Choice Modelling: New Forecasting or Marketing mix model

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In this era marketing research is going to exploit the market. As you can understand importance of marketing research how much is it. The very first question arises here is why we need to do marketing research. I will try to clear this point by using one example and entire marketing comes under this. If an existing company wants to operate in different place they will use market research for knowing growth and failure rate of that market. Second If they wants to launch new product they will use marketing research. Fortunately I would say whatever you will try to do(either it is knowledge about moves of competitor, consumers, and more) you have to go through marketing research. so, see the importance and dynamics of market research.

Coming to point the term called "choice modelling" in marketing research is going to replace many concepts and tools very soon. This method has been developed by Nobel prize holder Daniel Mc Fadden. First I must tell you about what is this method all about. In simple way this is tool a which understand importance marketing mix and choices of consumers. This method is all about understanding of price, product, promotion, place and choices of consumers.

This research has been conducted in various situations mainly it focused on retail store where moderator asks to consumer not only that " what you like or dislike about this product or what you buy or not" apart from this in this research method consumer can tell you about" why we like this product in terms of price, features, packaging and many more............
By using this method consumers can tell you "what why they purchased, why purchase right now and why they will purchase in next time". This is very important point to keep in mind for market analysts.

How this methods is effective sales forecasting-
Mostly companies uses traditional sales forecasting and if some thing goes wrong they blame on various thing. By using this tools you can forecast your sales in effective way because this method tells you each and every aspects of your product and consumers. This method also helps research analysts in to understanding volume of products for future sales because when you use this method they will tell you what types of product they will purchase in future and why.

So, at the end this methods is going to run very fast in Industries in an effective way. It is a very nice method which can replace traditional marketing mix.
This method has been used by the global leader in analytical research system company called Decision Analyst in USA.

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