PART I The Basics
Chapter 1 Introduction
Marketing Engineering: From Mental Models to Decision Models.
Marketing and marketing management
Marketing engineering
Why marketing engineering
Marketing Decision Models
Definition
Characteristics of decision models
Verbal, graphical, and mathematical models
Descriptive and normative decision models
Benefits of Using Decision Models
Philosophy and Structure of the Book
Philosophy
Objectives and structure of the book
Design criteria for the software
Overview of the Software
Software access options
Running marketing engineering
Summary
How Many Draft Commercial Exercise
Chapter 2 Tools for Marketing Engineering: Market Response Models
Why Response Models?
Types of Response Models
Some Simple Market Response Models
Calibration
Objectives
Multiple Marketing-Mix Elements: Interactions
Dynamic Effects
Market-Share Models and Competitive Effects
Response at the Individual Customer Level
Shared Experience and Qualitative Models
Choosing, Evaluating and Benefiting From a Marketing Response Model
Summary
Appendix: About Excel's Solver
How Solver Works
Conglomerate, Inc. Promotional Analysis
Conglomerate, Inc. Response Model Exercise
PART II Developing Market Strategies
Chapter 3 Segmentation and Targeting
The Segmentation Process
Defining segmentation
Segmentation theory and practice
The STP approach
Segmenting markets (Phase 1)
Describing market segments (Phase 2)
Evaluating segment attractiveness (Phase 3)
Selecting target segments and allocating resources to segments (Phase 4)
Finding targeted customers (Phase 5)
Defining a Market
Segmentation Research: Designing and Collecting Data
Developing the measurement instrument
Selecting the sample
Selecting and aggregating respondents
Segmentation Methods
Using factor analysis to reduce the data
Forming segments by cluster analysis: Measures of association
Clustering methods
Interpreting segmentation study results
Behavior-Based Segmentation: Cross-Classification, Regression and Choice Models
Cross-classification analysis
Regression analysis
Choice-based segmentation
Customer Heterogeneity in Choice Models
Implementing the STP Process
Summary
Conglomerates Inc.'s New PDA (2001)
Introducing the Connector
The History of the PDA
PDA Types
The PDA Customer
PDA Features
Facts about the PDA Market
The HCV Survey
The Questionnaire
Questions for determining segmentation-basis or needs variables
Questions for determining variables for discriminate analysis
Appendix: PDA Features Guide
Operating system
Screen
Memory
Ergonomics
Synchronization
Batteries
Modem & online services
Web
E-mail, etc.
Handwriting recognition
Other software
Accessories
Audio
ABB Electric Segmentation Case
History
Situation in 1974
New strategy at ABB Electric
Establish the MKIS Program
Choice Modeling
Postscript: situation in 1988
Chapter 4 Positioning
Differentiation and Positioning
Definition
Positioning Strategy
Positioning Using Perceptual Maps
Applications of Perceptual Maps
Perceptual Mapping Techniques
Attribute-based methods
Similarity-based methods for perceptual mapping
Joint-Space Maps
Overview
Simple joint-space maps
External analysis using PREFMAP3
Incorporation Price in Perceptual Maps
Summary
Appendix: Factor Analysis for Preprocessing Segmentation Data
Positioning the Infinity G20 Case
Introducing the G20
Background
Research Data
Chapter 5 Strategic Market analysis: Conceptual Framework and tools
Strategic Marketing Decision Making
Market Demand and Trend Analysis
Judgmental methods
Market and product analysis
Time-series methods
Causal methods
What method to choose
The Product Life Cycle
Cost Dynamics: Scale and Experience Effects
Summary
Bookbinders Book Club Case
The Bookbinders Book Club
Chapter 6 Modems for Strategic Marketing Decision Making
Market Entry and Exit Decisions
Shared Experience Models: The PIMS Approach
Product Portfolio Models
The Boston Consulting Group (BCG) approach
The GE/McKinsey approach
Financial models
Analytical Hierarchy Process
Competition
Summary
ICI Americas R&D Project Selection Case
Product Planning Using the GE/McKinsey Approach at Addison Wesley Longman Case
Background
The new marketing texts
The new marketing book promotional challenge
Applying the GE approach
Appendix: Details of the Three Books from AWL Promotional material
Portfolio Analysis Exercise
Jenny's Gelato Case
ACME Liquid Cleanser Exercise
Background
The Compete Model
Part III Developing Marketing Programs
Chapter 7 New Product Decisions
Introduction
New Product decision Models
Models for identifying opportunities
Models for product design
Models for new product forecasting and testing
Conjoint Analysis for Product Design
Introduction
Conjoint analysis procedure
Other enhancements to the basic conjoint model
Contexts best suited for conjoint analysis
Forecasting the sales of New Products
Overview of the Bass model
Technical description of the Bass model
Extensions of the basic Bass model
Pretest Market Forecasting
Overview of the ASSESSOR model
The preference model
Trial-repeat model
The validity and value of the ASSESSOR model
Summary
Forte Hotel Design Exercise
Forte Executives Inns
Company Background
Preliminary Evaluation
Conjoint Analysis (Matching hotel attributes to customer preferences)
Zenith High Definition Television (HDTV) Case
HDTV Background
Zenith HDTV Efforts to Date
The TV Market
Forecasts of HDTV Sales
Johnson Wax: Enhance Case(A)
Instant Hair Conditioner
S.C. Johnson & Company
New-Product Development at Johnson Wax
The Hair Conditioning Market
Agree
Enhance Product Development
The ASSESSOR Pretest Market
ASSESSOR Results
Trial and repeat model
Preference model estimates of share
Recommendations
Chapter 8 Advertising and Communication Decisions
The Bewildering Nature of Advertising
Advertising Effects: Response, Media and Copy
Advertising response phenomena
Frequency phenomena
Copy effects
Advertising Budget Decisions
Media Decisions
Advertising Copy Development and decisions
Copy effectiveness
Estimating the creative quality of ads
Advertising design
Summary
Blue Mountain Coffee Company Case
Blue Mountain's Market Position
Operation Breakout
Planning for Fiscal Year 1995
The market planning model
Recent developments:The U.S. coffee market in transition
Convection Corporation Case
Using a Communication Planning Model to Aid Industrial Marketing Budget Decisions
Background
Heatcrete
Ceretam
Flowclean Sootblowers
Corlin Valve
ADVISOR: An Approach to Marketing Budget Planning
Budget task force meeting
Johnson Wax Ad Copy Design Exercise
Chapter 9 Salesforce and Channel decision
Introduction to Salesforce Models
Sales-response models for representing effects of sales activities
Salesforce management decisions
Salesforce Sizing and Allocation
Intuitive methods
Market-response methods (the Syntex model)
Extending the Syntex Model: Reallocator
Sales Territory Design
The GEOLINE model for territory design
Salesforce Compensation
Using conjoint analysis to design a bonus plan (the MSZ) model
Improving the Efficiency and Effectiveness of Sales Calls
The CALLPLAN model
Marketing Channel Decisions
The gravity model
Summary
Syntex Laboratories (A) Case
Company Background
Syntex Laboratories
Syntex Labs' Product Line
Naprosyn
Anaprox
Topical Steroids
Norinyl
Nasalide
The Sales Representative
Sales Management at Syntex Labs
Sales Force Size
Call Frequency
Allocation of Sales Efforts Across Products and Physicians Specialties
Geographic Allocation of Sales Force
Sales Force Strategy Model
Model Development Process
Defining the model inputs
Model Structure
Results of the SSM Analysis
Management implications
The John French Exercise: Sales Call Planning for UBC (CALLPLAN)
J&J Family Video Case
Chapter 10 Price and Sales Promotion Decisions
Pricing Decisions: The Classical Economics Approach
Pricing in Practice: Orientation to Cost, Demand, or competition
Cost-oriented pricing
Demand-oriented pricing
Competition oriented pricing
Interactive Pricing: Reference Price and Price Negotiations
Price Discrimination
Understanding price discrimination
Geographic price discrimination
Temporal price discrimination
Nonlinear pricing or quantity discounts
Other forms of price discrimination
Pricing Product Lines
Sales Promotions: Types and Effects
Objectives of promotions
Characteristics of promotions
Aggregate Models to Analyze Promotional Effects
Analyzing Individuals' Responses to Promotions
Summary
Account Pricing for the ABCOR2000 Exercise
Background
The value spreadsheet
Price Planning for the ABCOR2000 Exercise
The Problem
Paving I-99 Exercise
Part 1: Training Exercise
Part 2: The bid-competition simulation
Forte Hotel Revenue Management Exercise
How the Generalized Revenue Model works
Massmart Inc. Case
Background
Scanner-Panel Date
The Promotion Model
PART IV Conclusions
Chapter 11 Marketing Engineering: A Look Back and a Look Ahead
Marketing engineering: A Look Back
Using Marketing Engineering Within firms
Marketing Engineering: A Look Ahead
Postscript