DECA Notecards 1-125
EI:019 Exhibit a positive attitude
"There's nothing fun about working except getting paid." A negative attitude is an outlook that focuses on the bad side of things. The other alternatives represent indifferent attitudes. They convey an outlook or feeling of disinterest and unconcern that is neither positive nor negative.
EI:077 Manage commitments in a timely manner
A perfectionist. Perfectionists are people who refuse to accept any standard short of perfection. They want to excel at everything and reach all of their goals. If you find yourself wanting to be the best at everything and struggling to accept that you have limits, you might be a perfectionist and struggle with overcommitment. There is no indication that you might be afraid of commitment, disorganized, or affected by technology.
EC:009 Explain the concept of private enterprise
Consumers. Each time consumers make a purchase they cast their economic vote, and these votes enable consumers to control what will be produced. The government has limited power and should only step in to protect citizens. The competition would be the other manufacturers that sell the same or similar products. The manufacturer would only determine what is to be produced.
: CM:007 Coordinate channel management with other marketing activities
Purchasing. A company's purchasing department negotiates pricing and orders products from suppliers to service customers and keep the operation going. A promotion might require an additional product for a specific time. Therefore, the marketing manager needs to advise the purchasing department to order additional items for the promotion. The shipping department coordinates the movement of materials from the warehouse to the transportation channels. An accounting department is responsible for the company's financial matters. The customer service department troubleshoots issues, such as placing orders or handling returns, between the company and the customer.
CM:003 Explain the nature of channels of distribution
Retailers. Retailers are businesses that buy consumer goods or services and sell them to the ultimate consumer. Walmart, Domino's, and Avis Rent-a-Car all sell directly to consumers. Wholesalers are businesses that buy goods from producers or agents and sell to retailers. Agents assist in the sale and/or promotion of goods and services but do not take title to them. Industrial distributors are intermediaries that buy industrial goods and services and sell them to industrial users.
EC:006
1 to 2. If the price of one product is $15.00 and another product is $30.00, they have a price ratio of 1 to 2 since one product has twice the value of the other product. If the price of each item were to double, they would still have the same price ratio. Whether a person bought the branded shirt or the unbranded shirt would be determined by the value of the item to the consumer. 15 to 30, 1/2, and 2 are not correct price ratios in this case.
CM:021 Explain the nature of affinity partner relationships
A credit card company offers cards with sports teams' logos. Affinity marketing is a strategy in which an organization solicits responses from a group that shares a common interest or activity. If a credit card has a sports team's logo on it, fans of that team might be more likely to choose that particular company. An airline that offers frequent flyer miles is not an affinity partnership because there is no relationship between the airline and another organization; rather, this is an example of frequency marketing. A restaurant giving discounts to members of its rewards program is also an example of a frequency marketing strategy. Finally, a bank that pays to have its name on a local concert venue is engaged in a sponsorship, rather than an affinity partnership.
CO:031
A quote stating the number of children who are homeless. To capture the attention of readers, a persuasive letter must grab their attention and get them in a receptive mood. Jana's job qualifications and other types of background information, such as the number of rooms in the shelter, should not be presented until the readers understand why it is important for them to hear this message. Asking the readers to do something to help should come after the readers have been persuaded that the cause or topic of the letter is important.
CM:006 Describe ethical considerations in channel management
A slotting allowance. A slotting allowance (also known as a slotting fee) is a payment from a manufacturer to a distributor or retailer to ensure that a product appears on the shelf. Coercion is the use of force or threats to persuade someone to do something. The gray market is the sales of goods or securities through unofficial means not authorized by the original manufacturer. Exploitation is the action of treating others unfairly and taking advantage of them to profit from them or benefit oneself.
CO:014 Explain the nature of staff communication
An opportunity for feedback. Staff communication should not be a one way street. Maintaining open lines of communication in a business setting is important, and employees need to feel comfortable giving feedback to their coworkers and supervisors. Staff communication is not an optional formality; it's a crucial part of running a successful business. It should be continual, not saved for individual performance reviews or contained in one meeting.
CM:005
Antitrust. A tying agreement is an illegal arrangement that occurs when a business requires a customer to buy other products in order to obtain the goods and services that the customer really wants. To protect individuals and businesses, many governments develop regulations known as antitrust laws that protect individuals and businesses from unfair practices that restrain trade and competition. Probate laws involve estate issues. Zoning laws regulate property uses. Infringement laws address intellectual property issues.
CO:082
Applauding. When the audience applauds or claps, it is showing that it supports what the speaker is saying. Applause encourages the speaker to continue expressing his/her thoughts. Heckling or making fun of someone is an action that indicates disapproval. When people ignore the speaker, they are not actively listening to the speaker and not indicating their support. If a person tolerates another individual's opinion, s/he does not necessarily agree with an opinion, but supports the individual's right to express that opinion.
BL:069
Appropriation. Torts are civil wrongdoings that cause harm or injury to another party. Appropriation, wrongful interference, defamation, and conversion are four kinds of torts. Appropriation, which Brix Beauty Salon committed, involves a business or person who uses—without permission—another person's name, likeness, and other unique characteristics for the benefit or gain of the user. Brix Beauty Salon used the celebrity's name and picture to attract customers to the salon. Unfortunately, Brix had not obtained permission to use the celebrity's name or likeness. As a result, the celebrity could sue Brix for appropriation. Wrongful interference consists of predatory behavior undertaken by a business to draw either customers or employees away from a competitor. Defamation involves making false, malicious statements about a person or organization. Conversion occurs when personal property is taken from the owner and given to someone else to use.
CO:063 Participate in a staff meeting
Ask questions to clarify the information. It is better to ask a question to clarify information than to point out that someone is wrong. Besides, Darrell may not be aware of recent changes in copyright law. Inviting another person to a meeting to prove his point would be considered rude, and others might doubt his ability to trust their judgment or support them in the future. It's important to avoid embarrassing coworkers, but if Darrell has valid concerns, politely sharing them is the best course of action.
FI:351 Discuss the role of ethics in accounting
Asset. Assets are anything of value that a business or individual owns. Assets can be cars, laptops, jewelry— even loans extended to other parties, because that person is owed that amount. Because Jaclyn loaned Kate $1,000, that money is an asset for Jaclyn (and a liability for Kate.) A liability is a debt, usually money, that a business or individual owes. Salaries are money payments for labor. Protocol is the established set of rules that govern behavior within an organization.
CM:021 Explain the nature of affinity partner relationships
Attracting new customers and building trust. Affinity marketing is when two or more businesses partner together to promote and sell products and grow their customer bases. When performed successfully, affinity marketing can attract new customers, build trust, raise brand awareness and identity, strengthen credibility, and build loyalty. Alienating customers, lowering brand identity, and decreasing brand awareness are not results of successful affinity marketing.
CM:008 Explain the nature of channel-member relationships
Authority to demand cooperation. Strong leaders have the authority and power to influence others and direct the actions of others. A channel of distribution that has strong leadership is often able to avoid conflict within the channel because the leader has the authority to set goals for the entire channel and demand cooperation, which reduces the possibility of conflict. The leader's authority makes it possible for the leader to assign specific responsibilities to each channel member and persuade members to accomplish their individual tasks. When each member is cooperating and working for the good of the channel, there is less chance of conflict. It is not necessary for the leader to develop friendships. Channel leaders usually do not provide training. It is not possible to regulate change, although an effective leader will help channel members adjust to change.
BL:002
Bilateral contract. A bilateral contract is a mutually beneficial agreement between two parties in which both parties promise to perform certain activities. In the example, one company makes a promise to ship a certain product by a certain date, and the other company promises to pay for the products within a certain amount of time. An executed agreement is an agreement or contract that has already occurred. Exempt contract and defensible agreement are fictitious terms.
CO:086
By value. When information is organized by value or size, either the least valuable (i.e., smallest or least expensive) or most valuable (i.e., largest or most expensive) item is listed first, followed by other items in ascending (if starting with the least valuable) or descending (if starting with the most valuable) order. The professional wedding photographer, for instance, is organizing her photo packages in order from least expensive to most expensive so that customers can quickly determine what is available to them at different price points. Some information can also be organized by geographic location, such as by state, county, or city. Information organized in inductive order begins with facts and examples and ends with conclusions. Information organized deductively, on the other hand, presents the conclusions or main ideas first, followed by facts and examples that support the conclusions or main ideas. The professional wedding photographer is not organizing her photo package information inductively, deductively, or by location.
BL:069 Identify the basic torts relating to business enterprises
Intentional, negligent, and strict. Intentional torts occur when a party purposely committed wrongdoing; negligent torts occur when a party fails to adhere to standards or duty; and strict torts bypass the issue of intention or negligence and often involve product liability. Loose is not a recognized type of tort.
CO:017 Demonstrate active listening skills
Casually listening to a podcast. Passive listening occurs when a person listens without giving his/her full attention, such as casually listening to a podcast. Daydreaming during a lecture is an example of distracted listening. Carefully listening to a friend and paraphrasing a speaker's message are both elements of active listening.
CO:086 Organize information
Chronological order. There are several methods of organizing information, including chronological order, order of importance, comparison and contrast, and geographical organization. Chronological order involves listing information in a sequence of dates or time frames, like Marty did in this example. Order of importance involves organizing data around the significance of the information. The comparison and contrast method involves organizing information according to its similarities and differences. Geographical organization involves organizing information according to the location it is associated with.
CO:086 Organize information
Chronological order. Using a chronological organizational method involves sequencing events in the order in which they occurred. For example, Stephanie would use chronological order to show her supervisor how the team took actions over the course of several weeks in the order that those actions were taken. Most important to least important, inductive order, and compare and contrast are all methods of organization, but they would not work well for Stephanie's purpose and instead would be confusing ways to organize a progress report.
CM:006 Describe ethical considerations in channel management
Coercion. Coercion is an attempt to gain compliance through threats or by bullying. When a channel leader places unreasonable pressure on a channel member to do something that is not in the best interest of the channel member, it is using coercion. For example, a channel leader that yields a lot of power in the distribution chain may set unrealistic sales goals for a dealer, or it may pressure a supplier to lower its prices to a point that it hurts the supplier's profits. Coercion tends to create channel conflict, leads to unfair and unsatisfactory business relationships, and often disrupts the distribution process. Control is a management function that monitors the work effort. Deception is misleading behavior. Diplomacy is tact.
EI:062 Demonstrate negotiation skills
Competitive. A competitive negotiation style occurs when one or both parties view the situation as a rivalry or game-like challenge. Jocelyn embraces the competitive style of the "I must win, so you must lose" mentality. Someone who uses an avoidant style does what they can to steer clear of an uncomfortable or unpleasant experience. People who accommodate others might find themselves doing or agreeing to something they don't really like. Collaboration builds lasting relationships by embracing an "everybody wins" attitude.
EC:002
Consumer services. Services are intangible activities that are performed by others for money, and consumer services are those services that are purchased and actually used by the ultimate consumer. A dry cleaner that launders and presses shirts is selling a service to the ultimate consumer, the person who owns the shirts. Specialty goods are consumer goods with special or unique characteristics that consumers are willing to exert special efforts to obtain. Tangible items are capable of being touched, smelled, tasted, seen, or heard. Industrial supplies are goods that are constantly being purchased and used up in the operation of a business.
BL:126 Describe the nature of customs regulations
Control the flow of goods into and out of the country. Customs regulations are in place to protect a country's economy, environment, citizens, and jobs by controlling the flow of goods into and out of the country. Customs regulations are not intended to prevent anything foreign from entering the country, or to prevent immigration. Customs regulations are not related to the traditions of a country.
FI:063 Explain legal responsibilities associated with consumer financial products and services
Good faith money. Good faith money is typically deposited by a buyer into an account to indicate their intention of completing a business deal (i.e., to show "good faith"). Holding cost is the money it takes to keep inventory in stock. A mutual fund is a pool of shareholder's money invested by professional managers in an assortment of different securities. A statement of income is a financial summary that shows how much money the business has made or has lost over a period of time.
EI:022 Demonstrate honesty and integrity
Demonstrating integrity. A person with integrity adheres to an established set of personal ethics and sound moral principles. The foundation of Anna's personal ethics is the "golden" rule—treat others the way that you expect to be treated. When Anna saw a coworker bullying another coworker, Anna demonstrated integrity by calmly reminding the bully (Brenda) about the "golden" rule. In this situation, Anna did not exhibit cultural sensitivity or recognize another person's contributions. Because the situation involves three coworkers, Anna does not have workplace authority over Brenda and Sam.
CR:004 Demonstrate a customer service mindset
Devote their full attention to customers. Maintaining a customer-service mindset requires employees to set their minds on customers. They should not become distracted by other things around them, such as songs, conversations with coworkers, or what they will be doing after work or during breaks. Distractions turn their focus away from customers and prevent them from providing quality service.
EC:103
Division of labor. Separating a big job into several smaller tasks is an organizational principle known as division of labor. When employees specialize in certain tasks such as making bike chains or assembling wheels, they are able to perform their jobs more efficiently. The Valley View Corporation is not practicing insider trading in this example, an illegal practice in which undisclosed information is used to make a profit. The corporation may be implementing project management as a broader corporate strategy, but it is difficult to tell from this example. The company is not practicing outsourcing of labor; its employees work in the company's own factory.
BL:003 Explain types of business ownership
Execute a joint venture. A joint venture is an arrangement that involves two or more businesses entering into a relationship by combining complementary resources such as technology, skills, capital, or distribution channels for the benefit of all parties. The relationship is usually short term and involves the execution of a single project or transaction. A partnership is a form of business ownership in which the business is owned by two or more persons. Licensing is a business structure that requires the authorization or permission of an owner for another entity to use trademarked, copyrighted, or patented material for a specific activity, during a specific time period, for the profit of both parties. A franchise is a contractual agreement between a parent company and a franchisee to distribute goods or services.
EC:018 Determine the impact of business cycles on business activities
Expansion. Each business cycle begins with an expansion, or growth, in economic activities. It is a time of economic prosperity. During this phase, consumers and producers have a hopeful outlook about business. A contraction is a period of diminishing economic activity. A recession occurs when a widespread economic contraction lasts for an extended period of time. Stagnation is not a business cycle phase.
CO:087 Select and use appropriate graphic aids
Explain relationships. Graphic aids help clarify, reinforce, and summarize information. Flowcharts help explain relationships. For example, an organizational chart illustrates a business's chain of command. Flowcharts may also show the ways in which sequential processes work, such as project management. Line graphs are often used to illustrate timelines and to identify trends. Bar charts are effective graphic aids to compare and contrast data. Tables are often used to summarize complex numerical data.
EC:104 Discuss the global environment in which businesses operate
Exporting to foreign countries. If a business doesn't want to pay to set up operations overseas, it might choose to expand through exporting. With exporting, a business simply ships its products to other countries. Joining a strategic alliance, establishing a multinational firm, and creating a wholly owned subsidiary are all options that require the time, effort, and money of setting up overseas operations.
EI:003 Explain the use of feedback for personal growth
External. External feedback is feedback that comes from sources outside yourself. These sources include friends, classmates, family, teachers, counselors, principal, employer, etc. Internal feedback comes from within yourself. A compliment is a form of positive feedback, not negative. Since the compliment was in the form of a written note, it was not oral, or spoken.
CO:083 Give verbal directions
Give directions in the proper order. It's much easier for your listeners to follow along if you give directions in the order in which they should be completed. Raising your voice isn't necessary when giving directions; in fact, it may intimidate your listeners. Your directions should not be challenging, even if the task itself is challenging. If you choose to demonstrate how to complete the directions, you should show how to do each step, not just the final ones.
: IM:025 Explain the role of ethics in marketing-information management
Implementing procedures to protect the privacy of survey respondents. Taking steps to protect the privacy of survey respondents is an ethical action. Manipulating feedback, distributing personal information without permission, and using complex email opt-out processes are unethical behaviors.
BL:073 Discuss the nature of environmental law
Increase operating costs. Environmental laws are intended to conserve and protect the natural environment. Many of these laws have an impact on the way businesses operate by requiring them to decrease pollution or control waste. As a result, businesses often need to spend money to comply with the rules and regulations, which leads to an increase in operating costs. For example, a business might need to purchase pollution-control devices. Environmental laws do not require businesses to hire more employees or develop exterior landscapes. The laws do not limit equipment purchases. In fact, businesses may need to buy more equipment to comply with the laws.
CR:001 Identify company's brand promise
Indirect. A taxi service and a bus service compete with each other indirectly. They are not the same type of product, but they still strive to win scarce customer dollars. Understanding competition—both direct and indirect—is an important step in identifying and carrying out brand promise. Indirect competition is not referred to as friendly, unnecessary, or incomplete.
EC:045 Discuss the impact of cultural and social environments on global trade
Individualist society. A society in which group ties are very loose is known as an individualist society, according to Hofstede's dimensions of national cultures. A collectivist society is integrated into strong groups. An uncertainty-avoiding society is known for liking rules and structure. A "feminine" society values the qualities of caring, quality of life, etc.
EC:111 Describe the impact of electronic communication tools (e.g., Internet, video- and computer-conferencing, webcasts, email) on global business activities
It can be difficult to discern tone and meaning. Because email is written with abbreviations, short descriptions, and is often written quickly, meaning and tone can be misunderstood. Someone can easily misinterpret your email, which can create conflict that would not occur in an in-person conversation. Technological problems that stall conversation are not necessarily an issue with email because it is not generally an instantaneous conversation. This issue is more of a problem with video conferencing or webcasts. Email is not too friendly and personal; rather, it can be impersonal. Email is not detrimental to the environment; rather, it is better for the environment than paper communications.
CM:004 Describe the use of technology in the channel management function
It increases efficiency throughout the channel. Technological tools can help increase the overall efficiency throughout the channel. For instance, automatic order systems and order tracking technology can improve efficiency and productivity in packing and shipping activities, delivery lead times, and the overall transparency of the delivery process. This transparency in the delivery process improves customer service, as it tells customers when they can expect their orders. Technology improves collaboration along the channel and makes it easier to monitor progress
EC:006 Describe the functions of prices in markets
It refers to the ratio between two separate prices. Relative price is one price compared to another. In other words, it's the ratio between two prices. Equilibrium price—the point at which the quantity of a product that buyers want to buy is equal to the quantity that sellers are willing to sell at a certain price—is equal to both the demand price and supply price. Demand price is the maximum price buyers are willing and able to pay for a product. Supply price is the minimum price producers are willing and able to receive for a product.
CR:016 Discuss the nature of customer relationship management
It uses touchpoints to allow the customer to learn something valuable about the company. Customer experience management includes the strategies, processes, and policies a business uses to meet or exceed customer expectations and to provide customers with outstanding experiences at every touchpoint. The goals of CEM and CRM are similar; the main difference is in perspective. CEM uses touchpoints to allow the customer to learn something valuable about the company. CEM looks outward, and its focus is on customer needs and wants (also known as customer-centric focus). CRM looks inward, and its focus is on the business itself. CRM uses touchpoints to learn something valuable about the customer. CRM asks, "How can we track customer information and use it to our best advantage?"
EC:023 Explain the impact of the law of diminishing returns
Law of diminishing returns. The law of diminishing returns is an economic concept that states that if one input increases while others are constant, at some point the increases in output will decline. In this example, Kelly added six new employees to her business without changing anything else. Kelly's business reached the point at which output could no longer increase unless the inputs also increased. This example demonstrates the law of diminishing returns, not the need for effective employee training, the harm of taking business risks, or the danger of hiring employees.
CO:203
Location. People in different geographic areas often refer to certain things using different terms. For example, people in some parts of the U.S. refer to soft drinks as "pop," while individuals in other parts of the country call soft drinks "soda." Since the company is choosing its words based on the language preferences of a certain location, it is not taking ethnicity, education, or income into consideration.
EC:140 Discuss the impact of bribery and foreign monetary payments on business
Loss of customer trust. If news gets out that a company has been engaging in corrupt business practices, the company can suffer from the loss of customer and public trust. Customers generally do not support corruption in business and will refuse to buy from a business that engages in bribery or other fraudulent practices. Other potential results of corruption include decreased business efficiency, loss of resources, and an increase in black market crime and other types of organized fraud. Companies that engage in corrupt business activities generally do not enjoy greater efficiency or increased resources.
CO:061 Defend ideas objectively
Maintain a growth mindset. When receiving feedback, it can be hard to remain objective. Maintaining a growth mindset can help you see feedback—especially critical feedback—as opportunities to learn and grow. This will help you limit any feelings of defensiveness. Responding without pause, automatically giving in to other people's ideas, and standing your ground are not responses that will help you remain objective when receiving feedback
EI:025 Demonstrate self-control
Make an effort to remain calm. In some cases, acting calm will actually help you be calmer. Using language to vent your anger indicates you have lost your self-control. Frowning and being defensive are negative responses that will not help you maintain your self-control.
EC:004 Determine economic utilities created by business activities
Marketing. The marketing concept is a philosophy of conducting business that is based on the belief that all business activities should be aimed toward satisfying consumer wants and needs while achieving company goals. While utility and the marketing concept go hand in hand, the utility concept is not a term commonly used to refer to the marketing concept. The marketing concept is also not typically referred to as the customer concept or the relative concept. SOURCE: EC:004 Determine economic utilities c
CO:059
May not be interpreted accurately. There are several interpretations for each form of nonverbal communication. If the listener misinterprets what s/he sees, communication will be inaccurate. For example, folding your arms across your chest could mean that you have reservations about what you are hearing, you disagree with it, you are displeased, or you are defiant. Nonverbal communication is more common than many people realize, and many successful leaders practice nonverbal communication skills.
CO:090 Write professional emails
Meeting Monday at noon. It's important to write an email subject line that accurately and specifically describes what is in the email. If you use a vague subject, like "Hello!" "Can I ask you a question?" or "FYI," your recipient might not even open the email. An email subject should summarize the main point of your email.
CR:005 Reinforce service orientation through communication
Molly nodded and maintained eye contact as Ms. West explained the problem with her computer. Having a service orientation involves expressing a positive, helpful attitude with the business's customers. Employees' gestures and facial expressions convey their attitudes, which customers often believe is a reflection of the business's attitudes. Because Molly nodded and maintained eye contact with Ms. West while she was explaining a computer problem, Molly was indicating that she was listening and willing to help her customer. Employees are not exhibiting a service orientation by behaving rudely, which may include rolling their eyes, crossing their arms, and being impatient with customers. Tristan was demonstrating a service orientation through his verbal rather than his nonverbal communication.
CO:114
Name, organization, and telephone number. Effective message taking is an important part of handling telephone calls in a businesslike manner. So that Pablo's coworker can return the telephone call, Pablo needs to ask for and write down the caller's name, the name of the organization that the caller works for, and the caller's telephone number. The message taker should obtain the caller's full (first and last) name because it is possible that the caller's organization has more than one employee with the same first or last name. The caller's zip code and address are not critical information to record when taking a telephone message.
EI:027 Develop an achievement orientation
Objective measure. By deciding that she is going to read no fewer than 20 pages per day during her spring break, Christine has set an objective measure for her success. If she reads fewer than 20 pages per day, she will not consider her goal to have been achieved. In this scenario, Christine is not basing her success on outperforming others, past performance, or trying something new. In fact, trying something new is considered a standard of excellence for achievement orientation rather than a standard for success.
EI:077 Manage commitments in a timely manner
Overcommitted. Being overcommitted means committing to more than what is possible, necessary, or desirable. People who are overcommitted have countless obligations, events, and tasks each day. Their calendars are stuffed to the brim, and they rarely have any free time. A perfectionist is someone who refuses to accept any standard short of perfection. Determining the order of completion based on importance is prioritizing. Goal setting is the ability to visualize, set, and focus on achieving objectives. Rachel is not necessarily demonstrating perfectionism, prioritization, or goal setting.
CO:094 Prepare simple written reports
Overview of work completed and planned. Daily activity reports are a type of simple written reports that outline the work completed, problems and concerns, and work to be done. They usually are fairly short. They may, in some cases, provide a basis for recommendations or a permanent record, but that is not their basic purpose. Quarterly management reports indicate a company's progress toward meeting its goals and objectives and evaluate problems hindering achievement of those goals.
CM:007 Coordinate channel management with other marketing activities
Place. Place is a marketing element focusing on considerations in getting a selected product in the right place at the right time. By coordinating channel management—the processes by which marketers ensure that products are distributed to customers efficiently and effectively—with the place element of the marketing mix, Darius makes sure each product is in the best location for customers to access and purchase. The product element of the marketing mix refers to what goods, services, or ideas a business will offer its customers. The promotion element refers to the various types of communications that marketers use to inform, persuade, or remind customers of their products. The price element requires marketers to determine the amount of money they will ask in exchange for their products.
CO:017
Poor lighting and noise. Environmental distractions, such as poor lighting or noise, are aspects of the setting that take away from a listener's ability to listen. The speaker's appearance, manner, and personal matters that cause us to worry may also be distractions, but they are not part of the environment.
CM:008
Positive; reducing. Competition or price wars between two dealers or retailers usually ends up having a positive impact on customers by reducing prices. Without competition, one company (a monopoly) would be able to increase prices to any level it wished. This would have a negative impact on consumers and would inflate market pricing.
EC:004 Determine economic utilities created by business activities
Possession. Possession utility is created when ownership of a product is transferred from the seller to the user. Possession utility can be created through promotions which increase consumer demand for goods. Businesses also help create possession utility by offering a number of purchasing arrangements that make it easy for customers to buy. Financial is not a type of utility. Time utility is having the products available at the time they are desired. Creating place utility means having the products, both goods and services, available at the place where they are needed by the consumer.
CM:003 Explain the nature of channels of distribution
Producer to wholesaler to retailer to consumer. In this situation, the producer sells to Aaron's (wholesaler) which sells to a variety of local stores (retailers) that sell to the final consumer. In producer to agent to consumer, there is no agent involved and the local retailers are left out. In producer to agent to wholesaler to consumer, there is no agent, and the local retailers have been left out. In producer to retailer to consumer, Aaron's Fruit Warehouse has been left out.
CM:003
Producer to wholesaler to retailer to consumer. This is the most common distribution method for consumer goods. The manufacturer sells to the wholesaler, who then handles the sales, warehousing, and distribution of the goods to retailers. Producer to consumer is more likely to be used for direct contact by manufacturer to consumer, such as Avon. Producer to retailer to consumer is the channel used for merchandise that dates quickly or needs servicing, such as fashion items or automobiles. Producer to agents to wholesaler to retailer to consumer is used by producers who do not want to handle their own sales to retailers.
CM:001 Explain the nature and scope of channel management
Promoting products. Every channel of distribution promotes products, even if it's as simple as a direct distributor of babysitting services putting up fliers in the local ice cream shop. Channel members generally do not need to make any payments to retailers, as retailers are usually the last intermediary in the channel. Not all products need to be delivered to customers' homes. Not all channels of distribution require detailed marketing reports; sometimes, providing marketing information can be as easy as just talking or sending a quick email.
CR:002
Providing efficient follow-up. Customers often base their impressions of a business on the interactions they have with the business's employees. In the situation provided, Karl worked quickly to find out the status of the order and immediately called Mr. Schwarz with specific information about where the order was and when to expect delivery. This is an example of efficient follow-up. By providing efficient service, Karl is building favorable relationships with customers. There is not enough information provided to determine if Karl delegated work tasks to facilitate his follow-up activities or if he complimented Mr. Schwarz.
EC:018 Determine the impact of business cycles on business activities
Recession. A recession is a six-month's contraction in the gross domestic product (GDP). A recession usually results in rising unemployment and people having less money to spend on consumer goods. Excess demand exists when consumers want more goods than are available to buy. Inflation is a rise in prices that may occur when demand exceeds supply. A trade deficit results from more imports than exports.
CM:006
Reduces competition. Some businesses charge their vendors slotting fees to acquire retail shelf space. The purpose of a slotting fee is to cover expenses (e.g., labor, pricing) associated with carrying the product. Because slotting fees can be very expensive, small vendors with limited financial resources often cannot afford to pay slotting fees, which can limit or reduce competition. Activities that inhibit competition and support monopolies are unethical and in many situations, illegal. Slotting fees do not encourage economic growth, eliminate tax incentives, or support competing agreements.
CR:006
Responding to a customer's inquiry. Employees must be able to answer customers' questions about the business's products, including those regarding a particular product's stock levels and backorder status. If the employee does not know the answer to the customer's question, s/he should ask an employee who does know. Kayla is not answering questions about the product's features, determining the customer's buying motive, or using a merchandising approach to greet the customer.
EI:059 Motivate team members
Responsibility. Many people enjoy being given responsibility because it makes them feel valuable and respected. As a result, people are often driven to work hard in order to obtain greater responsibility. People who are given responsibility often feel honored that their unique talents and skills were recognized as ideal for a specific task or job. Pete is motivated to work hard because he has been assigned an important task, making him feel valuable and respected. It is not clear whether this task will advance his career, make an impact on society, or lead to self-improvement.
EI:021 Demonstrate responsible behavior
Responsible. People are able to trust and rely on individuals who display responsible behavior. Assertive behavior is characterized by respect for one's personal rights as well as for the rights of others. Aggressive behavior respects personal rights at the expense of the rights of others. Routine behavior or activities are those that are done on a daily basis.
CO:089 Edit and revise written work consistent with professional standards
Revised. Revision is the act of making large, overarching changes to a document's content and structure. When Gertrude made large structural changes that impacted her report's content and organization, she revised the report. Editing involves making small, sentence-level changes to a document that typically don't impact its content and organization. Proofing typically involves checking for spelling or grammar errors. A document is typically only published after it has been revised, edited, and/or proofread.
EI:135 Use power appropriately
Reward. When people use reward power, they rely on incentives and prizes to motivate their followers to behave a certain way. For example, a team leader might offer to take her teammates out to dinner if they complete their project before its deadline. People who have authority, such as government officials, have legitimate power—the power of position or role. People with legitimate power have the formal or legal right to give directions and commands to others. When people are able to attract the loyalty and respect of others, they have referent power. When an individual has information or knowledge that other people do not have, they have informational power.
EI:016 Explain the concept of self-esteem
Seeing an advertisement for a job and feeling that you could handle it. Self-esteem is how you feel about yourself at any given time. Your level of self-esteem can fluctuate from high to low. Feeling that you could do a job you have read about would indicate your level of self-esteem is high. Imagining how you would feel if you had already graduated is an example of visualization that can be used to support self-esteem. Always putting others ahead of yourself and thinking you are good at making mistakes indicates a low level of self-esteem.
CM:001 Explain the nature and scope of channel management
Selective. Selective distribution is a distribution pattern in which a producer sells a product through a limited number of middlemen in a geographic area. Multiple distribution is distributing a product through many different channels. Exclusive distribution is when a producer sells a product through just one middleman in a geographic area. Intensive distribution is when a producer sells a product through every available wholesaler and retailer in a geographic area where consumers might look for it.
EI:003 Explain the use of feedback for personal growth
Shows you what areas to improve. Feedback can be very valuable because it shows you how you are doing. If you know what you are doing wrong, you can change that behavior in the future. Feedback does not necessarily reinforce your own opinions, as others may have a different view of you than you have of yourself. Feedback should address your strengths and weaknesses, not those of others. You should not allow negative feedback to make you defensive. People who are defensive are easily angered or upset by criticism or suggestions perceived as criticism, and this prevents them from benefiting from feedback.
CM:004 Describe the use of technology in the channel management function
Some businesses have the capacity to distribute most or all of their products through the Internet. Some businesses provide pure services that do not require the use of intermediaries. For example, it is possible for business consultants or freelance copyrighters to deliver their services directly to the end users through their websites. Many financial services, such as bank loans and stock trades, can be completed online without the use of intermediaries. Because some businesses are bypassing intermediaries and selling products directly to the end users through their websites, vertical conflict among channel members continues to be a problem. When businesses decide to sell directly to consumers, the number of intermediaries they use is reduced. In many ways, technological advancements make the distribution process more efficient. For example, extranets make it easier for channel leaders to monitor channel activities and for channel members to communicate with one another.
FI:077 Explain types of investments
Stocks. A stock (or share) is a piece of paper—whether real or virtual—that says you own part of a corporation. As an owner (or shareholder) of this investment, you have the rights and responsibilities of ownership. But being an owner also means you risk losing money. Savings accounts, certificates of deposit, and bonds are all types of lending investments.
CO:119 Follow oral directions
Take notes. If a speaker is giving you multiple directions at one time, it may be useful to take notes. That way, as you complete your project, you can look back on them. If Sasha had taken notes in her situation, she'd know what to do next in her experiment. Eliminating distractions, making eye contact, and acknowledging directions are all important steps when it comes to following directions, but they are not steps that would help Sasha in this situation.
BL:145 Explain the nature of import/export law
Tariff. Tariffs are taxes on imported goods. When an imported product enters a country that requires a tariff, the merchant will pay a certain percentage of the product's value directly to the government. Many countries collect tariffs on imported products to protect domestic manufacturers. Tariffs, or import taxes, are not called export taxes, restrictions, or domestic fees.
EC:014 Analyze impact of specialization/division of labor on productivity
Task. Allen is only working at the counter. Because he works at the counter all the time and does not trade shifts with the new worker, he is not specializing by time or day. Seniority in this case has little to do with specialization because Allen's specific task was decided by the employer.
EC:007 Explain the types of economic systems
The government pays workers based on quantity rather than quality. In a communist command economy, most resources are allocated toward industrial goods rather than consumer goods. The few consumer goods that are available are often poor quality because the government pays workers based on the quantity, not the quality, of what they produce. People in communist command economies need consumer goods as much as those in other economic systems do. High taxes do not necessarily have a direct effect on production of consumer goods. Finally, people in a communist command economy do not consume everything that they produce; this is instead a characteristic of a traditional economy.
CM:004 Describe the use of technology in the channel management function
The overwhelming number of technology options. Using technology is a great way to improve overall channel management success. However, the sheer number of options for channel management technologies can be overwhelming for many companies. This is a common barrier to implementing channel management technology. Companies generally don't refuse to implement new tools because most companies understand the value of new technology. The possibility for increased productivity and efficiency is a benefit of using channel management technology, not a barrier to it. Employees are generally able and willing to learn to master new technologies.
EC:015 Explain the concept of organized labor and business
Their workers may hold a variety of different jobs. An industrial union is a union made up of a wide range of workers in the same industry, even though the workers may hold a variety of different jobs. Craft/Trade unions—unions made up of workers with a particular skill—include skilled laborers working in specific occupations, such as plumbers, carpenters, or machinists. Membership (and advancement) in a craft union is based primarily upon the degree of skill and experience possessed by the worker in a particular job. In an industrial union, new workers must successfully complete a probationary period and become permanently employed by a company to become members. Professional unions are unions made up of workers in the same profession (teachers, nurses) and are common in the public sector.
EC:010 Identify factors affecting a business's profit
There is no profit. Income is whatever money comes into the business, while expenses are monies that a business spends. The formula for profit is: Income - Expense = Profit. Therefore, if expenses are greater than income, there will be no profit for the business. Increased profits and decreased expenses are not direct results of a business's expenses being greater than its income. If a business's expenses are greater than its income, there will not be leftover income.
CM:003 Explain the nature of channels of distribution
They buy from producers and sell to retailers. Wholesalers are intermediaries that help move goods between producers and retailers by buying goods from producers and selling them to retailers. Wholesalers sell goods to retailers, not buy from them. Wholesalers buy from producers rather than sell to them. Producers contract with agents to sell goods to wholesalers or retailers. Wholesalers do not sell goods to agents.
: EI:005 Lead change
They embrace the opportunity to learn and grow. Change leaders are people who initiate and facilitate change at home, school, or work. Change leaders love to learn new things, and they embrace the opportunity to learn and grow. Rather than trying to maintain the status quo (the way things exist right now), change leaders aren't afraid to "go for it" and challenge the status quo. Change leaders care about more than just what is technically their responsibility—they are the type of people who constantly look for extra ways to help and contribute. Change leaders are independent, meaning they stand out from the crowd and do not go with the flow.
EC:084 Explain the economic impact of interest-rate fluctuations
Tight money supply. Many factors affect interest rates, including business cycles, consumer spending, inflation, and the money supply. If the money supply is low or tight, there is less money available to lend. This causes interest rates to increase. The government might implement policies to tighten the money supply when the rate of inflation rapidly increases. When investment spending increases, the money supply is usually loose, so interest rates are lower—it is cheaper for businesses and individuals to borrow money. During a recession, businesses are not expanding, unemployment increases, and consumer spending decreases. Because a recession negatively affects the economy, the government may implement policies that lower interest rates to stimulate commercial growth and consumer spending.
CO:054 Identify sources that provide relevant, valid written material
Timeliness. For certain types of information, it is crucial for the source to be up to date because data are always changing. Length and style are not necessarily indicators of reliability, though depending on the type of source, they may be important. The type of source does not always indicate reliability; many different types of sources are reliable.
EC:017 Explain the concept of Gross Domestic Product (GDP)
Use a price deflator. Inflation can distort GDP by making it higher, not because production has increased, but because prices are higher. A price deflator is an economic metric that converts prices to a base dollar value and allows GDP to be accurately compared over time. Double counting occurs when production is counted more than once. It is not related to inflation. The balance of trade is the difference between imports and exports. It does not relate to the effects of inflation on GDP. Nominal GDP is GDP that has not been adjusted to account for the effects of inflation. GDP that has been adjusted to account for inflation is called real GDP.
CM:008 Explain the nature of channel-member relationships
Vertical. Vertical conflict is a type of channel conflict that occurs between channel members at different levels within the same channel. Because both the manufacturer and the retail stores are upset with the wholesaler, this is an example of vertical conflict. Horizontal conflict is a type of channel conflict that occurs between channel members at the same level (e.g., two retailers). Internal conflict is conflicting thoughts or ideas within yourself. Dual conflict is a fictitious term.
CO:058 Ask relevant questions
What is your presentation about? Open-ended questions are those that require more than just a yes or no answer. If someone asked you what your presentation was about, it would require you to say more than just yes or no. But if someone asked you if you were ready for your presentation, if your presentation was finished, or if you needed a projector for your presentation, you would be able to answer with a simple yes or no. These questions are considered closed-response questions.
CO:025 Make oral presentations
When the speaker shares relevant information. Speakers should show visual aids to enhance their message when those charts, graphics, videos, etc., correspond with the specific information that they are presenting. It's not likely that an image will be relevant or appropriate for the entire presentation, and overuse may cause it to lose its impact. A visual aid might help engage a bored audience but would add little value if it isn't related to the material being shared. While visual aids may assist a speaker in summarizing their presentation, visual aids can also be helpful during the introduction or body of a presentation.
EC:070
Wholesaler. This kind of business provides goods used by businesses in their day-to-day operations. Taylor would go to a retailer if she was buying paper for herself. A service provider would not sell paper. A raw goods producer would be able to sell Taylor the materials to make her own paper, but not the paper itself.
