This paper attempts to summarize the weaknesses of marketing models which are set up with the aid of conventional methods and shows why many of these models are never used in practice. It also presents a setup, which was developed in practice and which tries to draw conclusions from this experience.
One of the most important and, at the same time, one of the most difficult problems of marketing is an efficient marketing budget allocation on the instruments of sale. The present study is aiming to do just that. 'Market Mechanics 2' ('MM2') is examining some of the most important variables which influence the market trends of fast moving consumer goods. We developed a partial model, that explains the market trends by calculating the effectiveness of the most important marketing variables on the basis of empirical data, i.e. advertising, mediamix, pricing, changes in prices, promotions activities, distribution and changes in distribution.
One of the most important and, at the same time, one of the most difficult problems of marketing is an efficient marketing budget allocation on the instruments of sale. The present study is aiming to do just that. 'Market Mechanics 2' ('MM2') is examining some of the most important variables which influence the market trends of fast moving consumer goods. We developed a partial model, that explains the market trends by calculating the effectiveness of the most important marketing variables on the basis of empirical data, i.e. advertising, mediamix, pricing, changes in prices, promotions activities, distribution and changes in distribution.
The need for an analytical penetration by newspaper and magazine distribution as well as the essential need for management to take an interest in entrepreneurial problems in this sphere, indeed to a higher degree than the branded article business normally demands, is stressed by the fact that it is impossible to balance peaks of demand and production by inventories. Secondly, the extraordinarily high number of distribution points, each with a relatively small turnover, which on the one hand undoubtedly helps to increase the breadth of supply of newspaper and magazines to the public but which, on the other hand, causes great problems by fluctuating buying patterns.