Answer from Dominique Hanssens
“A very good question. If the planned marketing support over the next 3 years is a continuation of the past, then you probably don’t need to supplement the existing 3 year forecast. But if marketing is expected to be very different, then yes. In particular, if major changes are expected in pricing and distribution, these have high response elasticities and will matter for the projections. Advertising less so, for example if ad support is expected to double (with no competitive matching), then add 10% to the forecast. Mike”
Mike,
So, not impossible; just looking for continuation of planned marketing support including sales.
Merci,
Alan
“That’s right. If marketing continuation is the mantra, then the marketing effects in the past have already been incorporated in past sales and therefore their forecasts. But if major marketing strategy change is happening, past sales may not be a good basis for forecasting. To wit: many years ago, when PC prices broke the $2000 price barrier, a whole new consumer segment was tapped (PCs for use at home), and the demand numbers totally changed.
Mike”