DECA Marketing Terms

Adaptablility
The ability to make changes to be a better match or fit in new situations.
Advertising Campaign
A coordinated series of linked ads with a single or theme.
AIDA
Acronym for customer: Attention, Interest, Desire and Action
Assets
Property or items of value owned by a business
Attitude
How a person feels about something or the way a person looks at the world and responds to events.
Bait and Switch
Practice of advertising one product with the intent of persuading a customer to buy a more expensive item when they arrive in the store
Barter
Exchange of one good or service for another good or service
Benefit
Attribute of a product that will be an advantage for the customer
Brand
Name, term or design that sets a product or a business apart from its competition
Brand Equity
Value of having a well-known brand name
Brand Loyalty
Situation in which the customer will only buy a certain brand of product
Break-Even Point
The point at which revenue from sales equals the costs.
Business Cycle
Cycle that consists of alternating periods of expansion and contraction in the economy.
Business Plan
Written document that describes a new business, how it will operate and make a profit.
Buyer
The person responsible for planning and ordering inventory
Collateral
An asset pledged that would be claimed by the lender if the loan were not repaid
Collusion
A situation that occurs when business leaders work together to eliminate their competition, set prices and control distribution
Competition Based Pricing
Strategy based primarily on what the competitors charge
Competitive Advantage
Offering better value, features or sercie than the competition
Consumer
Person who buys products or services and also uses them
Consumer Market
Customers who buy products for their own use
Corporate Culture
How the owners and employees of a company think, feel and act as a business.
Credit Risk
Potential of credit not being repaid
Creditor
Individual or business to whom money is owed for goods or services provided.
Customer Profile
Detailed description of the typical consumer in a market segment
Database Marketing
Gathering, storing and using customer data for marking directly to them based on their histories.
Demand- Based Pricing
Pricing strategies based on what customers are willing to pay
Demand-Pull Inflation
Inflation that occurs when increasing demand pulls up prices
Demographics
Qualities such as age, gender and income of a specific group of people
Direct Mail
Advertising message sent through the US Postal Service to current or potential customers
Discrctionary Income
Remaining take-home pay after life necesities are paid for
Elastic Demand
Product demand in which the percent change in demand is greater than the percent change in price
Entrepreneurship
Willingness and ability take on the risks and responsibilities of starting a new business
Equity Financing
Raising money for a business in exchange for a percentage of the ownership
Ethics
Set of rules of behavior based on ideas about what is the right and wrong
Feasible
A term that means that something can be done successfully
Fixed Assets
Items of value that may take time to sell
Fixed Expense
An expense that does not change and is not affected by the number of products produced or sold
Form Utility
Value that is added when a business changes the form of something to make it more useful
Four P’s of Marketing
Product, Price, Place, Promotion
Franchisee
Person who buys the right to sell the brand products
Franchisor
Company or person who owns the business and the brand
Frequency
Number of times the ad appears before the customer
Globalization
State that occurs when nations become connected through freely moving goods, labor and capital across boarders
Goodwill
Advantage a business has due to its good reputation
Gross Profit
Amount of profit before subtracting the costs of doing business
Growth Stage
Stage of the product life cycle during which product sales increase rapidly
Hook
Aspect of an ad that grabs attention
Income Statement
Financial report that shows the revenue and expenses for a business during a specific period of time
Indirect Competitors
Companies that offer different, but similar products or services that could also meet the customer needs
Inelastic Demand
Demand for a product that is not affected by price
Infaltion Rate
Rate of change of prices calculated on a monthly or yearly basis.
Insurance Premium
The payment cost of an insurance policy
Intangible
Something that cannot be touched tried out before purchase or return
Jingle
A tagline or slogan set to music
Job Shadowing
Following a person while he or she does a job
Law of Diminishing Marginal Utility
Idea that consuming more units of the same product decreases the marginal utility from each unit
Law of Supply and Demand
Law that says that the greater the demand for a given supply of a product, the price will be higher
Line of Credit
Specific dollar amount that a business can draw against as needed
Liquid Assests
Cash and the items of a business owns that can be wasily turned into cash
Marginal Utility
Additional satisfaction gained by using one additional unit of the same product
Market Risk
Potential that the target market for new products or services much less than originally thought
Market Segmentation
Process of dividing a large market into smaller groups
Market Structure
How a market is organized based on the number of businesses competing for sales in an industry
Marketing
Dynamic activities that identify anticipate and satisfy customer demand while making a profit
Marketing Mix
Plan of action for marketing a product; it consists of the decisions made about each of the four P’s for that product
Marketing Plan
Document describing business and marketing objectives and the strategies and tactics to achieve them
Marketing Strategy
Decision made about product, price, place and promotion
Markup
Amount added to the cost of a product to determine the base price
Mass Product
Overall market or group of people who might buy a product or service
Net Worth
Value of a company
Networking
Process of making connections with people in the working world
Opportunity Cost
Value of the best option you did not choose
Overselling
Promising more than the product or the business can deliver
Peer Pressure
Social influence exerted on individuals via a website
Perishability
The idea that services are instangible and cannot be stored for later use
Planned Absolescence
Evaluating and updating current products or adding new ones to replace older ones
Press Kit
Packet of information distributed to the media about a new business opening or other major business events.
Press Release
A story featuring useful company information written by the company PR contact
Price Competition
When a lower price is the main reason for customers to buy from one business over another
Price Discrimination
When a company sells the same product to a different customer at different prices based on personal characteristics
Price Gouging
Rasing prices on certain kinds of goods to an excessively high level during an emergency
Price Strategy
Business decision about pricing and how prices are set to make a profit
Product Life Cycle
Stages a product or a product category goes through from its begining to end
Product Mix
All of the products and services that a business sells
Profit Motive
When business owners earn profits and are motivated to start and expand business
Promotion
Process of communicating with potential customers in an effort to influence their buying behavior
Promotion Strategy
Decision about selling, advertising, sales promotion and public relations activities to pursue in the promotional mix
Promotional Mix
Combination of the elements used in a promotional compaign
Psychographics
Data about the preferences or choices of a group of people
Push Promotional Concept
Taking the product directly to the cutsomer
Quick Response (QR) Codes
Bar codes that when scanned with a smart phone connect the user to a website or other digital information
Recession
Period of great decline in total output, employment, trade or income
Repackaging
Using new packaging on the same product, is another common way to create a new product
Retailer Channel
Path of selling goods from the producer to the retailer then the retailer to the consumer
Return on Investment (ROI)
Ratio that shows the efficiency of an investmentby comparing the gains from the investment to its cost.
Return on Marketing Investment (ROMI)
A measurment showing the overall effectiveness of a marketing campaign or yearly budget
Revenue
Money that a business takes in for the products or services it sells
Sales Forecast
Prediction of future sales based on past sales and a market analysis for a specific time period
Scarcity
Event that occurs when demand is higher than the available resources
Sole Proprietor
The one person who owns a business and is personally responsible for all its debts
Specialization
Worker or group of workers who perform a specific task for increased efficiency
Stereotyping
Classifying or generalizing about a group of people with a given set of characteristics
Suggestive Selling
The technique of suggesting additional items to go with merchandise requested by a customer
Tagline
Phrase or sentence that summerizes some essential part of the product or business
Target Marketing
Using unique marketing mixes for different target markets
Trade Deficit
State that occurs when a nation has some importants that exports which results in a negative balance
Trade Show
Large gathering of business for the purpose of displaying products for sale
Variable Expense
An expense that changes based on the activities of the business
Volume Pricing
Lowering the list price based on the higher number of units purchased at the same time.