Useful Marketing Tools:
1. What is the Decay curve – and why is it a useful tool?
A decay curve is the percentage of any company’s new product concepts the survive through the development period (Crawford, C. M. & Benedetto, C. A. D., 2015, p. 200, 201). A Decay curve is a useful tool that helps a manager to know the development costs vs. the risks/payoff for each new concept through development (Crawford, C. M. & Benedetto, C. A. D., 2015, p. 201).
2. What is the ATAR model?
The ATAR model is when a company needs diffusion of innovation by forecasting future sales and the total profit of a new product or service (Crawford, C. M. & Benedetto, C. A. D., 2015, p. 204). ATAR stands for the entire profit of an item’s % (awareness, trial, availability, and repeat).
- Awareness = is the buying unit sufficiently informed to stimulate trial.
- Trial = can be actual in-home trial, on-site trial, vicarious trial.
- Availability = can the buyer easily get to the new product.
- Repeat = is actually a measure of how successful the trial was and how pleased the buying unit is (Unit 4, Chapter 8, PowerPoint, Slide 19 & 20).
I won’t bore you with going into the ATAR formula, but instead share a current example by Hubspot of why we need to use these two helpful marketing tools.
Many company’s digital marketing managers face database decay due to losing members via inaccurate email address for newsletters, which means a loss of new customers or repeat customers (Hubspot.com, 2018, Database decay).
Hubspot’s solution is to turn anonymous visitors into qualified leads when they visit a website by using pop-up forms vs. only using outbound newsletters with incorrect email addresses (Hubspot.com, 2018, Turn visitors into leads).
Crawford, C. M. & Benedetto, C. A. D., (2015). New Products Management. (11th ed.). New York, NY: McGaw-Hill Education
Unit 4, Chapter 8, PowerPoint, Slide 19 & 20.
Hubspot.com, (2018). Database decay. Retrieved on March 23, 2018, from https://www.hubspot.com/database-decay
Hubspot.com (2018). Turn visitors into leads. Retrieved on March 23, 2018, from https://www.hubspot.com/acp/turn-visitors-into-leads