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Wilfred Construction

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Wilfred Construction plc.

4a) A marketing model is a procedure for making marketing decisions in a scientific manner. The decision that needs to be made is whether or not to enter the rental market. When using the marketing model Wilfred Constructions’ decisions will be well thought through, therefore the idea will be more planned out and there is a decreased probability of any problems. The marketing director had previously conducted some market research about the state of the rental market by gathering data from local estate agents, the benefit of doing this is to find out about the market. I.e. Rental prices, current demand for luxury flats and suitability of locations. Further market research will be beneficial in finding out more background information. This is step 2 of the marketing model. Wilfred Construction will now be able to form hypotheses on the data they have gathered the benefit of this is that they can analyse the potential profits or losses in entering the rental market. The fourth step is to test the options, which Wilfred Constructions can do by testing the market. One way they can test the market is to produce brochures with both rental price and sales price and gauging the reaction of potential buyers or renters. With the use of brochures Wilfred’s Construction will then be able to complete step five of the model, control and review as they will get feedback from the customers as to which they prefer.
4b) Forecasting involves attempting to estimate the future level of sales, one method is extrapolation which involves trying to identify a trend and continuing it into the future.
The difficulty for Wilfred Construction is that sales have steadily increased until recently then dropped with the slowdown in the housing market, a possible reason for the slowdown in sales is that the UK has gone into recession therefore fewer people are

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