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Correlation & ICT in Marketing

Correlation & ICT in Marketing . A2 Business Studies Unit 3. Aims and Objectives. Aim: Understand the use of correlation and ICT in marketing. Objectives: Define correlation. Explain correlation relationships Analyse the use of ICT in marketing Evaluate the ethics of ICT and marketing.

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Correlation & ICT in Marketing

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  1. Correlation & ICT in Marketing A2 Business Studies Unit 3

  2. Aims and Objectives Aim: • Understand the use of correlation and ICT in marketing. Objectives: • Define correlation. • Explain correlation relationships • Analyse the use of ICT in marketing • Evaluate the ethics of ICT and marketing

  3. Starter • Define moving averages. • Define extrapolation. • Explain two benefits of extrapolation. • Explain two drawbacks of extrapolation.

  4. Correlation • A statistical relation between two factors which can be either positive or negative. • Marketing: correlation between two factors eg. Sunny weather has positive effect on ice cream sales. • Helps firm identify the most significant factors affecting demand for their product.

  5. Three Types of Correlation • Positive Correlation: direct relationship between two variables. Increase in advertising = increase in sales. • Negative Correlation: inverse relationship between two factors. Interest rate rises = housing sales fall. • No Correlation: no link and no pattern between factors. Price of fish and cinema sales.

  6. Three Types of Correlation • Positive Correlation: + 1 • No Correlation: 0 • Negative Correlation: -1

  7. Correlation Worksheet Task:Describe the types of correlation which occurs in these markets. Put a quantifiable figure next to the diagram to describe the correlation & describe the relationship between variables.

  8. Test Markets • Simulate full scale launch of product/service on a sample of the target market. • Goal is to achieve results that represent whole market. However… • The segment must be an accurate representation. • Danger that another firm could copy reducing any competitive adv.

  9. Using ICT in Marketing

  10. Using ICT in Marketing

  11. Tesco stocks up on inside knowledge of shoppers' lives • Is this morally right? • Is this merely just a great marketing tool? • How may this benefit Tesco in the short run and the long run?

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