Concentric Market™ simulates consumer markets with accuracy that matches or exceeds the highest statistical standards of any existing marketing analytic tool, while providing insights that go further.
Our users diagnose the performance of offline, online, and social marketing vehicles. They explore strategies to develop and launch new products and evaluate the risk of new competitive entrants. They forecast consideration, perceptions, word-of-mouth, sales, and return on investment for each of the brands competing in the market and for each of their target consumer segments.
Our Agent-based model simulates your customers’ micro-interactions with a few rules that lead to the emergent, macro-behavior we observe in the real world.
Whether it is the fusion of individual-level and aggregate-level data, or the combination of qualitative and quantitative research, agent-based modeling is the only technology that allows us to analyze these data sources within a single framework.
Many of our customers find that one of the advantages of our Consumer-Centric approach is to break down the siloes between the separate sets of analyses that often can’t talk to each other.
To build a valid and useful model, our users identify a set of initial conditions. The software then forecasts based on those settings and compares the forecasts to the real-world metrics.
An automated calibrator adjusts settings to minimize the difference between simulated forecasts and observed measurements.
Consumers are at the center of Concentric. They have properties, like awareness and perception, drivers that govern what is important to them when making decisions, and connectivity in their social network. They also engage in behaviors; they post online, purchase, and talk.
A few rules define how the properties drive the behaviors. For example, the more aware consumers are about a product, the more likely they are to purchase.
A few variables change the impact of properties on behaviors. For example, the greater the social density, the more likely consumers are to talk about the alternatives in the market.
Consumers are also affected by events, like hearing a friend talk about a new product or reading an online review. Events have a likelihood to change awareness and perceptions.
In addition to other people in their social network, consumers are also affected by outside factors such as marketing, category seasonality, and the product itself.
Once you are satisfied with the forecasting accuracy of your model, you are ready to explore what-if scenarios. There are plenty of options to explore in Concentric.
Change the media budget of your brand or competitors and explore various media mixes. Introduce new products or competitors into the market or change features of the product. Prepare for unanticipated PR or viral events.
The most useful part of Concentric is the comparison of multiple scenarios over multiple metrics – there is no limit to the number of ideas and strategies you can test and explore.
Understand and avoid the decisions and strategies that lead to the least sales and decreased brand messaging.
Identify and activate on the positive changes and strategies that position your brand and products highly in the eye of the consumer.
Inform your team, agencies, and ad serving platforms. Keep everyone up-to-date.
Keep everyone up-to-date about the outcome of your simulations and changes to the Marketing Strategy.
Read our article on Market Simulation vs Marketing Mix Modeling, and find out the best approach for your company.