Market research and Customers 3.3.2

Market research and Customers 3.3.2

1. MARKETING DATA

   • TIME SERIES ANALYSIS
     • Trends
       • Long term movement of a variable.
     • Seasonal
       • Fluctuations repeat on a regular basis
     • Random
       • Fluctuations with no pattern to them suchas war
   • EXTRAPOLATION
     • Is used to predict e.g Future sales
     • Relies on past trends and is most useful in stable enviroments
   • CORRELATION
     • Measures how closely two variables are related
     • Remember one doesn't always cause the other

2. MARKET RESEARCH

   • PRIMARY
     • Questionnaires, interviews, surveys and focus groups.
     • Exclusive to the business that searched it.
     • Uses sampling
     • Test marketing
     • Labour intensive and expensive.
   • SECONDARY
     • Internal source
       • Loyalty cards.
       • Financial accounts
       • Stock records.
     • External sources
       • Government publications
       • Pressure groups
       • Trade magazines.
     • Cheap, easy & fast
   • QUANTITATIVE
     • Numerical statistics
     • Facts and figures
     • Info discovered through records and closed questions.
   • QUALITATIVE
     • Feelings and motivations
     • Info discovered through focus groups

3. ELASTICITY OF DEMAND

   • ELASTICITY HELPS A BUSINESS MAKE CHOICES
     • PRICE ELASTICITY
       • shows how demand changes with price.
       • Help business to decide whether to raise or lower price of product
       • PED = % in quantity demanded/ % change in price.
     • INCOME ELASTICITY
       • shows how demand changes with consumer income
       • Positive Income elasticity
         • less than 1
           • as income rises so does demand - but at a slower rate than the rise in income.
       • YED= % change in quantity demanded/% in real income