The Business Book

232

MARKETING IS FAR TOO

IMPORTANT TO LEAVE TO THE

MARKETING DEPARTMENT

THE MARKETING MODEL

C

ompanies need to study

their customers’ buying

habits carefully in order to

plan business marketing strategies.

Using a mathematical model to

plan product strategies and aid

decision making is an integral part

of any modern marketing practice.

Marketing computer programs use

sets of numerical data about the

buying patterns of consumers,

along with other variables relating

to the product. These are entered

into a mathematical model or

equation programmed to make a

customized calculation. The results

will help to quantify the potential

performance of products in different

channels aimed at various market

segments. By examining the data,

It affects key

decisions about

products, planning,

and expenditure.

This data can then be

processed by the

marketing department

to calculate a model of

potential product

performance.

It must be rational,

based on data gathered

from all areas

of the business.

Marketing is too

important to leave

to the marketing

department.

IN CONTEXT

FOCUS

Marketing models

KEY DATES

1961 The Marketing Science

Institute is founded.

1969 US academic Frank Bass

publishes a seminal marketing

model that can be used to

predict demand.

1970s Complex measurement

models and decision-making

models are developed.

1980 The launch of in-store

scanners at checkouts gives

marketers new data and

prompts the development of

sophisticated new models.

1982 The journal Marketing

Science launches, focusing on

mathematical models for

marketing purposes.

1990s Intelligent marketing-

information systems

computerize many routine

modeling functions, providing

daily updates and projections.