Summary: Collecting Data To Make Marketing Decisions

Question 1

How does a business “identify”

Answer 1

• identifying: finding out info to make decisions, using market research
• market research
• sampling
• market data, volume and value, sales growth, market growth
• extrapolation
• correlation
• price elasticity of demand
• income elasticity of demand
• technology

Question 2

What is the next step after identifying?

Answer 2

• after identifying, they can analyse the info discovered

- however in order to do this businesses need to consider advantages and disadvantages of the data collected

Question 3

What are advantages of collecting data to make marketing decisions?

Answer 3

• data analysis is a growing feature of marketing
• enables businesses to gain better understanding of customers and market place
• sampling ensures sufficient data is gathered cost effectively
• statistical techniques enable businesses to analyse market data so they can make forecasts
• PED/YED assist decisions, what will make more revenue?
• technology allows businesses to gather broader ranges of data and conduct more detailed analysis

Question 4

What are disadvantages of collecting data for marketing decisions?

Answer 4

• data on its own must be treated with caution, needs qualitative judgment
• especially when:
  
  • products are new, no previous info
  • no clear indication of future sales
  • trends have changed
  • PESTLE is involved
  • factors influencing sales aren’t easy to quantify (measure in numbers)
  • character of individuals are important