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
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.
Chapter 8 Analysing Markets and Marketing (Part 3)
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.