DECA MARKETING COMPREHENSIVE ANSWERS AND
QUESTIONS SET A+
✔✔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.
✔✔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.
✔✔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 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 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.
, ✔✔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.
✔✔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 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.
✔✔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.
✔✔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.
✔✔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 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
QUESTIONS SET A+
✔✔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.
✔✔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.
✔✔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 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 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.
, ✔✔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.
✔✔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 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.
✔✔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.
✔✔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.
✔✔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 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
