Quantitative Analysis for Business Decisions

Quantitative Analysis for Business Decisions
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  • 0:00 What Is Quantitative Analysis?
  • 0:34 Purchasing Analysis
  • 1:28 Marketing Analysis
  • 2:22 Sales Analysis
  • 3:28 Lesson Summary
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Lesson Transcript
Instructor: Sean Kennedy

Sean has 8 years experience as a supervisor and has an MBA with a concentration in marketing.

Quantitative analysis used for business decisions is based purely on data. In this lesson, we will discuss the importance of quantitative analysis for making business decisions.

What Is Quantitative Analysis?

Do you have a business and want to know how to use data to determine the success of your company? You may be lost because there are a lot of different formulas and types of data you could look at. Quantitative analysis is using data from your business to determine its success. It helps you look at data to determine what needs to be changed in the company or what is working for the company. You can use quantitative analysis to make purchasing decisions, marketing decisions, and even sales decisions.

Purchasing Analysis

As a business owner, it is important for you to look over how much you have purchased. Purchasing analysis allows you to examine the purchases you've made for your company and ensure that you're getting the best price and the best product for your business. You also should be looking at how much inventory you have at the end of the year, and how much you paid for the inventory. You do not want to be stuck with a lot of inventory because you paid too much for it and it just won't sell because the price margin is too high. You may have to make your price lower and put the items on sale to be able to see a profit.

Imagine you own a toy shop, and you notice you are running out of big giraffe stuffed animals. You would then want to look at data to determine how long ago your last order was, how many big giraffes you've sold since your last order, and how much money you are making on the giraffe toy. By analyzing this information, you can decide how many more giraffes you need to order.

Marketing Analysis

You may be wondering, are my marketing efforts effective? How do I figure out if they are? You can determine how effective your marketing efforts are at helping to increase sales by using marketing analysis. You should start by comparing your marketing costs for this year with your total sales in stores and online. Then compare those figures to last year's marketing costs and total sales. You can also look at the use of coupons in stores and online, which will help you determine if those items are being marketed properly.

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