21 - Marketing analysis

Open Ended

How can analyzing sales data using the Moving-Average method help businesses identify trends and make better decisions?

Multiple Choice

Why is understanding elasticity of demand important for making business decisions?

• It helps determine pricing strategies and predict consumer response.

• It only affects product design and development.

• It is mainly used for employee management.

• It has no impact on business decisions.

Open Ended

Evaluate the importance of R&D expenditure for a company like Shark Ninja. Is it a guaranteed route to success, or does it carry significant financial risk?

Open Ended

Why can R&D (Research & Development) not be successful working in isolation?

Open Ended

Why is speed so critical in the New Product Development (NPD) process for consumer goods like blenders & vacuums?

Multiple Choice

Which functions must R&D collaborate with to ensure a product's success?

• Marketing and Operations/Finance

• Human Resources and Legal

• Sales and Customer Service

• IT and Procurement

Multiple Choice

Which of the following best describes why speed is vital in New Product Development (NPD)?

• It allows companies to achieve first-mover advantage and maximize profits before competitors enter the market.

• It ensures the product is always the cheapest option available.

• It guarantees the product will never fail in the market.

• It eliminates the need for marketing and operations collaboration.

Fill in the Blank

Elasticity of Demand measures the degree to which the quantity demanded for a product changes in response to changes in ___ variables.

Open Ended

Explain how understanding price elasticity of demand (PED) can help managers make smarter pricing decisions.

Multiple Choice

Which of the following products is most likely to have inelastic demand?

• Cinema tickets

• Chocolate bars

• Petrol

• Branded sneakers

Multiple Choice

Which of the following statements about the inverse relationship between price and demand is correct?

• A price rise causes demand to rise.

• A price fall causes demand to fall.

• A price rise causes demand to fall.

• Price and demand move in the same direction.

Fill in the Blank

Fill in the blank: PED = ___ Change in Quantity Demanded / % Change in Price

Multiple Choice

Based on the PED value, classify the type of demand for a product with a PED of 0.25.

• Perfectly inelastic

• Inelastic demand

• Unit elasticity

• Elastic demand

Open Ended

Discuss two factors that determine PED and explain how they can impact business decisions.

Open Ended

Explain what the effect on the levels of sales and revenue will be for each product if all prices rise by 10%.

Multiple Choice

Which product among A, B, and C has unit elastic demand according to the PED values?

• Product A

• Product B

• Product C

• None of the above

Open Ended

From the information given, calculate the PED in the first week after the price reduction. Comment on your result.

Multiple Choice

Which of the following is NOT a reason why demand for the Daily Times fell back to its original level after the price reduction?

• Competitors matched the price

• New readers didn’t like the content

• The newspaper improved its content

• The advantage of the price cut disappeared

Multiple Choice

Which of the following is an example of an inferior good according to YED?

• Cinema visits

• Milk

• Canned foods

• Smart watches

Fill in the Blank

Income elasticity of demand (YED) is calculated as % Change in Quantity Demanded divided by ___

Open Ended

Explain how the sign (+ or -) of the YED result influences business strategy during economic growth and recession.

Multiple Choice

Which of the following is a reason why YED (Income Elasticity of Demand) matters for businesses during economic changes?

• It helps businesses predict sales trends during recessions or booms.

• It determines the price elasticity of supply.

• It only applies to luxury goods.

• It is used to calculate profit margins.

Fill in the Blank

If PEDm is less than 1, promotions have a ___ effect on demand.

Multiple Choice

Which of the following statements about Promotional Elasticity of Demand (PEDm) is correct?

• PEDm measures how demand changes with promotional spending.

• PEDm is calculated as % change in price divided by % change in quantity demanded.

• PEDm only applies to price changes, not promotions.

• PEDm is irrelevant for marketing decisions.

Multiple Choice

Based on the worked example, what should a company consider if its PEDm is 0.8 after increasing its advertising budget?

• Rethink how it advertises or where the money is spent.

• Increase the advertising budget further.

• Stop all promotional activities.

• Focus only on luxury products.

Open Ended

Calculate the promotional spending elasticity of demand for technical toys and games & puzzles given a 10% increase in promotional spending results in a 12% increase in demand for technical toys and a 6% increase for games & puzzles.

Multiple Select

By the end of this lesson, you will be able to:

• Calculate Price, Income, & Promotional Elasticity of Demand

• Understand the stages of New Product Development

• Use the Moving-Average method to analyze sales data

• Evaluate the importance & limitations of Sales Forecasting

Open Ended

Reflecting on the lesson, which aspect of marketing analysis do you find most relevant to real-world business decisions and why?