Insurance Broker Certification Practice Exam

What term describes the act of selling an insurance policy over the phone in response to a TV advertisement?

1. Traditional marketing

2. Direct response marketing

3. Field marketing

4. Agent-led sales

The correct answer is: Direct response marketing

The act of selling an insurance policy over the phone in response to a TV advertisement is termed direct response marketing. This form of marketing is characterized by its ability to generate an immediate response from potential customers, leading to direct sales transactions. In direct response marketing, advertisers aim to prompt consumers to react quickly, typically by calling a phone number or visiting a website to purchase the advertised product or service. Television advertisements encourage viewers to take action right away, which aligns perfectly with the characteristics of direct response marketing. This approach contrasts with other marketing types. Traditional marketing often involves more passive strategies, such as billboards or print ads, which do not directly solicit immediate responses. Field marketing typically requires face-to-face interactions in a specific location, while agent-led sales depend on a personal relationship with an insurance agent rather than direct consumer engagement via media channels.