Question

Advantages of the direct response system for marketing life insurance include which of the following?

 I. Advertising can be specifically directed to selected markets.

 II. Complex products can be easily sold.

 A) I only

 B) II only

 C) both I and II

 D) neither I nor II

Answer 1

A correct answer is an option (A) I only.

Direct response marketing is used for sending direct communication to the customers. This form of advertising puts the value proposition of the product and call to action button at the same place. It is like proactively asking the customer to take the action and purchase the product rather than waiting for the customer to get self-motivated and come for purchase of the product. For example, in the case of Insurance, direct response marketing can help in reaching the target customer directly, and in terms of a call to action, there could be a link to ask for a quote or show his interest. however, complex products need a much more high level of discussion between the customer and the agent and thus direct response marketing can help a little to sell complex products. Complex products need negotiations and there are many more technicalities that can be explained personally in most of the cases.

Hence, Direct response marketing can help in directing the advertising to selected markets and can carry the call to action response, But it can not make the task easy for selling complex products.