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
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
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
Financial proformas which are
used by the control and finance functions to forecast cash flows and needs.
Unit sales forecasts.
Tags : MARKETING MANAGEMENT - Marketing Process
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