Strategic Marketing: Planning and Control, Third Edition

amounts of marketing research beyond the threshold is wasting the
resources of an organisation.
Forecasting activities help to identify the key factors underpinning an
organisation’s position in the market, the follow up is to monitor and
evaluated developments in those areas on an ongoing bases. This allows
an organisation to focus the marketing research requirements and plan-
ning efforts into the critical areas for strategic development (see Figure
6.5). Where an event has a high impact on the organisation and the prob-
ability of it happening in the near future is high and then the company
needs to undertake more in-depth analysis and develop a strategy that
addresses the impact of the development. Where the impact of an event is
high but the probability of it happening is low, or the event is only likely
to happen far into the future, then the organisation should monitor and
analyse data and begin developing contingency plans. Events that only
have a low impact will be given a much-reduced emphasis in terms of
monitoring and analysis undertaken by the company.

Developing a future orientation 125

Monitor and analysis;

contingent strategies

considered

In-depth analysis; strategy

development

Monitor Monitor and analysis

Low immediacy High immediacy

Low impact

High impact

■ People involved

The mix of people involved in the forecasting process will have an impact
on the effectiveness of the exercise. Part of the essence of the environmental

Figure 6.5

Categories of

responses to

strategic events

forecasted in the

external

environment

(Source: Adapted

from Aaker, 1995)