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Business-unit 4 > Market Analysis- Sales forecasting and Market analysis > Flashcards

Market Analysis- Sales forecasting and Market analysis Flashcards

1
Q

What is the 2 examples of quantitative methods?

A

Time series analysis

Use of market research data

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2
Q

What are the 3 examples of qualitative methods

A

Delphi technique
Brainstorming
Intuition

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3
Q

What is time series analysis

A

It uses evidence from past sales records to predict future sales patterns

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4
Q

What is surveys of consumers intentions

A

This predicts the future by asking people directly what they intend to do in the future .
The results predict sales patterns across a wide variety of consumer goods.
The results gained have to be adjusted for cultural bias.

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5
Q

What are the 2 methods of sales forecasting

A

Qualitative

Quantitative

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6
Q

Qualitative- what is the Delphi technique

A

Researching the views of a panel of experts
It begins with initial development of a questionnaire focusing on the problem, then that being sent to the panel. Each p answers it and sents it back. Results are summarised and then another q is sent back to the panel. They rate and prioritise ideas, the process is repeated until the experimenter is sure the group are in agreement on the topic.

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7
Q

What are 3 advantages to the Delphi method?

A

It gives the panel time to think about their opinions
Panels can reconsider their judgments
It is flexible and so can be used in a variety of situations

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8
Q

What are 3 weaknesses to the Delphi method

A

Panels may become bored and so spoil their opinion or leave
Payments may lead to bias
Costly and takes time

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9
Q

What is brainstorming

A

A group technique used for generating new, useful ideas and to promote creative thinking

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10
Q

What are moving averages

A

The product of calculating the average of 2 or more items in the data

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11
Q

Why calculate moving average?

A

Allows us to smooth out any peaks or troughs

Allows us to see any trends in data that are cyclical

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12
Q

How do you work out moving averages?

A
                1. Add the first 3 up and divide by 3.
                  Put that number underneath the middle one and cross the first one out.
                  Then do the same for the second, third and fourth number. So on
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13
Q

What is a correlation

A

The relationship between 2 variables

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14
Q

What is extrapolation?

A

If there is a pattern in the sales of a company then you can extrapolate that it will continue

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15
Q

What is seasonal variation?

A

When there is an increase in product sales in certain seasons, e.g. Ice cream in summer increases and decreases in winter

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16
Q

What is cyclical variation?

A

When a products sales follows the business cycle e.g. A 10 month cycle for the iPhone may mean after 10 months the sales falls and then the next iPhone follows 10 months too

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17
Q

What is sales forecasting?

A

Predicting future demands by anticipating own at consumers are likely to do in a given set of circumstances
Form a plan into the future

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18
Q

What is product orientation?

A

When a business bases its marketing mix on what the business sees as its internal strengths

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19
Q

What is market led/orientation?

A

When a business bases its marketing mix on its perception of what the market wants

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20
Q

What is asset led?

A

Uses product strengths to market both new and existing products. Marketing decisions are based on the needs of the customer and the assets of the products

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21
Q

What are 2 advantage of product orientation

A

Economies of scale

Outsourcing of production

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22
Q

What are 2 disadvantaged of product orientation?

A

Changes in market structure will not be responded to

Technology applied can be left behind

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23
Q

What are 2 advantages of market led marketing

A

Flexible to change

Strong understanding of customer needs

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24
Q

What are 2 disadvantages of market led marketing

A

High cost of market research

Unpredictability of future

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25
Q

What are 2 advantages of asset led marketing

A

Employees will know their roles

Firm is maximising returns from assets

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26
Q

What is a disadvantage of asset led

A

Insufficient assets

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27
Q

What is the ansoff matrix

A

A model for outlining the range of marketing options open to a firm

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28
Q

What are the 4 options in the ansoff matrix

A

Market penetration
Market development
Product development
Diversification

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29
Q

Where is market penetration?

A

Existing products and existing markets

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30
Q

Where is market development

A

Existing products

New markets

31
Q

Where is product development

A

New products

Existing markets

32
Q

Where is diversification

A

New products

New markets

33
Q

What 3 things do you do in market penetration

A

Increase your sales force activities
Selling more things to the same customers
Launch price or other special offer promotions

34
Q

What 2 things are included in product development

A

Extend your products by producing different variants

Develop related products or services

35
Q

What 3 things are included in market development

A

Target different groups of people e.g. Age groups
Target different geographical markets
Buy a competitor company

36
Q

What 2 things are included in diversification

A

Risky strategy

Selling completely different products to different customers

37
Q

What 5 things must you consider when deciding which strategy to use

A 
Competitors 
Economy 
Structure of the market 
Size of the business 
Strength of the business
38
Q

Which is the least riskiest part of the ansoff matrix

A

Market penetration

39
Q

ELASTICITY: what is the law of demand?

A

As price increase, quantity decreases
As price decreases, quantity increases
An inverse relationship

40
Q

ELASTICITY: what is price elasticity?

A

How sensitive demand is to a change in price

41
Q

ELASTICITY: is a product is elastic it is what?

A

Price sensitive

42
Q

What are 4 factors that affect demand?

A

Weather
Trend
Income
State of economy

43
Q

What are 4 examples of inelastic products?

A

Petrol
Gas and electricity
Necessity foods
Cigarettes

44
Q

ELASTICITY: what is the formula for PED? %

A

%🔼Q
/
%🔼P

45
Q

ELASTICITY: what is the formula for PED?

The long one

A

P/d x 🔼Q
/
🔼P

46
Q

ELASTICITY: how do you work out percentage change?

A

Change/old

47
Q

ELASTICITY:

A

Inelastic

48
Q

ELASTICITY:>1

A

Elastic

49
Q

Marketing plan:

what is a marketing plan?

A

A plan to describe a firms marketing strategy and the tactics used to achieve this strategy.

50
Q

Marketing plan:

What is the process of the marketing plan?

A

Carrying out a SWOT analysis
Set marketing objectives
Set appropriate marketing mix
Monitor achievement of objectives

51
Q

Marketing Budget:

What is a marketing budget?

A

A plan setting out future expenditure on the firms marketing activities.

52
Q

Marketing budget:

what are 3 factors to consider when setting out a marketing budget?

A

Actual objectives of marketing plan-what the company is trying to achieve,
Competitors spending on marketing
Advertising elasticity of demand

53
Q

Price elasticity:

what is the law of demand?

A

As price increases, quantity demanded decreases.

As price decreases, quantity demanded increases.

54
Q

Price elasticity:

What is the difference between a movement and a shift along the demand curve?

A

A movement is a change in price meaning a change in quantity but along the demand line. A shift is the demand line moving completely either to the right(to show an increase) or to the left (show a decrease)

55
Q

Price elasticity:

what is price elasticity of demand?

A

how sensitive demand is to a change in price.

56
Q

Price elasticity:

what are 4 factors that effect demand?

A

Weather
Trend
Income
Economy

57
Q

Price elasticity:

If a product is elastic, it is what?

A

price sensitive

58
Q

Price elasticity:

Example of inelastic product

A

petrol

59
Q

Price elasticity:

example of elastic product?

A

normal food and drink

60
Q

Price elasticity:

what are 4 actors that influence price elasticity of demand?

A

habit-cigarettes, drugs etc.
availability of substitutes
income
time-have you got time to shop around?

61
Q

Price elasticity:

what is the formula for PED?

A

%^QD/%^P

62
Q

Price elasticity:

what is the broken up formula for PED?

A

Original P/QX ^Q/^P

63
Q

Price elasticity:

If PED is at 0, what is it’s co-efficient?

A

perfectly inelastic

64
Q

Price elasticity:

if PED is between 0-1, the co-efficient is?

A

inelastic

65
Q

Price elasticity:

If PED is above 1, the co-efficient is?

A

elastic

66
Q

What is income elasticity of demand?

A

How sensitive demand is to a change in income

67
Q

Income elasticity of demand

What is the 1 formula for YED?

A

%^D/%^Y

68
Q

Income elasticity of demand

What is the 2 part formula for YED?

A

Y/D x ^D/^Y

69
Q

Income elasticity of demand

What does the sign in front of the elasticity number mean?

A

+=Normal good

-=Inferior good

70
Q

Income elasticity of demand

What is an example of an inferior good?

A

own branded foods

71
Q

Income elasticity of demand

what is an example of a normal good?

A

branded shirts

fresh fruit

72
Q

Income elasticity of demand

Why do businesses work out Income elasticity of demand?

A

To increase revenue

To decide what to do with price

73
Q

Income elasticity of demand

If the product is elastic, what does the business tend to do with price?

A

Decrease it

Business-unit 4 (8 decks)

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