Modeling/Simulation

Description:

Modeling and simulation provides marketers, product developers, and other managers and planners the power to evaluate complex market scenarios. Synthesizing market preferences and profiling data with competitive intelligence enables the development of a virtually unlimited set of “what if” scenarios that test the impact of potential actions and competitive reactions on customer purchase decisions, revenues and profitability.

Objectives:

• Define scenarios by adding, deleting or modifying products.
• Make changes to your own and competitors’ products.
• Evaluate product performance at different price points.
• Determine the impact of brand and buying inertia on customer purchases.
• Select segments to target based on one or more criteria.
• Analyze differential impact on share across competitors.
• Assess extent of cannibalization, based on different market scenarios

Sample Issues:

• How would a prospective new product compete against the leading products in the market today?
• To what extent would different medical specialties respond differently to the same product configuration?
• What changes occur in market preference when a key technological product attribute is varied?
• If a new product model is introduced into the market, what will happen to sales of existing models?

Process:

• Define desired outputs: offer-specific revenue, share, penetration, margin, and changes from baseline measures.
• Set optimization criteria, constraints, product parameters, and competitive offers.
• Run simulations and desired “what if” scenarios to converge on optimal configurations.
• Output reports containing revenue, margins, share, and penetration of “optimized” and competitive offers.
• As needed, create client-specific market simulators for ongoing client use; properly designed and maintained, these interactive decision tools can have value for extended periods of time.
  

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