Prepared by a marketing lecturer, designed for university-level students
The GE matrix is now officially known as the GE-McKinsey nine-box matrix.
According to the McKinsey website, the framework “offers a systematic approach for the multibusiness corporation to prioritize its investments among its business units.… Read more...
In today’s analytical world, days marketers are expected to analyze significant amount of customer database and market research survey data – and an effective skill is being able to run cross … Read more...
A matrix demonstrates the relationships between two attributes in a visual graph format, similar to a scatter-plot chart. However, it is often time-consuming for someone new to Excel to construct a matrix, as the chart needs … Read more...
The NPS was developed by management consultant Fred Reichfeld (associated with consulting firm Bain and Co.) and presented in a Harvard Business Review article in 2003.
Since that time the metric has … Read more...
In this ATAR forecast example, we will consider a small business. In this example, there is a coffee shop in a local area. Their new product is a service – they plan to … Read more...
As you will see when you use the free Excel template for your ATAR forecasts, there are several financial metrics automatically produced at the bottom of the spreadsheet.
As you can see, these financial metrics include:… Read more...
The ATAR forecasting model is primarily designed to forecast sales and profit contribution of new products following its initial years of release/launch.
In most cases, in addition to achieving their strategic goals, firms will … Read more...
The core component of the ATAR model is designed to generate the estimation of the proportion of the target market to become ongoing loyal or occasional customers = the brand’s customer base.
Once we … Read more...
Nothing destroys the credibility of a business report faster than inaccurate or wildly optimistic financial forecasts. I have seen students provide financial forecasts of a product line extension that would generate billions in dollars within a couple of years. And … Read more...
Possibly one of the more troublesome issues to consider when using the ATAR model for forecasting new products is how the four basic components – awareness, trial, availability and repeat/rebuy – impact each other.… Read more...
Product cannibalization is when the firm’s new product “wins” a proportion of its sales (market share) from the firm’s other existing products – that is, the new product “eats away” the market share of … Read more...
There are numerous factors that will impact the percentage of consumers that trial a product, which marketers can influence and drive. Some of the factors to take into account include:
Because of the nature of the structure of the ATAR forecasting model, the marketing department will become accountable for delivering the various ATAR components if the new product is approved for development and launch.
This means, therefore, if you have … Read more...
As you will see when you use the free Excel template for your ATAR forecasts, there are several financial metrics automatically produced at the bottom of the spreadsheet.
As you can see, … Read more...
The ATAR financial forecasting model for new products is simply one of the areas of evaluation for the go/no-go decision on whether or not to develop the product and take … Read more...
While there are numerous benefits of using the ATAR forecasting model for new products and marketing, there are also some limitations and cautions that you need to be aware of when using this approach.… Read more...
Obviously there are many ways of approaching a financial forecast. However, the ATAR forecasting model is one that is explicitly designed for marketing purposes. So let’s explore the key advantages and … Read more...
I tend to use the terms repeat purchases or rebuy interchangeably on this website, as they essentially communicate the same intention. Out of the four ATAR components, this one is the most important and the … Read more...
Availability refers to the extent that the new product is available to consumers through retailers, various direct channels and online.
Put simply, it is a measure of the ability of consumers to purchase the … Read more...
The T in the ATAR forecasting model stands for trial.
A trial in marketing terms may mean slightly different things at times; therefore we need to clarify what is a suitable input into the ATAR model.… Read more...