DECA Buying + Merchandising terms

accrual (accounting method)

Method where revenue is accounted for when earned (money is accounted for before it’s recieved) and expenses are recorded when incurred, regardless of when cash transactions occur. This method provides a more accurate financial picture of a business's performance.

marketing concept

Focusing on the needs and wants of consumers to develop marketing strategies to satisfy consumers and the goal of the company

SUGGING

”selling under the guise of research”

Companies use surveys that deceive the consumer into buying products

touch points

every method of contact that a consumer has with a business (social media, public relations, email)

Gray market

trade of goods without authorization by the producer (unauthorized but not illegal)

Distributor

distributes goods to companies and businesses

Stratified random sampling

dividing sample groups into smaller divisions and then randomly selecting individuals

Memorandums

(memo) communicates something of “immediate importance” to individuals within a business

Psychographic

a method of market segmentation that classifies consumers based on their lifestyles, interests, and personalities.

tabulation

the process of organizing and summarizing data in a table format for analysis.

Loss-leader pricing

A marketing strategy where a business sells a product below cost to attract customers

Electronic data interchange (EDI)

is the computer-to-computer exchange of business documents in a standard electronic format between organizations.

Structural unemployment

a type of unemployment caused by shifts in the economy that create a mismatch between the skills of the workforce and the jobs available.

Simpson’s Paradox

is a statistical phenomenon that illustrates how the relationship between two variables can be misleading when examined across different groups. It emphasizes the importance of context in data interpretation.

Collective bargaining

is the process of negotiation between employers and a group of employees aimed at reaching agreements to regulate working conditions, wages, and benefits.

Joint venture

is a business arrangement in which two or more parties agree to collaborate on a specific project or business activity, sharing risks and rewards.

Retail vs. wholesale

Retail refers to the sale of goods directly to consumers, while wholesale involves selling goods in bulk to retailers or other businesses.

external vs. internal feedback

External feedback comes from outside sources such as customers or market research, while internal feedback is generated within the organization, often from employees or internal evaluations.

accounting system

a structured method for recording, analyzing, and reporting financial transactions within a business.

trade journal

a publication that provides industry news, trends, and insights relevant to specific trades or professions, often used for professional development and networking.

sample designs

visual representations of potential products or services used to illustrate concepts to clients or stakeholders.

survey types

methods used to collect data from respondents, often categorized as qualitative or quantitative. Common types include online, telephone, and face-to-face surveys. These methods help businesses gather insights about consumer preferences and market trends.

Expert system

a software application that uses artificial intelligence to solve complex problems by reasoning through knowledge, represented mainly as if-then rules.

test-marketing system

a strategy used by businesses to evaluate the viability of a product or service by introducing it to a limited market before a full-scale launch.

product promotion

the activities and strategies used to increase awareness and sales of a product, often involving advertising, sales promotions, and public relations.

specialty advertising

a form of advertising that involves giving away promotional products or items that carry a company's logo or branding, aimed at increasing brand awareness and customer loyalty.

the 5 P’s of merchandising

a marketing mix framework that includes Product, Price, Place, Promotion, and People, used to guide merchandising strategies.