DECA Marketing

Marketing

The dynamic activities that focus on the customer to generate a profitable exchange

The Goal of Marketing

To meet customers' needs (goods and services you need) and wants (goods and services you do not need but would like to have) with products that customers can and will buy

Dynamic

constantly changing

Customer

an individual or group who buys products

Target Market

The specific group of customers whose needs a company will focus on satisfying

The Four Ps of Marketing

Product, Place, Price, and Promotion

Product

Anything that can be bought or sold

Good

A physical item

Service

An action that is done for you

Idea

A concept, cause, issue, image, or philosophy that can be marketed

Place

The process of making products available to customers

Distribution

the process of physically delivering goods to customers

Price

The amount of money requested or exchanged for a product

Marketing Plan

A guide for a company's product which includes Market Opportunities and Analysis, Strategy, and an Action Plan

SWOT Analysis

An analysis of a company's strengths, weaknesses, opportunities, and threats

Forecast

A prediction of future sales or revenue

Need

Something that is necessary for survival

Want

Something a person desires but could function without

Economic Needs and Wants

Needs and wants that you can satisfy by buying something

Economic Goods and Services

The products that you buy to satisfy economic needs

Exchange

To trade something of value for something you want

Money

A consistent item people accept in exchange for goods or work

Value

How much something is worth

Time Value of Money

The greater potential worth in the future than it does today

Store of Wealth

Money's ability to keep and store wealth for long periods of time.

Business

The general term for all the activities involved in the development and exchange of products

Profit

The money that a business has left after all the expenses and costs of running the business are paid

Sole Proprietorship

A business owned by one person [who] has all the responsibility and gets all the profits from the business

Partnership

A business owned by a small number of people, usually two or three

Legal Entity

An artificial person that exists separately from [other people]

Corporation

A legal entity established for the purpose of doing business [who] can buy property, run a business, manufacture products, earn money, lose money, sue, and be sued

Stockholders

People who own a corporation

Stock

The right of partial ownership in a corporation

Two Categories of Business Organizations

For-profit and not-for-profit

For-Profit

A business organization whose goal is to make a profit for the owners

Not-for-Profit

A legal entity whose goal is to benefit society

NPO Categories

Social services, recreation and sport, arts and culture, food and health, housing, religion, and education

Functions of Business

Production, Finance, Marketing, and Management

Production

Any activity related to making a product

Finance

All activities involving money

Management

All activities required to plan, organize, lead, and control a business

Utility

Making a product more useful or accessible

Marketing Concept

An approach to business that says that the way to make a profit is to focus on customer satisfaction

Customer Satisfaction

The positive feeling a customer gets when the product purchased meets or exceeds the customer's expectations

Total Company Approach

The idea that all company employees can have an effect on the customers

Elements of the Marketing Concept

Customer satisfaction, Total Company Approach, Profit

Marketing Function

The function a company takes to learn about customer needs and wants through production, finance, and management

Channel-Management

Handles activities involved in getting products from producers to customers

Marketing-information Management

Also called marketing research; gathers, analyzes, and distributes information about markets, competition, and customers.

Market Planning

This function is used to determine and target marketing strategies to select audiences

Pricing

All activities involved in setting prices for products

Product/Service Management

The function of developing new products and improving an old product

Promotion

the nonpersonal communication with customers that is designed to influence them to purchase products

Selling

The function which consists of personal communications with customers [...] including helping customers in a store, making sales presentations, answering questions on the phone, and demonstrating how a complex product works

Scarcity

A condition in which there are not enough resources to meet needs

Traditional Economy

An economy in which people perform activities the way they have always been done. In these economies, elders often answer questions facing communities according to long-held beliefs and practices.

Command Economy

An economy in which the national government answers economic questions. The goal of this economy is to ensure all members of the nation share limited resources, get a job, and receive other social services

Mixed economy

An economy in which both the government and individuals make economic decisions. Government and individuals take actions to ensure each other are in balance.

Market Economy

Private property, economic freedom, and market forces are properties of this type of economy.

Private Property

The right of individuals to own land, goods, and make products.

Economic Freedom

The ability of individuals to make their own decisions: what to buy, how to use products, and what to sell.

Market Forces

Supply and Demand, Profit, and Competition are the three most significant origins of work in a market economy.

Profit Motive

The drive to earn more money

Law of Demand

The economic principle that says when prices fall, demand rises.

Law of Supply

The economic principles that says when prices are high, supply will rise.

Productivity

The amount of product a worker produces per hour

Competition

The rivalry between two or more businesses to attract scarce (limited) customer dollars

Business Opportunity

The chance for success provided by the combination of a product idea and a market that is willing and able to buy the product.

Strategy

A plan developed to reach a goal

Target Market

The specific group of customers whose wants and needs you will try to meet with a specific marketing mix

Qualities of a Target Market

Clearly defined wants and needs that your company meet, money to buy your product, willingness and authority to buy your product, enough customers in the market to be profitable

Marketing Mix

The decisions made about the product, place, price, and promotion for one product

Product Strategies

All decisions made about what product to offer

Price Strategies

All the decisions made about pricing a product

Place Strategies

All decisions made about where the product will be sold

Promotion Strategies

All the decisions made about how to tell customers about the company and the product

Mass Market

All the customers for a specific type of product

Mass Marketing

The development of only one marketing mix for a specific product [...] assumed everyone has exactly the same wants and needs for the product

Nature of Consumer Markets

Diverse, consisting of many groups of consumers with different needs

Target Marketing

The development of a unique marketing mix for a specific market

Approaches to Choosing a Target Market

(1) Choosing a target market first, (2) developing a great product idea and finding a target market, (3) develop the idea with the target market in mind, (4) create a new market for an old product

Market Niche

A small segment of the market whose needs are not being met

Market Segmentation

The process of dividing a large market into smaller parts

Segmentation Variable

A customer characteristic that is used to segment a market