DECA Performance Indicators| 99 QUESTIONS| WITH COMPLETE SOLUTIONS

Explain the concept of market and market identification. Correct Answer: 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. Identify the elements of the promotional mix. Correct Answer: 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. Coordinate activities in the promotional mix. Correct Answer: 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. Explain the types of promotion. Correct Answer: 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. Describe factors used by marketers to position products/services. Correct Answer: 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