DECA #2

Marketing

The dynamic activities that focus on the customer to generate a profitable exchange.

The Goal of Marketing

To meet customers' needs and wants with products that customers can and will buy.

Dynamic

Constantly changing.

Customer

An individual or group who buys products.

Target Market

The specific group of customers whose needs a company will focus on satisfying.

The Four Ps of Marketing

Product, Place, Price, and Promotion.

Product

Anything that can be bought or sold.

Good

A physical item.

Service

An action that is done for you.

Idea

A concept, cause, issue, image, or philosophy that can be marketed.

Place

The process of making products available to customers.

Distribution

The process of physically delivering goods to customers.

Price

The amount of money requested or exchanged for a product.

Marketing Plan

A guide for a company's product which includes Market Opportunities and Analysis, Strategy, and an Action Plan.

SWOT Analysis

An analysis of a company's strengths, weaknesses, opportunities, and threats.

Forecast

A prediction of future sales or revenue.

Need

Something that is necessary for survival.

Want

Something a person desires but could function without.

Economic Needs and Wants

Needs and wants that you can satisfy by buying something.

Economic Goods and Services

The products that you buy to satisfy economic needs.

Exchange

To trade something of value for something you want.

Money

A consistent item people accept in exchange for goods or work.

Value

How much something is worth.

Time Value of Money

The greater potential worth in the future than it does today.

Store of Wealth

Money's ability to keep and store wealth for long periods of time.

Business

The general term for all the activities involved in the development and exchange of products.

Profit

The money that a business has left after all the expenses and costs of running the business are paid.

Sole Proprietorship

A business owned by one person who has all the responsibility and gets all the profits from the business.

Partnership

A business owned by a small number of people, usually two or three.

Legal Entity

An artificial person that exists separately from other people.

Corporation

A legal entity established for the purpose of doing business that can buy property, run a business, manufacture products, earn money, lose money, sue, and be sued.

Stockholders

People who own a corporation.

Stock

The right of partial ownership in a corporation.

Two Categories of Business Organizations

For-profit and not-for-profit.

For-Profit

A business organization whose goal is to make a profit for the owners.

Not-for-Profit

A legal entity whose goal is to benefit society.

NPO Categories

Social services, recreation and sport, arts and culture, food and health, housing, religion, and education.

Functions of Business

Production, Finance, Marketing, and Management.

Production

Any activity related to making a product.

Finance

All activities involving money.

Management

All activities required to plan, organize, lead, and control a business.

Utility

Making a product more useful or accessible.

Marketing Concept

An approach to business that says that the way to make a profit is to focus on customer satisfaction.

Customer Satisfaction

The positive feeling a customer gets when the product purchased meets or exceeds the customer's expectations.

Total Company Approach

The idea that all company employees can have an effect on the customers.

Elements of the Marketing Concept

Customer satisfaction, Total Company Approach, Profit.

Marketing Function

The function a company takes to learn about customer needs and wants through production, finance, and management.

Channel-Management

Handles activities involved in getting products from producers to customers.

Marketing-information Management

Also called marketing research; gathers, analyzes, and distributes information about markets, competition, and customers.

Market Planning

This function is used to determine and target marketing strategies to select audiences.