1.
Analysing Markets and Analysing
Marketing
“A detailed examination of the features of a
market such as market size and sales used to
predict future trends”

2.
Why should we analyse markets?
• To measure the size and / or value of the market
(number of users, worth in terms of sales)
• To measure growth in a market – this can be used for
financial forecasting
• To segment your current/potential market for future
use
For future use…..
Gather evidence for new strategies (if corporate aims
change)
Identifying trends and patterns for strategic decision
making

3.
Moving Averages
• A technique for identifying an underlying
trend by smoothing out fluctuations in data.
• What might cause fluctuations in data???
• Seasonality
• A new product Launch
• Unforeseen events (Volcanic ash)

4.
Calculate the 3 point moving average
Then calculate the 4 point moving average
Year Actual Sales (£m)
3 year moving
average
4 year moving
average
2000 150
2001 153
2002 157
2003 151
2004 149
2005 156
2006 163
2007 159
2008 154
2009 153
2010 159
2011 165
2012 162

5.
Extrapolation
• Trends – a general direction in which
something tends to move (are sales
increasing, decreasing) You can take ‘trends’
from data.
• Extrapolation – a prediction of a future trend
based on ‘identified’ current trends.

6.
Example of extrapolation
Extrapolation

7.
Correlation
• The relationship between two variables.
These can be positive or negative.
• Example….What is the relationship between
the sale of Wellington Boots and winter
snow??

8.
Issues with analysing market data & ideas to over come
them.
• Test Markets – Limit a product launch to a
particular region to judge it’s success.
• Conduct more PRIMARY research (what are the
issues with this?)

9.
Advantages and disadvantages of using ICT in analysing
markets – Split into two groups (ad’s and dis-ad’s) Do a
quick mind map
Advantages Disadvantages