PLANNING &

E VA L U AT I N G T H E
M A R K ET I N G E F F O R T S
C A S T I L L O, A N N E J I L L I A N
F O L I E N T E , C H R I S TA V I E N
MARKETING PLANNING,
FORECASTING AND EVALUATION
• Marketing planning is a systematic process involving the
assessment of marketing opportunities and resources, the
determination of marketing objectives, and the development of a
plan for implementation and control.
• “Marketing planning can be defined as the planned application of marketing resources to
achieve marketing objectives.”McDonald,M. (1999)

• An output of marketing planning is the marketing plan, a

document or blueprint that details requirements for a company’s
marketing activity.
UNDERSTANDING THE MARKETING PLAN
• Marketing plan - A written statement of marketing objectives,
strategies, and activities to be followed in business plan.
• It is designed to provide answers to three basic questions:
– Where have we been?
– Where do we want to go (in the short term)?
– How do we get there?
WHAT IS A GOOD MARKETING PLAN?
• A good Marketing Plan details what you want to accomplish and
helps you meet your objectives.
• A Marketing Plan should:
– Explain (from an internal perspective) the impact and results of past
marketing decisions.
– Explain the external market in which the business is competing.
– Set goals and provide direction for future marketing efforts.
– Set clear, realistic, and measurable targets.
– Include deadlines for meeting those targets.
– Provide a budget for all marketing activities.
– Specify accountability and measures for all activities.
4
STEPS IN PREPARING THE MARKETING PLAN
1. Defining the Business Situation
– Situation analysis - Describes past and present business
achievements of new venture.
– After a new venture has started up information should relate to:
• Present market conditions.
• Performance of the company’s goods and services.
• Future opportunities or prospects.
STEPS IN PREPARING THE MARKETING PLAN
2. Defining the Target Market/ Opportunities and Threats
– The target market is specific group of potential customers
toward which the venture aims its marketing plan.
– Market segmentation - Dividing a market into definable and
measurable groups for purposes of targeting marketing strategy.
STEPS IN PREPARING THE MARKETING PLAN
3. Establishing Goals and Objectives
– Realistic and specific marketing goals and objectives respond to
the question: “Where do we want to go?”.
– Limit the number of goals or objectives to between six and
eight.
– Goals should represent key areas to ensure marketing success.
STEPS IN PREPARING THE MARKETING PLAN
4. Defining Marketing Strategy and Action Programs
– Product or service
• May consider more than the physical characteristics.
• Involves packaging, brand name, price, warranty, image, service, delivery
time, features, style, and even the Web site.
– Pricing
• Costs - Material costs, labor costs, cost of goods from suppliers, labor
and overhead expenses, etc.
• Margins or markups - Expected to cover overhead costs and some
profit.
• Competition.
STEPS IN PREPARING THE MARKETING PLAN
–Distribution
• Provides utility to the consumer.
• Must also be consistent with other marketing mix variables.
–Promotion
• To inform potential consumers about the product’s availability
or to educate the consumer.
• Methods include print, radio, or television advertising, Internet,
direct mail, trade magazines, or newspapers.
• The entrepreneur should considering both costs and
effectiveness of the medium in meeting the market objectives.
STEPS IN PREPARING THE MARKETING PLAN
5. Marketing Strategy: Consumer versus Business-to-Business
Markets
– Business-to-business markets involves selling of products or
services to another business.
• Usually aims at selling a large volume in one transaction.
• Involves a more direct channel of distribution.
• Use trade magazine advertising, direct sales, and trade shows.
– Consumer markets involve sales to households for personal
consumption.
STEPS IN PREPARING THE MARKETING PLAN
6. Budgeting and Implementation
– Budgeting
• Costs should be reasonably clear.
• Useful in preparing the financial plan.
– Implementation
• The plan is meant to be a commitment by the entrepreneur to a specific
strategy.
• Entrepreneur should ensure coordination and implementation of the
plan.
STEPS IN PREPARING THE MARKETING PLAN
7. Monitoring the Progress of Marketing Actions
– Involves tracking results of the marketing effort.
– Entrepreneur should prepare for contingencies.
– Minor adjustments in the plan are normal; significant changes
indicate a poorly prepared plan.
 Forecasting
“Prediction is very difficult,
especially if it's about the future.”
Nils Bohr
WHAT IS FORECASTING?

Forecasting is a tool used for predicting

future demand based on
past demand information.
WHY IS FORECASTING IMPORTANT?

Demand for products and services is usually uncertain.

Forecasting can be used for…
• Strategic planning (long range planning)
• Finance and accounting (budgets and cost controls)
• Marketing (future sales, new products)
• Production and operations
What is forecasting all about?
Demand for Mercedes E Class We try to predict the
future by looking back
at the past

Predicted
demand
looking
Time back six
Jan Feb Mar Apr May Jun Jul Aug months
Actual demand (past sales)
Predicted demand
What should we consider when looking at
past demand data?
• Trends: It is an average or general tendency

• Seasonality: refers to recurring fluctuations that happen at regular and predictable

periods every calendar year

• Cyclical elements: occur over a longer period than seasonal elements and are
harder to predict, occurring, for example, as a result of economic cycles.

• Random variation: fluctuation in data that is caused by uncertain

or random occurrences
 Types of forecasting methods
Qualitative methods Quantitative methods
Rely on subjective opinions from one or more experts. Rely on data and analytical techniques.
Grass Roots: deriving future demand by asking the Time Series: models that predict future
person closest to the customer. demand based on past history trends
Market Research: trying to identify customer
habits; new product ideas. Causal Relationship: models that use
statistical techniques to establish
Panel Consensus: deriving future estimations from relationships between various items and
the synergy of a panel of experts in the area.
demand
Historical Analogy: identifying another similar
market. Simulation: models that can
incorporate some randomness and
Delphi Method: similar to the panel consensus
but with concealed identities.
non-linear effects
How should we pick our forecasting
model?
1. Data availability
2. Time horizon for the forecast
3. Required accuracy
4. Required Resources
 HOW APPLE USES
C O N S U M E R B E H AV I O R
MARKETING TO WIN?
 CONSUMER BEHAVIOR MARKETING
AT APPLE
• Marketing using consumer behavior insight is how Apple succeeds.
• Even though Steve Jobs and Apple, did not use consumer research in the initial
development of most products, consumer behavior plays a huge role in their
marketing and ultimately the success of the company.
• Once a consumer purchases a product or downloads iTunes Apple has access
to data the company leverages. Apple uses this information to gain significant
insight into the consumer and what drives purchase behavior.
THE WHEEL OF CONSUMER ANALYSIS
• Research focused on the consumer provides
specific insight involving affect and cognition,
consumer behavior, and the consumer
environment that the company can use to
reach its target audience effectively guiding
the knowledge structure and decision
process of the consumer.
• The brand assets especially the brand logo changed in
1998 is sleek and modern chrome color
APPLE AND
(monochromatic) aligned with the direction that Steve AFFECT
Jobs had for the company upon his return in 1997.
• The new logo repositioned the brand effectively for a
new century in the mind of the consumer retaining the
shape of the apple and modifying the rainbow color to
chrome creating an affective response from consumers’.
• In a 2008 study by Duke University, it was reported
that the Apple monochromatic logo made individuals
more creative and stimulated the brain based on
exposure to the logo.
• Apple does an amazing job of leveraging their brand
assets such as the logo and brand messages across all
communication channels and products in its ecosystem.
• The company occupies a certain APPLE AND
cognition based on Apple creating a COGNITION
context for their products focused on
developing an eye-catching, simple
design, and ease of use for complex
technologies resulting in significant
benefits for the consumer.

• Apple also positions each product

emphasizing its innovations and
communicating differentiated benefits
to its consumers effectively.
• Apple’s hardware devices are supported by the APPLE AND
iTunes software. Hardware devices are purchased C O N S U M E R B E H AV I O R
through online and offline retailers, and a limited MARKETING
number of retailers providing a tight vertically-
integrated ecosystem.

• Using its integrated channels including online,

retailer point of sale, and iTunes, Apple captures
detailed information about consumer behavior.

• A detailed understanding of Apple’s customers

allowed the company to analyze consumer
behavior more effectively.

• Apple uses this insight to tailor products

and brand messages that resonate with the target
audience making products that work better and
are simple to use.
Apple Branded Stores APPLE AND THE
• To create a unique customer experience Apple uses CONSUMER
branded stores. ENVIRONMENT

• The Apple branded stores leverage product knowledge

and complementary services. The in-store experience
includes one-on-one tutorials, product repairs, and
workshops to provide an unparalleled customer
experience.

• The complementary services enhance the value

proposition because if a customer can operate a new
purchase then customer satisfaction will increase. Apple
uses this among many other devices to dominate in the
physical environment.
APPLE’S KEY TO SUCCESS
• Apple’s obsession with consumer behavior and customer experience drives provides the
central focus for the company.

• Consumer behavior marketing explained using the wheel of consumer analysis provides a
context to explain Apple’s success.

• The way that Apple communicates its marketing messages using an integrated marketing
communications (IMC) approach provides the complementary method for Apple to achieve
success.

• Apple provides an excellent case study of an organization that uses consumer behavior
marketing. Apple is an example of how research leads to successful marketing strategies and
tactics. The result is a distinctive competitive advantage that drives meaningful business results.