Key Terms

• Product Life Cycle
• Marketing Budget
• Test marketing
• Sales forecasting

Marketing Planning

• Develop tactics to support the marketing strategy
• Sets targets Develops different elements of the mix
• Allocates funds to different activities
• Decides on a time schedule

Advantages and Disadvantages of marketing planning

Advantages

• Sets out in detail what it wants to achieve
• Managers can review firms progress by comparing actual outcomes with planned outcomes
• It forces managers to think ahead and consider what might happen
• Provides direction

Disadvantages

• The plan may become out of date with changes to the market
• Can take up a lot of time and delay vital decision making 

Evaluation of the plan

• Is it realistic?
• Does it help achieve the strategy?
• Is it affordable?
• Does it fit with the firms strengths?

Sales Budget

A target level of sales for a product (actual or market share) – SALES BUDGET

Size is dependent on:

• Past sales of the product
• Expenditure budget
• Market conditions
• Objectives and strategy

Expenditure Budget

A target level of expenditure a firm sets to achieve its marketing objectives – EXPENDITURE BUDGET

Size depends on:

• The firms overall financial position
• The firms marketing objectives and strategy
• The amount the firm expects to receive back
• Competition

Sales Forecasting - click here