DECA Marketing Terms

ROI (Return on Investment)

Measures how much profit is made compared to what was spent. Formula:  (Gain − Cost) ÷ Cost × 100.

Mark-Up

The amount added to a product’s cost to set the price. (Selling Price − Cost) ÷ Cost × 100.

Margin

The percentage of the selling price that is profit. (Selling Price − Cost) ÷ Selling Price × 100.

Fixed Costs

Stay the same no matter sales level (rent, salaries, insurance).

Variable Costs

Change with sales or production (materials, shipping, commissions).

Break-Even Point

The number of units that must be sold to cover all costs.

Balance Sheet

A financial report showing assets, liabilities, and owner’s equity on one date.

Revenue

Total money earned from sales.

Profit

Money left after all costs are paid.

Liquidity

How easily assets can be converted into cash.

Promotion Mix

The blend of advertising, sales promotion, public relations, and personal selling.

Advertising

Paid messages that inform or persuade customers to buy.

Sales Promotion

Short-term incentives like coupons, contests, or BOGO offers.

Public Relations (PR)

Activities that build a positive public image (sponsorships, charity work).

Personal Selling

One-on-one communication used to meet customer needs and close sales.

Experiential Marketing

Creating experiences customers remember (taste tests, demos, events).

Integrated Marketing Communications (IMC)

Using consistent messages across all media and promotions.

Customer Relations

Building trust and satisfaction with every customer interaction.

Positive Customer Relations

Listening, empathy, and solving issues politely.

Internal Communication

Sharing information within a business.

Fiscal Policy

Government taxes and spending decisions that affect the economy.

Monetary Policy

Federal Reserve actions controlling interest rates and money supply.

Regulation

Government rules that protect consumers and employees.

Supply and Demand

Prices rise when demand is high and supply is low, and fall when the opposite happens.

Competition

Rivalry between businesses for sales and customers.

Inflation

Increase in prices that reduces purchasing power.

Economic Diversity

Producing multiple goods or services to reduce risk.

Productivity

The amount of output per worker or machine over time.

Specialization

Focusing on one area to become efficient and skilled.

Ethical Business Practices

Doing what is right, fair, and honest.

Marketing-Information Management (MIM)

Collecting and using data to make decisions.

Point-of-Sale (POS) System

Tracks every sale and updates inventory instantly.

Customer Relationship Management (CRM)

Software that stores customer data to improve marketing.

Sales Forecast

Prediction of future sales based on data and trends.

Data Mining

Analyzing large sets of data to find patterns or opportunities.

Database Marketing

Using customer data to personalize promotions.

Performance Analysis

Comparing results with goals to measure success.

Pre-Approach

Researching and planning before meeting the customer.

Approach

Greeting and building rapport with the customer.

Determining Needs

Asking questions to understand what the customer wants.

Presentation

Showing products and explaining benefits.

Handling Objections

Listening to and resolving customer concerns.

Closing the Sale

Asking for the purchase and finalizing the transaction.

Suggestion Selling

Recommending related products or add-ons.

Follow-Up

Ensuring satisfaction and encouraging repeat business.

Feature-Benefit Selling

Connecting what a product does to why it matters for the customer.

Product Mix

The total variety of products a company sells.

Product Life Cycle

Introduction, Growth, Maturity, Decline.

Brand Identity

The logo, slogan, and colors that represent a company.

Product Positioning

How a company wants customers to see its product compared to competitors.

Product Bundling

Selling multiple items together at one price.

Product Line Extension

Adding new products under an existing brand.

Product Placement

Showing products in movies, TV, or stores for visibility.

Warranty

A promise that a product will perform as expected or be replaced.

Product Recall

Removing defective products from the market.

Visual Merchandising

Displaying products to attract and motivate shoppers.

Distribution

Moving goods from producer to consumer efficiently.

Direct Channel

Selling directly to the customer (e.g., Apple Store).

Indirect Channel

Using intermediaries like wholesalers and retailers.

Channel Management

Selecting and monitoring the best paths to deliver products.

Inventory Control

Managing stock to prevent over- or under-ordering.

Just-in-Time (JIT)

Receiving inventory only when needed to reduce storage costs.

Supply Chain

The network from raw materials to final sale.

Channel Cooperation

Working with partners to ensure smooth delivery.

Vertical Integration

A company controls multiple steps in its supply chain.

Cost-Plus Pricing

Adding a markup to the cost to find selling price.

Penetration Pricing

Setting a low price to attract customers fast.

Price Skimming

Starting high, then lowering as competition increases.

Psychological Pricing

Making prices seem cheaper (e.g., $9.99).

Promotional Pricing

Temporary discounts to increase sales.

Segmented Pricing

Charging different prices for different groups (student, senior).

Prestige Pricing

High price to show quality or luxury.

Markdown Pricing

Lowering price to clear inventory.

Price Fixing

Illegal agreement to maintain the same price.

Competitive Pricing

Setting prices based on competitors.

Accountability

Taking responsibility for actions and outcomes.

Integrity

Being honest and ethical in all decisions.

Compliance

Following company rules and laws.

Leadership

Inspiring and guiding others to achieve goals.

Motivation

Using rewards or encouragement to improve performance.

Incentive Pay

Bonuses or rewards for meeting targets.

Fringe Benefits

Extra perks like health insurance or vacation time.

Workforce Flexibility

Training employees for multiple tasks.

Continuous Improvement

Always finding ways to improve quality and service.

Social Responsibility

Acting in ways that benefit society and the environment.

Empathy

Understanding how the customer feels.

Responsiveness

Acting quickly to help customers.

Assurance

Building trust through knowledge and professionalism.

Tangibility

Physical appearance and environment of the store.

Reliability

Doing what you promise every time.

Service Recovery

Fixing customer problems effectively and politely.

Customer Loyalty

Repeat purchases due to trust and satisfaction.

Customer Lifetime Value

The total worth of a customer over their relationship with a business.

Customer Feedback

Input from customers used to improve service.

Community Relations

Positive interaction with local groups or charities.

Target Market

The specific group a company aims to serve.

Market Segmentation

Dividing customers by traits (demographic, geographic, psychographic, behavioral).

Brand Equity

The value a brand adds to a product.

Market Share

The percentage of total sales a company holds in its industry.

Productivity

Output per worker in a given period.