DECA Intro to Marketing, Chapter 2

Vocab and Generations

SWOT analysis

An assessment that lists and analyzes a company’s strengths, weaknesses, opportunities, and threats

PEST analysis

The scanning of outside influences on an organization. Methodical, includes: Political, Economic, Socio-cultural, and Technological

Marketing Plan

A formal, written document that directs a company’s activities for a specific period of time. Includes: Research, analysis, stratgies, and roadmap ( goals and objectives)

Executive Summary

A brief overview of the entire marketing plan. Includes cost. Shown to outside organizations.

Situation Analysis

The study of the internal and external factors that affect marketing strategies. Emphasis on flexibility and adaptability to market conditions.

Marketing Strategies

Identifies target markets and sets marketing mix choices that focus on those markets

Sales Forecasts

The projection of probable future sales in units or dollars

Performance Standard 

An expectation for performance that reflects the plan’s objectives

Market Segmentation

The process of classifying people who form a given market into even smaller groups.

Demographics

Refers to statistics that describe a population in terms of personal characteristics; age, gender, income, mental states, ethnicity, and education level.

Disposable Income

The money left after taking out taxes 

Discretionary Income

The money left over after taking out taxes and basic living necessities: food, shelter, and clothing.

Geographics

Refers to segmentation of the market geographically. Ex: local, state, regional, national, and or global

Pyschographics

Grouping people with similar attributes, interests, and opinions, as well as lifestyles and shared values

Mass Marketing

Involves using a single marketing strategy to reach all customers

The 3 C’s of Internal analysis

Company (staff, finance, production, and marketing mix), Customer, and Competition

Business Control

The process of allocating and reallocating resources within a company in order to achieve changes within a company

Elements of a Marketing Plan

Executive summary, situation analysis, objectives, marketing strategies, implementation, evaluation and control

Objectives

Need to be: single-minded, specific, realistic, measurable, and time framed

Elaboration on Implementation

Something that details a schedule of activities, job assignments, sales forecasts, budgets, and details for each activity (The who, what, when, and where)

Evaluation and Control

Last element of a Marketing Plan. Used to see if objectives were met, looks at business control and uses performance standards to evaluate how the plan went

80/20 Rule

A principle stating that 80% of effects come from 20% of causes, often used in marketing to identify key customers and focus efforts.