Internet triggers development of brand new marketing approach

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.

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