DECA Marketing Exam Stuff to Know

Referral sampling

getting individual who meet the criteria and then asking them to refer/recruit more people that follow the criteria

Judgement sampling

selecting individuals based on criteria set/ predetermined by the researcher

Obsolescence

The risk that a process, product or technology used or produced by a company will become obsolete and will no longer be competitive in the workplace

Lien

A legal claim to an item or property that protects the seller if the buyer does not complete his/her payments

Subculture

Secondary group within a dominant culture

Dominant culture

The culture which a person most identifies with

Interest rates increase when

There is a tight money supply

Estate tax

Tax on inherited things

Excise tax

“Sin tax” on nonessential products like alcohol, gasoline, cigarettes

Matrix organizational structure

Share resources and employees with certain skills will be assigned different types of projects based on the organization’s needs

Adhocracy organizational structure

Work teams to create new processes (adopted by tech companies like google)

Machine bureaucracy organizational structure

Provide a simple work environment that involves standardization of work process or specialization by work task

Agents

Business or individual that assists in the sale and/or promotion of products but does not buy them

industrial distributor

wholesaler

market changes

increases/decreases in demand for particular goods or services

economic changes

increases/decreases in consumer disposable income

population changes

lead to increase/decrease in population in a business market area

changes to sales forecasts occur when

competitors enter or leave the market

valid research

research based on collecting the most appropriate and up-to-date information available to use in solving a problem or addressing in issue

budgets prepared in period of

a fiscal year

disbursement journal

tracks/records daily expenditures

sales journal

a special book, or computer software that records daily receipt and would provide the daily sales figures the business needs

credit cards are beneficial for customers because of

convenience

you can build trust in negotiations by

showing respect by actively listening

exclusive/unique benefit

advantage that is only available for your good/service

obvious benefits

advantages that need little to no explanation by the salesperson, easily recognizable

individual customers

individual people that purchase goods such as clothing, food, and services like insurance or car washes

industrial customer

business that buy from other businesses

free-standing insert (promotion)

an advertising leaflet or brochure that is inserted into a magazine, newspaper, or other publication

point-of-sale promotion

any display, sign, or other visible advertisement that is placed next to a product in a retail setting to draw customers/ attention

secondary (product) promotion

can also be called “selective” promotion, used to stimulate demand for a specific brand of products

primary (product) promotion

aims to stimulate demand, or desire for an entire class of goods or services

individual brand

using different brands for products owned by one company

family brand

using the same brand for related products in a product line

private brand (store brand)

owned by an intermediary, supplier produces product and puts the intermediary’s brand on it

manufacturer’s brand (national brand)

manufacturer assumes all responsibility for branding and makes all decisions regarding the use of the brand

implied warranty

not written or stated orally, but simply understood by both the seller and the customer that the product will perform as expected

full warranty

states that if the product does not work properly, is defective, or does not live up to the warranty, it must be made good within reasonable time

limited warranty

warranty that does not have all of the provisions of a full warranty

standard and grades

used to establish reliability when marketing

checking account

not a price, but does have a price to open one

situation analysis

looks at the company, customer, competitor, climate, and collaborators

what is “problem oriented” used to describe?

data

qualitative data

mainly opinions or facts and NOT numbers to measure something; good for understanding how customers feel about something

applied research

seeks to solve a problem or answer a specific answer

basic research

seeks to build knowledge and understanding about a field

what is the primary question to ask about data?

is the info complete?

secondary data

existing data that can be used for other purposes (ex. customer purchases, etc)

primary data

data collected for the purpose of the market research objective

currency exchange rate equation

(base currency/quote or counter currency)

one unit of base currency will buy ____”percentage” of quote/counter currency

private enterprise

includes private property, limited government control, and the profit motive

private enterprise system

markets, not the governments, answer the economic questions of what, how, and for who to produce

gray market

buying and selling products through channels other than what was originally intended (an organized, authorized system)

consideration (relating to contracts)

requires both parties to get something out of the deal

capacity (relating to contracts)

parties entering into a contract must have the mental capacity to understand what they are signing

exploratory research

collecting research to help the business define its issue, concern, and decide how to proceed with its research

what do accounting computer software programs create?

invoices and records customer payments

what happens when a nation’s currency rate increases?

the consumer confidence increases

economic contraction

unemployment increase, consumer confidence and strength of the economy decreases

marginal cost

change in cost involved with increase and decrease in production

channel conflict

can occur when members are competing amongst themselves for customers

what are the six thinking hats?

White (facts), Red (emotions), Black (cautiousness), Yellow (positivity), Green (creativity), Blue (control)

types of unemployment

cyclical, structural, frictional, underemployed, hidden, seasonal

cyclical unemployment

unemployment that rises during recessions and based on the business cycle

structural unemployment

when there is a mismatch between the jobs available and the jobs people are looking for

frictional unemployment

when people are between jobs and are in and out of the labor force

underemployed unemployment

when people are employed but want to/can work more hours

hidden unemployment

when people are not counted as unemployed in stats

seasonal unemployed

unemployment at different points in the year from seasonal jobs

What are the types of risk management

avoidance, retention, transfer, spreading, loss prevention

avoidance of risk

avoiding the risk altogether

retention of risk

accepting the presence of the risk, no changs to actions

spreading of risk

duplicating records/documents (if risk of loss of property, etc)

loss prevention in risk

minimizing risk in severity by taking precautions

transfer of risk

transferring risk to others by contract

collective bargaining

the process in which working people through their unions,

negotiating contracts with their employers to determine their terms of employment

memorandums

used as written message that’s used for interval communications within an organization

fiat money

government-issued currency that is not backed by a commodity like gold

representative money

portable currency that is backed by a physical commodity such as a bank deposit

commodity money

objects having value or use in themselves (intrinsic value) as well as their value in buying goods

tabulating (within survey)

listing # people who “agree”, “disagree”, or “no opinion.”

consumer’s movement

advocating for the rights and welfare of consumers

Simpson’s Paradox

when association between two variables in a population emerges, disappears or reverses when the population is divided into a subpopulation

quality culture

an environment where team members genuinely care about the quality of their work, and make decisions based on achieving that level of quality

fiduciary relationship

where one part has special trust, confidence, responsibility in another part, and is influenced by another who has a fiduciary duty to act for the benefit of the party

debtor

the individual or business that owes money to another individual or business (creditor)

voluntary debtor-creditor relationship

both the debtor and the creditor enter the relationship willingly and understand the risks and expectations

innovation management

management style that embraces active participation throughout all levels of the organization

competitive aggression

a drive to win scarce customer dollars in the marketplace

cultural intelligence

being sensitive to the customs and traditions of people from different cultural backgrounds

proactive management

anticipating and advanced planning for change, which helps businesses adapt more quickly than a reactive approach

progressive tax structure

one in which those who earn more are required to pay a higher percentage of their income

regressive tax structure

the tax rate decreases (i.e. sales and excise taxes)

proportional tax structure

everyone pays the same percentage of income in taxes regardless of income level

corporate taxes

taxes that businesses structured as corporations have to pay

constructive criticism

evaluative information designed to help someone improve

benefit of a shared vision to an organization

it serves as a guide for decision making

ethnocentrism

the belief that your own culture is naturally better than other cultures

groupthink

a form of extreme cohesiveness that occurs when individuality and independent thinking within the group is discouraged

when identifiying risks that a business faces, management should focus on

the sources of the risk