DECA Hospitality Services

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Terms in this set (133)
PricingMarketing function that involves determining and adjusting prices to maximize return and meet customers' perceptions of value.Product/Service ManagementThe marketing function that involves obtaining, developing, maintaining, and improving a product or service mix in response to market opportunitiesProductionThe process or activity of producing goods and servicesMappingVisual Method of note-taking that involves writing the main topic in a circle and writing supporting ideas on lines around the circle.Cornell MethodTaking notes in two columnsBlind Carbon Copy (BCC)Hides email addresses from the email's recipientsPlaceMaking sure that goods and/or services are available where customers need or want them. Can be a physical location or a site where a want or need is fulfilled. Ex. Hotel building lodging facility on Interstate 95Elastic DemandWhen demand is elastic, consumers adjust demand for products based on price. Demand changes when prices change. Prices go up = consumers purchase lessInelastic DemandDemand for a good or service is constant, event if product's price changesComplementaryProducts that are usually togetherStages of Business CycleBusiness cycle involves fluctuating levels of economic activity ranging from expansion to contraction. In periods of expansion, there is an increase in business growth, employment, and business and consumer spending. In periods of contraction, business growth slows, unemployment rises, and consumer spending decreases.UnderemploymentOccurs when a worker is not working enough or is not fully using her/his skills and talents. Underemployment rate takes into account friction unemployment, downsizing, and technological unemployment.Floating Exchange RateDetermined by supply and demand. Changes depending on the market.Pegged/Fixed Exchange RateSet by government and does not change based on market's fluctuationsMutual FundsCarries the advantage of professional management. Comes with a high price. High fees may cut into a mutual fund investor's returns. Mutual fund investors do not risk personal time and effort like entrepreneurs. Has high potential for return. No penalty for early withdrawal from mutual fund.Accounts ReceivableMoney that is owed to a business. They are an asset to the business, but they do not have a physical presence.Petty cash-fundA small amount of money that a business keeps on hand for inexpensive business purchases. By maintaining a petty-cash fund, a business can easily pay for things such as steps flowers, and coffee supplies without writing a check or going through regular purchasing procedures. Several factors go into determining amount of money that should be allocated to the petty-cash fund. Factors include average number and dollar amount of transactions that it expects during a certain time period.Primary InformationNew information collected for the purpose at hand.Secondary Information/DataFacts and figures that have been collected for purposes other than the project at hand.TestimonialStatement by an identified user of a product proclaiming the benefits received from use of the productTablesSections of the database that contain specific categories or types of information about customers. Ex. A table that contains contact information may include fields that store the customer's name, telephone number, email address, etc. Another table might contain information about the customer's purchasing history-products, quantities, and dates of purchase.Pie ChartBusinesspeople often use a pie chart to compare the parts of whole concept such as market share of a particular industry or geographic location.FlowchartPresents a visual depiction of activities or processes in sequential order by integrating text in a graphic format.Psychographic SegmentationInvolves dividing the market by consumers' lifestyles or personalities. Ex. Health and fitness is a lifestyle factorDemographic SegmentationDivides market on the basis of its physical and social characteristics. Ex. gender, education, age, and family life cycle.Geographic SegmentationInvolves location factors such as physical location, climate, city size, etc.Conversion RateMeasures number of inquires that turn into sales expressed as a percentage.Sample PlanIn marketing research, a sample plan is an outline for the sampling process that ensures that a truly representative sample of the population is selected in the most efficient way possible with the lowest potential for error.Business ProductivityAmount of goods or services produced by a business from a set amount of resources.Business LicensesDocuments that grant permission to operate a businessBusiness TrendsTendencies and changes in the business worldProcess Performance ManagementQuality-control method that involves supervising business and manufacturing processes to ensure their quality and efficiency.Gross ProfitA good indicator of how well a business is controlling its costs.Semi-Variable CostsFixed until the business reaches a certain level of production; after that, they become variable.Price MarkupsIndicates the difference between total cost and selling priceBreakeven PointOccurs when a company's total sales equal its total expenses.InvoiceThe formal, printed record of a sale that included all necessary information of a sales transaction. Serves as a legal document or formal agreement in which one party takes possession of goods or services in exchange for payment within a certain time period. Information includes the buyer, the seller, items purchased, quantities, prices, delivery date, credit, discount terms, etc.Creative DestructionTerm coined by Austrian economist Joseph Schumpeter, it describes how new goods and services can hurt existing products. This is one risk of innovationFranchiseA contractual agreement between a parent company and a franchisee to distribute goods or services.Strategical Alliance/Joint VentureAn agreement that involves two or more businesses entering into a relationship by combining complementary resources such as technology, skills, capital, or distribution channels for the benefit of all parties. The relationship is usually short-term for a single project/transaction.LicensingA business structure that requires the authorization or permission from an owner to another entity to use trademarked, copyrighted, or patented material for a specific activity, during a specific time period, for the profit of both parties.Industries-Hospitality industry: Provides services to people who are away from home. -Recreation industry: A segment of the hospitality industry, provides services designed to provide rest, relaxation, and enjoyment. -Entertainment businesses: Part of recreation industry. Includes movie theaters, concerts, and plays. -Lodging industry: Consists of businesses that provide sleeping accommodations for travelers. -Travel businesses: Provide transportation. -Tourism industry: consists of businesses that promote travel for business and leisure.Feasibility StudyInvolves evaluating the target market's interest in the product, as well as production and marketing costs.Product ExtensionInvolves adding a similar good or service to an existing product line or product category.Product BundlingInvolves packaging two or more similar products together and selling them at a single price that is lower than if the customers purchase the items separately.Brand PositioningBranding strategy in which marketers create a certain image or impression of a brand as compared to those of competitors' brands.Corporate BrandAll of the combined customer impressions and experiences associated with a particular company.Short Message System/Service (SMS)Technology that enables people to send text messages over cell phones.BlogPrimary purpose of a corporate blog is to connect with company's target market in a more informal and personal way than through the corporate website. Blogs typically have articles podcasts, and videos about business-related topics that interest audience. Blogs should be reusable. Selling products is not primary purpose of blog."Search-friendly" URLBusinesses should strive to use an in-house classification for URLs by using clear, relevant keywords. Using applicable keywords in the URL is more likely to yield a higher placement in a search engine's results field when users want to find specific topics, articles, and authors.Advertising MessageColor: tool used by advertisers use to create a certain mood. Placement: The way in which the advertisement's elements are arranged on the page. Reach: a quantitative measure of the number o different people in the target audience who are exposed at least once to an advertising message. Frequency: quantitative measure of the average number of times a target consumer is exposed to an advertising message.Value (artistic term)In artistic terms, value is the degree of lightness or darkness on the surface of something such as an object in a drawing or photographIllustrationGraphic component of advertisement that visually ties headline and copy together. May include photographs, drawings, paintings, or a combination of media. Type of illustration has an impact on mood or tone of the advertisement.SimulationImitation or an actual or plausible situation that enables trainees to practice their behavior and responses under certain circumstances. Often used for training purposes.Word-of-mouth(WOM) marketing involves customers communicating with others about satisfaction with a business. Occurs in person or online.PublicityAny non personal presentation of ideas, goods, or services that is not paid for by the company or individual that benefits from or is harmed by it.AdvergamingInclusion of a product, brand, or company in a video game for promotionCooperative advertisingWhen producers provide channel members with financial support to cover advertising expenses.TemplateBasic layout that developers use to create a web page. Provides visual consistency as visitors click through different sections of the website.HyperlinkComponent of an electronic document that computer users click on to jump to another place within the document or into a different document.Heat mapColor-coded graphical representation that shows marketers the ways in which visitors interact with the websiteServer logPurpose is to maintain a history of website page requestsPress kitPurpose of press kit is to provide tools to obtain publicity through various media outlets. Should contain information about the business.Product AcquisitionInvolves location and purchasing goods for business use or for resale.Institutional/Corporate PromotionType of promotion that aims to create a certain image in the eyes of consumers.Quality assuranceProcess that businesses use to prevent defective products from being producedCompetitive AnalysisProcess of comparing a business's income statement with that of its competitors to see how it is doing by industry standards.Retention ratemetric expressed as a percentage and indicates a business's ability to keep customers over a certain period of timeAccounting SystemConsists of the methods and procedures used in consistently handling the business's financial informationSuggestion SellingSales technique in which the salesperson attempts to increase the customer's purchase by suggesting additional products to buy after the customer has made his original purchase decisionUp-sellingSales technique in which salesperson suggests a higher priced product than the one that the customer originally requestsOnline Reservation SystemsEnables consumers to purchase travel, tourism, and hospitality products directly with the service provider.Router SoftwareEnables computer devices to access wireless Internet within a certain area.Radio Frequency Identification (RFID)Involves storing an order's product information on a computer chip and then attaching it to the shipment's box, container, or pallet. When shipment arrives at business, warehouse personnel use computer scanners to receive the items.IntranetAn intranet allows company's employees to access and share information with others within an organizationHorizontal ConflictOccurs between businesses at the same level in the distribution channel. When two franchisees compete for some market, horizontal conflict occurs over territoryVertical ConflictOccurs between different levels of the same channel, such as between franchisee and its franchisorBar graphsUsed to show changes over time or to compare figures between different groupsCorporate CultureValues and ideals that an organization encourages among its employeesCustomer advocacyWord-of-mouth promotion and referrals from a business's current customers to its potential customersTouch PointsAll the opportunities that businesses have to connect with customers and reinforce their brand valueRelationship buyingCustomers today prefer relationship buying to shopping around. Customers want to find businesses they feel comfortable with and stick with them.Time UtilityWhen products are available at the time they are desiredForm utilityCreated when business alters or changes the shape or form of a product to make it more useful or satisfying for consumersPlace UtilityExists when goods are services are available at the place where they are needed or wanted by customersPossession UtilityExists when ownership or a product is transferred from the seller to the person or business that will use the good or service.Buying PowerBuying power is the amount of money available. If consumers do not have money to spend, they cannot buy products.EquilibriumPoint at which the quantity supplied is equal to the quantity demanded.ElasticityAn indication of how changes in price will affect changes in the amounts demanded and suppliedUtilityProduct's ability to satisfy a customer's wants or needsStrategic risksBroad and often concern the overall business environment. Can include competition, obsolescence, regulatory and political issues, and changing customer needs.Hazard RisksPotential events or situations that can cause injury or harm to people, property, or the environment. Most hazard risks can only cause business losses, not gainsOperational RisksThe possible events and situations that can result from employee actions, core processes, and daily business activities. Are often things that can go wrong in short term.Financial RisksPossible events or situations that directly influence a company's cash flow. Can be external or internal.OutputsGoods or services produced as a result of combining inputs.ProductivityThe amount and value of goods and services produced from set amounts of resourcesEfficiencyAccomplishing a task with minimum expenditure of time and effortConsensusMaking a decision by consensus means that each group member has equal power to say "yes" or "no." Is not majority or minority rule. Everyone has equal powerDouble coincidence of wantsOccurs in a bartering system when each party wants something that the other party is willing to barter.TransferenceInvolves moving the impact of a risk to someone or something else. Is often used when the impact is measurable in dollars and cents. Insurance is one common transference device, along with contracts, warranties, and guaranteesAvoidanceInvolves choosing not to do something that is considered riskyMitigationReducing or controlling the impact of a risk if it occursAcceptanceInvolves accepting a risk's consequences because the potential payoff is higher than the losses.Balance SheetCaptures the overall financial condition of the business at that particular moment.Income Statements (profit-and-loss statements)Show how much money the business has made or lost during a specific period of time, usually one year. Also known as earnings statements and operating statements.Cash flow statementA financial summary estimating when, where, and how much money will flow into and out of business during a specific period of timeCost of goods sold (cost of sales)The amount of money a business pays for the product it will sellEquityRefers to the assets a company already ownsDividendA sum of money paid to an investor or stockholder as earnings on an investmentHospitality and Tourism ProductsCore of the hospitality and tourism product is to provide transportation, a place to sleep, food, or an experience for individuals whoa re away from homeInformation managementThe process of accessing, processing, maintaining, evaluating, and disseminating knowledge, facts, or data for the purpose of assisting business devision making. Deals with people, processes, and practices, not just hardware and software.Data processingA small part of information management. Data are the necessary facts and figures, but is not useful unless it provides info.Behavior SegmentationWhen segmenting by behavior, marketers consider factors such as the market's product knowledge, purchasing habits, and responses to products.Occasion SegmentationClassifies buying behavior by important eventsGeographicsInvolves segmenting a market by locationPsychographic SegmentationThe division of a market on the basis of consumers' lifestyles and personalitiesAdministrative ServicesFacilitate business operations through variety of administrative and clerical duties. Ex. information and communication management, data processing and collection, and project tracking. Often referred to as support staff positionsBusiness Information Technology EmployeesHelp to align business and IT goals.General Management CarrersFocus on planning, organizing, directing, and evaluating part or all of a business organization through the allocation and use of financial, human, ad material resources.Human Resources Management CareersFocus on the staffing activities that involve planning, recruitment, selection, orientation, training, performance appraisal, compensation, and safety of employees.Convention and Visitors Bureau (CVB)Purpose is to encourage tourism and convince businesses and organizations to hold conventions and trade shows in a particular city or region. CVB funding varies by jurisdiction. Can be funded by taxes or by local businesses or both. May operate as nonprofit marketing organizations overseen by the local government or chamber of commerce.Industry Trade AssociationsGroups of persons working in the same industry who collaborate to further the industry's interests and goals. May actively involve in lobbying efforts to address regulatory issues that affect the industry. Can provide members with training and conduct research on behalf of industry.