Analysing markets and marketing

jocelyn1
Mind Map by jocelyn1, updated more than 1 year ago
jocelyn1
Created by jocelyn1 over 6 years ago
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A2 business AQA marketing
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Analysing markets and marketing
1 Quantitative analysis
1.1 Test marketing
1.1.1 The introduction of a product to a certain geographical area, in order to asses its likely success or the effectiveness of the marketing methods used
1.1.1.1 Benefits- based on actual purchases so a reliable predicter of future success. Not as expensive as a national launch
1.1.1.1.1 Disadvantages- competitors may copy, people may only buy due to the novelty of the product (exaggerating true success), special offers can lead to a successful start which cant be maintained.
1.2 Analysis of trends/ moving averages and extrapolation
1.2.1 A trend is an underlying pattern of change in a set of numerical data
1.2.2 Moving averages are a calculation of the average of a set of data covering a defined period of time any flactuations are eliminated ( e.g seasonal effects) its scientific thus objective and works to highlight a trend
1.2.3 extrapolation is using previous records and patterns in data to predict future values
1.2.3.1 disadvantages- less reliable if there are flactuations, assumes past changes will continue into the future, doesn't take into account qaulitative factors such as change in consumer taste.
1.2.4 Variations/ flactuations
1.2.4.1 Cyclical- Boom and recession periods
1.2.4.2 seasonal
1.2.4.3 Random- sales can vary due to changes in taste, fashion, publicity etc.
1.3 Correlation
1.3.1 A statistical technique used to establish the strength of the relationship between two variables. Before drawing any conclusions a causal link needs to be established
1.4 Limitations of qualitative forecasting
1.4.1 Trends don't always continue into the future, correlation changes over time, external influences cant be taken into consideration, corporate objectives may be amended so other objectives change , market research may lack reliability, forecasts become harder to do the further into the future they are, ignores the special understanding staff of the business might posses
2 Qualitative forecasting
2.1 the Delphi/oracle technique
2.1.1 Relies on asking individual experts in the fiels for their views
2.2 Brainstorming
2.2.1 all individuals involved discussing ideas. Typically used for problem solving
2.3 Individual hunch
2.3.1 A mananger may feel that they have better understanding of the market even when numerical data is strong they may suggest something completely different
2.4 Advantages- with a new product there may be no past numerical data, trends change, there may be no clear statistical indication of future sales, factors influencing sales maynot be easy to quantify, the manager responsible wants to make the final decision
2.4.1 Disadvanatges- experts may be knowledgeable but they wont be able to understand all aspects of the market, quantitative data is more reliiable, if incorrect about a hunch a manger is open to criticism
3 Purposes of market analysis
3.1 To gather evidence for a new strategy
3.2 Identifying significant patterns in sales - can allow them to have a competitive advantage
3.3 measures performance, motivates staff, allows planning of resources, work force planning and budgets
4 Technology
4.1 Technology has allowed us to analyse the market further with the use of loyalty cards etc.
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