Marketing Trend Definition

future price movements

Market Trend Analysis – The analysis of market trends is necessary for companies to stay current. All of these characteristics are related to technology and your business will need to know how technological changes are relevant to its operations and sales. More importantly, if you don’t pay attention to changes in technology, your competitors will. There are a few ways you can find out about the market trends affecting your business. As you explore these trends, it’s also important to be asking critical questions about how your values and service offerings align, fit in, or even run counter to the trends. While you might need to adapt to the new environment as these long-term trends manifest, responses should be more thoughtful than reactionary.


When an extremely high proportion of investors express a bearish sentiment, some analysts consider it to be a strong signal that a market bottom may be near. David Hirshleifer sees in the trend phenomenon a path starting with under-reaction and ending in overreaction by investors / traders. Ideally, investors would wish to use market timing to buy low and sell high, but they may end up buying high and selling low. Contrarian investors and traders attempt to “fade” the investors’ actions . A time when most investors are selling stocks is known as distribution, while a time when most investors are buying stocks is known as accumulation. Secondary trends are short-term changes in price direction within a primary trend.

Market bottom

For example, the current shift towards sustainable energy is considered a secular trend. Trend trading is a style of trading that attempts to capture gains when the price of an asset is moving in a sustained direction called a trend. The following chart shows a rising trendline along with an RSI reading that suggests a strong trend. While the price is oscillating, the overall progress is to the upside. If you only look at technology, you might miss important information on customer needs and interests. Also, if you only look at the economy, you might not be considering the trends that are relevant and important for your business.

In case an increase in price causes an increase in demand, or a decrease in price causes an increase in supply, this destroys the expected negative feedback loop and prices will be unstable. Similarly, a bear market rally (sometimes called “sucker’s rally” or “dead cat bounce”) is a price increase of 5% or more before prices fall again. Bear market rallies occurred in the Dow Jones Industrial Average index after the Wall Street Crash of 1929, leading down to the market bottom in 1932, and throughout the late 1960s and early 1970s. The Japanese Nikkei 225 has had several bear-market rallies between the 1980s and 2011, while experiencing an overall long-term downward trend. Generally, bull markets begin when stocks rise 20% from their low, and end when stocks drawdown 20%.

As cell phones advanced, so did the needs and interests of the customers. On the other hand, if you don’t continue to meet the needs and interests of your customers, you will be left in the dust as they move on to the products they desire. In finance, these are rallies and turnarounds that can mystify analysts.

level for future

It is very difficult to identify a bottom (referred to as “bottom picking”) before it passes. The upturn following a decline may be short-lived and prices might resume their decline. This would bring a loss for the investor who purchased stock during a misperceived or “false” market bottom.

Keeping tabs on your market demographic can help your organization identify potential changes in customer needs or interests. The feeling of despondency changes to hope, “optimism”, and eventually euphoria, as the bull runs its course. This often leads the economic cycle, for example in a full recession, or earlier. Investors can also use fundamental analysis to identify a market trend by looking at changes in business or economic metrics, such as revenue and earnings growth. The descending triangle is a chart pattern used in technical analysis. The pattern usually forms at the end of a downtrend but can also occur as a consolidation in an uptrend.

How to Determine Market Trends You Should Focus On

If possible, sign up for newsletters to receive articles and insights right to your inbox. If podcasts are more your thing, our own Page One or Bust talks SEO strategy with business leaders and SEO experts alike. In a secular bull market, the prevailing trend is “bullish” or upward-moving. Nothing moves straight up for long, so there will always be oscillations, but the overall direction needs to be higher in order for it to be considered an uptrend.

From 1926 to 2014, the bear market lasted 13 months with an average cumulative loss of 30%, while annualized declines for bear markets ranged from −19.7% to −47%. A market trend can be a useful tool to inform a trading strategy. Remember, your final decision to trade should be based on your risk tolerance, market expertise, portfolio size and composition. Always conduct your own research before trading, and never trade money you cannot afford to lose. Moving averages are also used to determine support and resistance levels of an asset’s price, and the overall price trend. SMA calculates the mean of a set of prices over a certain period of time in the past.

Analyzing your market trends will help your company stay informed on the relevancy of your industry and help you identify methods for staying relevant as the market goes through various changes. The terms “bull market” and “bear market” describe upward and downward market trends, respectively, and can be used to describe either the market as a whole or specific sectors and securities. Thomas Mortimer recorded both terms in his 1761 book Every Man His Own Broker. An unrelated folk etymology supposes that the terms refer to a bear clawing downward to attack and a bull bucking upward with its horns.

Most professionals also tend to look at price action and other technical indicators to help determine if a trend is ending or not. In the example above, a drop below the trendline isn’t necessarily a sell signal, but if the price also drops below a prior swing low and/or technical indicators are turning bearish, then it might be. These market research tactics will help you understand what customers are looking for and what elements motivate them toward a buying decision. With these answers, you will be able to put current market trends in the context of your business and your market. Both technical and fundamental analysis can be used to identify market trends. An example of a market trend is a bull market which is an upward movement of the market while a bear market is a downward movement of the market.


In technical analysis, when prices experience a series of higher highs and higher lows, they are said to be in an uptrend, which is often referred to as the bull market. In contrast, prices are said to be in a downtrend when they suffer through consistent lower highs and lower lows, known as the bear market. In order to keep your products and services competitive and meet the interests of your local market, you will want to keep an eye on changes in market demographics. Consider that cell phones were first sold to people with a lot of money or business professionals.

What is Market Trends

Few people have phones, and some are uncertain that they will become popular. Fast forward 20 years and the streets are dominated by cell phones. Let’s explore two real-world recent trends in marketing with examples to further illustrate the point. Other sentiment indicators include the Nova-Ursa ratio, the Short Interest/Total Market Float, and the put/call ratio. The Wall Street Crash of 1929, which erased 89% of the Dow Jones Industrial Average’s market capitalization by July 1932, marking the start of the Great Depression. After regaining nearly 50% of its losses, a longer bear market from 1937 to 1942 occurred in which the market was again cut in half.

Uptrends are marked by rising data points, such as higher swing highs and higher swing lows. Take a look around you today, there are smartphones, tablets, and even watches that allow you to make phone calls. This change in the communication market is an excellent example of a market trend. There are several advantages of conducting market trend analysis, including establishing better relationships with customers and driving your business’s sales. Let’s dive into each of these as well as some of the other benefits. But don’t forget, it’s not just about what your brand considers important.

For example, how phones first come about, how their popularity changed, and how manufacturers and retailers expect the market to change. Market trends are tendencies in markets, analyzed by companies, to better inform their business practices. Explore examples of market trend analysis through customer needs, technology advancements, and market demographics. One way to hone in on market trends unique to your industry is to read the publications that are reporting on the current issues. For example, if you’re looking to stay up to date with recent trends in content marketing, you might follow Search Engine Journal or Search Engine Land.

In business, causes of intermediate trends can be easier to pinpoint, but not always. Events like the holiday season, elections, tax time, or industry-specific compliance deadlines represent some factors that can drive intermediate market trends. Maybe your competitors do something every year to mark some of these occasions, or your customers are looking for unique products or services for a few months. Other times, social media influencers or emerging research drives these trends in interest. A secular market trend is a long-term trend that lasts 5 to 25 years and consists of a series of primary trends.

The stock market was also described as being in a secular bear market from 1929 to 1949. A common way to identify trends is using trendlines, which connect a series of highs or lows . Uptrends connect a series of higher lows, creating a support level for future price movements. Downtrends connect a series of lower highs, creating a resistance level for future price movements. In addition to support and resistance, these trendlines show the overall direction of the trend.

We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy. Digital marketing trends are key changes in the strategic direction of the digital marketing landscape that impact the way marketers should interact with their target audience. Technology changes can be extremely important to any market you operate in.

  • Following along with trends just because they exist is never a great idea.
  • Another trendline could also be drawn along the falling price to indicate when a bounce may be coming.
  • Once this structure starts to break down, the uptrend could be losing steam or reversing into a downtrend.
  • While trendlines do a good job of showing overall direction, they will often need to be redrawn.
  • The whole reason for focusing on trends to begin with is to appeal better to your customers.

A primary trend has broad support throughout the entire market and lasts for a year or more. Statues of the two symbolic beasts of finance, the bear and the bull, in front of the Frankfurt Stock Exchange. To understand what market trend mean, it’s important to note what factors may shape one. 84% of retail investor accounts lose money when trading CFDs with this provider.

The market has simply reached the highest point that it will, for some time (usually a few years). It is identified retrospectively, as market participants are not aware of it at the time it happens. In 2022, concerns over an inflation surge and potential rises of the federal funds rate caused a bear market.

Common Trends

Needs and Interests – Marketing analysis always looks at buyers closely to gauge interest in their product. As a member, you’ll also get unlimited access to over 84,000 lessons in math, English, science, history, and more. Plus, get practice tests, quizzes, and personalized coaching to help you succeed. If all your competitors are doing something, does that mean you should do it? But observing their marketing is a way to make more educated decisions. While video watching hit an all-time high in 2020, forecasts estimate that adults will spend approximately 80 minutes per day watching digital videos on mobile devices by 2023.

What factors influence a market trend?

Even if you are a chef, technology can influence how you cook your foods. Consider that the cell phone is now used for email, Facebook, Skype, and various other methods of communication. Because of these market changes, the phone industry is constantly looking for new ways to meet the needs and interests of their consumers.

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