Internet triggers development of brand new marketing approach

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