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Marketing Market Analysis Market analysis involves looking at data and identifying trends. Reasons for analysing markets include:
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Marketing
“If everything seems to be going well, you have obviously overlooked something”
Marketing Market Analysis
Candidates should be able to: give reasons for market analysis explain the value of market analysis use moving averages, test markets, extrapolation and correlation to analyse markets describe situations where information technology may be used in analysing markets evaluate difficulties in analysing markets
Marketing Market Analysis
Market analysis involves looking at data and identifying trends. Reasons for analysing markets include:
Marketing Market Analysis
Value of market analysis:
Marketing Market Analysis
A trend is the u________ pattern of growth or decline within a set of data.Trends can only be seen with a reasonable amount of data – one or two figures is not enough!
Marketing Market Analysis
Methods of trend analysis include: extrapolation moving averages test markets or market research correlation ask ‘experts’
Marketing Market Analysis
Extrapolation analyses the p________ performance of a variable such as sales and extends this into the f__________. Extrapolation can be done by ____ but a more scientific approach is to use moving averages.Use the data on the next slide and work out the three period moving average.
Marketing Market AnalysisYear period sales 3 period total 3 period moving
average200
51 3
2 6 3 + 6 + 7 = 16
16 ÷ 3 = 5.3
3 7 6 + 7 + 2 = 15
15 ÷ 3 = 5.0
2006
1 2
2 53 7
2007
1 3
2 5
Marketing Market AnalysisYear period sales 4 period
total8 period
total4 quarter moving average
2005
1 5
2 73 84 4
2006
1 5
2 83 114 3
2007
1 4
2 6
Marketing Market AnalysisYear period sales 4 period
total8 period
total4 quarter moving average
2005
1 5
2 75+7+8+4=
243 8 24+24=48 48÷8=6.0
7+8+4+5=24
4 4 24+25=49 49÷8=6.1258+4+5+8=
25200
61 5 Etc.
Marketing Market Analysis
The use of moving averages should smooth out the impact of random variations in data and longer-term cyclical factors, thus highlighting the trend.If asked to plot a graph you should plot sales on the y-axis and time on the x-axis
Marketing Market Analysis
By predicting trends, firms are able to
This is invaluable:
Marketing Market Analysis
Need to be able to draw five types of trend: Positive expanding market Negative declining market S-trend (product life cycle) Zero trend No trend
Marketing Market Analysis
What are the drawbacks of extrapolation?
Marketing Market Analysis
IT can be used to analyse markets by:
Marketing Market Analysis
The advantages of IT are that
However there are disadvantages –
Marketing Market Analysis
Difficulties in analysing marketing data extrapolation: as earlier test markets: market research: ask ‘experts’:
