Trends

by Anthony Williams | on June 6, 2013  

The Importance of Anticipating New Trends or Changes in the Environment

 

It is important for a firm to anticipate new trends or changes in the environment. Because trends or changes in the environment are elements that help shape opportunities. New trends or changes may develop limitations for some possibilities. Or, prevent some possibilities altogether. While, on the other hand, they may facilitate the attractiveness of others.

For example, one may plan to enter a certain market but, the economical environment may change weakening one’s financial strength. Thus, this may be a barrier to entry into that market, and one’s possibilities are now limited or halted. One may have to use one’s intended investment to try and save one’s current business (Perreault, Cannon, & McCarthy, 2011).

By contrast, the new economy may create new possibilities for another investor. He or she may have the financial strength to buy a few houses now at a low price, and sell high later; if, or when the economy recovers. So, new trends or changes will definitely change the focus of a marketing plan. If marketing managers recognize these changes early, they can take advantage of big opportunities as first movers. So too, a marketing plan strategy may need to be altered (Perreault et al., 2011).

Market Trends is one of many Demographic Factors to be Aware of when making Marketing Decisions

 

Demographic factors managers should be aware of in order to make the most effective marketing decisions include, but are not limited to the following. Ethnic diversity, market trends, and income distribution; where there is no money there is no market, and market trends may be based on the population diversity.

Target marketers focus on customers, and customers from different ethnic groups may respond to totally different cultural variables. These customers may have different needs to be filled, and think in very different ways. This presents opportunities for the marketer. That is, if promotions are done to target related markets, in accordance with research to identify brand preference within ethnic groups (Perreault et al., 2011).

Reasons to Identify Market Trends

 

In addition, by identifying market trends the marketer may be able to isolate areas to target. For instance, the birth rate may be higher in one area. As a result, this area may be great for marketing baby products. If a marketer also knew that the United States has the highest divorce rate in the world. Base on that fact, he or she may decide to target single parents as well.

So, by having knowledge of marketing trends, a marketer may segment and target the right market. Moreover, income distribution is also important. Marketers may do better to promote products where there is more disposable and discretionary income. The highlight here is discretionary income, since income has a direct affect on how customers spend. And, discretionary income is what is left after taxes and all necessities are met. Therefore, marketers should be aware of ethnic diversity, market trends, and income distribution. Because together they play an important part, and dictates the marketing strategy plan (Perreault et al., 2011).

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Reference

Perreault, Jr. W. D., Cannon, J. P., & McCarthy, J. E. (2011). Basic marketing: A marketing strategy planning approach (16TH ed.). Vol. I., Laureate Education. The McGraw-Hill Companies, Inc.

The Marketing, Operational, and Financial Plans

by Anthony Williams 

Relationship among the Marketing, Operational, and Financial Plans

The marketing, operational, and financial plans are all key components of the business plan. The operational plan is directly related to how a goods, or services, are moved through the company to consumers. Without a marketing plan these goods or services may not reach the consumer. The marketing plan is a great tool that enables one to track marketing strategies, and marketing progress. As a matter of fact, without a marketing plan one cannot define the consumer, and the right products, or services for the consumer. As well as, how one should price or promote said products or services (Hisrich, Peters & Shepherd, 2010).

Utilizing  Marketing, Operational, and Financial Plans to Reach Goals

In addition, the financial plan will give insight on how the above is financed. For instance, the financial plan clearly depicts inflow and outflow of cash. This plan will also let one know how much cash is on hand, thus, the big picture of the firm’s financial position is revealed. By utilizing  marketing, operational, and financial plans short-term goals and control may be realized. And, in order to obtain long-term goals and control, one must firs acquire the short-term objectives (Hisrich, Peters & Shepherd).

Most Important among the  Marketing, Operations, and Financing Plans

 

Moreover, since these areas are relative of each other, the different department heads should consult with each other. By having a cross-functional relationship accurate alignment may be achieved between  marketing, operations, and financing. These are all crucial parts to a business plan; without one of these plans one’s business stands a great chance of failing. However, without a marketing plan one may not get his or her business of the ground. Next comes the financial plan, because in here lies the ability to predict cash needs, and the state of one’s business (Hisrich, Peters & Shepherd).

 Reference

Hisrich, R. D., Peters, M. P., & Shepherd, D. A. (2010). Entrepreneurship (8^th ed.). McGraw-Hill/Irwin, Inc.,