© 2012 Pearson Education, Inc. publishing Prentice Hall.

Chapter 6Planning,

Assessmentand Adjustment

© 2012 Pearson Education, Inc. publishing Prentice Hall.

Table 6-1 - Generic Marketing Plan Outline

2

© 2012 Pearson Education, Inc. publishing Prentice Hall.

Risks

The marketing manager should identify risks and develop contingency plans while working on the marketing plan

Managing risk is not simple risk minimization or risk avoidance

Managing risk is evaluating risk and choosing which risks to accept and which to avoid

3

© 2012 Pearson Education, Inc. publishing Prentice Hall.

Figure 6-1 - Impact/Likelihood Matrix

4

© 2012 Pearson Education, Inc. publishing Prentice Hall.

Forecasts

Forecasts, objectives, and budgets are interdependent but they must be done concurrently and interactively

The aim is to optimize the budget and the commitment of resources to maximize expected (forecast) and desired outcomes (objectives)

5

© 2012 Pearson Education, Inc. publishing Prentice Hall.

Figure 6-2 - Example of Staircase Analysis

6

© 2012 Pearson Education, Inc. publishing Prentice Hall.

Budgets

A budget specifies the money to be spent by area and allocates scarce financial resources across activities

Depending on those forecasts, the objectives and budgets can be reformulated or the mix can be adjusted

Budgeting is interactive with planning and forecasting; like a hydraulic system, raising levels in one will change the constraints and outcomes of the others

7

© 2012 Pearson Education, Inc. publishing Prentice Hall.

Table 6-2 - Basic Marketing Budget Components

8

© 2012 Pearson Education, Inc. publishing Prentice Hall.

Establishing Specific Objectives

Preliminary objectives are developed based on the corporate mission and vision and on the strategy

Objectives should be “SMART”—Specific, Measureable, Achievable, Relevant, and Time-specific

Three distinct sorts of objectives are useful and common in developing marketing strategies: Sales objective Customer objectives Financial or profit objectives

9

© 2012 Pearson Education, Inc. publishing Prentice Hall.

Table 6-3 - Typical Financial and OperatingMetrics

10

© 2012 Pearson Education, Inc. publishing Prentice Hall.

Figure 6-3 - Why Loyal Customers Are More Profitable

11

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic,

mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

Copyright © 2012 Pearson Education, Inc.  Copyright © 2012 Pearson Education, Inc.  Publishing as Prentice HallPublishing as Prentice Hall