Market Analysis- Sales forecasting and Market analysis Flashcards
(73 cards)
What is the 2 examples of quantitative methods?
Time series analysis
Use of market research data
What are the 3 examples of qualitative methods
Delphi technique
Brainstorming
Intuition
What is time series analysis
It uses evidence from past sales records to predict future sales patterns
What is surveys of consumers intentions
This predicts the future by asking people directly what they intend to do in the future .
The results predict sales patterns across a wide variety of consumer goods.
The results gained have to be adjusted for cultural bias.
What are the 2 methods of sales forecasting
Qualitative
Quantitative
Qualitative- what is the Delphi technique
Researching the views of a panel of experts
It begins with initial development of a questionnaire focusing on the problem, then that being sent to the panel. Each p answers it and sents it back. Results are summarised and then another q is sent back to the panel. They rate and prioritise ideas, the process is repeated until the experimenter is sure the group are in agreement on the topic.
What are 3 advantages to the Delphi method?
It gives the panel time to think about their opinions
Panels can reconsider their judgments
It is flexible and so can be used in a variety of situations
What are 3 weaknesses to the Delphi method
Panels may become bored and so spoil their opinion or leave
Payments may lead to bias
Costly and takes time
What is brainstorming
A group technique used for generating new, useful ideas and to promote creative thinking
What are moving averages
The product of calculating the average of 2 or more items in the data
Why calculate moving average?
Allows us to smooth out any peaks or troughs
Allows us to see any trends in data that are cyclical
How do you work out moving averages?
- Add the first 3 up and divide by 3.
Put that number underneath the middle one and cross the first one out.
Then do the same for the second, third and fourth number. So on
- Add the first 3 up and divide by 3.
What is a correlation
The relationship between 2 variables
What is extrapolation?
If there is a pattern in the sales of a company then you can extrapolate that it will continue
What is seasonal variation?
When there is an increase in product sales in certain seasons, e.g. Ice cream in summer increases and decreases in winter
What is cyclical variation?
When a products sales follows the business cycle e.g. A 10 month cycle for the iPhone may mean after 10 months the sales falls and then the next iPhone follows 10 months too
What is sales forecasting?
Predicting future demands by anticipating own at consumers are likely to do in a given set of circumstances
Form a plan into the future
What is product orientation?
When a business bases its marketing mix on what the business sees as its internal strengths
What is market led/orientation?
When a business bases its marketing mix on its perception of what the market wants
What is asset led?
Uses product strengths to market both new and existing products. Marketing decisions are based on the needs of the customer and the assets of the products
What are 2 advantage of product orientation
Economies of scale
Outsourcing of production
What are 2 disadvantaged of product orientation?
Changes in market structure will not be responded to
Technology applied can be left behind
What are 2 advantages of market led marketing
Flexible to change
Strong understanding of customer needs
What are 2 disadvantages of market led marketing
High cost of market research
Unpredictability of future
