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Corporate models: better marketing plans. Simulation from a computer's ' black box ' has become a powerful new tool for rationalizing the ar.t of marketing | Philip Kotier Corporate models better marketing plans Simulation from a computer s black box has become a powerful new tool for rationalizing the art of marketing Foreword Marketing is so dependent on human judgment so involved with complex relationships and so beset with imperfect knowledge that decisions are all too often made by sheer intuition rather than rational analysis. Of course experience and intuition are vital ingredients in marketing but their value can be greatly enhanced by objective measurement of market forces. In this article the author shows how a company can analyze its marketing system step by step express various relationships explicitly in a model and then simulate alternative plans on the computer. This process will help a decision maker increase his understanding of a complex operation and evaluate the financial implications of a proposed marketing plan. Mr. Kotler is the A. Montgomery Ward Professor of Marketing Graduate School of Management at Northwestern University. He is currently writing a book on quantitative marketing analysis which will be published in 1971 by Holt Rinehart . Winston Inc. The authof of Marketing Management Analysis Planning and Control Englewood Cliffs New Jersey Prentice-Hall Inc. he has alsc written several HBR articles including Operations Research in Marketing January-February 1967 . -Lhe market planner s task may seem no more onefous or complex than that of the plant manager who must plan the best utilization of the company s labor equipment and raw materials or of the financial office who must plan the flow of company funds. These othef managers however generally work with better data more measurable and dependable input-output relationships and more direct control. In marketing information is poor expenditures affect demand and costs simultaneously and human factors play a large role. Thus it is no wonder that marketing management is considered essentially an art by both its practitioners and its critics. .
