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Marketing Programming, Allocating and Budgeting - Marketing Process
MARKETING MANAGEMENT - Marketing Process
Marketing Programming, Allocating and Budgeting - Marketing Process
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This part of the marketing process involves a good deal of detail and focuses generally on the one-year time horizon.
Marketing Programming, Allocating and Budgeting
This part of the marketing process involves a good deal of detail and focuses generally on the one-year time horizon.
Programs will be determined by the nature of the company’s organization. They can be related to either one element of the marketing mix such as distribution for one or more products or to all elements of the mix for a single product or market.
• In functional type of organization (i.e. separation of marketing functions such as advertising, sales, etc.), programs will focus on one aspect of the mix across all products and markets.
• In product or market type organization, programs tend to be for each of the product or market.
Allocating is a necessary function because there is never enough of any scarce resource such as advertising budget or distribution effort to meet the ‘needs’ of all products, markets and programs. In many ways, marketing is deciding what not to do: which prospects not to sell to, which products not to produce to, etc. Allocation is the formal process of choosing what to do and what not to do, as well as choosing how much to do. Because marketers tend to be optimists, they often underestimate the amount of effort which will be required to accomplish a goal. Allocation requires the stark realism to separate the clearly feasible from the hopeful. It forces the marketer to set explicit priorities and to make hard decisions.
Budgeting reflects the programs and allocations in a set of quantitative forecasts or estimates which are important within and beyond the marketing function. The budgets generally include:
(i) Financial proformas which are used by the control and finance functions to forecast cash flows and needs.
(ii) Unit sales forecasts.
This part of the marketing process involves a good deal of detail and focuses generally on the one-year time horizon.
Programs will be determined by the nature of the company’s organization. They can be related to either one element of the marketing mix such as distribution for one or more products or to all elements of the mix for a single product or market.
• In functional type of organization (i.e. separation of marketing functions such as advertising, sales, etc.), programs will focus on one aspect of the mix across all products and markets.
• In product or market type organization, programs tend to be for each of the product or market.
Allocating is a necessary function because there is never enough of any scarce resource such as advertising budget or distribution effort to meet the ‘needs’ of all products, markets and programs. In many ways, marketing is deciding what not to do: which prospects not to sell to, which products not to produce to, etc. Allocation is the formal process of choosing what to do and what not to do, as well as choosing how much to do. Because marketers tend to be optimists, they often underestimate the amount of effort which will be required to accomplish a goal. Allocation requires the stark realism to separate the clearly feasible from the hopeful. It forces the marketer to set explicit priorities and to make hard decisions.
Budgeting reflects the programs and allocations in a set of quantitative forecasts or estimates which are important within and beyond the marketing function. The budgets generally include:
(i) Financial proformas which are used by the control and finance functions to forecast cash flows and needs.
(ii) Unit sales forecasts.
Tags : MARKETING MANAGEMENT - Marketing Process
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