A shop analyses the performance of its POS terminal operators and warns operators who are too slow or make too many mistakes. Information obtained by market research and sales figures can help achieve this.

• Buy more of a certain commodity because sales are good. Advertising and marketing a product should be aimed at people likely to buy it otherwise it is a waste of time.

• Information can identify gaps in a particular market which can then, on the basis of sound information be filled.

• A manufacturer spends money developing a new product because they have seen a gap in the market. A company developed special sized shampoo bottles when airline companies limited the amount that could be taken into the cabin.

• Information about customers’ buying habits is valuable here and can lead to an organisation or company becoming more profitable. Information can tell an organisation how well it is doing compared to its competitors.

Example can be worth 2 marks if concept of targeting resources is clear.

Example 1: Company decides to spend money on advertising in Area B to promote a particular product. (‘… because they have noticed sluggish sales’ may qualify for spotting trends mark).

Example 2: Information from research is used to identify gaps in a particular market which can then be filled by developing a new product.

Process: Spot trends

Example: Analyse sales data and realise when something is out of fashion e.g. sales of tape recorders or if one region buys more of something than another.

Analyse sales data and realise when something is out of fashion e.g. sales of tape recorders or if one region buys more of something than another.