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A model is an attempt to simulate reality. This implies (1) The
identification of a number of variables (2) The specification of
their inter-relationship (3) Presentation of this in a design form
which purports to represent what action happens.
Forms of Model
- Intuitive
- Verbal
- Graphical
- Mathematical
Steps in model making
- Problem definition
- Collection and analysis of data
- Establishing criteria for results measurement
- Model development
- Model testing
- Development of working tools
- Integration into total company operation
Inhibiting factors
- User orientation
- Complex nature of marketing
Where do models have a role
In accounting for present market share hence sales and what
will happen tomorrow if elements of the marketing mix change.
Disillusion and Adjustment
Reflects mistaken facts or assumptions and is compound by
over reliance on predictive accuracy of model.
Limited role
They have a much more limited role that was originally
intended.
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