DECA Test Prep

Marketing

The process of planning, pricing, promoting, selling, & distributing ideas, goods & services to create exchanges that satisfy customers

Goods

Tangible items that have monetary value & satisfy your needs, wants

services

Intangible items that have monetary value & satisfy your needs & wants

utility

Added value; an attribute of goods & services that makes them capable of satisfying consumers' wants & needs

form utility

Involves changing raw materials into usable goods or putting parts together to make them more useful

place utility

Involves having a product where customers can buy it

time utility

Having a product or service available at a certain time of year or convenient time of day

Possession Utility

Exchange of a product for money

Information Utility

Information or communication about a product

market

All people who share similar needs & wants & who share the ability to purchase a given market

Consumer vs. Customer

Consumer USES the product.

Customer PURCHASES the product.

market share

A company's percentage of the total sales volume generated by all companies that compete in a given market

SWOT analysis

An assessment that lists and analyzes the company's strengths & weaknesses and its opportunities & threats that surround it

sales forecasts

Projection of future sales

marketing plan

A formal, written document that directs a company's activities for a specific period of time

target market

A group of people most likely to become customers, identified for a specific marketing program

market segmentation

The process of classifying (dividing) people who form a given market into even small groups

demographics

Statistics that describe a population in terms of personal characteristics, such as age, gender, income, & marital status

geographics

Segmenting a market based on where people live

Psychographics

Grouping people with similar attitudes, interests and opinions such as lifestyles & shared values

disposable income

money left after taking out taxes

discretionary income

The money left after paying for basic living necessities (food, shelter & clothing)

economy

The organized way a nation provides for the needs and wants of its people

resources

all things used in producing goods and services

Factors of Production

Comprised of 4 resources:

land, labor, capital and entrepreneurship

infrastructure

the physical development of a country

Entrepreneurship

the skills of people who are willing to invest their time and money to run a business

Scarcity

the difference between wants and needs and available resources

balance of trade

The difference in value between exports and imports

free trade

Commercial exchange between nations that is conducted on free market principles, without regulations.

tariff/duty

A tax on imported goods

quota

A limit placed on the quantities of a product that can be imported

Embargo

A total ban on specific goods coming into and leaving a country.

trade deficit

When a country imports more than it exports

Protectionism

A government's establishment of economic policies that systematically restrict imports in order to protect domestic industries

World Trade Organization (WTO)

Global coalition of nations that make the rules governing international trade

North American Free Trade Agreement

International trade agreement among US. Canada & Mexico.

patent

a document that gives an inventor the sole legal right to an invention or idea for up to 20 years (make, use, and sell)

Trademark

A word, name, symbol, sound or color that identifies a good or service (can be renewed forever)

copyright

involves anything that is authored by an individual, such as writings (books, magazines, etc.) music and artwork (life of author plus 70 years)

competition

Forces businesses to produce better quality products/services at reasonable prices

non-price competition

businesses choose to compete on the basis of factors that are not related to price (quality, service, reputation, etc)

price competition

focuses on the sale price of a product

business risk

the potential for loss or failure

Monopoly

exclusive control over a product or the means of producing it

Private enterprise

business ownership by ordinary people, not the government

profit

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

supply

the amount of goods producers are willing to make and sell

demand

Consumer willingness and ability to buy products

domestic business

a business that sells its products only in its own country

for-profit business

A business that seeks to make a profit from its operations.

Nonprofit Business

a business that functions like a business but uses the money it makes to fund the cause identified in its charter

private sector

Businesses not associated with government agencies.

public sector

Government-financed agencies, such as the Environmental Protection Agency.

wholesalers

A business that obtains goods from manufacturers and resells them to organizational users, other wholesalers, and retailers.

retailers

A business that buys goods from wholesalers or directly from manufacturers and resells them to consumers.

production

the process of creating, growing, manufacturing, or improving on goods and services

Consumer Product Safety Commission (CPSC)

responsible for overseeing the safety of products such as toys, electronics, and household furniture

Equal Employment Opportunity Commission (EEOC)

responsible for the fair and equitable treatment of employees with regard to hiring, firing, and promotions

Occupational Safety and Health Administration (OSHA)

Sets guidelines for workplace safety and environmental concerns.

Securities and Exchange Commission (SEC)

regulates the sale of securities (stocks and bonds)

Environmental Protection Agency (EPA)

Protects human health and our environment. Includes monitoring and reducing air and water pollution.

Federal Trade Commission (FTC)

Responsible for enforcing the principles of private enterprise and protecting consumers from unfair or deceptive business practices.

Better Business Bureau (BBB)

Non-profit organization that sets up self-regulation among businesses

price gouging

Pricing products unreasonably high when the need is great or when consumers do not have other choices.

Ad Council

A nonprofit organization that helps produce public service advertising campaigns for government agencies and other qualified sponsors.

Channels

media through which messages are sent and delivered

distractions

Things that compete with the message for the listener's attention; includes noises, conversations & competing thoughts

Emotional Barriers

Biases against the sender's opinions that prevent a listener from understanding

Jargon

Specialized vocabulary used by members of a particular group

Enumeration

Listing items in order; often used when giving directions or explaining a process

Vertical Organization

A hierarchical, up-and-down organizational structure in which the tasks and responsibilities of each level are clearly defined

Top management

Those who make decisions that affect the whole company (CEO, President, CFO, VP, etc.)

Middle Management

Employees who implement the decisions of top management; Plans how the department under them can work to reach top management's goals.

Supervisory Level Management

Managers supervise the employees who actually carry out the tasks determined by middle & top management

Horizontal Organization

Top management shares decision making with self-managing teams of workers who set their own goals and make their own decisions

Controlling

The process of setting standards and evaluating performance.

Channels of Distribution

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

Intermediaries

Businesses involved in the moving of products from the manufacturer to the final user (the middleman)

Rack Jobbers

Manage inventory and merchandising for retailers by counting stock, filling the shelves when needed & maintaining store displays

Drop Shippers

The store does not have inventory or handle shipping, but instead transfers orders to the supplier after customer places order. (Amazon)

Brick and Mortar Retailers

Traditional retailers; sell goods to other businesses & have the producer ship the merchandise directly to buyers

E-tailing

Involves retailers selling products over the internet to the customer

Exclusive Distribution

Involves distribution of a product in protected territories in a given geographic area

Selective Distribution

Limited number of outlets in a given geographic area sell a manufacturer's product

Intensive Distribution

involves the use of all suitable outlets to sell a product

Agents

act as intermediaries by bringing buyers and sellers together

Direct Distribution

occurs when the producer sells goods or services directly to the customer with no intermediaries

Indirect Distribution

involves one or more intermediaries

Common Carriers

Trucking companies that provide transportation services to any business in their operating area for a fee.

Contract Carriers

For-hire trucking companies that provide equipment and drivers for specific routes.

private carriers

Trucking companies that transport goods for an individual business.

Exempt carriers

trucking companies that are free (exempt) from direct regulation of rates and operating procedures

freight forwarders

Private companies that combine less than carload or truckload shipments from several businesses and deliver them to their destinations.

Distribution Center

A warehouse designed to speed delivery of goods and to minimize storage costs.

Bonded Warehouse

Public or private warehouses that store products requiring the payment of a federal tax.

Return on Investment (ROI)

calculation that is used to determine the relative profitability of a product

Break-even Point

the point at which the costs of producing a product equal the revenue made from selling the product