Chapter 8: Analysing Markets and Marketing

Part 2 of Chapter 8

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  • Analysing Markets and Marketing
    • Reasons for market analysis
      • identifying significant patterns in sales
        • business can get huge competitive advantage if they can anticipate change before competitors
      • gathering evidence for devising a new strategy
        • introduction of a new product, targeting a new segment, diversification into new products and markets
    • Value of market analysis
      • motivate staff by presenting them with a realistic but challenging target
      • measure performance of an individual or department
      • monitor achievements against targets in order to put them into remedial action if necessary
    • Use of ICT in analysing markets
      • can complete quantitative forecasting almost instantaneously, saving time and money
      • able to link sales records to other databases so sudden changes can be detected quickly
      • improves internal and external communication
      • loyalty cards allow firms to gather information on customer buying behaviour
      • internet or intranet allows data to be stored cheaply and accessed easily
    • Sales forecasts
      • more likely to be correct when:
        • product is well established and market known
        • external factors are predictable and there is stability
        • forecasts are made by those having everyday contact with the market
        • detailed and reliable market research was undertaken
        • test marketing/ and or/ back data gives the firm a clear understanding of the market


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