The Shell Mastercard is an example of co-branding, which is a marketing strategy where two or more brands collaborate to create a new product or service. In this case, Shell Oil Company and Mastercard worked together to create a credit card that provides rewards and benefits to customers who use it to purchase gasoline at Shell stations or make other purchases.
The card features both the Shell and Mastercard logos and the benefits and rewards are tailored specifically for customers who use the card at Shell stations. Co-branding can be a powerful marketing strategy as it allows brands to leverage each other’s strengths and customer bases to create a product that appeals to a wider audience.
Answer Explanation:
Direct marketing is a marketing strategy that involves communicating directly with potential customers to promote products or services. It aims to establish a direct connection between the company and its audience, making it a valuable tool for businesses to reach their target market.
Let’s examine each option in detail to explain why Option B is the correct answer and why the other options are not correct.
A) Its marketing message is fixed and does not change according to the customer’s requirements.
This statement is not accurate. Direct marketing allows for flexibility in crafting marketing messages. In fact, one of its key strengths is the ability to tailor messages to specific customer segments or even individual customers.
Direct marketing often relies on data analysis and segmentation to create personalized content that resonates with the recipient. Messages can be adapted to suit the preferences and needs of different customers, making this option incorrect.
C) It is presented as company news rather than as a sales-directed communication.
Direct marketing primarily aims at driving sales and generating leads. While it may include updates or news about the company, the primary purpose is to persuade the recipient to take a specific action, such as making a purchase or requesting more information.
Therefore, it is not presented as company news but as sales-directed communication, making this option incorrect.
D) It does not involve any interaction between the company and its customers.
This statement is not accurate. Direct marketing often involves two-way communication between the company and its customers. For example, it may include options for customers to respond to offers, ask questions, or provide feedback.
Email marketing, for instance, frequently encourages recipients to reply or click on links that lead to interactive web forms. Direct marketing aims to engage customers and encourage them to take action, so interaction is an integral part of the process, making this option incorrect.
E) It is an impersonal promotion tool that hinders two-way communication.
This statement is also not accurate. Direct marketing can be highly personalized and is designed to facilitate two-way communication. As mentioned earlier, it often involves customization based on customer data, which makes it more personal and relevant.
Additionally, direct marketing channels like email and social media allow for direct responses and interactions with customers. This can include responding to inquiries, addressing concerns, and building relationships, contradicting the notion that it is impersonal and hinders two-way communication.
Now, let’s delve into why Option B is the correct answer:
B) It is suited for highly targeted marketing efforts and for building one-to-one customer relationships.
This statement accurately describes one of the key strengths of direct marketing. Direct marketing is highly effective for reaching specific, well-defined target audiences. It allows businesses to segment their customer base and tailor marketing messages to each segment, which can lead to higher response rates and conversion rates.
Furthermore, direct marketing can help build one-to-one customer relationships by delivering personalized content and offers that resonate with individual customers. This personalization can foster a sense of connection and loyalty, making it an effective strategy for relationship building.
In summary, direct marketing is not a fixed, one-size-fits-all approach; it can be highly tailored to individual customer requirements. It is not presented as company news but as a sales-directed communication.
It involves interaction between the company and its customers and is not impersonal; in fact, it can be highly personalized and conducive to two-way communication. Therefore, Option B is the correct answer as it accurately reflects the nature and strengths of direct marketing.
MBA,BBA.
I am Smirti Bam, an enthusiastic edu blogger with a passion for sharing insights into the dynamic world of business and management through this website.
I hold a MBA degree from Presidential Business School, Kathmandu, and a BBA degree with a specialization in Finance from Apex College,