CHAPTER TWENTY-FOUR

Demand Forecasting and Marketing Control

 Topics Covered

The linkage and distinction between demand and sales forecasting

Methods of sales forecasting

Marketing control

Designing a marketing control system

Tools and techniques of marketing control

 The Linkage and Distinction Between
Demand and Sales Forecasting
Primarily, the tasks involved are as follows:
1. Measuring market demand
2. Forecasting company sales
The product’s overall demand in the market, that is, ‘the market demand’ and the likely
sales of an individual company’s product, that is, ‘likely company sales’.

Sales forecasting: The starting point of all marketing/business activities

Period range of demand/sales forecasts
One can classify demand forecasts into three types on the basis of time frame of the
forecast:
 Short-range forecast
 Long-range forecast
 Perspective planning forecast

Methods used in sales forecasting (Chart 24.1)

 Marketing Control
• Why do we need marketing control? (Chart 24.2)
• Role and scope of marketing control
Marketing control is the tool for ensuring that the marketing
programmes of the firm are always directed towards its marketing
objectives.

Marketing control for best returns on marketing spend

Exhibit 24.1 ‘Marketing Metrics Can Be Distinguished along Three
Dimensions’ shows the views of David Reibstein et al. on marketing
metrics/measurement tools

Continued…
 Marketing Control
…Continued
Designing a marketing control system (Chart 24.3)
Entities over which marketing control needs to be exercised
Tools and techniques of marketing control (Charts 24.4)
Chart 24.5 ‘Benefits of Marketing Cost Analysis’ lists the benefits of Marketing cost
analysis.
Chart 24.6 ‘Components of Marketing Costs’ shows major components of marketing
costs.
Chart 24.7 ‘Steps Involved in Marketing Cost Analysis’ shows the steps involved in
marketing cost analysis.
Chart 24.8 ‘Lines on Which Marketing Costs Are Analysed’ shows the lines on which the
analysis has to take place.
Chart 24.9 ‘Aspects Covered in Credit Rating of a Dealer shows the aspects normally
evaluated in credit rating of a dealer.
Marketing audit
Marketing audit is a systematic and objective study of the total marketing
efficiency of the firm.