Chapter 8: Analysing Markets and Marketing
Part 2 of Chapter 8
- Created by: humbuggirl
- Created on: 29-12-14 15:04
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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
- identifying significant patterns in sales
- 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
- more likely to be correct when:
- Reasons for market analysis
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