The Internet has undoubtedly changed old practices and reshaped
industries into leaner, meaner operations.
Now, according to Forrester Research and Information Resources, the Web
is creating a new marketing approach called "cohort management".
Cohort management is to bring a focus on consumer relationship
management, using shared behavioural data from traditional retailers and
e-tailers.
"To compete, consumer packaged goods (CPG) manufacturers will abandon
brand and category management and discover new marketing efficiencies as
they learn to use Internet technology to focus on cohorts of consumers,"
said Mr Robert Rubin, director of Netquity, Forrester Research.
The study found brand managers continued to emphasise demographics in
placing online media.
However, it noted that the offline purchase data proved past purchases
were better indicators of future intentions.
Further, Forrester expects a new breed of marketing professionals to
appear and increase efficiency by reducing the number of consumers they
need to reach while maximising the time they have with each
consumer.
"Cohort managers operating across brands will decide which
advertisements and promotions to present to consumers based on
continuous consumer information.
Brand managers will focus on detailed operational issues like inventory
and product formulation," said Mr Rubin.
The technological capabilities are to also enable cohort managers to
measure return on investment and evaluate the dollars invested and the
money each consumer spends as a result.
"The move toward cohort management will evolve over the next five years,
and the outcome will be a better understanding of consumer behaviour and
the development of in-house skills and tools needed to act on this
knowledge," the report said.
Netquity interviewed 50 senior executives from 44 consumer packaged
goods manufacturers and analysed the offline purchasing behaviour of
10,000 households.