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Exercise Five
Techniques of Market Analysis
There are a number of techniques of market analysis which __0__ in sophistication. Some may be suited only to larger firms. One important point， however __21__ to them all， is that none is a substitute for careful thinking about a firm’s situation. Indeed， the choice of technique depends on a clear understanding of this __22__ of the issue. Furthermore， analyzing your situation and making a choice of technique must be done on the basis of some theory. It is not a case of all techniques being more or less suitable for all situations. Nor can you interpret the results of a technique without taking into __23__ how markets differ for different kinds of product.
For example， one technique that may be used is to conduct a pilot run of a product as a market test before committing the firm to full __24__. How we interpret the results of such a test， however， depends on how we think markets __25__. For example， there may be considerable customer __26__ to a product in its early days. If we believe this to be the case with the product in question， then fairly modest sales in the first __27 __ of the launch many be taken as an indication that better sales __28__ will follow if the product is given a longer __29__. On the other hand， other products， such as children’s comics， have a high novelty __30__ and unless sales are promising almost immediately， there is little prospect of a successful future.
