DECA TEST TERMS/QUESTIONS

An effective way to create a desire for others to agree with your ideas is to?

Explaining benefits

You create a desire for others to agree with your ideas by explaining how they will benefit from them — people will be more inclined to agree if they hear how they’ll benefit. You have to explain advantages so others do what you suggest

Source: EI:012 Persuade others

Source: LAP-EI-912 — Win them over

What is disability insurance?

Disability insurance provides help to workers when they cannot work due to illness or injury. Liability covers lawsuits and health covers medical expenses.

Source: FI:081 Describe the concept of insurance

What is marketing information and why is it helpful?

Marketing information is marketing related data available inside or outside the company and it often helps businesses to solve problems. By analyzing data, you can solve problems. By analyzing certain data, a business can find a way to solve problems.

What is vertical conflict within a distribution channel? What would be an example?

Vertical conflict occurs between channel members at different levels within the same distribution channel. A retailer that develops and markets a private line of products is selling products that compete with the national brands it carries because the retailer does not spend as much money for packaging and advertising as the national brands do. This can cause the national brand to lose money. (EX: CVS selling OTC meds vs Tylenol)

Source: CM:008 Explain the nature of channel-member relationships

What kind of media is broadcast advertising an example of?

Promotional. Promotional media are channels of communication used by businesses to deliver advertising messages to target groups of consumers. Broadcast media include radio and TV, which use radio waves to reach consumers. Direct mail & out of home media are more forms of promotional media.

Source: PR:007: Describe types of promotional media

What is exploratory research? Experimental research? Causal research?

Exploratory research involves collecting information to help the business define its issue, situation, or concern and decide on how to proceed with its research - this is cheap and not time consuming

An experiment is a research method that tests “cause and effect” by test marketing new products or comparing test groups with control groups

Causal or conclusive research focuses on cause and effect and tests “what if” theories

Source: IM:284 Describe methods used to design market research studies

Promotion of products is a form of

Preselling. Promotion presells goods and services to consumers through persuasion - can appear in media, TV, radio, etc

PR:001: Describe the function of promotion as a marketing function

Keeping track of what’s selling helps to

Spot product trends

It doesn’t help you to support a cause, avoid doing inventory, or project a certain image

Source: MK:015 Discuss actions employees can take to achieve the company’s desired results

A company should consider the target markets needs and wants when it _____? Why?

Positions its company brand.

A corporate brand is the combined impressions, images, or experiences associated with a company or parent company. They have to consider the target markets needs and wants when they position their company brand because then the target market will be more inclined to buy from that company. If they don’t, they’ll probably purchase from other people.

Source: PM:207 Describe factors used by businesses to position corporate brands

What is a form of technology that businesses use to get customer feedback quickly at customer convenience? Why?

Online suvery services.

Businesses can use online survey services to post online surveys for their customers to complete at their convenience. The businesses can retrieve the feedback and analyze the results at their convenience as well. Direct mail is costly

What is the implementation component of a marketing plan? What is one of the functions?

The implementation component explains how the plan will be put into effect. One part of this includes explaining budget considerations and the amount of money needed to implement the marketing plan.

Before a plan can be put into effect, the business needs to evaluate if the investment is worth the cost

MP:007 Explain the nature of marketing plans

What are the 6 basic components of a marketing plan?

Executive summary, situational analysis, marketing goals, strategies, implications, systems for evaluation and control

What is a method for gathering data about the status of your project?

Meetings. You need to be able to meet with your team members to determine the status of an ongoing project.

OP:520 Monitor projects and take corrective actions

What is direct response advertising? What would be an example?

Direct-response advertising is a promotional method in where marketers give means for people to take action and immediately respond to a message.

An infomercial would be an example of direct response advertising because it is aired on TV and usually includes a phone number so viewers are able to order the product immediately this is an example of direct-response advertising

Source: PR:089 Explain the nature of direct marketing channels

What is a touchpoint? Why should businesses cultivate them?

A touchpoint is any point of contact or interaction between a customer and a business

Touchpoints are important for businesses to cultivate because each touchpoint is an opportunity to reinforce the brand with customers. Every day, businesses have tons of opportunities to make contact with consumers to reinforce their brand values. This can be through invoices, promotional messages, or virtually any way they make contact w/ a consumer

Source:PM 206

What is a full warranty?

A full warranty covers the entire product

What is a limited warranty?

A limited warranty covers certain repairs and parts

If someone wants to buy a new purse because theirs is old and out of style and they want other people to think they are fashionable, what kind of reward is that?

External. When someone is motivated by an external reward, they’ll act out of a desire for a reward that comes from an external source rather than an internal one. (ex: peer approval is an external source)

Source: SE:359 Discuss motivational theories that impact buying behavior

When should you write a letter of application when applying for jobs? Why?

If you’re applying online. It’s still important to write a letter of application and include the letter as part of an online application. The purpose of a letter of application is to express interest about a job and provide basic information about your qualifications.
When you apply for jobs in person or over the phone, it’s not necessary to write a letter of application because you’ll be speaking to the employer about yourself.

Source: PD:

What is a brand promise?

A brand promise is a business’s agreement with customers that they’ll meet their expectations consistently and deliver on their brand characteristics and values

What should a successful brand promise be able to do?

Communicate an appealing benefit. Before a business can deliver on their brand promise, they need to have a product that has an appealing benefit — one that would convince the target market to purchase. (Ex: FedEx has delivery services. Their brand promise is based on reliability. So, they promise to get packages to destinations in a reliable manner — safely & quickly, which is an appealing benefit.)

Source: CR: 001: Identify company’s brand promise

What are the general steps for handling a customer complaint?

Listen attentively, thank the customer, restate the problem in your own words for understanding, investigate by talking with manager or looking at company policy, explain plan of action and implement it

Source: CR: 010 Handle customer/client complaints

What is an hidden benefit? What is a unique or exclusive benefit?

They are advantages that can not be seen or understood without the assistance of a salesperson. Comfort and safety may not be apparent without a salesperson explaining it to them.

Unique or exclusive benefits are benefits that a competitors goods/services do not posses

Source: SE:109 Analyze product information to identify product features and benefits

What is a trade deficit? A trade surplus?

When imports are greater than exports. This is unfavorable.

A trade surplus is when exports are greater than imports.

Source: EC: 016 Explain the nature of global trade

What is a promissory note?

It is a legal form signed by a borrower stating that they’ll repay the loan

If someone signs a promissory note, what does that make them?

A borrower.

Source: FI:002 Explain the purpose and importance of credit

When should researchers ask potentially sensitive questions during an interview? Why?

Towards the end of an interview. Asking in the beginning or the middle risks a prematurely ended interview.

Source: IM:418 Explain characteristics of effective data collection instruments

Q35

What is mass marketing?

Designing products and directing marketing activities to appeal to the whole market.

What is an advantage of mass marketing

It’s cost effective because it produces one product for everyone —> communicates a broad message to a large audience

What is the pull promotional strategy

When a producer promotes its products directly to the ultimate consumer or industrial user. This stimulates customer demand, which compels intermediaries to purchase the products from the manufacturer to accommodate customer demand

Source: PR: 003 Identify elements of the promotional mix

What is the push promotional strategy?

When a producer promotes its product to intermediaries who then promote products to customers

Source: PR: 003 Identify elements of the promotional mix

What is an example of a strategy-oriented decision?

A) Why are customers less than satisfied with their experience

B) Which location would be the most profitable place to open a resort

C) Why are our sales lower in one location than in others?

D) What are the key demographics of our target customers?

B) Which location would be the most profitable place to open a new resort?

Strategy-oriented decision problems are linked to strategic business decisions and usually answer the questions “how?” and “which?” If someone is choosing between multiple locations to open a new resort, they are facing a strategy-oriented decision problem

A & C are both discovery-oriented decision problems

D is a research problem

What is the brand insistence stage of brand loyalty?

When a consumer refuses alternative products and searches only for that brand’s products

What is the brand preference stage of brand loyalty?

When you prefer a brand based on previous experience with it and will select it over competitors when the option is available

What is the brand evangelism stage of brand loyalty?

When you are an advocate for a brand, convincing others that this brand is the best

What is the brand recognition stage of brand loyalty?

A consumer is aware of and can identify a brand

What is an organizational goal for a business?

An organizational company goal is a strategic objective that a company hopes to achieve —> it affects the overall organization. Some examples of organizational goals would be increasing efficiency levels, growing the business, or expanding market share.

What is an ideological goal for a business?

Ideological goals involve the vision and general purpose of the company’s existence

What are financial goals for a business?

They address the company’s income and expenses

What is a cease and desist order?

A cease-and-desist order says that a company has to stop doing/posting something until it is deemed right or wrong

What is a government issued cease-and-desist order an example of?

A legal remedy. A remedy is a resolution — a way to right something that is wrong. When a government issues a cease-and-desist, they are ordering a company to stop running a certain ad until the ad is deemed deceptive/unfair.

Source: PR:101 Describe the regulation of promotion

If two companies are announcing a merger, what would be the most appropriate form of public relations activity?

A news conference. This involves inviting members of the media to a meeting so the business can make an announcement about a big event like a merger.

Source: PR:252 Identify types of public-relations activities

What is a press release used for?

A press release contains written information (like new product releases) that the businesses give to the media to obtain publicly. This is a tool to gain publicity about grand openings and noteworthy events.

Why would a business decide to purchase goods for a price higher than the lowest possible price?

To obtain a needed delivery date. If a business needed something by a specific date, but couldn’t get it by then, they would probably feel more inclined to buy at a higher price so as to get it by that date. It’s probably not efficient to buy at the lowest possible price if you can’t get it by a needed delivery date.

Source: OP:015 Explain the nature and scope of purchasing

How do channels of distribution benefit consumers?

By making a variety of products available to them. Without channels of distribution, consumers could only buy products from producers which will be impractical. Channels lower SOME but not ALL prices and raise the quality of SOME but not ALL products

What is a liability for a business?

Debts that they owe. Liabilities can be classified as current (will be paid off during the year) or long-term (will be paid off over a period of time)

What is an example of a current liability that should be included in a businesses balance sheet?

Employees salaries. Those are current liabilities because a business is expected to pay it’s employees for their work on a regular basis throughout the year.

Source: FI: Explain the nature of balance sheets

What helps determine the total cost of a consumer loan?

Annual Percentage Rate (APR) is a rate of interest expressed as a current percentage

What is a benefit of using cable TV for promotions?

It provides a select group of stations that reach special markets. CTV stations have highly specific programming (ex: ESPN, CNN)

Source: PR:007 Explain types of advertising media

In determining an appropriate selling price for goods and services, a business calculates it’s operating expenses to find the?

Break-even point. A break-even point is the level of sales at which revenue equals total costs. In determining selling price, businesses calculate their total costs, including operating expenses to find break even point. It’s important to factor in all operating expenses when calculating break-even point so businesses can set a selling price that will cover operation and make a profit at the same time.

What is industriousness?

Being ready, willing and able to work hard. Industrious people care about and take pride in the quality of their performance. They treat each task which diligence and care and do not take shortcuts.

What is an oligopolistic market?

It is a market in which there relatively few sellers and the industry leader usually determines prices. Prices tend to be stable because it is expensive to enter this market

How can a business reduce the risk of injuries in the workplace?

By providing employees with ongoing safety training. Having safety trainings are informing employees about safe behaviors on the workplace. Informing employees about the ways they can stay safe on the job helps the business reduce risk injuries. Ongoing safety training reinforces the importance of following procedures

On-the-job instruction is primarily for showing new employees how to do tasks

What is direct marketing?

Any form of direct communication that a business makes with a member of its target market and involves an offer/call to action.

What is a form of direct marketing that is the most cost effective in reaching a small target audience?

Email. Email allows a business to send personalized messages about sales promotions and new products to its target market. It is most cost effective because business do not have to pay for postage, printing, or producing material.

What is a flat tax?

An income tax in which the same rates apply to all businesses no matter how much they make.

What is true about a legally binding contract?

They clearly outline both sides of an agreement so litigation and disputes can be avoided. They can still be valid if verbal, but harder to prove

What is buzz marketing?

The analysis of social websites, blogs, and news to get a sense of how people feel about your company or product. It is often used when companies release a new product because it gives them a sense of how successful a product will be.