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Friday, November 09, 2007

Marketing Engineering

As part of a practice of applied marketing meeting at Wharton I received a copy of the new book: Principles of Marketing Engineering, by Gary L. Lilien et al. Marketing engineering? Could there be such a thing? At least it's not marketing physics. First I admit though I have taken many engineering and physics courses I have never taken a marketing course. I have learned a bit of the quantitative aspects of the field over the years here.

I had a chance to read and overview a good portion of this book, and to my surprise it does a good job of positioning marketing as quantitative engineering in a meager 192 pages. Each topic: response models, market share, customer value, segmentation, perceptual maps, forecasting, conjoint, new product development, marketing mix and promotions are carefully positioned with only a minimum number of equations and some real-world examples.

Surprising, too is that this book is readable, I managed a third of it on a long flight. I don't think it can be complete given its size, but it positions a lot of fairly new techniques well. I would like to go through this book with a knowledgeable P&G person to see if, and how we use each technique, and have altered it to our own requirements. Much recommended for someone who wants a readable introduction to modern quantitative marketing methods. Even the analysis of Web 2.0 topics like blogs are mentioned, and the use of advanced simulation techniques to iteratively test proposed solutions.

The primary author Gary Lilien of Penn State, is one of the well-known deans of marketing science. He has a consultancy (who doesn't) called DecisonPro. They sell a number of marketing analysis frameworks that work in Excel, free for evaluation, have not tried any of them.

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