Chapter 8 Analysing Markets and Marketing

THE SPECIFICATION SAYS(aqa): Reasons for and the value of market analsysis Reasons for should include: gathering evidence for devising a new strategy, identifying significant patterns in sales 

Please Note:This is just a small section of Chapter 8 and not all of it. 


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Chapter 8 Analysing Markets and Marketing

Reasons For Market Analysis

Gathering evidence for devising new strategy:

  • The firm will want to know how possible(feasible) a strategy could be such as an introduction of a new product.
  • Data helps assist them in choosing the right strategy.
  • Mistakes are very costly. 
  • Use both primary and secondary data.
  • Gathering data frequently to see current and future success. 

Identifying Significant Patterns In Sales:

  • Seeing changes first = competitive advantage
  •  To see changing patterns use qualitative and quantittative forecasting     methods

THE VALUE  OF MARKET ANALYSIS 

  • helps to understand its market more better
  • allows preparation for future
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Chapter 8 Analysing Markets and Marketing (Part 2)

Sales forecasting helps to:

  • measure performance in an individual department
  • motivate staff through challenging targets 
  • monitor achievements against targets to take action if needed

Helps to coordinate departments by:

  • senior man. to see if strategy will be a success
  • operations to produce to plan raw materials and capital etc
  • HR to do workforce planning and training.
  • finance to finalise cash flow and profit&loss.So that each department get funds.
  • allows marketing to come up with strategies to hit sales targets. 
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Chapter 8 Analysing Markets and Marketing (Part 3)

**test marketing**

The launching of a product in a geographical area in order to assess the marketing methods used.

Thus, if 5% of the region purchase the product, then 5% of the nation will purchase when introduced nationally. 

Benefits: accurate as they are based on actual purchases;increases popularity without the big expense of national launch. 

Drawbacks: copycat products; not launching it nationally could lead low profit; newness leads to people purchasing it once, exaggerates fake popularity; to make it succeed special offers used but cannot continue. 

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