Interpreting Marketing Data Flashcards
What is a time series analysis used for?
To reveal underlying patterns by recording and plotting data overtime
What are trends?
The long-term movement of a variable
What are 3 examples of what trends can be?
Upward
Constant
Downward
What is extrapolation
Action of estimating or concluding something by assuming that existing trends will continue
What is extrapolation used to do?
To predict future sales
What does extrapolation allow managers to do?
Set sales targets
What does extrapolation rely on?
existing trends remaining true
What is correlation?
A measure of how closely two variables are related
What can correlation be? 4 ways
Positive
Negative
Strong
Weak
What does correlation not prove?
Cause and effect
What can sales forecasts allow?
The finance department to produce cash flow forecasts
What are confidence intervals?
A margin of error for sample results
What do confidence levels indicate?
How sure you are that the value for the population lies within the interval
Why are confidence intervals used for marketing?
To make your estimate of population is useful
What do companies use technology to gather info about?
Lifestyles of their customers and what products they buy
How does IT help analyse marketing data?
By reducing risk of errors
What are 3 disadvantages of using IT to analyse marketing data?
Expensive
Staff need to be trained
May not be useful
What are 3 advantages of using IT to analyse marketing data?
Quicker to analyse
Can produce forecasts quicker
Reduce risk of errors
