Explain any two factors that influence marketing plans and budgets

Question

What will be an ideal response?

Answer 1

The following factors are important in creating a plan or a budget:
Market Potential - How large is the potential market for the product being planned? In every domestic market, management must address this question in formulating a product plan. A company that introduces a product in more than one national market must answer this question for each market.
Impact of Substitute Products - One of the sources of competition for a product in a market is the frequent existence of substitute products. As a product is moved into markets at different stages of development, improbable substitute products often emerge. For example, in Colombia, a major source of competition for manufactured boxes and other packaging products is woven bags and wood boxes made in the handicraft sector of the economy. Marketing officials of multinational companies in the packaging industry in Colombia report that the garage operator producing a handmade product is very difficult competition because of low costs of materials and labor.