The document provides a comprehensive overview of strategic planning and forecasting in marketing, detailing essential processes like annual and long-range planning, situation analysis, and demand forecasting. It outlines the importance of setting clear objectives, analyzing past performance, and developing tailored marketing strategies and tactics to adapt to market conditions. Additionally, it emphasizes the need for thorough evaluation and ongoing adjustments to effectively meet customer needs and enhance organizational performance.

1. STRATEGIC PLANNING
AND FORECASTING

2. PLANNING OVERVIEW

3.  Formal Planning
 The process by which marketing activities are identified and
decided upon
 Identifies the customer wants and anticipates his future needs
and wants
 Sound Planning
 Helps the organization to anticipate and make responsive
action to marketing problems and changes in the business
environment

4. THREE IMPORTANT
PLANNING STRATEGIES

5.  An annual plan is an organization’s financial plan for
the fiscal year.
 The current marketing situation is identified and the
company sets its goals and objectives towards the
currently prevailing situation in the marketing
environment.
 The company sets control mechanism as bases for
performance evaluation.
THE ANNUAL PLAN

8.  Long-range planning (LRP) is a process and discipline
that companies use to determine the best strategy
for succeeding in the markets they serve and to
ensure they have the capabilities needed to support
their strategic objectives.
 It covers a period of about five (5) years or more.
 It sets the company direction for a longer period
which shall be updated by the annual plan.
 Budgets and targets are set within the five (5) year
level.
THE LONG-RANGE PLAN

10.  Strategic planning is the process of anticipating and
developing long-range objectives and goals.
 It is the set of all planning activities that identifies
its vision and mission, its company portfolio and
attendant strategies.
STRATEGIC PLANNING PROCESS

12. THE THREE LEVELS IN
STRATEGIC MARKETING
PLANNING

13. Define the
organizational
mission
Analyze the
marketing solution
Set the organizational
objectives
Define the suitable
strategies to achieve
the desired objectives
STRATEGIC COMPANY PLANNING
Four Essential
Steps in Strategic
Company Planning

14. Conduct
situation
analysis
Develop
specific
marketing
objectives
Determine
product
positioning
and
establishing
differential
advantage
Select
target
market and
measure
market
demand
Design a
strategic
marketing
mix
STRATEGIC MARKETING
PLANNING
Five Steps in
Marketing Planning

15. Define the annual
specific target
objectives for
accomplishments
Develop specific
measurable and
achievable plans
Develop strategies
and tactics to
achieve the plans
Prepare annual
budgetary
requirements
Assign
responsible
personnel to carry
out the plan
Develop
evaluation
strategies for
implementation
STRATEGIC ANNUAL PLANNING
Responsibilities of Managers in Annual
Planning

16. FACTORS TO CONSIDER
IN PREPARING ANNUAL
PLANNING STRATEGIES

17. 1. Analyze Previous Year Performance
 The previous year performance must be analyzed in terms of
variances in the allocation of resources and the success or failure in
the implementation of the program objectives.
2. Set Accurate Timelines
 The timing in the marketing industry must consider the celebration of
the different holidays such as Christmas, New Year, fiestas, wedding
months, Valentine’s Day or many occasions in the local calendar.
3. Develop Distribution Strategies
 After analyzing the past marketing campaign, it is important that the
marketing channels and promotional programs be revised to provide
a new twist in the marketing campaign.
4. Create a Workable Financial Budget
 Budgeting financial resources for the annual plan takes time and
careful analysis.
TIPS FOR BETTER RESULTS

18. CONTENTS OF THE
ANNUAL MARKETING
PLAN

19.  The executive summary contains the annual trust of the program
prepared by the higher management as a guide for junior
executives in the preparation of the annual plan.
EXECUTIVE SUMMARY

20.  Managers of each brand
analysis or strategic
business unit (SBU) make
a detailed program
analysis as to variances in
the program
implementation together
with budgetary
expenditures.
SITUATION ANALYSIS

21.  The program objectives are specific and detailed set of goals that
are derived from the annual program objectives prepared by the top
executives.
PROGRAM OBJECTIVES

22.  The strategies in the
annual planning must
indicate the target
market in terms of the
marketing mix.
PROGRAM STRATEGIES

23.  Program tactics defer from strategies cover specific activities that
are action oriented.
PROGRAM TACTICS

24.  It is a financial program that
defines the projected sales
target, expenses to carry out the
sales program, and the
supposed profitable index that
will be generated.
FINANCIAL SCHEDULE

25.  The manager must
prepare a time plan
chart or time diagram
on specific dates for
its activities.
PROGRAM TIMETABLE

26.  It is a measuring instrument that will serve as a guide in the total
accomplishment of the program.
EVALUATION PROCEDURE

28. FORECASTING FUTURE
DEMAND

29. Demand forecasting is the establishment of product
sales in the future or a period of one year. It is the
basis in the development of strategic plans. It will
serve as a guide in the preparation of the annual
marketing budget and in allocating material resources
in the production of marketing goods.

30. DEFINING THE MARKET

31. It is a physical place where people meet to sell
and buy the product for their needs and
consumption.
OLD DEFINITION

32.  The marketing definition had enlarged its connotation to
mean the market is a set of all actual buyers of the product
or services.
 A market is a set of buyers while the company that handles
the product distribution is a set of sellers.
 Market potential is the total sales volume that all
organizations selling a product during the specified time
and place could expect to achieve under the ideal sales
condition. It also refers to the customer in the market
population for the various products available, while sales
potential refers to one particular brand of product.
 Sales potential is the portion of the market share that the
marketing organization expects to penetrate and make
sale.

33. METHODS OF
FORECASTING DEMAND

34.  It is the major activity of top management in forecasting market
demand based on the analysis of the total market condition and
analysis.
TOP-DOWN APPROACH

35.  It is the forecasting method wherein the management gets information
directly from sales people who are in touch with the customers or the
dealers and distributors of the product
BOTTOMS-UP APPROACH

36. Forecasting is the art of estimating future demands by
anticipating what the buyers want to buy under a given
set of situation.

39. •This calls for projecting
the countries inflation
rate which is the
determinants of pricing
strategies.
•Interest rates also affect
the business condition as
industries have to
contend with what they
can afford to spend for
their production
requirements.
Environmental
Forecasting
• Market forecasting is
the art of determining
the people’s needs
and wants.
• All forecast under
these conditions point
to what people say
about the product or
service.
Marketing and
Industrial
Forecasting
•The company carries its
product or brand in the
market.
•Company sales forecast
must include such
factor as consumer
spending habits,
income index of the
market and the amount
of savings generated for
future use.
Company Sales
Forecasting
THREE-STEP PROCEDURE
MARKETING ORGANIZATIONS USE

40. DEMAND FORECASTING
ANALYSIS

41.  Market factor analysis entails determining what these factors are and
measures its relationship to corporate sales activities
Two Important Methods:
a. Direct Derivation Method
 It is the translation of market demand by determining the number of
product users using statistical data available.
 Managers under this method do not have to know the rudiments of
statistics to understand the forecast data as it simply points to simple
mathematical calculation.
b. Correlation Analysis
 It is a statistical refinement of the direct deviation methods as it involved
analysis of data based on research findings.
 It gives a more accurate estimate of the market demand.
MARKET FACTOR ANALYSIS

42.  This process involves asking potential customers about the
product that the marketing organization produces at the price
index at a given time.
Three Important Conditions when Survey Results tend to be
Accurate:
a. There are relatively few buyers in the market
b. The buyers are honest with their buying intentions
c. A record exists that shows a consistent relationship between
their actual buying behavior and their stated intentions
SURVEY OF THE BUYERS
INTENTION

43.  This method is used when the marketing
organization is launching a new product or the
innovation of an existing product
 The research process will determine the total market
perceptions of its acceptability for wider population
TEST MARKETING METHOD

44.  This method is entirely based on the previous year’s
total sales and the profit index generated.
 It is the simplest and easiest to apply and
understand.
POST SALES DATA ANALYSIS

45.  This is the Bottom-Up Approach where the sales force
provides the information about the forecast demand for
the product.
SALES FORCE OPINION AND ITS
COMPOSITE INDEX

46.  Participative executives may get the opinion of experts,
salesman, dealers, and distributors to drum up a more
reliable sales forecast and develop marketing
strategies to achieve the sales target.
EXECUTIVE JUDGMENT AND
EXPERT OPINION

47. CHARACTERISTICS OF
POTENTIAL BUYERS

48.  It is the state of mind of the potential buyer who
likes to buy the product for his needs and wants.
 Potential market is the set of consumers who profess
some level of interest for a particular product or
service.
INTEREST

49. Potential buyers must have the money to buy the
product or service.
INCOME OR MONEY TO BUY

50. The potential buyer must have access to the goods or
product he wanted.
ACCESS OR PLACE OF
DISTRIBUTION