DECA Marketing Cluster Exam #1 – Study Guide

tort
a civil wrong that can cause someone to suffer loss or harm resulting in legal liability for the person who committed the wrongdoing
Respondeat superior
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
agents
businesses or individuals who assist in the sale and/or promotion of products but do not buy them from the producer
retailers
purchase finished goods to resell to the consumer
antitrust laws
federal and state government laws that regulates the conduct and organization of business corporations, generally to promote fair competition for the benefit of consumers
executive summary
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
bureaucracy
formal rules and hierarchal management
Machine bureaucracies
simple, stable work environments; standardized work processes; specialization by work task
Adhocracy organizational structures
work-teams to create new processes; project-team orientation
Matrix organizational structures
tend to share resources
contingency plan
a plan designed to take a possible future event or circumstance into account
excise tax
referred to as the “sin tax”

i.e. gasoline, cigarettes, luxury cars, alcohol

estate tax
inherited items
When the rate of inflation increases rapidly
the government might impose laws to tighten money supply
tight money supply
higher interest rates
investing spending increases
money supply is usually loose → lower interest rates
economic recession
consumer spending decreases → the government may implement policies that lower interest rate to stimulate commercial growth and consumer spending
exchange rate
value of a country’s currency in relation to other countries’ currency values
dominant culture
culture a person most identifies with
subculture
secondary group within a dominant group
lien
legal claim to an item of property that protects the seller if the buyer does not complete payment
payroll deduction
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

gross earnings
income before deductions
net pay
amount employee receives in paycheck; after deductions have been subtracted from gross earnings
pay rate
base amount of pay a worker earns at a set interval
commercial banks
individuals and businesses; checking and savings accounts, loans, credit cards, overdraft protection
investment banks
corporations; underwriting securities, aiding in mergers and acquisitions, etc.
CPA (Certified Public Accountant)
accounting services
brokerage
buys and sells securities on behalf of investors
primary data/raw data
facts collected specifically for a problem or project on hand (collected after the marketing-research brief is developed)

i.e. observing, interviewing, surveying

secondary data
collected for purposes other than the project at hand
exploratory research
helps define a marketing issue, situation, opportunity, or concern
causal research
cause and effect; “what if”; conducting experiments manipulating one or more independent variables and examining the outcome
descriptive research
gathering specific information related to a specific issue, situation, or concern
balanced scale
an itemized scale that provides an equal number of favorable responses as unfavorable responses

i.e. highly dissatisfied, dissatisfied, neutral, satisfied, highly satisfied

continuous scale
non-comparative; line bounded by two opposite variables

i.e. worst to best

product diaries
surveys that require participants to log various types of information in a central location over an extended period of time
media-use diaries
surveys that help determine the viewing preferences of participants
range
distance between the smallest and largest value in a set of responses
mean
average (sum of responses divided by number of options provided)
mode
most common value in a set of questions
rank
order of importance
marketing-research brief
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
dissonance-reducing buying behavior
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.

routine/habitual buying behavior
Inexpensive goods on a frequent basis; little involvement or thought; few differences among brands

i.e. soap, toilet paper, etc.

complex buying behavior
Infrequent, expensive purchases → high customer involvement; strong brand recognition

i.e. cars

marketing plan
set of procedures or strategies for attracting the target market to a business
situational analysis
current marketing situation, goals, finances, target market, market share, etc.
SWOT analysis chart
1.Strengths, Weaknesses, Opportunities, Threats
i. internal and external
2. Summarizes the results of situation analysis
slide sorter
view and move thumbnails of existing slides
transition function
creates different effects to move from one slide to the next
promote paragraph
move sub points and bullet points to higher positions
note master function
create speaking notes from the slide text
Steps of the bidding process
1. Identifying needs
2. Request for proposal (RFP)
3. Assessing each bidder’s strengths and weaknesses
4. Negotiate the terms with the vendor
Request for proposal (RFP)
summarizes the details about the business’s needs, bid requirements, and deadlines
quality control
ensuring that the degree of excellence of a good, service, process, or activity
price fixing/collusion
businesses agree on the prices of their goods and services → little consumer choice and restricts competition
bait and switch
business promotes a low-priced item to attract customers, then tries to sell a higher priced item
loss-leader pricing
pricing a product below cost to attract customers
gray markets
selling goods to unauthorized dealers for very low prices
introduction stage
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
growth stage
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
maturity stage
promotional efforts focus on reminding customers of the product’s benefits
declining stage
sales drop as newer products are being introduced to the market; less money spent on promoting the product
Radio frequency identification
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
brainstorming
identifying as many ideas as possible during a certain time frame
facilitator
keeps order, encourages participation, fosters a creative environment, and documents the ideas for further review
facilitators should not…
should not evaluate the ideas or initiate debate → hinder the creative-thinking process and discourage group members from participating
grading
process of rating products according to certain established standards or characteristics
i. Uniformity and consistency among products
ii. Based on contents of a product
channel differentiation
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
customization
creating unique products or activities
corporate brand
combined impressions, images, or experiences association with a company/parent entity
point of difference
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
puffery
use of exaggerated expressions or claims to describe a product or its features
stealth marketing
business tries to stimulate interest in a product without disclosing to the public that the business is paying others to create the “buzz”
ambush marketing
non-sponsoring business tries to associate with an event to gain recognition as a sponsor
Public-relations (PR) department
establishes good relations between the business and its publics
i. Target market, stakeholders, local business community, employees, and local residents
Research and development department
conducts product research and develop product prototypes
Human resources (HR) department
maintains management guidelines, historical human resource records, and staff by recruiting, selecting, orienting, and training employees
Advertising department
selects media for the business’s advertising