Executive Summary

Analytical Marketing Tools & Techniques

Decisions need to be supported by sound information. Obtaining information and

translating it into actionable and predictive insight is a difficult challenge. Don't
reinvent the wheel; leverage tools & techniques that have been proven to work.
Following is a list of 8 free, downloadable, tools & techniques developed by
consulting firm Marketing NPV who specialize in helping companies demonstrate
marketing ROI and develop marketing dashboards.

Key Analytical Tools & Techniques

• Perceptual Mapping Tool - these maps take empirical customer-based

evaluations of key brand attributes and translate this data into visual maps.
These maps provide a method for calculating the ROI of positioning changes,
identifying product strengths & weaknesses, and determining unmet customer
needs. Read this article by Marketing NPV's Managing Partner to learn more.

• Resource ReAllocator - by combining management science, historical data,

and executive judgments, this model can be used to size and allocate
marketing resources such as salesperson headcount.

• Bass Diffusion Modeling Tool - use this technique to accurately forecast

revenue for a new product where you have no historical data.

• Markov Chains - this technique can be used to understand the future of your
market such as how your customers will make purchasing decisions. Many
organizations have used Markov chains to forecast the impact of market
changes. Follow this link to learn more about this technique.

• Marketing ROI - measuring return on investment is one of the most

frequently used methods for analyzing the success of marketing programs.
Follow the preceding link to develop a Forward ROI model.

• Decision Trees - this technique provides a method for breaking large decisions
into manageable pieces, analyzing the expected outcomes, and determining
potential payoffs.

• Simulation Tools - using turbocharged Excel spreadsheets can provide insight

into the effectiveness of a particular marketing program. Follow the preceding
link to download the required plug-in for Excel and start simulating.

• Competitive Radar - use this tool to graphically represent your competitive

matrix.

© 2009 Demand Metric Research Corporation

 Executive Summary

Action Plan:

1. Learn Techniques - conduct further research & analysis of the preceding

tools & techniques to determine if you have requirements in areas they
address. Most organizations could benefit from analytical decision-making
frameworks, but don't invest the time to understand their applications.

2. Select a Pilot Technique - challenge yourself to learn one new technique

and use the downloadable tools as a guide. Once you get the hang of these
methods, you will impress your senior management team by providing
relevant and timely recommendations based on your analysis.

3. Make Recommendations - once your pilot tool is developed, communicate

its purpose with the senior management team. Provide recommendations
based on the results from your analysis.

4. Add More Techniques - once you have mastered one analytical technique,
begin to learn how other techniques can be incorporated into your decision-
making processes.

5. Determine Dashboard Capability - many of these techniques are integral

to creating a marketing dashboard that provides visibility and predictive
insight. Read Demand Metric's Research downloadable Note, Get Ready to
Measure Marketing Performance, and go through the associated Dashboard
Readiness Assessment to determine if you are ready.

6. Implement a Dashboard - read Demand Metric's Implementing Effective

Marketing Dashboards to learn how to move forward with this idea. This
report will outline what dashboards are, what benefits they offer, and
implementation best practices.

Bottom-Line:

Credibility stems from accountability and the ability to back up your

recommendations with solid evidence. Master analytical techniques and deploy a
toolset that can be used to inform marketing decisions, measure market conditions,
and provide actionable, predictive insights.

© 2009 Demand Metric Research Corporation