Transcript File - Desert View DECA

Marketing Cluster Exam
Random Notes
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Monopoly,oligoigoly,
Internal/Enternal Quantiative Qualitive
Copyright – original articitic work
Job Shadowing (Professional Development)Professional organizations, volunteer,
internship/externship, exploratory interview
Random Notes
• Company Handbook
• Customer Minded/Service Minded (Quality
Service)
• Customer Sceanerios…Being patient, flexible
and empathetic
• Types of CustomersDisagreeable,Slow/Methodical,Suspicious,Dish
onest
Random Notes
• Market Information- New products, find
problems, improve sales, pop products,
inventory tells us sales,
Communication
• Effective verbal and nonverbal communication
is clear and concise.
• Listening is crucial in communication
• The global economy communicate with
customers Overcoming cultural barriers
Understanding
• Reading for meaning
Communication
• Formal speaking requires organized ideas.
Enumeration (listing items in order),
generalization with examples, cause and
effect, and compare and contrast are four
ways to structure ideas.
• Effective telephone communication (Loud and
Tone)
• Persuasion-learn needs
• Writing…
Economics
• Economics is how we deal with having unlimited
wants with limited resources (Scarcity)
• What to make, how to make it, and who will get
it.
– Traditional Economies- Tradition
– Market Economies- the buyers and sellers decide
(market)
– Command Economies- the government
– Mixed Economies-…are a mix of these
• Four factors of production
– land, labor, capital, and entrepreneurship
Economics
• Economic Indicators :
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productivity,
gross domestic product (GDP),
standard of living,
consumer price index (CPI),
consumer confidence, unemployment rates.
• Economic/Business cycles– expansion, peak, recession, trough, and
recovery
Economics
• International trade- balance of trade, trade deficit &
trade surplus.
• Three types of trade barriers are tariffs, quotas, and
embargoes.
• Three significant trade agreements and alliances
that foster free trade are the World Trade
Organization (WTO), the North American Free Trade
Agreement (NAFTA), and the European Union (EU).
Economics
• American Business Can:
– importing, exporting, licensing,
– contract manufacturing, joint ventures, and foreign direct investments.
• IB Success factors include: political stability, foreign laws,
infrastructure, taxes, the standard of living, the currency exchange
rate, language, etiquette, and the number of Internet users.
• Global marketing strategy options include:
– globalization,
– adaptation,
– customization of products and promotions.
Economics
• free enterprise system = freedom of ownership, freedom to compete,
freedom to make a profit, and freedom to take risks.
• Price competition involves competing with a lower price, nonprice
competition (quality, service)
• The benefits of successful firms include
• increased employment, better returns for investors, more sales revenue
for supporting companies, more tax revenue for the government, higher
charitable donations, and more competition.
• Supply and demand interact to create price.
• nonprofit organizations use the money they make (profit) to fund causes
• The public sector = Government
• The private sector = Not Government
Government and Business
Create laws, Taxes, and Subscities
Federal Reserve System (Monetary Policy)
• Controlling the money supply
– Reserve Requirement
– Discount Rate (Bank rate)
– Open Market Operations (Buy Governement Stocks
and Bonds back)
Fiscal Policy (The Governement
– Taxes, printing money, borrowing, spending, selling
assests.
Business Law
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The Food and Drug Administration (FDA)
Consumer Product Safety Commission (CPSC)
The Federal Trade Commission (FTC)
The Equal Employment Opportunity Commission (EEOC)
Occupational Safety and Health Administration (OSHA)
The Securities and Exchange Commission (SEC) protects
investors. The Environmental Protection Agency (EPA)
protects the environment.
• The government affects business through actions such as
making purchases, adjusting interest rates to influence the
economy, and supporting small businesses.
Business Law
• Socially responsible businesses
• Business ethics are guidelines for good
behavior.
World Of Marketing
• A SWOT
• A marketing plan written plan for marketing
ideas
• Target market- Who you are selling to!
– demographics, geographics, psychographics, and
buying behavior.
• Market segmentation
• Mass marketing is using a single marketing
strategy to reach all customers
Selling
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Personal selling is direct selling situations are retail, business-to-business (B2B),
and telemarketing.
Sell because to create relationships/help customers.
Consultative selling is providing solutions
A rational motive is a conscious, logical reason for a purchase.
An emotional motive is a feeling
Three types of customer decision making are extensive, limited, and routine.
Product information include direct experience, written publications, other people,
and formal training.
A prospect or lead is a potential customer.
Preparation for business-to-business selling is learning about
– Customer, their needs, finances, and their authority to buy
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Retail selling- Working in a store
– Including learning about products, stockkeeping, adjusting price tickets, and housekeeping.
Selling
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sales process are the approach,
determining needs,
product presentation,
overcoming objections,
closing the sale,
suggestion selling,
and relationship building.
Selling
• Present product to customer
• Objections are concerns,
• Common objections are based on five buying
decisions: need, product, source, price, and
time.
• The four-step method for handling customer
objections is listen, acknowledge, restate, and
answer.
Selling
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The substitution method is used when the customer does not like what he or she has seen.
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The boomerang method is used when an objection can actually be considered a selling point.
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The question method is useful when the objection might not be valid.
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The superior-point method lets the salesperson acknowledge an objection as valid, but offer
another point that might offset or compensate for the objection.
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The denial method is useful when the customer's objection is based on misinformation or when the
objection is in the form of a question or inquiry.
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The demonstration method lets the product prove its own value through a demonstration.
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The third-party method is useful when another customer has given a positive testimonial about the
product.
Selling
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Section 15.1
Customer buying signals include facial expressions, body language, and comments.
closing a sale recognize closing opportunities, help customers make a decision,
create an ownership mentality, do not talk too much, and do not rush.
The three specialized methods for closing a sale are the which close, the standingroom-only close, and the service close.
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Suggestion selling fter commitment to buy, but before payment
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Three specialized suggestion selling methods are (a) offering related merchandise,
also referred to as cross-selling; (b) selling larger quantities, also referred to as upselling; and (c) calling attention to special sales opportunities.
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Customer relationship management (CRM) involves finding customers and keeping
them satisfied. It can include lead generation, customer service, loyalty programs,
and after-sale activities.
Selling
• sales, debit card sales, credit card sales, layaway sales, on-approval sales,
and COD sales. You may also handle returns, exchanges, and allowances.
• A Universal Product Code (UPC)
• purchase order includes the item number, quantity, description, unit, unit
cost, and total (extension) for each item ordered. When filling an order, a
vendor prepares an invoice. The invoice includes all of the information on
a purchase order plus tax and shipping charges.
• free-on-board (FOB) {Deliver.} The seller may pay all shipping charges, pay
some, or pay nothing.
Channel Management
• A channel of distribution is the path a product takes
• Channel members (consumer products)
– manufacturers/producers, agents, wholesalers, retailers, and
consumers.
• Channel members (industrial products)
– manufacturers/producers, agents, industrial distributors, and
industrial users.
• Distribution intensity may be exclusive, selective, or intensive.
• The Internet has allowed more and more business-to-business
(B2B) transactions to happen online. It can provide one-stop
shopping and substantial savings for industrial buyers.
• Foreign market-planning and adjusting to culture
Channel Management
• Physical distribution or logistics
– involves transporting, storing, order processing, stock handling,
and inventory control of materials and products.
• How to Transport: marine, air, pipeline, and land
transportation.
• Transportation service companies handle small- and
medium-size packages.
• Storage is the marketing function of holding goods until
they are sold (Warehouses)private warehouses, public
warehouses, bonded warehouses, and distribution centers.
• Globalization- follow import/export laws
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Marketing- Information Management
• Marketing information is used to identify marketing
opportunities, solve marketing problems, develop and
implement marketing plans, and monitor marketing
performance.
• Database marketing/customer relationship management
(CRM), istore and sort information about customers.
• Marketing research is usually divided into two broad types:
quantitative and qualitative.
• The highly competitive marketplace has made research into
product quality and customer satisfaction particularly
popular.
• Marketing research has limitations
Marketing- Information Management
• Define the problem, obtaining data, analyzing the data,
recommending solutions, and applying the results.
• Primary data first source. Secondary Data-someone elses’s.
• The marketing research report
– title page; acknowledgments; table of contents; list of tables,
figures, charts, and graphs; introduction; review of the research
information; procedures used; findings; recommendations;
summary and conclusions; appendixes; bibliography.
• Marketing surveys may include open-ended and forcedchoice questions.
• Marketing Research explain and don’t be selective
Product and Service Management
• Prodcut planning- (1) generating ideas, (2) screening ideas,
(3) developing a business proposal, (4) developing the
product, (5) testing the product with consumers, (6)
introducing the product (commercialization), and (7)
evaluating customer acceptance.
• Product mix/strategy- Products you offer.
• The product life cycle has four stages: introduction, growth,
maturity, and decline.
• The goal of product positioning is to set the product apart
from the competition.
– price and quality, features and benefits, in relation to the
competition, or in relation to other products in a line.
Product and Service Management
• A brand is a name, term, design, or symbol (or a combination of
these elements) that identifies a product or service. A brand is one
of a company’s most important assets and a powerful tool in the
marketing and selling process.
• The three types of brands are national, private distributor, and
generic.
• Branding strategies include brand extensions, brand licensing,
mixed branding, and co-branding. Effective use of different brand
strategies can increase sales of branded products and maximize
company profits.
• Packaging
– promoting and selling the product, defining product identity, providing
information, expressing benefits and features to customers, ensuring
safe use, and protecting the product.
• The main functions of a label are to inform customers about a
product's contents and give directions for use (liabilities
Product and Service Management
• Warranties have two forms: express and implied.
(warranties help sales)
– Full and limited warranties are examples of express
warranties.
• The Consumer Product Safety Act and the Food,
Drug, and Cosmetic Act were both designed to
ensure product safety.
• You can seek legal action if a product fails at its
promise
• Credit-get it now!
Pricing
• Price is the value (in money or its equivalent) placed on a good or a
service. There are many forms of price: fees, fares, tuition, rent, wages,
commissions, etc.
• Success? It establishes an image, a competitive edge, and determines
profits. Revenue = price x quantity sold.
• The goals = earning a profit, gaining market share, and meeting the
competition.
• Market share is a company’s percentage of total sales
• Market position is the standing a company has in its market
• Four market factors affect pricing: costs and expenses, supply and
demand, consumer perceptions, and competition.
• Government regulations control price fixing, price discrimination, resale
price maintenance, minimum price, unit pricing, and price advertising.
Pricing
• There are six steps in the process of
determining a price: establishing pricing
objectives, determining costs, estimating
demand, studying competition, deciding on a
strategy, and setting the actual price.
• Technology helps
Pricing
• Gross profit is the difference between sales
revenue and the cost of goods sold.
• The basic formula for a retail price is Cost +
Markup = Retail Price.
Promotion
• Businesses use promotion to inform, enhance image and
reputation, and persuade people
• Nonprofit organizations use promotion to educate
• Promotion is inform, persuade, or remind people about its products
and its image.
• The five basic categories of promotion are personal selling,
advertising, direct marketing, sales promotion, and public relations.
• The promotional mix is a combination of strategies
• A sales promotion is a short-term incentive given to encourage
consumers to buy
• Loyalty marketing programs reward customers for repeated buying
Promotion
• Visual merchandising has four elements: storefront,
store layout, store interior, and interior displays.
• Display arrangements can be architectural displays,
store decorations, open displays, closed displays, and
point-of-purchase displays.
• Visual merchandisers must coordinate with other
marketing ideas
• The five steps in creating a display are selecting the
merchandise for display, selecting the display, choosing
a setting, manipulating artistic elements, and
evaluating the completed display.
• Display maintenance is important- can be poor image
Promotion
• Advertising is to encourage the customer to buy
• The different types of advertising media are print
media, broadcast media, the Internet, and
specialty media.
• Media measurement how many people it reaches
• Media costs vary
• Four common methods of setting a promotional
budget are percentage of sales, all you can afford,
following the competition, and objective and
task.
Promotion
• An advertising campaign coordinates a series of ads around a theme.
• Ad agencies specialize in developing ad campaigns and crafting ads for
clients.
• Print advertisements usually contain four key elements: headline, copy,
illustrations, and signature and slogan
• Businesses need to follow ad layout principles when developing print
advertisements. Some basic principles are that the ad should grab
attention through size, humor, or dramatic content. Have a focal point
• Color is best, but cost more
• Typefaces and sizes can add a distinctive look that is appropriate for the
business and the target audience. Sans serif typefaces are easier to read.
Ads can gain variety and emphasis by using different sizes of typefaces,
italics, boldface, and combinations of capital and lowercase letters.