Analysing markets

trends, extrapolation, test marketing, moving averages, and correlation.

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Underlying pattern of growth or decline, helps to predict sales in the future.

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Looks at past performance of a variable such as sales and extends it into the future.

  • Easy to carry out
  • Could be inaccurate as future may be different to past
  • Ignores qualitative factors such as tastes and fashions
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Moving Averages

Series of calculations designed to show underlying trend. The use of this should smooth out the impact of random variations.

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Used to establish the relationship between 2 variables. Presented in a graphical format so uses visual presentation. 

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Test marketing

Testing product to limited part of a market in a specific geographical area to discover customer opinions and predict sales. 


  • gauge popularity
  • gain opinions


  • people may lie
  • results may not be the same across the whole country
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