Market Analysis & Trends Flashcards

Which analytical framework evaluates a market by examining Political, Economic, Social, Technological, Environmental, and Legal factors?

Answer: PESTEL Analysis

PESTEL Analysis assesses macro-environmental factors that can impact a market or organization.

A commercial manager notices that market demand for a product peaks every fourth quarter. This pattern is best described as:

Answer: Seasonal variation

Seasonal variation refers to predictable, recurring demand patterns tied to specific times of year.

Which metric best measures a company's share of its addressable market relative to its largest competitor?

Answer: Relative market share

Relative market share compares a company's market share to that of its largest competitor, used in tools like the BCG Matrix.

In market trend analysis, a 'leading indicator' is best described as:

Answer: A metric that moves in advance of the overall economy or market

Leading indicators change before the market or economy shifts, making them useful for predicting future trends.

When conducting a gap analysis for market opportunities, what is the primary goal?

Answer: Compare current performance against desired performance to find unmet needs

Gap analysis identifies the difference between current state and desired state, revealing opportunities for growth or improvement.

A market characterized by many small sellers, homogeneous products, and easy entry is described as:

Answer: Perfect competition

Perfect competition features many sellers offering identical products with no barriers to entry or exit.

Which data collection method would provide the most cost-effective insights on broad consumer sentiment trends across a national market?

Answer: Online survey panels with statistical sampling

Online survey panels with proper statistical sampling provide wide geographic reach at a lower cost per respondent than qualitative methods.