Transcript Marketing Strategies Analysing Markets and Marketing

MARKETING STRATEGIES
BUSS3.8 Analysing Markets and Marketing
ANALYSING MARKETS AND
MARKETING
ANALYSING MARKETS AND MARKETING
IN THIS TOPIC YOU WILL LEARN ABOUT:
Reasons for, and the value of, market analysis

Methods of analysing trends

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The use of information technology in analysing
markets
Difficulties in analysing
marketing data
BUSS3.8 Analysing Markets and
Marketing
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MARKET ANALYSIS
Consumer
Sales
data
Social
factors
Market
Analysis
Market
size
Customer
opinion
Internal
data
Actions of
Competitors
BUSS3.8 Analysing Markets and
Marketing
trends
REASONS AND VALUE OF MARKET ANALYSIS
Devising strategy
 Understanding the market/Keep up to date
 Identify sales patterns
 Review of competitors’ actions
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BUSS3.8 Analysing Markets and
Marketing
What trends can be identified in consumers’ behaviour?
What factors have influenced these trends?
How has Asda responded to these trends?
ANALYSING MARKETS - CORRELATION
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Identifying a relationship between 2 variables
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Correlation can be:
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Positive
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the 2 variables move in the same direction
e.g. As temperature goes up ice cream sales go up
Negative
the 2 variables move in opposite directions
 e.g. As road tax prices go up the sales of new 4 x 4s goes down
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Zero
There is no relationship between the factors
 e.g. Rain fall and text books
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BUSS3.8 Analysing Markets and
Marketing
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E.g. Marketing budget and sales
ANALYSING MARKETS - CORRELATION
-1
Strong negative
0
Zero
+1
Strong positive
Negative
Positive
BUSS3.8 Analysing Markets and
Marketing
Correlation can be expressed on a spectrum from
-1 to +1.
 It can also be shown on a graph by plotting the
coordinates and then drawing a line of best fit.
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METHODS OF ANALYSING TRENDS –
MOVING AVERAGES
One of the key reasons for market analysis is to
identify significant trends and sales patterns
 Moving averages
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Before looking at how to calculate moving averages first
check your understanding of averages.
Sales in £m for 6 months are £2, £2.5, £3, £3, £1.5 and £4
Average is £2.67m
Add all the numbers up and divide by 6
BUSS3.8 Analysing Markets and
Marketing
Shows whether a trend is significant by smoothing
out fluctuations in data
 Allows for better identification of an overall trend
 Sufficient data is needed to give validity to the trend
identified
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CALCULATING MOVING AVERAGES
Sales
£m
4 period Moving
average
2009/Q1
10
2009/Q2
14
11.25
2009/Q3
12
11.5
2009/Q4
9
11.25
2010/Q1
11
2010/Q2
13
2010/Q3
12
2010/Q4
11
Calculate the next two moving averages
Plot a graph to show both the quarter figures
and the moving average figures
10+14+12+9 = 45
45/4 = 11.25
14+12+9 +11 = 46
46/4 = 11.5
Show how this figure
was calculated
BUSS3.8 Analysing Markets and
Marketing
Year /
Quarter
METHODS OF ANALYSING TRENDS –
EXTRAPOLATION
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Using past data to extend an identified trend into
the future
BUSS3.8 Analysing Markets and
Marketing
A general slow upward trend has been identified
and from this yr 6 and 7 have been extrapolated
METHODS OF ANALYSING TRENDS –
EXTRAPOLATION
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A useful technique when trends can clearly be
identified
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and
The market is relatively stable
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However
The past is not always a good indication of the
future
 Conditions and trends can soon change
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Competitors’ actions
 Consumer tastes
 Market conditions
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BUSS3.8 Analysing Markets and
Marketing
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DIFFICULTIES IN ANALYSING MARKETING
DATA
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May slow down the decision making process
Hunch v. Scientific
 Loss of first mover advantage
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BUSS3.8 Analysing Markets and
Marketing
Opportunity cost
 Time and financial cost - Training
 May quickly become out of date
 Past not always a fair indication of the future
 Competitors’ reactions
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TEST MARKETS – TO INFORM SALES
FORECASTS
Uses a geographical area as representative of the
whole market
 Can collect data and extrapolate to the whole
market
 Area chosen must be fairly representative of the
population as a whole
 Danger – competitors become aware of actions
before full scale launch
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BUSS3.8 Analysing Markets and
Marketing