DECA Marketing Vocab

Absolute Advantage

When a country has special natural resouces or talents that allow it to produce an item at the lowest possible cost.

Adjustment (Allowance)

A partial return of the sales price for merchandise that the customer has kept.

Advertising

Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.

Agents

Independent business that represents another channel member as a sales representative.

Approach

Making initial contact with the customer

Asset

Anything of monetary value that a person owns. The opposite of a liability.

Balance of Trade

The difference in value between the imports and exports of a nation.

Balance Sheet

A summary of a business's assets, liabilities, and owner's equity on a specific date.

Banner Ad

Advertisment on a web page that redirects a user to the advertiser's web page when clicked.

Benefits

Privileges or monetary payments beyond salary or wages, that go with a job.

Brand

A name, term, design, symbol, or combination of them, that identifies a business or organization and the products or services that it provides.

Brand Extension Strategy

Using an existing succesful brand name for an improved or new product in the product line.

Brand Licensing

Legal authorization by a trademarked owner to allow another company to use it's brand, mark, or character for a fee.

Break-even Point

The point at which sales revenue equals the costs and expenses of making and distributing a particular product.

Business Cycle

The continuous slowdown and growth of an economy.

Business Plan

A proposal that describes a new business to potential investors and lenders.

Buyer

Person who has the formal authority to select a supplier and to implement the procedure for acquiring a good or service for a business.

Capital

Goods, such as equipment or processed materials, used in a production process. Also, money needed to start and operate a business.

Capitalism

An economic system characterized by private ownership of businesses and competition in the marketplace.

Cash Flow Statement

A monthly plan that shows when you anticipate cash coming into the business as well as when you plan to spend cash.

Cause Marketing

Identification and marketing of a social issue or idea to selected markets. Typically not for profit.

Channels of Distribution

The path that a product takes from producer or manufacturer to final user.

Closing the Sale

Getting the customer's positive agreement to buy a product.

Co-branding Strategy

Combining two or more brands to increase customer loyalty and sales for each individual brand.

Command Economy

Economic system which is run entirely by the government.

Comparative Advantage

The value a nation gains by selling the goods that it produces most efficiently.

Competition

The struggle between businesses for the same customers.

Consumer

Uses a product.

Corporation

A business owned by people who purchase stock in the company which is granted a charter by the state in which it is formed.

Credit

The opportunity to obtain money, goods, or services immediately in exchange for a promise to pay in the future.

Customer

Buys a product.

Demand

The amount or quantity of goods and services that consumers are willing and able to buy at various prices.

Demographics

Statistics that describe a population in terms of personal characteristics (age, sex, etc.)

Depression

The phase of the business cycle which is a period of prolonged recession

Discretionary Income

Money that is left from a person's gross income after taxes and basic living expenses.

Disposable Income

Money left from a person's gross income after taking out taxes.

E-Commerce

Buying and selling goods through the use of electronic means, usually the internet.

Economic Utility

The amount of satisfaction a consumer receives from the consumption of a product or service.

Economy

System by which a nation decides how to use its resources to produce and distribute goods

and services.

Elastic Demand

Describes a situation in which a change in the price of a product creates a change in the demand for that product.

Embargo

A total ban on trading with another country.

Entrepreneurship

The process of starting and managing your own business; the skills of people who are willing

to risk their time and money to run a business.

Equilibrium (Market Price)

The condition that exists when the amount of a product supplied is equal to the demand.

Ethics

Guidelines for good behavior, based on knowing the difference between right and wrong.

Exports

Goods and services that are sold to other countries.

Feature-Benefit Selling

Matching the characteristics of a product to a customer's needs and wants.

Form Utility

Changing raw materials or putting parts together to make them more useful.

Franchise

A grant or right to sell a parent company's product or service within a given area.

Geographics

Segmentation of a market based on where people live.

Goods

Products that are tangible

Gross Income

The difference in value between the cost of goods to a business and the price at which they are sold by a business.

Imports

Goods and services purchased from other countries.

Inelastic Demand

Describes a situation in which a change in the price of a product has very little or no

effect on the demand for it.

Inflation

Economic situation where prices increase faster than the value of the goods and services.

Infrastructure

The physical development of a country, i.e.. Its roads, ports and communication abilities.

Intermediary

Channel member that provides services as products move along channels to consumers.

Inventory

The amount of goods stored by a business, including raw materials, purchased components, works in progress, packaging materials, and finished goods.

Jargon

Technical or specialized vocabulary used by members of a particular profession or industry.

Liability

A debt owed by a business. The opposite of an asset.

Loss Leader

An item priced at or below cost to draw customers into a store.

Macroeconomics

The study of the economic behavior and relationships of an entire society.

Management

The business function used to plan, organize, and control all available resources to

effectively reach company goals.

Market

A group of all potential customers, who share common needs and wants and have the ability and willingness to buy a product.

Market Position

A company's relative standing in relation to their competition.

Typically shown in a rank (1st, 9th, etc.)

Market Segmentation

Dividing a market by specific characteristics in order to create a target market.

Market Share

The proportion of the total market that a particular company holds. Shown in a %.

Marketing

The process of developing, promoting, and distributing products to satisfy customer needs and wants.

Marketing Concept

States that a business must satisfy customer needs and wants in order to make a profit.

Marketing Mix

The four basic marketing strategies; price, product, place, and promotion.

Media

The agencies, means, or instruments used to convey advertising messages to the public.

Microeconomics

Study of relationships between individual consumers and producers. Personal financing.

Monopoly

Exclusive control over a product or the means of producing it.

Networking

Finding potential business contacts among people you know personally.

Objections

Concerns, hesitation, doubts, or other reasons a customer has for not making a purchase.

Package

The physical container or wrapping that protects a product.

Partnership

A legal agreement between two or more people to be jointly responsible for the success or

failure of a business.

Place Utility

Having a product where customers want to buy it.

Point-of Sale (POS) System

Computers used in retailing that feed information directly from tags or labels into a computer.

Positioning

Marketing a product in order to get customers to think of it in a specific way.

Possession Utility

Ability to transfer title to goods or services from marketer to buyer.

Price

The value of money (or it's equivalent) placed on a good or a service.

Primary Data

Information obtained for the first time directly for a particular problem in marketing research

Product

A good or service which has monetary value and satisfies customer needs and wants

Product Life Cycle

The process that a product goes through in its life.

The four stages are: Introduction, maturity, growth and decline.

Product Line

A group of closely related products that are manufactured or sold by a business.

Product Mix

All of the different products that a company makes or offers for sale to the public.

Profit

The money earned from conducting business after all costs and expenses have been paid.

Promotion

Any form of communication a business or organization uses to inform, persuade, or remind.

Prosperity

The phase of the business cycle when the economy is flourishing.

Publicity

Involves placing positive and newsworthy information about a business, its products, or its policies in some type of media so the public is made aware of it.

Quota

Limits either the monetary value or quantity of goods that may be imported.

Recession

The phase of the business cycle which is characterized by a period of economic slowdown that lasts @ 6 months.

Recovery

The phase of the business cycle when there is a noticeable increase in economic activity.