Analysing Markets and Marketing

Chapter 8 Definitions from AQA A2 Textbook

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Markets

Market Analysis: The study of market conditions to assist a firm's plans.

Sales Forecast: A prediction of the level of sales revenue for individual products or for the organisation as a whole.

Quantitative Forecasting: Those methods of prediction that are based on statistical information.

Test Marketing: The introduction of a product to a certain geographical area, in order to assess its likely success of the effectiveness of the marketing methods being used.

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Analysis of Trends and Extrapolation

Moving Average: Calculation of the mean (average) of a set of data covering a defined period of time. For examplr, a weekly moving average will cover the data recorded over the most recent 7-day period. A series of moving averages can be used to identify the trend shown within a set of data.

Trend: The underlying pattern of change indicated within a set of numerical data.

Extrapolation: Using the previous patterns of numerical data in order to predict values in the future.

Moving Averages: Statistics used to analyse trends in the recent past so that a firm can predict future sales (through extrapolation).

Fluctuations or Variations: Periods of time when sales are above or below the trend

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Extrapolation

Correlation: A statistical technique used to establish the strength of the relationship between two sets of values.

Qualitative Forecasting:Methods of prediction that are based on personal opinions. These are often described as 'hunches', but are influenced by personal knowledge and experiences of the individuals who are involved in the forecasting.

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