“Consumers don’t think how they feel. They don’t say what they think and don’t do as they say.” — David Ogilvy
Consumer goods companies devote considerable time, resource and attention to appeal to the hearts and minds of consumers so that they may powerfully influence them when they seek to find the product, when they initially encounter it, and when they actually experience it. These moments of truth ultimately determine how a new product will perform in the marketplace.
For business marketing firms, it is the touchpoints with their customers that represent their moments of truth. Whether it is the customer’s interaction with the firm’s product or service, or with the employees of the firm, the experiences offer opportunities to build the firm’s brand equity.
The objective of this section is to impart knowledge of the processes and techniques to validate new products. Considering that the incidence of failure of new products is particularly high, stresses the importance of their use to mitigate the risk of failure.
Most of this section is devoted to these validation techniques which are categorized as pre-launch and post-launch. The pre-launch methods include simulated test markets such as BASES, MicroTest, Designor and Assessor, and controlled store tests. Post-launch methods include the TRB Share Prediction model which is suited for FMCG, and the Bass Diffusion model which is applicable for consumer durables.
Note: To find content on MarketingMind type the acronym ‘MM’ followed by your query into the search bar. For example, if you enter ‘mm consumer analytics’ into Chrome’s search bar, relevant pages from MarketingMind will appear in Google’s result pages.
Marketing has changed. More so in practical terms, and marketing education is lagging.
The fundamental change lies in the application of analytics and research. Every aspect of the marketing mix can be sensed, tracked and measured.
That does not mean that marketers need to become expert statisticians. We don't need to learn to develop marketing mix models or create perceptual maps. But we should be able to understand and interpret them.
MarketingMind helps. But the real challenge lies in developing expertise in the interpretation and the application of market intelligence.
The Destiny market simulator was developed in response to this challenge. Traversing business years within days, it imparts a concentrated dose of analytics-based strategic marketing experiences.
Like fighter pilots, marketers too can be trained with combat simulators that authentically reflect market realities.
But be careful. There are plenty of toys that masquerade as simulators.
Destiny is unique. It is an authentic FMCG (CPG) market simulator that accurately imitates the way consumers shop, and replicates the reports and information that marketers use at leading consumer marketing firms.
While in a classroom setting you are pitted against others, as an independent learner, you get to play against the computer. Either way you learn to implement effective marketing strategies, develop an understanding of what drives store choice and brand choice, and become proficient in the use of market knowledge and financial data for day-to-day business decisions.