1. © 2012 Pearson Education, Inc. publishing Prentice Hall. Chapter 6 Planning, Assessment and Adjustment

2. © 2012 Pearson Education, Inc. publishing Prentice Hall. Table 6-1 - Generic Marketing Plan Outline 2

3. © 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

4. © 2012 Pearson Education, Inc. publishing Prentice Hall. Figure 6-1 - Impact/Likelihood Matrix 4

5. © 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

6. © 2012 Pearson Education, Inc. publishing Prentice Hall. Figure 6-2 - Example of Staircase Analysis 6

7. © 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

8. © 2012 Pearson Education, Inc. publishing Prentice Hall. Table 6-2 - Basic Marketing Budget Components 8

9. © 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

10. © 2012 Pearson Education, Inc. publishing Prentice Hall. Table 6-3 - Typical Financial and Operating Metrics 10

11. © 2012 Pearson Education, Inc. publishing Prentice Hall. Figure 6-3 - Why Loyal Customers Are More Profitable 11

12. 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 Hall