Market Analysis

The company sales may depend on the behaviour of certain market factors. The principal factors which affects the sales may be determined. By studying the behaviours of the factors, forecasting should be made. Correlation is the statistical analysis which analyses the degree of extent to which 2 variables fluctuate with reference to each other. The demand decision makers have to consider price, competitions, advertising, disposal income, buying habits, consumption habits, consumer price index, change in population etc. It is a sound method where the market factor is analysed in detail. But it is costly and time consuming. It is a short term process.