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
Section 2-Marketing
Section 2 - Marketing To make a successful business we needed to complete a number of marketing tasks to research into price, place and promotion. The marketing director was Charlie, who with help from the team researched thoroughly into each of these three subjects. At first the group's idea for a business was to make magnets and sell them in school. Many other ideas were considered, including a football tournament, fair games in the hall and other plans. We were aiming at the target market of lower school, as we were going to sell the magnets on the premises. We thought that the younger students would prefer the product than the older ones, and so needed to plan the product to attract their attention. Also, our market research showed there was more females than males interested, shown in the chart. We decided upon this idea for a number of reasons, including that we could not get permission to use the hall for other events. Furthermore, magnets would be a lot cheaper to make - consequently we could hopefully make more money. We conducted a small amount of primary and secondary research, but probably should have completed more, although the research we used was relatively useful to help us target the product. Primary research is research conducted by the company itself, whereas secondary research is taken from another source that has completed it. The primary research we
Advertising in newspapers and magazines
Advertising in newspapers FLE's objective is to increase visitor numbers, so advertising in newspapers might be a good was to help achieve this FLE could consider advertising in magazines. There a number of advantages to advertising in newspapers, for example the advert might be publish is somewhat flexible in terms of size and colour; if they want a large advert this is doable in a newspaper spread rather than a small magazine, also, if they want a black and white picture, it will be more acceptable in a newspaper rather than a magazine. Also, it might be cheaper as the paper they use in newspapers is inexpensive compared to the glossy paper used in magazines. Newspapers have a wider circulation than magazines also, more people read newspapers than they do magazines; this is good for FLE and could lead to an increase of visitor numbers as more people would be exposed to FLE's advert. For example, 3,128,501copies of The Sun are bought daily. However, about 7,986,000 read the newspaper daily; this is because more than one person can read the one newspaper. Advertising in newspapers is quick; this is because they tend to be released daily. If one day, FLE see a promotion advert from their competition in a newspaper they are able to respond quickly with an advert of their own. Newspapers are also targeted, for example, The Sun is targeted at men and therefore had more male
What is positioning?
Introduction Positioning is one of the major steps in target marketing, the other two being market segmentation and targeting. Effective positioning is a must for clothing retailers to distinguish themselves from other competitors and to appeal to potential customers as well as maintaining brand loyalty, especially in the fashion industry where branding and perception of a company in the eyes of consumers calls the shots. This essay will explain what is positioning, followed by an overview of how positioning is applied in the high street fashion industry, using the example of international top market leader in high street clothing, Topshop. What is positioning? Positioning is the process of creating a certain perception, image, reputation, messages and offers of a company in the mind of customers or user groups (Gabbot, et.al., 2004). Consumers hold a set of feelings and impressions about a product and compare them with competing products (Kotter, et. al., 2007). These perceptions play a strong influence in the buyer decision-making process and have a direct impact on the companies involved. For example, consumers who are brand and image-conscious will avoid a store if they perceive it to only cater to the lower-end market. Therefore, marketers should ensure that the right marketing positioning strategies are applied to set a desirable image of the company in the minds of
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
Marketing mix and segmentation of Sony.
MARKETING MIX AND SEGMENTATION OF SONY In marketing two of the most important things are the marketing segmentation and the marketing- mix. Even if you come up with a "gee-whiz" product, if you do not use the right marketing ingredients the result can be devastating. Nowadays, Sony is the one of the most successfully growing electronic companies in the world but it cannot be attributed just to the technology and the innovation. Sony's marketing segmentation consists of four different lines: electronics (camera, computer, camcorder, TV, Walkman, MP3 players), Sony Music and Sony Pictures, digital entertainment (Play Station) and mobile phone (SonyEricsson). One of the biggest steps in Sony's life was when the Sony Computer Entertainment sector was set up with the Play Station 1 (PS1) concept, and later developed with the Play Station 2 (PS2) concept. By the mid-1990s, the whole company was in a deep funk. Its profits had sunk from a high of $1,3 billion in 1992 to a loss of $3,3 billion in 1995. The solution was the Play Station division in 1993. Less than 5-years later, the Play station business had grown to achieve an incredible 40% of Sony's $3 billion in operating profits and nowadays, it brings nearly half of the company's profits and Sony owns the biggest share from this market in the world. So how was this success compromised? Task 1 SEGMENTATION Sony
