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DECA Marketing Cluster Exam #1 – Study Guide

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tort
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a civil wrong that can cause someone to suffer loss or harm resulting in legal liability for the person who committed the wrongdoing
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Respondeat superior
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a doctrine that states that an employer may be held responsible for an employee’s tort if the employee’s wrongful or harmful actions are related to his/her job
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agents
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businesses or individuals who assist in the sale and/or promotion of products but do not buy them from the producer
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retailers
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purchase finished goods to resell to the consumer
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antitrust laws
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federal and state government laws that regulates the conduct and organization of business corporations, generally to promote fair competition for the benefit of consumers
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executive summary
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provides an overview of the entire document and contains the most important information included in the body of the report; introduction to a marketing plan
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bureaucracy
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formal rules and hierarchal management
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Machine bureaucracies
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simple, stable work environments; standardized work processes; specialization by work task
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Adhocracy organizational structures
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work-teams to create new processes; project-team orientation
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Matrix organizational structures
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tend to share resources
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contingency plan
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a plan designed to take a possible future event or circumstance into account
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excise tax
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referred to as the “sin tax” i.e. gasoline, cigarettes, luxury cars, alcohol
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estate tax
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inherited items
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When the rate of inflation increases rapidly
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the government might impose laws to tighten money supply
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tight money supply
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higher interest rates
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investing spending increases
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money supply is usually loose → lower interest rates
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economic recession
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consumer spending decreases → the government may implement policies that lower interest rate to stimulate commercial growth and consumer spending
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exchange rate
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value of a country’s currency in relation to other countries’ currency values
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dominant culture
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culture a person most identifies with
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subculture
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secondary group within a dominant group
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lien
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legal claim to an item of property that protects the seller if the buyer does not complete payment
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payroll deduction
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money an employer withholds from an employee’s gross earning i.e. income taxes (employer pays to the government on behalf of the employee), health insurance premiums, voluntary savings, child-support payments
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gross earnings
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income before deductions
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net pay
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amount employee receives in paycheck; after deductions have been subtracted from gross earnings
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pay rate
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base amount of pay a worker earns at a set interval
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commercial banks
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individuals and businesses; checking and savings accounts, loans, credit cards, overdraft protection
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investment banks
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corporations; underwriting securities, aiding in mergers and acquisitions, etc.
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CPA (Certified Public Accountant)
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accounting services
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brokerage
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buys and sells securities on behalf of investors
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primary data/raw data
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facts collected specifically for a problem or project on hand (collected after the marketing-research brief is developed) i.e. observing, interviewing, surveying
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secondary data
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collected for purposes other than the project at hand
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exploratory research
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helps define a marketing issue, situation, opportunity, or concern
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causal research
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cause and effect; “what if”; conducting experiments manipulating one or more independent variables and examining the outcome
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descriptive research
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gathering specific information related to a specific issue, situation, or concern
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balanced scale
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an itemized scale that provides an equal number of favorable responses as unfavorable responses i.e. highly dissatisfied, dissatisfied, neutral, satisfied, highly satisfied
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continuous scale
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non-comparative; line bounded by two opposite variables i.e. worst to best
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product diaries
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surveys that require participants to log various types of information in a central location over an extended period of time
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media-use diaries
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surveys that help determine the viewing preferences of participants
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range
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distance between the smallest and largest value in a set of responses
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mean
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average (sum of responses divided by number of options provided)
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mode
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most common value in a set of questions
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rank
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order of importance
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marketing-research brief
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a proposed plan for approaching a marketing-research study that defines or clarifies the issue or problem, states the objectives, and suggests ways to approach the research process
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dissonance-reducing buying behavior
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Expensive items purchased infrequently; require high customer involvement due to the thought and consideration that the purchase requires; few perceived differences among brands as customers are more concerned with appearance, feel, and durability, rather than brand i.e. vacuums, carpeting, etc.
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routine/habitual buying behavior
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Inexpensive goods on a frequent basis; little involvement or thought; few differences among brands i.e. soap, toilet paper, etc.
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complex buying behavior
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Infrequent, expensive purchases → high customer involvement; strong brand recognition i.e. cars
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marketing plan
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set of procedures or strategies for attracting the target market to a business
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situational analysis
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current marketing situation, goals, finances, target market, market share, etc.
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SWOT analysis chart
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1.Strengths, Weaknesses, Opportunities, Threats i. internal and external 2. Summarizes the results of situation analysis
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slide sorter
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view and move thumbnails of existing slides
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transition function
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creates different effects to move from one slide to the next
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promote paragraph
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move sub points and bullet points to higher positions
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note master function
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create speaking notes from the slide text
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Steps of the bidding process
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1. Identifying needs 2. Request for proposal (RFP) 3. Assessing each bidder’s strengths and weaknesses 4. Negotiate the terms with the vendor
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Request for proposal (RFP)
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summarizes the details about the business’s needs, bid requirements, and deadlines
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quality control
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ensuring that the degree of excellence of a good, service, process, or activity
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price fixing/collusion
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businesses agree on the prices of their goods and services → little consumer choice and restricts competition
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bait and switch
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business promotes a low-priced item to attract customers, then tries to sell a higher priced item
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loss-leader pricing
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pricing a product below cost to attract customers
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gray markets
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selling goods to unauthorized dealers for very low prices
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introduction stage
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1. early adopters are likely to buy; minimal competition → high prices 2. promotion efforts designed to inform the target market that the new product exists
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growth stage
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1. competitors have introduced similar products to the marketplace → lower prices and increased promotional efforts to remain competitive 2. use promotional activities to differentiate its products from those of its competitors
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maturity stage
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promotional efforts focus on reminding customers of the product’s benefits
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declining stage
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sales drop as newer products are being introduced to the market; less money spent on promoting the product
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Radio frequency identification
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1. Use of wireless transmitter to store product information 2. Improves efficiency levels of the product/service management function through all levels of the distribution channel
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brainstorming
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identifying as many ideas as possible during a certain time frame
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facilitator
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keeps order, encourages participation, fosters a creative environment, and documents the ideas for further review
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facilitators should not…
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should not evaluate the ideas or initiate debate → hinder the creative-thinking process and discourage group members from participating
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grading
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process of rating products according to certain established standards or characteristics i. Uniformity and consistency among products ii. Based on contents of a product
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channel differentiation
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Businesses that use selective distribution channels choose the dealers and distributors (channel members) who will best represent the brand, be willing to learn about the product, and work hard to market the product
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customization
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creating unique products or activities
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corporate brand
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combined impressions, images, or experiences association with a company/parent entity
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point of difference
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the way in which its product attributes differ from those of competitors’ products → use these differences as strengths to position itself against the competition and to provide the target market with a positive frame of reference about the brand
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puffery
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use of exaggerated expressions or claims to describe a product or its features
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stealth marketing
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business tries to stimulate interest in a product without disclosing to the public that the business is paying others to create the “buzz”
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ambush marketing
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non-sponsoring business tries to associate with an event to gain recognition as a sponsor
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Public-relations (PR) department
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establishes good relations between the business and its publics i. Target market, stakeholders, local business community, employees, and local residents
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Research and development department
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conducts product research and develop product prototypes
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Human resources (HR) department
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maintains management guidelines, historical human resource records, and staff by recruiting, selecting, orienting, and training employees
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Advertising department
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selects media for the business’s advertising