DECA ETDM TESTING

Product Mix

All products a company sells

Product Line

A group of similar products sold by a company

Product Item

A specific version/model of a product

Product Life Cycle

Introduction, Growth, Maturity, Decline

USP (Unique Selling Proposition)

What makes a product different from competitors

Brand

Name/symbol identifying a product

Brand Promise

What customers expect from a company

Customer Experience (CX)

How a customer feels when interacting with a business

Service Standards

Rules outlining how customers should be treated

Quality Assurance

Preventing defects before they occur

Quality Control

Inspecting products for defects

Feasibility Analysis

Evaluating if a product idea is realistic and profitable

Concept Testing

Presenting an idea to customers to gather feedback

Commercialization

Bringing a product to market

Product Positioning

How customers perceive a product versus competitors

Marketing

Creating, communicating, delivering value to satisfy needs

Marketing Mix (4 Ps)

Product, Price, Place, Promotion

Marketing Strategy

Long-term plan to reach goals

Target Market

Specific group a business aims to serve

Market Segmentation

Dividing the market into smaller customer groups

Demographic Segmentation

Based on age, gender, income

Geographic Segmentation

Based on location

Psychographic Segmentation

Based on lifestyle, values

Behavioral Segmentation

Based on buying patterns/behavior

Market Share

Portion of the market a company controls

Market Analysis

Studying market size, trends, opportunities

SWOT Analysis

Strengths, Weaknesses, Opportunities, Threats

Competitive Advantage

Something that puts a business ahead of competitors

Customer Buying Behavior

Factors influencing purchase decisions

Psychological Factors

Motivation, beliefs, perception

Social Factors

Family, culture, peers

Personal Factors

Income, personality, age

Situational Factors

Store environment, time constraints

Promotion

Communicating information to influence buying decisions

Promotional Mix

Advertising, personal selling, sales promotion, PR, direct marketing

Advertising

Paid, non-personal communication

Public Relations

Building a positive company image

Sales Promotion

Short-term incentives

Direct Marketing

Emails, mailers, texts sent directly to customers

Word of Mouth

Customer-to-customer communication

Pricing

Determining how much to charge customers

Factors Influencing Price

Cost, demand, competition, goals

Break-even Point

Fixed Costs ÷ (Price - Variable Costs)

Cost-Based Pricing

Price based on costs

Demand-Based Pricing

Price based on customer demand

Competition-Based Pricing

Price based on rival pricing

Channel of Distribution

Path a product takes to reach customers

Direct Channel

Producer → Consumer

Indirect Channel

Producer → Retailer → Consumer

Wholesaler

Sells to retailers

Retailer

Sells to final consumers

Channel Strategy

Choosing the best distribution path

Entrepreneur

Person who starts a business and takes risks

Opportunity Recognition

Identifying potential business ideas

Business Plan

Written plan outlining goals & strategies

Startup Financing

Funding needed to begin a venture

Feasibility

Whether an idea can realistically succeed

Risk

Chance of loss or failure

Venture Capital

Investor funding in exchange for ownership

Market Opportunity

Gap in the market that could be profitable

Accounting

System of recording financial transactions

Income Statement

Shows profit/loss (revenues - expenses)

Balance Sheet

Shows assets, liabilities, equity

Cash Flow Statement

Shows money entering/leaving business

Revenue

Money earned from sales

Expenses

Money spent to operate business

Profit

Revenue - Expenses

Budget

Projection of expected income and costs

Financial Ratios

Indicators of financial performance

Private Enterprise

Business operates with limited government control

Profit Motive

Desire to make profit

Competition

Businesses competing for customers

Supply

Quantity businesses will supply at various prices

Demand

Quantity customers will buy at various prices

Economies of Scale

Lower cost per unit when producing more

Government Regulation

Laws that affect business activity

Operations

Daily activities that keep a business running

Inventory

Stock of goods a business has

Purchasing

Obtaining needed materials/supplies

Vendor

Supplier a business buys from

Safety Policies

Protecting employees from harm

Security Policies

Protecting company data and property

Contract

Legally binding agreement

Elements of Contract

Offer, acceptance, consideration, capacity, legality

Intellectual Property

Protecting ideas and creations

Trademark

Protects brand names & logos

Copyright

Protects written works, music, art

Patent

Protects inventions

OSHA

Workplace safety regulations

ADA

Prevents discrimination against people with disabilities

Human Resources

Managing employees

Recruitment

Finding job candidates

Interviewing

Evaluating job applicants

Training

Teaching employees skills

Performance Appraisal

Reviewing employee performance

Compensation

Pay and benefits

Remedial Action

Correcting employee behavior

Communication

Sharing information effectively

Persuasion

Convincing someone to take action

Negotiation

Finding mutually acceptable agreement