DECA Marketing Set 2

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Absolute Advantage
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Terms in this set (115)
BrandA name, term, design, symbol, or combination of them, that identifies a business or organization and the products or services that it provides.Brand Extension StrategyUsing an existing succesful brand name for an improved or new product in the product line.Brand LicensingLegal authorization by a trademarked owner to allow another company to use it's brand, mark, or character for a fee.Break-even PointThe point at which sales revenue equals the costs and expenses of making and distributing a particular product.Business CycleThe continuous slowdown and growth of an economy.Business PlanA proposal that describes a new business to potential investors and lenders.BuyerPerson who has the formal authority to select a supplier and to implement the procedure for acquiring a good or service for a business.CapitalGoods, such as equipment or processed materials, used in a production process. Also, money needed to start and operate a business.CapitalismAn economic system characterized by private ownership of businesses and competition in the marketplace.Cash Flow StatementA monthly plan that shows when you anticipate cash coming into the business as well as when you plan to spend cash.Cause MarketingIdentification and marketing of a social issue or idea to selected markets. Typically not for profit.Channels of DistributionThe path that a product takes from producer or manufacturer to final user.Closing the SaleGetting the customer's positive agreement to buy a product.Co-branding StrategyCombining two or more brands to increase customer loyalty and sales for each individual brand.Command EconomyEconomic system which is run entirely by the government.Comparative AdvantageThe value a nation gains by selling the goods that it produces most efficiently.CompetitionThe struggle between businesses for the same customers.ConsumerUses a product.CorporationA business owned by people who purchase stock in the company which is granted a charter by the state in which it is formed.CreditThe opportunity to obtain money, goods, or services immediately in exchange for a promise to pay in the future.CustomerBuys a product.DemandThe amount or quantity of goods and services that consumers are willing and able to buy at various prices.DemographicsStatistics that describe a population in terms of personal characteristics (age, sex, etc.)DepressionThe phase of the business cycle which is a period of prolonged recessionDiscretionary IncomeMoney that is left from a person's gross income after taxes and basic living expenses.Disposable IncomeMoney left from a person's gross income after taking out taxes.E-CommerceBuying and selling goods through the use of electronic means, usually the internet.Economic UtilityThe amount of satisfaction a consumer receives from the consumption of a product or service.EconomySystem by which a nation decides how to use its resources to produce and distribute goods and services.Elastic DemandDescribes a situation in which a change in the price of a product creates a change in the demand for that product.EmbargoA total ban on trading with another country.EntrepreneurshipThe 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.EthicsGuidelines for good behavior, based on knowing the difference between right and wrong.ExportsGoods and services that are sold to other countries.Feature-Benefit SellingMatching the characteristics of a product to a customer's needs and wants.Form UtilityChanging raw materials or putting parts together to make them more useful.FranchiseA grant or right to sell a parent company's product or service within a given area.GeographicsSegmentation of a market based on where people live.GoodsProducts that are tangibleGross IncomeThe difference in value between the cost of goods to a business and the price at which they are sold by a business.ImportsGoods and services purchased from other countries.Inelastic DemandDescribes a situation in which a change in the price of a product has very little or no effect on the demand for it.InflationEconomic situation where prices increase faster than the value of the goods and services.InfrastructureThe physical development of a country, i.e.. Its roads, ports and communication abilities.IntermediaryChannel member that provides services as products move along channels to consumers.InventoryThe amount of goods stored by a business, including raw materials, purchased components, works in progress, packaging materials, and finished goods.JargonTechnical or specialized vocabulary used by members of a particular profession or industry.LiabilityA debt owed by a business. The opposite of an asset.Loss LeaderAn item priced at or below cost to draw customers into a store.MacroeconomicsThe study of the economic behavior and relationships of an entire society.ManagementThe business function used to plan, organize, and control all available resources to effectively reach company goals.MarketA group of all potential customers, who share common needs and wants and have the ability and willingness to buy a product.Market PositionA company's relative standing in relation to their competition. Typically shown in a rank (1st, 9th, etc.)Market SegmentationDividing a market by specific characteristics in order to create a target market.Market ShareThe proportion of the total market that a particular company holds. Shown in a %.MarketingThe process of developing, promoting, and distributing products to satisfy customer needs and wants.Marketing ConceptStates that a business must satisfy customer needs and wants in order to make a profit.Marketing MixThe four basic marketing strategies; price, product, place, and promotion.MediaThe agencies, means, or instruments used to convey advertising messages to the public.MicroeconomicsStudy of relationships between individual consumers and producers. Personal financing.MonopolyExclusive control over a product or the means of producing it.NetworkingFinding potential business contacts among people you know personally.ObjectionsConcerns, hesitation, doubts, or other reasons a customer has for not making a purchase.PackageThe physical container or wrapping that protects a product.PartnershipA legal agreement between two or more people to be jointly responsible for the success or failure of a business.Place UtilityHaving a product where customers want to buy it.Point-of Sale (POS) SystemComputers used in retailing that feed information directly from tags or labels into a computer.Possession UtilityAbility to transfer title to goods or services from marketer to buyer.PositioningMarketing a product in order to get customers to think of it in a specific way.PriceThe value of money (or it's equivalent) placed on a good or a service.Primary DataInformation obtained for the first time directly for a particular problem in marketing researchProductA good or service which has monetary value and satisfies customer needs and wantsProfitThe money earned from conducting business after all costs and expenses have been paid.Product Life CycleThe process that a product goes through in its life. The four stages are: Introduction, maturity, growth and decline.Product LineA group of closely related products that are manufactured or sold by a business.Product MixAll of the different products that a company makes or offers for sale to the public.PromotionAny form of communication a business or organization uses to inform, persuade, or remind.ProsperityThe phase of the business cycle when the economy is flourishing.PublicityInvolves 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.QuotaLimits either the monetary value or quantity of goods that may be imported.RecessionThe phase of the business cycle which is characterized by a period of economic slowdown that lasts @ 6 months.RecoveryThe phase of the business cycle when there is a noticeable increase in economic activity.ResourcesAll of the things used in producing goods and services; land, labor, capital, entrepreneurship. Also known as Factors of Production.RetailersAn outlet, through which, products or services are sold to customers.Return on InvestmentA calculation used to determine the relative profitability of a product.RiskThe possibility of financial loss; the potential for loss or failure in relation to the potential for improved earnings.Risk ManagementSystematic process of managing an organizations exposure to achieve objectives in a manner consistent with public interest, human safety, environmental factors and the law.ScarcityThe basic economic problem. Unlimited wants but limited resources.Secondary DataFacts that have already been collected for another purpose but are referred to as a resource.ServiceProduct that has value but is not tangible; task performed for a customer.ShortageWhen Demand exceeds supply.Sole ProprietorshipA business that is owned and operated by one person.Stock Keeping Unit (SKU)Each item or group of related items in a unit control inventory system.Stock TurnoverThe number of times the average inventory has been sold and replaced in a given time period.Store LayoutThe pattern in which floor space is allocated within a store in order to facilitate sales and serve the customer.StorefrontThe total exterior of a business including entrances, display windows, marquee, and the physical makeup of the building itself.Suggestion SellingSelling additional merchandise or services that are related to the original purchase.SupplyThe amount or quantity of goods and services that producers are willing to produce and provide at a certain price.SurplusWhen supply exceeds demand.TariffA tax on imports.Time UtilityHaving a product available when a customer wants to buy it. (time of year, time of day, etc.)Trading AreaThe geographical area from which a business draws its customers.WarrantyThe promise or guarantee given to a customer that a product will meet certain standards.WholesalersObtain goods and services from manufacturers and sell them in bulk to other wholesalers and retailers.