201-203 Market analysis and Sales forecasting Flashcards
What is quantitative data?
Numerical information that can be analysed using statistics.
Data that can be measured numerically. [1]
Questionnaires, surveys, financial/sales data. [1
What is qualitative data?
Non-numerical information, such as information from in-depth interviews or focus groups.
Data referring to attitudes, opinions, intentions, motives and beliefs. [1]
Focus groups, open-ended questionnaires, interviews, customer reviews. [1
What does price elasticity of demand measure?
Measures the sensitivity of demand to a change in price.
Formula: % change in quantity demanded/% change in price.
What does income elasticity of demand measure?
Measures the sensitivity of demand to a change in income.
Formula: % change in quantity demanded/% change in income.
What is sales forecasting?
Projection of achievable sales revenue, based on historical sales data, analysis of market surveys and trends, and salespersons’ estimates.
Predicting future sales revenue, based on historical sales data, analysis of market surveys and trends.
Purpose: A sales forecast acts as a goal against which a business can me
What is extrapolation?
Extrapolation involves identifying the underlying trend in past data and projecting this trend forwards.
Extrapolation predicts future trends based on what has happened in the past.
It assumes that nothing much is going to change.
What does correlation measure?
Measures the relationship between two variables, e.g., whether there is a link between a business’s advertising expenditure and the amount of sales it achieves.
What is time-series analysis?
A quantitative method of forecasting using past data to predict future trends and taking an average to smooth out any anomalies.
An example of time series analysis is the calculation of a 3 point moving average.
What is the Delphi method?
A qualitative method of forecasting based on researching the views of a panel of experts. Focusses on a questionnaire that it sent to the experts independently, responses are summarised and the process is repeated until a consensus forecast is reached.
