Component 2

2.1 Data and Market

Analysis and Sales
Forecasting

Name:

MEG: Aspirational MEG:

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 What you will learn in this unit…

DATA ANALYSIS

Present, interpret and analyse data, including pie charts, histograms

and index numbers

MARKET ANALYSIS

Analyse quantitative and qualitative research data in order to better

understand the position of the business in the market and the
requirements of customers at present and in the future

Calculate price and income elasticity of demand

Interpret numerical values of price and income elasticity of demand

Evaluate the impact of changes in price and income on business

revenue

SALES FORECASTING

Explain what is meant by sales forecasting

Explain the usefulness of sales forecasting and the factors that can
affect its reliability

Understand that sales forecasting includes quantitative and qualitative

techniques

Calculate a three-point moving average

Create a scatter graph and a line of best fit and use extrapolation to
predict future developments

Interpret information from time-series analysis

Understand that correlation can be positive, negative or non-existent

Evaluate the usefulness of time-series analysis for a business and its

stakeholders

Explain qualitative forecasting techniques including, intuition,

brainstorming and the Delphi method

Evaluate the advantages and disadvantages of using qualitative

forecasting
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Key Terms
The vocabularly that I need to learn for this unit of work is:

Index Number: Values expressed as Moving Average: The calculation of the

a percentage of a given base year mean of a set of data over a particular time
which assumes the value of 100. period.

Sales Forecast: The use of existing Trend: The underlying pattern in a series of
data to predict future trends. data.

Delphi Method: The use of Extrapolation: The forward projection of

structured expert opinion to help the trend to predict future values.
generate qualitative research analysis.
It usually is in the form of a survey. Seasonality: Changes to demand that
occur over the course of a typical 12 month
Brainstorming: A technique that period e.g. higher toy sales at Christmas.
brings together individuals to discuss
their ideas for solutions to a problem. Correlation: A measure of the strength of
the relationship between two variables e.g.
Line of Best Fit: A line drawn through wet weather and umbrella sales.
the points on a graph so that the
points are distributed as evenly as Income Elasticity of Demand: A measure
possible above and below the line. of how sensitive demand is to a change in
the income of consumers.

Positive Correlation: There is a strong correlation between the two variables.

Negative Correlation: There is a weak correlation between the two variables.

Price Elasticity of Demand: A measure of how sensitive demand is to a change in the price
of a good or service.

Test Market: The limited launch of a new product within a specific geographical location
chosen to reflect the wider market. This will assist the marketing of a new product in any
larger-scale launch. within a

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Activity: Business Data Investigation

TASK 1: Internet Research

Using the internet search for examples of business data presented as:

Pie charts

Histograms

Line charts

Index numbers

Copy the data into PowerPoint and briefly interpret the data.

TASK 2: Primary Research

Carry out some primary research from your classmates to gather some
categorical data, such as their favourite television programme, where they
went on holiday, the colour of their eyes, favourite take-away food etc.
Collect this data in a table then produce a bar chart to display the data.

Carry out some further primary research to gather some quantitative

variables, such as height, distance they live from school, amount of cups of
tea they drink in a week, and so on.

Produce a frequency table and a histogram to show the results.

TASK 3: Presentation
Data presented in tables and graphs are always more useful to business
decision-makers than data presented in written form. Discuss this statement
with reference to appropriate examples.

Prepare a brief presentation that answers summaries your answers to all of

the tasks. This should last no more than 3 minutes and contain a maximum
of 5 slides.

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Presentation Marking Criteria

Criteria A B C D E F
Knowledge and Student shows Students show Students can Students show Students show No clear
understanding extensive a good demonstrate an a basic some evidence understanding
knowledge of knowledge of understanding understanding of of the topic
the topic the topic of the topic of the topic understanding and no opinions
supported by supported by and can however finds the topic, formulated.
own opinions. opinions. formulate a it hard to however
basic opinion. formulate explanation is Information
Argument their own very basic and does not flow
should be Argument Information opinions. no real thought and no
coherent. should be should flow has gone into coherent
information coherent. effectively Information formulating an argument
should flow information flows however opinion.
smoothly should flow inconsistently
smoothly
Delivery and Student should Student should Student may Student finds Student No effort
performance be confidant show signs of show signs of it hard to contributes shown and no
when speaking being being nervous speak in front little to the contribution
and have a confidant when in parts of class. delivery of the towards the
presence. speaking and however However presentation. delivery of the
Student should have a delivery was effort is made Little effort is presentation
be able to presence. OK overall. and some parts made to speak at all.
engage the Student’s are out and the
audience giving presentation Student should communicated parts they do
full eye should be try and make effectively. say are
contact. interesting. the communicated
presentation Reliance on poorly.
Furthermore Furthermore interesting by notes in order
student should student should communicating to deliver Heavily reliant
be able to be able to main points presentation. on notes to
communicate communicate effectively. deliver
effectively effectively presentation.
with little if with some help Student can
any help from from use notes etc.,
resources resources to help with
outside of the outside of the presentation.
PowerPoint. PowerPoint.
Presentation Overall quality Overall quality Overall quality The quality of Overall quality No effort or
quality of PowerPoint of PowerPoint of PowerPoint the PowerPoint of the contribution
slides is slides is slides is ‘OK’ slides is PowerPoint shown towards
‘EXCELLENT’ ‘GOOD’ Use of images inconsistent. slides is ‘POOR’ to development
to support Images are Images used of the
Appropriate Appropriate understanding. used but not sometimes and presentation
use of images use of images effectively. not slides.
to support to support effectively.
arguments and arguments and Slides look Slides are Slides are not
information. information. good however inconsistent Slides do not completed or
not consistent. and most are demonstrate irrelevant.
Slides are Slides are cluttered with understanding
visually visually Slides are very lots of and are not No opinions
appealing appealing with informative but information really relevant developed at
supported by evidence of lack application that is not to the topic. all.
good use of understanding of own opinions. needed.
knowledge and demonstrated No opinions
understanding. within some No real signs developed at
slides. of developing all.
an opinion are
present within
the slides.

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 Response to
questions Presence

Argument

Communication
Flow and
Structure

Clarity
Body Language Voice
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 CASE STUDY 1
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 CASE STUDY 2
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 CASE STUDY 3
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 QUICK QUESTIONS
1. Evaluate the usefulness of sales forecasting to a business in a rapidly changing market. (8)

2. Explain one advantage of correlation analysis to a business. (5)

3. State two examples of an income inelastic good. (2)

4. State two ways in which a business might make their product less price elastic. (2)

5. Distinguish between inferior and normal goods. (3)

EXAM SKILLS

Explain
If you are asked to explain something, then you should provide details and reasons for how and why
something is the way it is. You should also include in your response a clear meaning of what it is that
you have been asked to explain and be sure to include sufficient detail so that any cause and effect
(impact) is communicated as part of your answer. Where appropriate look to include examples to make
your explanation stronger and clearer. Be guided by the number of marks available for the question as
to how much detail is required.

Identify
If you are asked to state, name, list or identify something then you should provide brief facts or
examples. There is no requirement to write in a lot of detail for these command words.

Distinguish
If you are asked to distinguish, then you should identify and explain the differences between two or
more concepts, theories or approaches, making these points of difference very clear, by using
examples to support your points. You should demonstrate your knowledge and understanding, by
perhaps providing a definition or describing the characteristics of those things that you have been
asked to distinguish.

Evaluate
If you are asked to evaluate something, then you should make a judgement based on weighing up
points for and against that which you are asked to evaluate. In your response, you should provide a
verdict as to what extent you agree with a statement, on the basis of presenting evidence and
examples taken from a wide range of sources that both agree and contradict the statement in
question. Finally, you should come to a conclusion and provide justification for these, including any
factors that have affected your judgement, such as the quality of information available. You should
support the points that you make in your argument with evidence and examples from theory and
practice.

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 CASE STUDY 4

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Create a Revision Mind map for Data Analysis, Market Analysis
and Sales Forecasting

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Theory Notes

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Price Elasticity of Demand Exercises

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Income Elasticity Activity

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Moving Averages Practice Questions

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Case Study 5

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Scatter Graphs and Line of Best Fit Exercises

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End of Unit Self-Assessment & Progress Review

Areas that I have fully understood about data analysis, market

analysis and sales forecasting.

Areas that I have not fully understood about data analysis,

market analysis and sales forecasting.

My action plan to address this is as follows:

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Tick off your areas of strength in the boxes above.

Which areas do you reckon that you still need to strengthen?

END OF UNIT TEST MARK:

END OF UNIT GRADE:

TEACHER COMMENT/AREAS TO DEVELOP:

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