Industrial marketing models using a computer

Modelling or simulation can be used as a device to obtain a measure of control of situations, and models used in marketing have become most widely known in connection with the marketing of consumer goods. They also have applications in the marketing of industrial products, and, to illustrate what is possible in this field, a particular type of model is described in its application to market planning for capital goods which are made available through a series of bid situations. The development of the model is outlined to show how tools were devised as their need appeared. The role of the computer is shown to be an extension of the memory and analytical capability of the marketing function; the conditions of effective market modelling are outlined, and the relevance of marketing models to management decisions is briefly indicated.