Principles of Marketing

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market potential and sales potential. Many methods of forecasting exist, including expert opinion, channel

and customer surveys, sales force composites, time series data, and test markets.

Better forecasts can be obtained by using multiple methods, forecasting for various scenarios, and tracking

actual data (including sales) and adjusting future forecasts accordingly.

REVIEW QUESTIONS

1. Which forecasting method would be most accurate for forecasting sales of hair-care products in the next
   year? How would your answer change if you were forecasting for the next month? For home appliances?


2. What is the role of expert opinion in all forecasts?


3. How can forecasting accuracy be improved?

16.4 Ongoing Marketing Planning and Evaluation

LEARNING OBJECTIVES

1. Apply marketing planning processes to ongoing business settings.


2. Identify the role of the marketing audit.

Our discussion so far might lead you to believe that a marketing plan is created only when a new

offering is being launched. In reality, marketing plans are created frequently—sometimes on an

annual basis, or when a new CMO is hired, when market dynamics change drastically and quickly, or

just whenever a company’s CEO wants one. Moreover, as we indicated, a marketing plan should be