Market Planning Services (Expenditure Allocation)
Market Planning is the allocation of consumer expenditures inside one particular market.
Suppose that you are unhappy with your current financial situation and you decide to consult with a consumer financial planner and the first question the planner will ask you is what your income and expenses look like. The first thing the planner should try to figure out is if you are allocating your expenses efficiently. If you are not then re-allocating your expenses across your product and service categories should lower your total expenditures. Efficiency means minimizing total expenditures such that your satisfaction level is the same. For example, when you go to the supermarket, do you buy national brand name foods and products, or do you purchase store brand, or generic brand foods and products. Buying store brand, or generic brand foods and products can save you lots of money. Secondly, do you clip coupons, which give significant price discounts on your purchases. If reallocation of your expenses does not get your expenses lower than your income, then the financial planner will get you to lower your total expenditures such that your level of satisfaction will be lower. But at each stage, allocating your expenditures efficiently is going to be extremely important so that your level of satisfaction does not drop drastically.
Here, we are talking about market planning, which is identical to budget planning for the consumer.. The consumer allocates expenditures across the products and services you sell to the market as well as across your competitors products and services. The consumer allocates this expenditure efficiently meaning that total expenditures purchased within the market are minimized. These total expenditures equal the total amount of revenues spent on all products and services sold in your market. In estimating the revenue function (expenditure function), we include factors that define the competitive structure of the market (your product price, your competitors prices, your level of marketing communications expenditure, and your competitors marketing communications expenditure. By altering your price and your level of marketing communications expenditure relative to your competition, you can examine the reallocation of expenditures across the products sold in your market. In this way, you can examine how these marketing tactics can restructure the market you face (thus, planning the market). If you use our strategic planning services, you can also determine how re-positioning your product offering also can re-structure the market.
Please download our fact sheet to see what we do and what we will deliver to our clients in terms of market planning.
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