How do the following factors act as triggers for the implementation of a contingency plan?

Question

a) late entry into market
b) new competitors
c) sales drop
d) sales increase

Answer 1

a) Late Entry into Market - If the company encounters a delay launching the project represented by the marketing
plan, the plan must be modified accordingly. In particular, the projected sales for the first year must be reduced in
proportion with the delay.
b) New Competitors - Perhaps a new company enters the market with a compelling product or service. In that case,
the marketer should conduct a new competitive analysis, with an emphasis on predicting the target market for that
competitor.
c) Sales Drop - Drops in actual sales of 10 percent, or even 20 percent, (compared to predicted sales) could be due to
an over-optimistic forecast or poorer-than-expected market conditions. In either case, it pays to conduct market
research on customers and competitors to determine if the assumptions made in the plan are accurate.
d) Sales Increase - If actual sales are more than predicted sales by 10 percent, or even 20 percent, the organization
should find out why. Perhaps the market perceives a fundamental competitive advantage with the product or
service that is not readily evident to the company. If that is the case, the offering should be positioned to strengthen
that perception.