11.6 Chapter Summary
Exercises
- Who is involved in the creation of a marketing plan?
- In addition to marketing analysts, what other members of an organization help create marketing plans?
- What is a marketing plan, and how is it used?
- What is the purpose of scenario planning?
- How can forecasting accuracy be improved?
- What is the difference between managerial control and statistical control? How is statistical control used?
- What should a marketing audit accomplish?
- What is the most important part of a marketing plan? Why? What is the least important? Why?
- How can these strategies be utilized at a country club?
Activities
- Pick a product with which you are very familiar and create a simple marketing plan for it. Focus on one market segment.
- Conduct an audit of a company’s marketing plan as if you were a consultant. Selecting a relatively new consumer product may be easier because it is likely to have more press available that you can use for data.
Key Terms
Causality: The relationship between two variables whereby one variable is a direct consequence of the other.
Collaborators: Are those organizations, either upstream or downstream in the value chain, you need to partner with to co-create value.
Control: The degree to which you can separate the effects of a variable on a consequence.
Correlational Analysis: A form of trend analysis that estimates sales based on the trends of other variables.
Executive Opinion: The best-guess estimates of a company’s executives.
Expert Opinion: Is similar to executive opinion except that the expert is usually someone outside the company. Like executive opinion, expert opinion is a tool best used in conjunction with more quantitative methods. As a sole method of forecasting, however, expert opinions are often very inaccurate.
Exponential Smoothing: A type of moving average that puts more emphasis on the most recent period.
Fidelity: The degree to which the plan is being implemented as it is supposed to be.
Judgment Techniques: Rely more on people’s opinions or estimates. Judgment techniques can include customer (or channel member or supplier) surveys, executive or expert opinions, surveys of customers’ (or channel members’) intentions or estimates, and estimates by salespeople.
Leading Indicator: Which is a single number that represents a composite of commonly used leading indicators. Some of these leading indicators are housing starts, wholesale orders, orders for durable goods (items like refrigerators, air conditioning systems, and other long-lasting consumer products), and even consumer sentiment, or how consumers think the economy is doing.
Managerial Control: The first type of control whereby you have control over how variables in a marketing plan are implemented.
Managerial Control: Whereby you have control over how variables in a marketing plan are implemented.
Market Potential: Total industry-wide sales expected in a particular product category for the time period of interest.
Market Test: An experiment in which the company launches a new offering in a limited market in order to gain real-world knowledge of how the market will react to the product.
Moving Average: The rate of change for the past few periods is averaged.
Response Models: Sophisticated statistical models which are based on how customers have responded in the past to marketing strategies.
Sales Force Composite: Is a forecast based on estimates of sales in a given time period gathered from all of a firm’s salespeople.
Sales Potential: The sales potential for the product is typically represented as a percentage of its market potential and equivalent to the company’s estimated maximum market share for the time period.
Statistical Control: Whereby you can remove the influence of the variable on the outcome mathematically.
SWOT Analysis: SWOT stands for strengths, weaknesses, opportunities, and threats.
Technology: Is the application of science to solve problems. It encompasses more than just information (computer) technology.
Time Series Techniques: examine sales patterns in the past in order to predict sales in the future.
Trend Analysis: The marketing executive identifies the rate at which a company’s sales have grown in the past and uses that rate to estimate future sales.
Exercises: “16.2 Marketing Planning Roles“, “16.3 Functions of the Marketing Plan“, “16.4 Forcasting“, “16.5 Ongoing Marketing Planning and Evaluation“, “16.6 Dissussion Questions and Activities” from Principles of Marketing by [Author removed at request of original publisher] is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.—modifications: some questions removed; question added.
Activities: “16.6 Discussion Questions and Activities” from Principles of Marketing by [Author removed at request of original publisher] is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.
Key Terms: “16.7 Key Words” from Principles of Marketing by [Author removed at request of original publisher] is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.—modifications: some terms removed; some terms added.
