Interpret market trends and developments

BSBMKG507 – Task 1
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1. Explain how each of the following internal and external sources of information can
assist in forecasting market trends.
a. business and strategic objectives
Strategic planning can help your company to be more proactive rather than reactive to the
evidence. This type of document allows associations to predict their future and prepare. Through strategic
planning, companies can anticipate certain unfavourable scenarios before they happen. Thus, they can
take precautions to avoid them.
Establishing a sense of direction, A strategic plan helps to define the direction an organization
should take. In addition, it helps to establish realistic objectives and goals, which are in line with the
vision and mission outlined by the company.

b. marketing and other business performance

1. Analyse the current scenario in several global environments, identifying trends and
opportunities that may occur in the development of the market and business, in order to generate inputs
and subsidies for market planning
2. Build strategies, from the analysis of the market environment, in order to elaborate the
marketing and sales planning for the next period;
3. Develop studies of sectors that are on the rise, and develop defences for sales of products
or services;
4. Work in the most varied types of marketing, depending on what the field is.

c. comparative market information

When analysing the current market, a dynamic advanced world is observed, everything happens
very quickly, technology, the spread of information, the oscillation of the economy, politics, competition
and the market are constantly changing. And the corresponding companies, in order to survive, always
remain attentive to these constant changes.
This work aims to analyse the importance of a company to develop marketing actions for the
sales force; verify why prospecting should be a continuous process to be carried out by the company and
analyse how planning can assist in the effectiveness of sales results. As marketing actions seek to develop
greater interactivity between the company and the customer, and consequently, obtain greater competitive
advantages.

d. changes in technology
Digital transformation doesn't just reduce your workload and improve your planning. This
process becomes essential to give you a competitive advantage and some more benefits, such as: Reduced
inventory costs, documentation reduction, improvement of communication, the use of technologies for
purchases.
 e. demographic changes
The demographic factor is part of an environment in which associations cannot influence, but are
directly or indirectly influenced by this factor. It is called the macro environment, which is defined by the
more general elements of the external environment.
The economy and technology will not be the determining factors for business, but demographics.
It is worth mentioning that the problem will cease to be the excess population that has been evident in the
last forty years, but the low birth rate, which according to him will increase the population insufficiency
of developed countries, for him the solution is to increase the productivity of workers in the knowledge.

f. social and cultural factors

Not necessarily people who are from a particular social and cultural group will have the same
consumption behaviors, as this varies from individual to individual, depending, above all, on their
personal role.
Cultural - The understanding of various cultures contributes to the success in reaching the
audience of certain audiences.
Necessities - Factors linked to psychological and emotional issues can directly impact consumers'
buying habits, whether due to trauma, necessity or even some kind of prejudice.
Stages of Life - We all go through various stages in life (childhood, adolescence, youth and old
age). And at each stage, we experience different types of experiences that end up directly impacting our
lifestyle.

g. economic trends
They usually show the best results and growth in the medium and long terms. In addition,
investment is a way to take advantage of the trend's recent popularity.

h. government activities and legislative changes

As the pace of change in government increases, organizations can no longer rely on old business
practices to maintain prosperity and sometimes even the non-ban on business. Another important factor is
that the laws interfere in your work method and what these changes would entail for your company.

i. industry trends
Industry impacts can change relationships, both commercial and personal, in the globalized
world. It promises to revolutionize the way industrial processes are developed. Therefore, it is necessary
to know how to deal with this reality, which is already part of the future of humanity.

j. supplier data
Using the data, the company and supplier can create a competitive advantage, seeking important
internal information that can be integrated with other information coming from external sources and that
from there can bring included benefits.
The data can be defined, respectively, as values generated in a certain period of time, made on the
presence of a brand in the store and quantitative activities carried out by brand promoters in the store.
 2. Explain the purpose of the Australian Consumer Law and give at least one example
of the implications of the Act for marketers.

  The object of the Australian Consumer law is to enhance the welfare of Australians through
the promotion of competition and fair trading and provision for consumer protection.
For example, a person who acquires a vehicle for use in the transport of goods on public
roads, irrespective of price, is also considered to be a consumer for the purposes of the ACL.
 Banning specific unfair practices in trade or commerce;
-The ACL prohibits certain false or misleading representations, the supply of unsolicited goods or
services, participating in pyramid schemes, and practices involving the display of prices, referral selling,
harassment or coercion.
 Dealing with consumer transactions for goods or services;
-The ACL provides guaranteed consumer rights for goods or services, sets national rules
governing unsolicited sales transactions and outlines five basic rules for lay-by agreements.

3. Explain why marketers should take into account the Privacy Act 1988 when
marketing to individuals.

It is very important to understand that Act to not copy or reproduce a file, document, image
from others.
The Privacy Act 1988 (Privacy Act) was introduced to promote and protect the privacy of
individuals and to regulate how Australian Government agencies and organizations with an annual
turnover of more than $3 million, and some other organizations, handle personal information.
The Privacy Act includes 13 Australian Privacy Principles (APPs), which apply to some private
sector organizations, as well as most Australian Government agencies. These are collectively referred to
as ‘APP entities. The Privacy Act also regulates the privacy component of the consumer credit reporting
system, tax file numbers, and health and medical research.

4. Describe XLSTAT and two of its features

The XLSTAT is a software of data analysis that allow who uses to analyse, customize and
share results. You can use as add on to programs like Excel, Mac and PC. Some features that this add
can do include: Tests on contingency table and descriptive statistics.

5. Describe SPSS Statistics and two of its features

SPSS is software that is used for analysis in social science. It is one of the best software for
analysis and computation of statistical data. The featuring’s included Logistic regression and
Loglinear analysis.

6. Outline the concept of the conversion rate of leads to sales.

 In marketing, every time someone takes an important action for the purpose of your brand, it
accomplishes what we call conversion. So, every action in your company needs to direct the persona
to conversion. Dispatching your strategy, this action can be filling out a form, buying a product, etc.
The conversion rate is a metric used to track your audience converts and generates results for
the business. To finish, you must do the calculation of the reference quantity compared to the total
number of visitors to the channel in question, which is usually a landing page, the product page in e-
commerce or how to sign up.

7. Explain why it is important to measure the conversion rate of leads to sales at

different times.

By evaluating a conversion rate at all stages of the buying journey and tracking the progress of
visitors and leads through the funnel, you can find possible bottlenecks and identify opportunities that are
being missed.

8. Describe each of the measures of central tendency.

a. Mode - Mode is the value where the frequency of your data is greater. So, to find a
fashion for this set we could make a frequency table and see which is the most frequent number.
b. Mean – The Mean is the result of the sum of all values divided by the number of entries
in our data set, that is, if we add all of our values and divide by the quantity, we will have the average.
c. Median - It is the value that divides our data set into two halves.

9. Explain why the normal distribution curve a useful statistical concept.

The normal distribution curve represents the behaviour of several processes in companies
and many common phenomena, such as the height or weight of a population, the blood pressure of a
group of people, the time that a group of students spend to take an exam. The normal distribution can
be used to approximate discrete probability distributions, such as a binomial distribution. In addition,
the normal distribution also serves as a basis for classical statistical inference. In it, the average,
median and fashion of the data have the same value.

10. Explain how to calculate the lifetime value of a customer.

Lifetime customer value is simply a total revenue made over the life of a customer. The
calculation is made through the average sales value, times the number of transactions repeated times
the average customer retention time.

11. What do measures of dispersion show? Provide an example to illustrate your

answer.

This type of dispersion shows the variability of data and make you which point the data is,
shows the oscillation of the variation of data.
 12. Outline the Delphi technique.

It is a technique based on a particular subject with a panel of 5 to 10 experts with a complex

subject to discuss, in order to obtain relatively accurate and qualitative information and information
about the future. Its functionality is to reduce as much as possible forecasting possibilities or
assumptions.

13. Explain Chi-square testing.

The Chi-Square independence test is used to find out if there is an association between the
row variable and column variable in a contingency table constructed from sample data. The null
hypothesis is that the variables are not associated, in other words, they are independent.

14. Outline the purpose of sampling.

Sampling is making generalizations without having to examine all the elements of a given
group.

15. Explain probability and non-probability sampling.

Probability sampling - This type of sampling is subjected to statistical treatment that allows
to compensate for sampling errors. Today, it is difficult to accept non-probabilistic sampling, except
in cases where probabilistic sampling cannot be performed.

Non Probality - as it does not make use of random selection, does not accept various
statistical applications and, for this reason, is neglected.

16. Define the term the net present value of a customer.

The Net Present Value is used to measure the economic viability of a project, being one of
the most known and practical methods for this type of analysis. When compared with other methods
of analysis, this method stands out from the economic point of view.

17. Outline the terms correlation and positive and negative correlation.

Positive correlation: occurs when there is a concentration of points in an increasing trend,

that is, as the independent variable increases, the dependence also increases. This would be the case
with the example of selling umbrellas, described above.

Negative Correlation: occurs when there is a concentration of points in a decreasing trend,

that is, as the independent variable increases, dependent.

18. Explain the term causation.

 Causation is the relationship between two actions (same type) where one action is affected by the
other. In statistics, when the value of one event, or variable, increases or decreases as a result of other
events, it is said there is causation.

19. Explain the concept of frequency in statistical analysis and the use of frequency
charts.

Frequency: number of values of the variables belonging to each of the classes.

Using the Frequency in number on a chart you can do a Histogram, that Is the representation
of a set of quantitative data showing not just frequency as density and all the values.

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