Dynamic Regression
Regression analysis is a special technique in marketing which includes modeling and analyzing of several variables, while its main focus is to establish a relationship between a dependent variable with an independent variable. Regression analysis helps us to know the dependency of the dependent variable of the market on any other independent variable. Also it helps us to understand better how much the value of the dependent variable is varying with the change in value of the independent variable. As the name suggests, Dynamic regression means the outflow of the stock, variables, money, business etc. It is not stagnated. Dynamic regression is a very important tool for the analysis of marketing. Marketing is laid on the principle to find the customer, to satisfy him, and to retain him for future purposes. Dynamic regression is the key feature of the marketing that helps to identify the customer and to attract the customer.
It is therefore a marketing strategy which needs to be adopted. These strategies require the mindset to be profit oriented rather than to be production oriented. Hence the dynamic regression shifts the orientation of the approach from productivity to the profitability.
Dynamic regression gives the average value of the dependent variable when the independent variable is taken to be constant. This is called as conditional expectation.
Dynamic regression is most often used forecasting and for prediction of the market parameters and the variables. It explores the kinds of relationship of the parameters of the business marketing.
There are a lot of techniques that have been developed to monitor the market in more effective manner. Linear, multiple, parametric regression and non-parametric regression are some of the examples. The parametric regression depends upon the some finite parameters which controls the market. Mainly the market is dependent on the independent variables. So there is an important need to monitor them strictly.
Written by: Matt
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Tagged as business marketing, conditional expectation, dependent variable, dynamic regression, independent variable, independent variables, market parameters, marketing marketing, marketing strategy, mindset, money business, orientation, outflow, principle, productivity, profitability, regression analysis, relationship, several variables, stock + Categorized as Economy articles, Ladership & Management, Marketing & PR