1. Analysing Markets and Marketing
A2 Business Studies
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2. Lesson Objectives Explain the reasons for market analysis
Assess the value of market analysis
Analyse market data and trends
Use correlation to analyse markets
Discuss the difficulties in analysing marketing data.
Assess the use of information technology in market analysis.

3. Why analyse the market?
As you discovered at AS Level, marketing is about identifying, anticipating and satisfying customers needs and wants. As you now know this should also fit with the corporate objectives. To have a good understanding of customers, firms use primary and secondary market research, practical experience and a detailed market analysis.
This examination of the features of the market is very important in the planning process because it will enable the business to assess the situation and hopefully identify opportunities to be explored and threats to be overcome.
The following are aspects of the market which can be analysed.

4. The size of the market can be measured in terms of value- How much is spent in the market as a whole (by all companies operating in the market) and by volume? How many items are sold? These statistics may be available from the Office for National Statistics at and are important because a firm must be sure that the market is big enough to be worth competing in.
Growth in the market is also important as it gives an indication of future activity and potential profits. For example in announced that sales of hybrid cars in the UK had doubled in the previous 12 months, making cleaner cars the fastest growing sector in the industry, Year-to-date results for the hybrid market showed an increase in sales from 3,117 to 6,568 cars- or 11%
Is the market divided into segments so that easily identifiable groups of consumers with similar wants and needs can be targeted?

5. Reasons for analysing the market
Gathering evidence for devising a new strategy- It might be that an existing marketing strategy has to be changed. This could be because the corporate objectives have changed as a result of a takeover or merger, leading to new marketing objectives. It could also be because of changes in competition behaviour, technological developments or market conditions. Whatever the reason, as much information as possible about a market should be made available to those planning a new strategy.
Identifying patterns in sales: This is a process where past and current trends are used as the basis for making predications about future sales. Businesses try to identify the underlining trend, whether this is upwards, downward or constant. This information can then be used as part of the strategic decision-making.

6. Methods of analysing the market
Moving averages-
Extrapolation
Correlation