Market intelligence (03)

Question 1

SUMMARY

Answer 1

In summary, the following are covered in this topic:
1. Market intelligence helps businesses to satisfy the needs and wants of
customers.
2. To satisfy the needs and wants of customer, a business must first understand
the customer. A business will gain many benefits if it understands the customer
well.
3. Market intelligence allows businesses to predict sales forecast accurately.
4. Sales forecasting refers to predicting future sales levels and sales trends through
the use of statistical methods.
5. An accurate sales forecast would allow a business to reap benefits, though
limitations still exist.
6. There are two sources of data when it comes to collecting information on
market intelligence, primary and secondary research.
7. Businesses should undertake secondary research for background data, and
primary research for detailed and updated information.

Question 2

Market intelligence

Answer 2

Market intelligence, commonly known as market research, refers to the process of
collecting, recording and analysing information about the customers, competitors
and the market.

It allows a business to assess the viability of a new good or service,
and to discover the target market/ audience through opinions recorded or other
input from customers regarding their interest in the product.

Question 3

Sales forecasting

Answer 3

Sales forecasting refers to predicting future sales levels and sales trends through the use
of statistical methods.

Sales forecast can be based on past sales data, industry-wide
comparisons and economic trends.

Question 4

Limitations of sales forecast

Answer 4

-Dependance on historical data
-Difficulty in predicting consumer preference
-Impact of external influences