Analysing markets and marketing


Analysing the market

Quantiative analysis: examines statistical information in order to draw conclusions about the nature of the market (e.g how much growth is there in a market? who is the market leader?

Qualitative analysis: considers the reasons why certain actions take place (e.g. why are internet sales growing? why is Ford Focus the most popular car in the UK?)

Market Analysis enables an organisation to; 

  • Assess the opportunities there are in the market
  • Predict what is likely to happen in the future
  • Potential influences on market demand


  • Doesn't take into account external factors 
  • Doesn't consider market change 
  • Doesn't consider competition

Reasons for market analysis?

Gathering evidence for a new strategy 

Identifying significant patterns in sales

The value of market analysis

Market analysis helps a business to understand its existing markets. The data and understanding gathered also allow a business to prepare for the future, by enabling it to forecast sales and other data. 

Sales forecasting can motivate staff by presenting them with a realistic but challenging target, monitor achievements against targets in order to put into place remedial action if necessary and measure the performance of an individual or department. 

Methods of quanitiative forecasting

  • Testing marketing- introduction of a product to a certain geographical area, in order to assess its likely success or the effectiveness of the marketing methods being used.
  • Analysis of trends/ moving averages/ extrapolation
  • Correlation

Benefits of test marketing 

  • The results are a relatively accurate predictor of future popularity, as they are based on actual purchases by customers in the test area. 
  • Testing marketing is a useful way of


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