Home >Marketing >Top 20 Reasons Why Agent-based Modeling is Disrupting Marketing Mix

Top 20 Reasons Why Agent-based Modeling is Disrupting Marketing Mix

Date post:09-May-2015
Category:
View:863 times
Download:3 times
Share this document with a friend
Description:
Misallocated ad dollars may be costing brands more than 25 percent in lost sales. Based on an analysis of ThinkVine customers with average annual sales of more than $1 billion, we found that companies were spending too much or too little on specific media 85 percent of the time. By optimizing their marketing budgets, the companies added anywhere from 7 to 81 percent in additional revenue attributed to marketing activities – an average of 28 percent. Don’t lose out on the additional sales your marketing could be driving. Brands have been relying too heavily on outdated, backward-looking marketing mix methods that leave money on the table. Companies are now turning to agent-based modeling to make better strategic decisions that will deliver the results they need, and here is why.
Transcript:
  • 1.SISWHY THIlingis dMode nt-base Age ngMix Marke8 TNOW RIGH

2. Marke8ngMixModeling isaspecializeduseof dataandadvancedanaly8cs toanalyze,forecastandop8mize marke8ngperformance 3. SomeBusinessQues8ons Marke8ngMixAnswers Howmuchshouldwe investinmarke8ng? Whichtac8csworkedwell? Whichdidnt? Whatmixmaximizessales? Whataboutmarke8ngROI? Whatresultscanweexpect fromeachmarke8ngplan? 4. MARKETERS NEED HELP NOW Todaysmarketplaceismorecomplexand morecompe44veineveryway Consumersareincharge Therearemanytac4csmarketerscouldtry Therateofchangeisaccelera4ng TheC-suiteisdemandingaccountability Dataiseverywhere,butpeopleneedmore thanjustdatatomakegooddecisions 5. 5% 8ing line item of market not optimal udgets are b Vine) studybyThink 2013 (accordingtoa 6. MIX HAS BEEN DONE VIA REGRESSION Regressionndsanequa4onthatdescribes thehistoricalrela4onshipbetween marke4ngspendingandsales Itforecastsbyextendingthathistorical rela4onshipforwardSo, regression works best when the future is just like the past 7. SOME ISSUES WITH REGRESSION Becauseregressionistop-downitdoesnotprovide thegranular,ac4onableinforma4onmarketerscrave Fewregressionmodelsdeliverinfoabouthowmarke4ng aectsconsumergroupstoenablestarge4ngandtuning Noneprovideinfofortac4csyouhaventalreadytried Especiallywhenthingsarechangingrapidly,thehalf-lifeof forecastaccuracycanbeshort Responses,updatesandchangesoSentakealong4me Verysophis4catedtypesofregressiondoaddresssomeof theknownissues,butnoonetypeaddressesthemall 8. BUT Agent-basedModelingis Different 9. WHAT IS Agent-based Modeling? Aprovenwayofcombiningdata, businessrulesandanaly4csto re-create,gaininsightinto,andpredict complexphenomenabysimula4ng thebehaviorandinterac4onsofagents. 10. IN MARKETING MIX The complex phenomena is how consumers respond to marketing, including buying (or not buying) products Each agent represents a person or a household 11. Insomewaysagent-basedmodeling andregressionaresimilar.Each Hasthesamegoal StartswithdataaboutProvidesinsightabout historicalmarke8ngac8vityand pastmarke8ngac8vity salesresults,andcanusedata aboutpricinganddistribu8onTunesthemodelusing dataanddiagnos8ctests Canincorporateexternalfactorslike theweatherortheeconomy 12. Eachcompanysagent-basedmodelisdierent Eachusesdierentdata,includesdierent marke4ngscience,doesdierentcalcula4ons,etc. ThedierencesmaVerbothintermsoftheresults yougetandhoweasyitistogetthemFor the rest of this deck, well look at the reasons why top marketers choose ThinkVines agent-based solution 13. arketplace Model the mAlltheac)ontakesplaceinthemarketplaceThinkVinecreatesasimulatedmarketplacethataccuratelymirrorsyourreal-worldmarketplace. Itincludesconsumers,yourcompe44on,externalfactors,distribu4onchannelsandmore. 14. objectives Achieve yourMostmarketerswanttoknowwhatbudgettheyneedandhowtouseittomeetsalesgoals ThinkVinessolu4onprovidesyouwiththatinforma4onandcanhelpyouknowwhattodo toachieveotherobjec4ves,suchasleads,newcustomers,andlife4mevalue. 15. consumers Focus onMarke)ngisaboutreachingandengagingconsumersYougetthebestresultsbecauseThinkVinemodelsconsumerbehaviorusingdataaboutwho consumersare,howtheyareexposedandrespondtomarke4ng,andhowtheypurchase. 16. l marketing Include alMarketersknowthatconsumerspath-to-purchaseisawindingroadYouseethebigpictureacrossallon-ando-linemarke4ng,notjustmedia,andunderstand theeectsofpricing,distribu4onchannels,tradepromo4ons,compe44onandmore. 17. consumers t and engage TargeThemanydierencesamongconsumersma=er ThinkVinemakesiteasyforyoutoeec4velytargetandecientlyreachconsumersby providingac4onableinforma4onaboutthem,whattheyrespondto,andhowtheybuy. 18. Look aheadHistoricalinsightisagoodthing,butyoucanonlychangethefutureThinkVineenablesyoutounderstandwhathashappenedand,moreimportantly, whatislikelytohappenbysimula4ngtheeectsofmarke4ngonconsumers. 19. rketing ROI Quantify maMeasuringROIisthekeytoaccountability Youcancondentlyanswerthetoughques4onswithobjec4veinfoaboutROI withinabudgetyear,long-termROIandmarginalROIbytac4c,groupandchannel. 20. anular info Get grTargetconsumers,createcampaignsandbuymediabyconsumergroupThinkVinesboVomupapproachfromconsumerbehaviorgivesyouac4onable, mul4-dimensionalinfobydemographic,marke4ngtype,product,geography,4ming,etc. 21. ile marketers Be agMarke)ngismovingrelentlesslytowardsreal-)me.Isyourplanning?Succeedinafast-movingworldwherecompe44onandpressureforresultshaveshrunk decisioncyclesbyusingThinkVinesanalysis,targe4ng,planningandforecas4ngsolu4on 22. hat If? Ask WYouvegotanidea.Or,youragencydoes.Howwellwillitwork? ThinkVinessolu4onenablesanymarketeratany4metoquicklydoWhatif analysisofideasandseemul4-dimensionalinforma4onaboutthelikelyresults. 23. attribution oss-channel t accurate cr GeCross-channelcampaignsreachconsumerswherevertheyare,whatevertheyaredoing Discoverhoweachon-ando-linemarke4ngtac4ccontributestoyoursalesresultswith anintegratedapproachthatprovidesaccurateaVribu4onoverallandbyconsumergroup. 24. ects next year s marketing aff r nd how this yea UnderstaMarke)ngthatbuildsthebrandand/oroccurslateintheyearsetsthestage forbe=erresultsthefollowingyear.Othertac4csmaydrivecurrentyearsalesat theexpenseofnextyears.ThinkVinequan4esthetrade-os. 25. ptimization sy-button o Do eaSome)mesyoureinahurryandjustwantthedatatogiveyoutheanswer ThinkVinesexclusiveSmartMixgivesyoufastanswersaboutthebudget neededtomeetagoal,orthemixthatdrivesthemostsalesorthehighestROI. 26. and rollouts o-you tactics ulate new-t SimYourethinkingoftryingsomethingnew.Isitlikelytoworkwell?Toscale?Youcanmakesmarterdecisionsfasterbecauseeachmarketplaceincludesconsumers whorespondtovarioustac4cs,notjustthetac4csyouvealreadytried. 27. ect over time rketings eff Discover maPeoplespreferencesanddecisionsarebasedonwhathappenedbeforeandtoday Youwillunderstandthecumula4veeectofmarke4ngandhow4ming aectsyourresultswithThinkVinesconsumer-focused,4me-basedapproach. 28. t research er & marke erage consum LevDontletvaluableconsumerandmarketresearchsitinabinderonashelf ThinkVinebuildsyourresearchaboutconsumerbehaviorandpreferencesinto yourmarketplace,includingitineverysimula4onandinformingeveryforecast. 29. ces change how preferen UnderstandAsgreatasyourmarke)ngis,peoplewillforgetaboutitover)meThinkVinepaintsamorerealis4cpicturethanregressioncanbyusingdatatoquan4fyhow peoplesbrandpreferencesareaectedwhenyougodarkandbycompe4torsmarke4ng. 30. antify the Que of media ng-term valu loSometac)cs,likeadver)sing,strengthenbrandsandbuildawareness,but dontalwaysleaddirectlytosales.Youcanmakesmarttrade-osbecause ThinkVineusesyourdatatoquan4fythelong-termvalueofeachtac4c. 31. aboratively Work collMarke)ngop)miza)onisanitera)ve,collabora)veprocess ThinkVinessoSwaremakesiteasyforyoursta(andagencies)toworktogether, includesrole-basedsecurityandfacilitatesfastprepara4onofpresenta4ons. 32. same page yone on the veret and keep e GDe-hasslemarke)ngplanningandpreserveorganiza)onalknowledgeThinkVineensureskeyparametersareconsistentacrossforecasts;automa4callydocuments assump4ons;andsavesplans,ideas,forecasts,results,andevenguidanceinoneplace. 33. DO YOU WANT TO IMPROVE RESULTS? ThinkVinesmarke4ngmixop4miza4onsolu4on combinesagent-basedmodelingandexpertguidance soyoucanachieveyourgoals Now,leadingB2Cmarketersinmanyindustriesare improvingtheirresultsbyusingThinkVinessolu4on toanalyze,forecastandop4mizetheirmarke4ng TolearnhowThinkVinecanhelpyounow Call(513)842-5900orvisitwww.ThinkVine.com 34. You May Also Be Interested In Agent-basedModeling:ABreakthroughApproach toMarke4ngMixOp4miza4on hVp://thinkvine.com/s/1410 AnOverviewofThinkVinesAgent-basedModeling hVp://thinkvine.com/s/1419 UsingConsumerBehaviorResearchtoPower Marke4ngMixOp4miza4onWebinar hVp://thinkvine.com/s/1417 TrendyFashionRetailerUsesThinkVinetoFindtheBest MixandTimingofOineandOnlineTac4cstoDriveSales hVp://thinkvine.com/s/1415

Click here to load reader

Embed Size (px)
Recommended