To what extent will does correlation and extrapolation assist Nintendo in forecasting sales?
To what extent will does correlation and extrapolation assist Nintendo in forecasting sales? (34 marks) Correlation is the relationship between two variables. Extrapolation is related to correlation, as it involves plotting a linear regression curve (also known as a line of best fit) which is based upon how two variables are correlated, and extending the line to predict future values. For Nintendo, a computer game and console manufacturing company, a common example would be the relationship between the level of advertising expenditure and the effect of this on sales of its products. The graph to the left shows a strong positive correlation between sales and advertising, meaning if Nintendo increases its advertising, they can expect to see an increase in sales. Because all values are close to the line, as advertising expenditure increases on the x-axis, sales on the y-axis increase proportionately. The regression line can be extended past the '80' figure (meaning £80million) to predict what sales will be like if they spend £100million or even £900million. The uses of such analysis to Nintendo are to an extent very valuable. By creating a scatter graph like the one above, Nintendo can spot trends and forecast future events. For example, they could estimate demand at a certain point in the coming year. One would expect demand to surge at Christmas time when people are
T-Mobile Marketing strategy suggestion
A marketing strategy suggestion for T-Mobile Marketing strategy section Lewis Cuddy My marketing strategy suggestion To account for the modern necessity of e-commerce I would improve the T-Mobile website. The T-Mobile website is already very effective and offers almost everything available in a shop therefore there are only two ways in which I feel improvements can be made; Offering a phone comparison feature would be very useful. This feature would allow customers to compare the functions, specifications and prices of several products at once. When loading one of the 'shop' pages such as pay as you go deals I found the initial page very overpowering. There is a lot of information and graphics on a single page and therefore I would recommend simplifying these pages. I would recommend two new sponsorship deals, one with Manchester United FC and the second with X-Factor. Manchester United FC is not only regarded as the best British football club but they also have the largest fanbase in the world. This would increase sales with Man United fans and the publicity would be immense considering T-Mobile would be branded on every football kit and across the stadium. The Manchester United stadium alone supports over 76,000 people and this combined with viewers of TV coverage add up to an average of 8million viewers. Manchester United is renowned for reaching finals and in most
