DECA Performance Indicators

Explain the nature of positive customer relations.

Customer relations involve finding customers and keeping them satisfied. It provides companies with the means to develop and nurture customer relationships, including lead generation, sales support, customer service, and other after-sales activities that generate a positive overall image of the company.

Describe the use of business ethics in promotion

Marketers have a responsibility for ethical behavior in promotion as it relates to advertising and sales. Marketers should avoid false or misleading advertising for products and services as well as pressure or misleading sales tactics and promotions.

Discuss motivational theories that impact buying behavior

Maslow's heirarchy of needs (physiological, security, social, esteem, self-actualization). Buying motives (emotional motives, rational motives, patronage motives).

Describe the use of technology in the product/service management function.

Technology can create opportunities for new products, make production of products more efficient, make products easier to use, and make products obsolete.

Discuss internal and external audiences for public-relations activities

Public relations activities are designed to influence the perceptions of a specific group of people. For example, an internal audience is a company's employees. A business may choose to create a public relations campaign to change attitudes or create awareness of policies for employees. For example, an external audience is a market of consumers who live near a new sports stadium. A business may choose to create a public relations campaign to increase awareness for game day traffic.

Explain communications channels used in public-relations activities

Public relations can use a variety of tools to develop media coverage. A main tool is a press release that is sent to appropriate media for the company and/or product. Other channels of communication include press kits and press conferences.

Explain nature of sales management

Sales management establishes guidelines and policies under which salespeople function. It ensures that salespeople are trained to follow company policies and practice ethical selling. This helps the company to develop healthy relationships between it and its customers.

Explain the nature of channels of distribution

A channel of distribution is the road that a product or service takes from production to end user. Products and services may use direct or indirect distribution channels to arrive to a customer. Direct distribution is when the producer sells the product to the end user. Indirect distribution involves one or more intermediaries who aid in moving the product from producer to end user. Factors including whether it is a consumer or industrial product affect what channel of distribution is selected.

Explain the concept of market and market identification.

A market is a group of consumers who have a common interest, need or want of a given good or service. This group of consumers also must be able to purchase the product. Identifying a market is an important activity in marketing as products will not appeal to everyone. Marketers identify markets' common interests by classifying consumer's demographic, geographic and psychographic information. Examples of this information include age, income, education, zip code, buying behavior, and leisure activities.

Evaluate questionnaire design (types of questions, question wording, routing, sequencing, length, layout)

A market research questionnaire should provide data that is valid and reliable. Questions should measure what is intended in the market research problem and be clear, properly written, formatted and conducted. Another major decision in questionnaire development is to select questions. A questionnaire may have open-ended and/or forced-end questions. Questions should be selected based on the goal of the market research.

Explain the use of diaries (product, media-use, contact)

A market researcher can collect specific information through a research participant diary that is kept over a period of time. A diary may be open-question or forced choice, depending on the time allowed for the market research study. Diaries are used most often to collect data on how people use their time and spend their money. Diaries may allow a market researcher to understand opinions better and allow follow-up from an interview. However, the use of diaries can be costly and have a large dropout rate.

Explain the nature of marketing plans

A marketing plan is a detailed file that guides marketing strategy for a period of time. Elements of a marketing plan include an executive summary, situation analysis, objectives, marketing strategies, implementation decisions, evaluation measures and appendices.

Discuss the nature of marketing research problems/issues

A marketing research problem is a way to identify objectives that should be met during the data gathering process. The market research problem will guide decisions regarding what data needs to be collected and how it will be used to identify a solution. This step of the market research also focuses the marketer on a specific issue to resolve.

Identify communications channels used in sales promotion

Sales promotion channels are divided in to trade and consumer promotion categories. Trade promotions include promotional allowances, cooperative advertising, slotting allowances, sales force promotions and trade shows and conventions. Consumer promotions include coupons, premiums, deals, incentives, product samples, sponsorship, product placement, promotional tie-ins, loyalty programs and point-of-purchase displays.

Explain the concept of product mix.

A product mix is all the products that a company makes or sells. This includes the width, length, depth and consistency of the product mix. Width: total # of lines of products. Length: total # of products in each line. Depth: variations of each product (e.g. colour, size). Consistency: similarity between different products in use, function, etc.

Identify product's/service's competitive advantage.

A product's/service's competitive advantage is the difference between it and the competitor's products/services. It allows the company to build brand loyalty, increase price due to the perceived higher value, and increase its market share due to the popularity of the products/services.

Explain the nature of a promotional plan

A promotional plan is a specific set of steps that is used to outline all necessary components of a promotion. Any proposed promotion must have a plan before it can be implemented, so that all the employees have a clear understanding of the steps. A promotional plan is a description of the promotional mix decisions for a business. The promotional plan includes relevant market information, details about the target market, identifies promotional objectives and budget and defines the mix of promotional tools. The promotional plan has a common theme and takes a purposeful planning approach.

Explain the nature of sales forecasts

A sales forecast makes an effort to predict future sales for an existing product. To conduct a sales forecast, a marketer must determine the size of the market and analyze competitor information.

Discuss the nature of sampling plans (who, how many, how chosen)

A sample is a smaller group of a group of people a business is interested in understanding. In order for a sample to reflect the larger group, researchers often use random sampling for fairness. The larger the sample evaluated, the more accurate the data will be. The size of a sample is determined by the budget and degree of accuracy requested by the company.

Explain how businesses can use trade-show/exposition participation to communicate with targeted audiences

A trade show is an exhibit of products of interest to a specific industry. By participating in a trade show, a business can target a specific target market who has self-selected their interest in the industry. When you participate in a trade show you have the ability to have direct interaction with consumers, demonstrate your product and gather contact information.

Explain considerations used to evaluate whether to participate in trade shows/expositions

A tradeshow may be a cost effective form of promotion and market research. It is important to evaluate previous attendee lists, size of the show and other vendors to determine whether participation is a wise budget choice.

Explain warranties and guarantees.

A warranty is a guarantee (often written) that specific facts or conditions are true or will happen or that a product will work in the way promised. A guarantee is an agreement assuming responsibility to perform, execute, or complete something and offering security for that agreement. It is a promise or an assurance, especially one given in writing, that attests to the quality or durability of a product or service. Warranties can be implied, express (oral or written), and extended (costs extra).

Identify communication channels used in sales promotions.

Sales promotions can be communicated to consumers in a variety of ways. Word-of-mouth, standard media, and online websites are all popular choices for sales promotions, as well as more subtle places such as product placement and point-of-purchase displays.

Explain the use of descriptive statistics in marketing decision making

After data is collected, descriptive statistics can be used to understand the market research problem. Research may be presented in graphics including tables, charts and graphs along with a description of what the data represents.

Demonstrate connections between company actions and results

Any action that a company takes will have consequences. If good choices are made, the results will most likely be good as well. In particular, improvements made to the marketing functions (pricing, marketing information management, promotion, etc.) will lead to new and improved goods and services, lower prices, and added value and utility being offered to consumers.

Demonstrate connections between company actions and results.

Any action that a company takes will have consequences. If good choices are made, the results will most likely be good as well. In particular, improvements made to the marketing functions (pricing, marketing information management, promotion, etc.) will lead to new and improved goods and services, lower prices, and added value and utility being offered to consumers.

Discuss actions employees can take to achieve company's desired results

As a valued member of the company, each employee should be carrying out actions that are in line with the company mission statement and values. Showing integrity and loyalty to the company is particularly important. Protecting customer confidentiality, upholding a positive company image, and completing all necessary tasks in a timely manner are all examples of ways employees can contribute to the company's success. Though it might take some hard work on the employee's part, the actions will be beneficial in the long run and can lead to new opportunities.

Describe the use of technology in the marketing-information management function

Technology has had a significant impact on the ability to successfully manage marketing information management activities. The Internet has increased a marketer's ability to measure effectiveness, track customer buying behavior, conduct research and manage data. Market research can use technology to automate telephone research and provide interactive focus groups online. Additionally, databases has allowed easy storage and access to all market research results.

Explain business ethics in product/service management.

Business ethics in product/service management involves making customers aware of product information that can affect safety and health when the product is used. E.g. product recalls, allergy information and labeling, and clear instructions on how to use the good or service.

Describe options businesses use to obtain marketing-research data (primary and secondary research)

Businesses may use internal and external resources to collect market research data. Internal information (primary data) can include customer records, sales reports, production and operations reports, and performance information. External information (secondary data) can be provided from trade associations, business publications and market research companies.

Describe ethical considerations in channel management

The American Marketing Association lists the following as responsibilities in channel management: not manipulating the availability of a product for purpose of exploitation, not using coercion, and exerting undue influence over the reseller's decision to handle the product.

Explain legal considerations in channel management

The Clayton Antitrust Act of 1914 prevents businesses from exclusionary tactics that could keep other companies from accessing a channel of distribution if this would create a monopoly or lessen competition.

Coordinate channel management with other marketing activities

Channel management is the process of deciding how to get goods into customer's hands. In order to effectively distribute products/services to customers, companies need to establish the main functions of marketing (marketing information management, product/service management, promotion, pricing, and selling).

Explain the nature and scope of channel management

Channel management is the supervision of a good or service through the manufacturing process to the final user. This process can include manufacturers, wholesalers, retailers, direct and indirect distribution and agents. As a good or service moves in this process, channel management can include the selection of a transportation systems and services as well as inventory storage.

Explain the nature of channel-member relationships

Channel members need to work together to bring a product to the consumer. Each participant in the distribution channel needs to work effectively to keep costs low and profits increasing for each member. These relationships should be evaluated on an annual basis.

Explain company selling policies

Company selling policies guide the rules for training, compensation, legal and ethical issues and sales quotas. Company policies for training ensure that sales representatives know the product or service they are selling and present those in a way reflective of the business. Compensation and sales quotas of a company are communicated through various policies to ensure clear expectations for the sales force. Company sales policies also instruct sales representatives on how to conduct legal contracts and ethical sales practices.

Identify consumer protection provisions of appropriate agencies.

Consumers are protected by both federal and state provisions. The Federal Trade Commission enforces the Magnuson-Moss Consumer Product Warranty Act that sets minimum standards for warranties. The Consumer Product Safety Commission monitors product safety by issuing standards for constructions, testing, packaging and performance. The Food and Drug Administration enforces the Food, Drug and Cosmetics Act which sets standards for pure, wholesome and effective products in these categories. States have various forms of lemon laws and Better Business Bureaus to protect consumers.

Explain the nature of corporate branding.

Corporate branding refers to the practice of promoting the brand name of a corporate entity, as opposed to specific products or services. The activities and thinking that go into corporate branding are different from product and service branding because the scope of a corporate brand is typically much broader. Trade names or corporate branding are used to identify and promote an entire company or department in a business. A trade name is the legal name of the business and is used to promote its various activities as an organization.

Explain the relationship between customer service and channel management

Customer satisfaction is a goal of any profitable businesses. In order to meet the needs and wants of customers, channel management must work effectively to deliver a product at the right time to the right place. A business' ability to select the appropriate distribution channel, transportation and inventory will impact the customer's choices when making a purchase.

Explain the role of customer service as a component of selling relationships

Customer service is the direct link between the business and the consumer. When consumers have questions, complaints, or comments about the product or their shopping experience, they will contact customer service and inform them. It is important that employees working in customer service are positive, compassionate, understanding, and able to solve any problems that may arise. It is also important that customer service is available to the consumer at all times. By providing a reliable, helpful customer service for consumers, businesses can improve the overall shopping experience.

Explain the role of customer services as a component of selling relationships.

Customer service is the direct link between the business and the consumer. When consumers have questions, complaints, or comments about the product or their shopping experience, they will contact customer service and inform them. It is important that employees working in customer service are positive, compassionate, understanding, and able to solve any problems that may arise. It is also important that customer service is available to the consumer at all times. By providing a reliable, helpful customer service for consumers, businesses can improve the overall shopping experience.

Describe the regulation of marketing-information management

The Federal Trade Commission has guidelines for managing and protecting consumer information. This includes the management of the "Do Not Call Registry" that allows consumers to manage who they receive solicitation phone calls from at their home.

Describe the regulation of promotion

The Federal Trade Commission is the main regulator of promotional practices overseeing issues related to advertising and endorsements. Trade associations and consumers also play a role in regulating promotion strategies. The primary topics that are discussed are deceptive advertising practices including advertising to children, privacy, contests, false testimonials, bait and switch advertising, free offers, and misleading demonstrations.

Explain the nature of direct marketing channels

Direct marketing channels include those methods targeting a specific group of consumers. This usually means delivering a message via direct mail to a home or business or by e-mail. Direct marketing channels are guided by the CAN-SPAM Act of 2003 which requires marketers to provide opt-out options and creates standards for delivering electronic promotion information.

Explain the importance of coordinating elements in advertising

Each element of an advertisement needs to work together as a cohesive message for a product, service or business. Before placement, marketers check to ensure that the ad stands out on a page, the layout is clean, the text is easy to read and understand, the signature can be distinguished and that the message relates to the target market.

Explain characteristics of effective data-collection instruments

Effective data-collection tools provide accurate data, are measurable and reliable, may be easily used, use market research budgets effectively, and have a high response rate.

Identify sources of error and bias (response errors, interviewer errors, non-response errors, sample design)

Error and bias in market research can occur when a study tries to predetermine an outcome. This may also occur if a research participant has to guess, make assumptions or interpret a market research tool which creates inconsistent data. Response errors may result from the failure of the respondent to report the correct value (respondent error), the failure of the interviewer to record the value reported correctly (interviewer error), or the failure of the instrument to measure the value correctly (instrument error). Non response error occurs when results of participants that did answer the survey vary from the potential results from the participants that did not answer.

Describe the role of business ethics in pricing

Ethical practices as it relates to pricing include understanding price fixing, price discrimination, and unit pricing. Price fixing happens when competitors agree to sell their product at a certain price. Price discrimination occurs when different customers in similar situations are charged different prices. Unit measure lets consumers determine the unit cost of items. All these situations require a business to make fair decisions for the consumer and not work with other businesses to take advantage of the market.

Explain business ethics in selling

Ethics in selling are related to sales representatives not engaging in high-pressure tactics in order to get a sale. The sales force also needs to use ethical boundaries to deliver correct information about deliveries, what products can safely do and promotion rules.

Describe factors used by businesses to position corporate brands.

Factors used to position corporate brands include price, quality, features and benefits and relationship to the competition.

Explain customer/client/business buying behavior

Final consumers: buy products or services for personal use. Business consumers: buy goods and services to produce and market other goods and services for resale (e.g. manufacturers, and business that buy products or services used in daily operations) Buying behaviors based on wants and needs. Motivation is a big part of buying behavior (emotional motive, rational motive, patronage motive). Consumer decision-making process: problem recognition, information search, alternative evaluation, purchase, postpurchase evalution.

Coordinate activities in the promotional mix.

For our company, I'd like to propose the following promotional plan. For personal selling, we will have employees stationed in every department of our store. For public relations, we will release updates regarding our product lines in the form of press releases every 6 months. For advertising, we will utilize traditional media (e.g. TV and radio ads, newspaper, etc.) as well as social media via our Facebook page and Twitter feed. For direct marketing, we will promote a 30% discount for seniors during the Monday-Friday 9am-4pm period. Finally, for sales promotion, we will hold a 3-week contest for a Caribbean cruise, for customers with purchases over $50. By releasing these promotions over a time period of approximately 4 months, we can regulate the flow of customers and steadily draw in potential customers for the business.

Identify product opportunities.

Identifying product opportunities uses marketing information to find problems that can be solved using a product. A product opportunity exists when there is a gap between what is currently on the market and the possibility for new or significantly improved products that result from emerging trends. Product generation then stems from ideas on how to solve the problem. (E.g. devices getting stolen in cars: compartment to put devices in). New product opportunities can come from a variety of sources including consumers, competitors, manufacturers, wholesalers, and internal research and development teams. The use of creativity is an inherent part of this process. Ideas can be generated during the market research process through both customers and competitive analysis. Internal teams may be put together to evaluate new product decisions including all departments of the business.

Explain management's role in the achievement of quality.

Management has 3 main functions that outline its role in the company. Planning involves developing steps to aid employees with carrying out their tasks. Organizing involves overseeing all employee tasks and offering help when needed, to ensure completion of everything. Controlling involves analyzing past performances and making decisions that will improve future tasks. By carrying out these functions, management can work towards higher quality from all employees.

Describe data-collection methods (observations, mail, telephone, Internet, discussion groups, interviews, scanners)

Market research can be collected using primary and secondary data. Primary data is collected using the survey method (information is gathered through surveys), observation method (information is gathered by watching and recording people's actions) and experimental method (using controlled conditions to observe the results of changing variables). Secondary data is collected using internal and external resources including the Internet, Government source, specialized research companies, and trade organizations.

Assess appropriateness of marketing research for the problem/issue (research methods, sources of information, timeliness of information)

Market research should be used for a problem/issue that will have direct financial impact on the business. The decision to use market research is guided by the threat the market research problem imposes on the business's operations and profitability and how much time and money must be spent to understand the issue.

Describe methods used to design marketing research studies (descriptive, exploratory, causal)

Market research studies may use qualitative and quantitative data to create solutions to a marketing problem. Qualitative research typically obtains information from large numbers of people. The information is gathered using surveys or questionnaires. Quantitative research usually involves a smaller number of people and may include using personal interviews as a method to obtain information. Exploratory research is used when the researcher does not know the problem or the means to search to the solution. There is no guidance for this type of research. Descriptive research is used when the researcher knows exactly what the problem is and how to go about finding information to solve it using secondary data. Causal research is used to find out whether or not there are any relationships between certain factors (cause and effect).

Explain the role of ethics in marketing-information management

Marketers have a responsibility to be ethical when gathering and storing information. As market research is conducted, private and competitive information must be held confidential. Gaining access to private or otherwise protected information in an unethical way should be avoided as well as pressuring individuals to supply information. Companies are encouraged to set standards for their employees to follow when conducting marketing research.

Describe the nature of product bundling.

Marketers may use product bundling to package two or more complementary goods and services, usually for a lower price than had the products been purchased separately. For example, if customer goes to the spa for a manicure and pedicure the price may be lower than if that customer purchased a manicure and pedicure separately.

Identify information monitored for marketing decision making

Marketers need various types of information to make effective decisions. Generally, this information falls in to three categories: customers, marketing mix and business environment. Marketers want to know demographic and psychographic information about their target market as well as buying behavior information. Marketing mix information can include features and benefit topics, product packaging, selling choices and promotional strategies. The business environment topics can include information related to economics, government regulations, legal issues and SWOT analysis.

Describe the need for marketing information

Marketing information is needed for businesses so that they make effective decisions about their products, pricing and promotion strategies, competitor awareness and to ensure that they understand what the customer wants and needs. Marketing information has a significant financial impact on a business's profit.

Describe techniques for processing marketing information

Marketing information processing is completed using a variety of technology including databases and spreadsheet programs. Marketers may also utilize customized marketing information systems to routinely update and analyze data. Data mining is a computer process that can identify data trends when analyzing a large amount of data.

Explain the nature of marketing research

Marketing research is a process that involves identifying a problem, gathering and analyzing data, developing solutions, implementing actions and monitoring results. Marketing research is used to understand customer behavior, product uses, learn about competitors, and understand brand awareness. There are two types of market research: qualitative and quantitative. Qualitative research is used to answer questions beginning with "why" or "how". Quantitative research answers questions that start with "how many" or "how much".

Explain the concept of marketing strategies

Marketing strategies are plans that identify target markets and coordinate marketing mix activities in order to effectively sell the product/service. The product positioning and key points of difference must be taken into account when developing these strategies.

Explain the concept of marketing strategies.

Marketing strategies are plans that identify target markets and coordinate marketing mix activities in order to effectively sell the product/service. The product positioning and key points of difference must be taken into account when developing these strategies.

Identify methods/techniques to generate a product idea.

New product ideas can come from a variety of sources: customers, competitors, channel members and company employees. Focus groups or idea sessions are often used my companies to involve customers in generating product ideas. In addition, companies that manufacture consumer packaged goods use a task force approach to new product development. This approach involves gathering employees from various departments to take a new concept and run it through the steps of product development. Companies that manufacture and sell industrial products establish venture teams that develop new products not part of the existing business.

Explain legal considerations for pricing

Pricing decisions are impacted by the Robinson-Patman Act (1936), the Consumer Goods Pricing Act (1975), Federal Trade Commission guidelines and minimum price laws (these vary by state). The Robinson-Patman Act regulates businesses ability to change prices on consumers purchasing similar products in similar situations. The Consumer Goods Pricing Act controls the pricing relationship between manufacturers and retailers.

Acquire product information for use in selling

Product information can be found through four channels: direct experience, written publications, other people, and formal training. In addition, product demonstrations or product manufacturing can help a salesperson acquire product information. Printed materials can include user guides, warranties, catalogs and labels. Formal training is considered the method for information gathering about a product.

Analyze product information to identify product features and benefits

Product information provides detailed information that allows a sales representative to understand how a product will benefit a customer through a feature. A feature is a physical attribute of the product. Benefits are the advantages or satisfaction a customer receives from the product. Knowledge of product information allows a salesperson to match the appropriate product to fill a customer's needs. For example, a t-shirt may be made of brushed cotton (feature) which means it will be extra soft to the touch (benefit).

Explain the nature of product/service branding

Product/service branding is how a product interacts with its customers through design, logo and messaging and how its distinguishes itself from competitors. Branding can identify one product, a family of products, or all products of a company. Brands connote various benefits, (e.g. quality and reliability or fun and excitement.) The importance of branding is to build product recognition and customer loyalty, ensure quality and consistency, and capitalize on brand exposure.

Explain the nature and scope of the product/services management function.

Product/service management involves any activities that focus on obtaining, developing, maintaining, and improving products and services based on market research. This includes creating a product mix and continuously updating it throughout the product life cycle. Product/service management is very important when ensuring that everything in the product mix is optimal for the target market.

Explain the role of promotion as a marketing function

Promotion as a marketing function includes all the activities to inform, persuade, and/or remind consumers about products and services. Promotion is persuasive communication that prompts a target market to take action.

Describe types of rating scales (Likert scales, semantic differential scales, behavior intention scales)

Rating scales may be created based on the market research problem. Likert scales usually have 5 choices from strongly agree to strongly disagree. Semantic differential scales are used to measure attitudes, opinions, and values using two opposing adjectives and allowing participants to rate their feelings. Behavior intention scales are used to measure a person's perceived likelihood in participating in an activity.

Explain the nature and scope of the selling function

Selling involves any activities that focus on persuading the customer to purchase products/services in the form of direct communication. This can be through face-to-face interaction, social media, or any type of technology that allows the sales representative to take part in interpersonal interactions. This marketing function is the link between the product/service and the consumer. The selling function provides consumers with the products or services that they want or need. This includes all members of the distribution channel. The selling process is a personalized communication and influences the purchase of a product or service and future sales.

Describe the nature of selling regulations

Selling regulations are growing in local and state governments. Regulations can include related to sales tax, where products may be sold and how promotions can be communicated.

Explain the role of situation analysis in the marketing planning process

Situation analysis helps marketers to understand influences on marketing strategy both within the business and in the marketplace. Two common tools used in situation analysis are the SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis and an environmental scan. Both provide a business with an opportunity understand how they can react effectively to changes in the market.

Describe the uses of grades and standards in marketing.

Standards are statements that specify a product's size, contents and/or quality. Grades are ratings assigned to products that indicate to what extent standards are met. Grades and standards are used to compare and judge different products. They help speed up consumers' buying decisions because consumers do not need to spend time to inspect the product. Consumer rely on grades and standards for product information.

Explain the use of technology in the pricnig function

Technology allows marketers access to a wealth of information that can affect the price of a product using both internal data and competitor data in the marketplace. Technology can provide real-time prices to consumers online or by scanning bar codes in retail stores. Retailers can also change prices for products using technology effectively.

Describe the use of technology in the channel management function

Technology has created a new channel of distribution know as e-tailing where customers and industrial buyers can make purchases using the Internet, allowing more accessibility to products/services.

Explain components of advertisements

The elements of an advertisement are the headline, copy, illustrations, signature and slogan. The headline is a sentence that gets a consumers attention. The copy explains the product or service. The illustrations use graphic elements to demonstrate the product or service. The illustrations may also grab the consumer's attention to the advertisement. The signature is an identification symbol of the business. The slogan is a quick message about the product or company.

Describe factors used by marketers to position products/services.

The focus of product/service positioning is the image the product/service projects to the public. The goal is to set the product apart from the competition. Marketers can position products based on price and quality (focuses on price as in indication of value; high price = quality, low price = value), features and benefits (focuses on effectiveness and use) and in relation to competition or other products in the line (compares benefits of product to others).

Explain the nature and scope of the marketing information management function

The marketing information management function includes the activities related to gathering information on various aspects of the marketplace and analyzing the data to determine an effective marketing strategy. Various forms of market research are used in this function on a regular basis to support the decision making process so that marketing strategies are effective and profitable.

Explain the nature and scope of the pricing function

The pricing function includes all activities that determine how much to charge for a good or service. This is an important business activity as it directly impacts the financial success for the company. The price of a good or service can affect brand image, market share and profits. The goal of pricing a product is to earn a return on investment (ROI), gain market share, and face competition.

Explain the nature of marketing research briefs

The research brief is a set of guidelines given to the researcher by the person(s) who have commissioned the research and/or the individual(s) who are to make us of the results in their decision making. The brief must inform the researcher which aspects of the market are particularly important.

Explain the selling process

The selling process includes the following steps: Approaching the customer Determining the customer's needs Presenting the product to the customer Overcoming customer objections Closing the sale Suggestion selling Relationship building

Describe the use of technology in the promotion function

The use of technology in promotion changes constantly. Technology creates new platforms for distributing information to consumers. Recently we have seen online sales, new media outlets including the Internet develop, creation of social media, and delivery of sales promotions via cell phones.

Explain the types of promotion.

There are 2 main types of promotion. The first type is trade promotion, which is focused on building support from intermediaries in the distribution channels. An example would be setting up a booth at a trade show. The second type is consumer promotion, which is focused on getting the final consumer to buy the product. An example would be giving out coupons. Both promotion types are necessary in order to increase the number of distribution channels and the size of the consumer base.

Identify factors affecting a business' profit.

There are 3 main factors that affect a business' profit. The efficiency of the production includes the number of product units made in a certain amount of time, and increasing efficiency can increase profits as well. Losses include production damage and loss, HSE (health, safety, and environment) losses to employees, and loss of market reputation. Costs and expenses of the business will also deduct from the net profit.

Explain factors affecting pricing decisions

There are 4 key factors that must be considered when making pricing decisions. Cost and expenses will take away from a business' gross profit, so companies must try to reduce these as much as possible. Supply and demand deals with how much businesses are willing to offer and how much customers are willing to buy at a given price point, which is very important when determining the price. Consumer perceptions about the quality of the product or the service will also impact the effectiveness of prices. Finally, prices being charged by the competition must be taken into account, especially if price is the only differentiating factor.

Explain factors affecting pricing decisions.

There are 4 key factors that must be considered when making pricing decisions. Cost and expenses will take away from a business' gross profit, so companies must try to reduce these as much as possible. Supply and demand deals with how much businesses are willing to offer and how much customers are willing to buy at a given price point, which is very important when determining the price. Consumer perceptions about the quality of the product or the service will also impact the effectiveness of prices. Finally, prices being charged by the competition must be taken into account, especially if price is the only differentiating factor.

Identify the elements of the promotional mix.

There are five main elements of the promotional mix, which can be remembered using the acronym PPADS. Personal selling is when sales representatives sell products by communicating directly with the consumer. Public relations involve managing the company's perceived image through non-paid advertising and different media channels. Advertising is any paid, non-personal activity that serves to promote the product. Direct marketing is advertising that is targeted at groups of potential consumers, using market segmentation. Sales promotion involves limited time offers that are used to promote sales. The elements of the promotion mix are personal selling, advertising, public relations, and sales promotion. Personal selling is direct contact between a salesperson and customer. Advertising is a form of nonpersonal promotion. Public relations is the development of a favorable image for a company, its products or its policies. Sales promotion includes activities that are used to create purchases and sales not related to the other types of promotion.

Identify the impact of the product life cycles on marketing decisions.

There are four stages of the product life cycle: introduction, growth, maturity, and decline. Depending on the stage in which the product is in, marketer must adjust their product mix and marketing strategies to ensure continued sales. Different stages of the life cycle demand different focuses. In the introduction phase, companies focus their efforts on promotion and production to draw customer attention and increase product awareness using special promotions. During the growth stage, companies focus on customer satisfaction and introducing new models to compete against competitors. During the maturity stage, the company focuses on fighting off the competition and deciding whether or not to improve the product to gain additional sales. During the decline stage, management must decide how long it will continue to support the product, when to drop the product, or what product mix strategies to use (selling or licensing the product, recommitting to the product line, discounting the product, regionalizing the product, altering the product).

Generate product ideas.

Tools used to generate product ideas can include brainstorming, creative thinking processes and problem solving sessions. A company can generate product ideas by conducting consumer and sales force focus groups.

Explain types of advertising media

Types of advertising media include print, broadcast, online, specialty and social. Print media include newspaper, magazine, direct mail, directory, outdoor, and transit. Broadcast media include television and radio advertising. Online advertising are all forms of that use the Internet or e-mail including banner and pop-up ads. Specialty media are items used for distribution with the company's branding message. Social media includes platforms including Facebook, Twitter, and mobile media applications.

Identify types of public-relations activities

Types of public relations activities include sponsoring product, sports, cultural or charitable events, awarding scholarships, and donations. Another aspect of public relations is creating news releases, an announcement that a company sends to the news media.

Explain key factors in building a clientele

When building a clientele, there are 3 main factors that must be considered. The first factor is making the sale, which includes all activities that sales representatives perform when interacting with consumers during the selling process. The second factor is after-sales activities, which includes order processing and payment, the customer's departure from the store, follow-up after the purchase, customer service and tracking, and evaluation of employee performance. The third factor is customer relationship management, which involves seeking out customers and keeping them satisfied with the use of technology and customer loyalty techniques.

Explain key factors in building a clientele.

When building a clientele, there are 3 main factors that must be considered. The first factor is making the sale, which includes all activities that sales representatives perform when interacting with consumers during the selling process. The second factor is after-sales activities, which includes order processing and payment, the customer's departure from the store, follow-up after the purchase, customer service and tracking, and evaluation of employee performance. The third factor is customer relationship management, which involves seeking out customers and keeping them satisfied with the use of technology and customer loyalty techniques.

Describe factors used by marketers to position products/services.

When choosing how to present a product, several factors must be taken into account. The first is the price and quality desired; the low prices or the high quality may be stressed. Another factor is the features and benefits of the product; a desirable trait that consumers would believe they would gain from using the product would be stressed. As well, the product in relation to competing products could be a key point; if the product is superior due to design, it would help to solidify the company's advantage. Finally, the connections to other products in the product line could be a factor that would help to promote more than one product at a time.

Describe word-of-mouth channels used to communicate with targeted audiences

Word-of-mouth channels allow consumers to promote a product or service. Channels of communication for this method include after-sale follow-up, recognition of purchase in media, incentive programs, buzz marketing, providing samples, and interactive promotions such as e-mails, entertainment, Youtube videos, and social media interactions.