market analysis

Examples of market analysis in the following topics:

• Qualitative and Quantitative Analysis

• Chapter Questions

  • Please use demand and supply analysis to answer this question.
  • If one bond market were highly liquid while the other market has low liquidity,subsequently, how would liquidity impact the bond markets?
  • Please use demand and supply analysis to answer this question.
  • Please use demand and supply analysis to answer this question.
  • Please use demand and supply analysis to answer this question.

• Conducting a Situational Analysis

  • The situation analysis, the 2nd step in a marketing plan, is critical in establishing a long-term relationship with customers.
  • The 5C analysis is considered the most useful, comprehensive and common way to analyze the market environment.
  • The task of examining the competitor's financial and marketing performance is one of the responsibilities of a market analyst.
  • It includes the strengths and weaknesses, the anticipated response to the company's marketing strategy, an analysis of growth and investment plans as well.
  • A SWOT analysis is another method under the situation analysis that examines the Strengths and Weaknesses of a company (internal environment) as well as the Opportunities and Threats within the market (external environment) .

• Limitations of Financial Statement Analysis

  • Ratio analysis using financial statements includes accounting, stock market, and management related limitations.
  • Ratio analysis using financial statements as a tool for performing stock valuation can be limited as well.
  • The efficient-market hypothesis (EMH), for example, asserts that financial markets are "informationally efficient. " In consequence of this, one cannot consistently achieve returns in excess of average market returns on a risk-adjusted basis, given the information available at the time the investment is made.
  • While the weak form of this hypothesis argues that there can be a long run benefit to information derived from fundamental analysis, stronger forms argue that fundamental analysis like ratio analysis will not allow for greater financial returns.
  • These audiences also see limits to ratio analysis as a predictor of stock market returns.

• Introduction to Demand and Supply in a Market System

  • The market system is an interrelated set of markets for goods, services and inputs.
  • The economic analysis that is used to analyze the overall equilibrium that results from the interrelationships of all markets is called a "general equilibrium" approach.
  • Partial equilibrium is the analysis of the equilibrium conditions in a single market (or a select subset of markets in a market system).
  • In a partial equilibrium model, usually the process of a single market is considered.
  • The behavior of potential buyers is represented by a market demand function.

• Analyzing Data

  • Data Analysis is an important step in the Marketing Research process where data is organized, reviewed, verified, and interpreted.
  • Marketers use databases to extract applicable information that identifies customer patterns, characteristics and behaviors.
  • In statistical applications, some people divide data analysis into descriptive statistics, exploratory data analysis (EDA), and confirmatory data analysis (CDA).
  • Statistical market research tools are used.
  • This typically happens when a client hires a market research company and they want to remain thoroughly involved in the research process.

• Trends in Markets

  • Traders identify market trends using technical analysis, a framework which characterizes market trends as predictable price tendencies when price reaches support and resistance levels, varying over time.
  • The terms bull market and bear market describe upward and downward market trends, respectively, and can be used to describe either the market as a whole or specific sectors and securities .
  • A secular bear market consists of smaller bull markets and larger bear markets, while a secular bull market consists of larger bull markets and smaller bear markets.
  • A bear market is a general decline in the stock market over a period of time.
  • A market top (or market high) is usually not a dramatic event.

• Trend Analysis

  • In addition to using financial ratio analysis to compare one company with others in its peer group, ratio analysis is often used to compare the company's performance on certain measures over time.
  • Trend analysis can be performed in different ways in finance.
  • For example, in technical analysis the direction of prices of a particular company's public stock is calculated through the study of past market data, primarily price, and volume.
  • Fundamental analysis, on the other hand, relies not on sentiment measures (like technical analysis) but on financial statement analysis, often in the form of ratio analysis.
  • Creditors and company managers also use ratio analysis as a form of trend analysis.

• Marketing Performance Metrics

  • Marketing metrics are numeric data that allow marketers to evaluate their performance against organizational goals.
  • Marketing metrics provide frameworks that public relations specialists, brand managers and marketing directors can use to evaluate marketing performance, as well as back their marketing plans and strategies.
  • ROMI, a relatively new metric, is marketing contribution attributable to marketing (net of marketing spending), divided by the marketing "invested" or risked.
  • [Incremental Revenue Attributable to Marketing * Contribution Margin (%) - Marketing Spending] / Marketing Spending ($)
  • Quantitative metrics and analysis can help decision makers make more accurate decisions and better predict risks associated with decisions.

• Service Marketing Management and Metrics

  • Service marketing management oversees the implementation of marketing programs, while metrics measure their effectiveness and performance.
  • Marketing management is a business discipline which is focused on the practical application of marketing techniques and the management of a firm's marketing resources and activities.
  • Tasks for marketing management may include conducting a competitor and value chain analysis, putting together a brand audit, and assembling qualitative and quantitative research.
  • Overseeing the successful development and execution of the marketing plan falls under service marketing management roles.
  • It is the responsibility of marketing managers--in the marketing department or elsewhere--to ensure that the execution of marketing programs achieves the desired objectives in a cost-efficient manner.