Engineering Marketing Science
"Bringing engineering technology and marketing science
together."
Hosted by the MIT Data Center
December 7, 2005
Hotel @ MIT
- Cambridge, MA
Dinner,
December 6 (7:00 PM, Cambridge)
Cost of Program - $275 (including Dec. 6 dinner)*
Highlights
-- Speakers from MIT, UCLA, USC, and
dunnhumbyUSA who are experts
in
the field of marketing science, including spatial and temporal aspects of
product marketing and sales.
The speakers have won a number of awards for excellence in the research
and application of marketing science and supply chain management.
-- Introduction to the M Language and its impact on data, information handling,
and modeling in marketing decision-making.
-- New ways to visualize marketing data and to apply models to data.
-- The speakers have co-authored several books including:
Will and Vision: How Latecomers Grow to
Dominate Markets, (Tellis)
Market Response Models: Econometric and Time Series Analysis, (Hanssens)
Strategic ERP: Extensions and
Use (Chapter published by Schuster, Brock,
Allen, Kar, and Dinning)
-- Attendees will receive a new paper by Schuster, Allen, Brock, and Kar
on
the integration of engineering technology, marketing science, and supply
chain management that has not been previously released.
Program Overview
The goal of every firm is to increase revenue in a profitable way.
Marketing science is playing an increasing role in helping firms to grow revenue
through the application of various analytics. Recent developments in
several areas of engineering, including computer science, civil engineering,
wireless technology, and geodetic science hold the promise of enhancing the work
of marketing science though better ways of capturing and handling data, new
methods to link models and data together utilizing the Internet, and improved
methods of visualization.
In the context of rapid changes taking place in online advertising, and the
development of new technologies such as Internet search, Auto-ID, and the
EPCGlobal Network, the future role of marketing will take on a greater focus
concerning the quantitative and technical aspects of reaching customers,
coordinating supply chains, and corporate strategy. Though product
management, creative product design, advertising, and promotion will always be
important aspects of marketing, the advent of various technological developments
are driving changes to traditional sales and marketing approaches, especially in
the area of field operations and new product introductions.
This program features leading experts in the fields of marketing science,
computer science, industrial practice, and supply chain management who will present their research
and applications concerning the evolving role of marketing, technology, and the
interfaces with other business functions such as supply chain management.
The themes of the conference include:
-- Spatial diffusion and its impact on new product success.
-- Models that aid direct marketing.
-- Market response models and demand generation.
-- The introduction of new engineering technologies such as the M Language,
Auto-ID Technology, digital maps, tangible user interfaces, and other
technologies that can gather and visualize important marketing science data.
-- Insights from the practice of applying technology to better respond to
customers
-- The integration of marketing science with logistics/supply chain management
to coordinate new product introductions.
For more than two years, the MIT Data
Center has been researching and developing a standard semantic modeling language
and computer architecture for application within industry. The goal
is to link models and data together to achieve interoperability without a limiting schema. The central effort of this goal is creation of
a global dictionary that will be an open system, allowing users to create various
definitions for words describing data and models. In this way, an exact semantic
definition will exist for each data or model element. With
interoperability, marketing science and supply chain models can be rapidly applied to data, and
data from different sources can be seamlessly combined for new modes of
analysis.
This conference is the kick-off for the food, consumer
goods, pharmaceutical, agriculture, and retailing industry group of the MIT Data
Center. The emphasis of this group is on the practical applications of the
M Language in industry.
Start off 2006
with the latest technological information. Make your
reservation now to attend.
"With never ending pressure to increase revenue and
market share for virtually all businesses, it has become increasingly
important to gain a solid understanding of the customer and to be able to
coordinate supply chains that serve the customer. Marketing science,
engineering technology, and supply chain management are all becoming mutually
dependent for the success of a firm."
Dr. David L. Brock, Founder and Director - The MIT Data
Center.
An introductory article that outlines some of the topics
that will be discussed can be downloaded from
marketing spatial diffusion
To gain an appreciation of the M Language and Dictionary,
download a recent journal article by Brock,
Schuster, Allen, and Kar that introduces the topic of semantic modeling.
Agenda at a Glance
7:30 Registration and Continental Breakfast.
8:30 MIT Data
Center Vision
David Brock
Founder and Director, the MIT Data Center
Principal Research Scientist
Massachusetts Institute of Technology
9:00
Global Takeoff of New Products: Economics, Culture,
and Country
Innovation
Gerard Tellis
Director of the Center for Global Innovation
Jerry & Nancy Neely Chair in American
Enterprise
Professor of Marketing
Marshall School of Business
University of Southern California (USC)
9:45 Break
10:15
Dynamic Catalog Mailing Policies
Duncan Simester
NTU Professor of Management Science
Past Head of the Marketing Group
Sloan School of Management
Massachusetts Institute of Technology (MIT)
11:00 Break
11:30
Market Response Models and Demand
Generation
Dominique Hanssens
Bud Knapp Professor of Marketing
Anderson Graduate
School of Management
University of California at Los Angles (UCLA)
Executive Director
Marketing Science Institute
Cambridge, MA
12:15
Lunch
1:30 Visualization of Marketing Data - David Brock - The
Data Center
2:30 Operations Research: The
Science of Better
Richard Larson
Mitsui Professor of Engineering Systems
and Civil and
Environmental Engineering
Director, Center for Engineering Systems
Fundamentals
President, INFORMS
2:40
Putting Customers at the Center of your Business
Mark Hinds
Senior Vice President, Services - North America
dunnhumbyUSA
Paul Hunter
Vice
President, Services, USA
dunnhumbyUSA
3:40 Break
4:00 Integrating Marketing
Science with Logistics/Supply Chain
Management
Edmund W. Schuster
Co-Director Administration, the MIT Data Center
Research Associate
Massachusetts Institute of Technology
4:20 Wrap-up
Dave Brock and Ed Schuster
4:30 Adjourn
Abstracts (in order of appearance)
MIT Data Center Vision - David L. Brock, MIT
 The
Data Center was formally established in January 2005
after more than a year of research and preparation. The goal of the Center
is to link mathematical models and data together into an interoperable system
that spans organizations. An important aspect of the approach involves a new
computer language call M combined with an open dictionary that handles aspects
of semantics common to various data standards such as XML. An early
application of M will involve seamless translation of schema's, providing much
more efficient transfers of data between organizations.
This new technology has implications concerning the
integration of marketing science models with various types of data that
originates from different sources. Dr. Brock will demonstrate both the M
Language and Dictionary using real data and descriptions relating to marketing
science activities. He will also demonstrate the power of new methods to
visualize data.
Dr. Brock's Background
Global Takeoff of New Products: Economics, Culture,
and Country
Innovativeness - Gerard Tellis, USC
 One of the great uncertainties that new product
managers face is when their new product will takeoff. We have carried out a
series of studies in this area; These studies develop 1) a Metric to measure
takeoff 2) A model to predict takeoff 3) Differences in time-to-takeoff across
countries of Europe and reasons for differences 4) Differences in
time-to-takeoff in countries of the world and the reasons for it. The
presentation will present the key results and discuss managerial implications.
Professor Tellis's
Background
Dynamic Catalog Mailing Policies - Duncan Simester,
MIT
 Deciding
who should receive a mail-order catalog is amongst the most important decisions
that mail-order catalogs must address. In practice, the current approach
to the problem is invariably myopic: firms send catalogs to customers who they
think are most likely to order from that catalog. In doing so, the firms
overlook the long-run implications of these decisions. For example, it may
be profitable to mail to customers who are unlikely to order immediately if
sending the current catalog increases the probability of a future order.
We propose a model that allows firms to optimize mailing decisions by addressing
the dynamic implications of their decisions. The model is conceptually
simple and straightforward to implement. We apply the model to a large
sample of historical data provided by a catalog firm and then evaluate its
performance in a large-scale field test. The findings offer support for
the proposed model, but also identify opportunities for further improvement.
Professor Simester's
Background
Market Response Models and Demand Generation -
Dominique Hanssens, UCLA
 Marketers have long learned that demand is generated from
a mix of activities, involving product offering, distribution, pricing and
marketing communications. Market response or marketing mix models are
quantitative representations of this process. After several decades of
development in academia, such models are now routinely put to work in business,
not only in the consumer products sector, but also in services and
business-to-business markets.
This presentation will briefly review the principles of
marketing mix modeling and its use for improving the allocation of firms scarce
marketing resources. It will highlight several empirical generalizations about
marketing effectiveness uncovered by these models. The final part of this
presentation will set the stage for a discussion on new rapid deployment data
sources and marketing navigation tools that will be needed to take maximum
advantage of the power of these methods.
Professor Hanssens'
Background
Putting Customers at the Center of your Business -
Mark Hinds and Paul
Hunter, dunnhumbyUSA
  Too
often organizations fail to remember that it is their customers which are their
most important asset. Retailers and manufacturers have much to
gain by putting their customers at the center of everything they do. In
this presentation, dunnhumby will discuss how industry is changing through
technology – not for technology’s sake – but because technology has enabled
organizations to better respond to their customers.
dunnhumby works with over 60 leading companies in the
world, such as, Tesco, Kroger, Unilever, Nestle, and BSkyB to deliver brand
value through customer insight and action. With its origins in London, England,
dunnhumby works in seven countries across multiple industries. In the United
States, dunnhumbyUSA works with Kroger, dozens of consumer package goods
companies and several service-related industries.
dunnhumbyUSA
is a joint venture between dunnhumby Ltd based in London, UK and The Kroger
Company based in Cincinnati, USA – one of the world’s largest retailers (www.kroger.com).
Today dunnhumby has
revenues in excess of £75m ($131m),
and over 400 employees worldwide.
Background for Mr. Hinds and Mr. Hunter
Integrating Marketing Science with Logistics/Supply
Chain Management - Edmund W. Schuster, MIT
 Forecasting
demand for a new product is a particularly difficult task. Part of the reason
that new product forecasting is such a challenging problem involves the way
consumers adopt a product within a defined space. Early studies have noted
customer adoption is not spatially uniform. Clusters of adopters tend to form
and grow or contract with time.
This presentation examines the spatial diffusion process
in the context of introducing new products into markets. Advances in a number of
technologies give improved ways to track spatial diffusion resulting in better
forecasting and supply chain coordination. These technology trends will
redefine the interface between marketing science and supply chain management.
Mr. Schuster's
Background
Web Sites of Interest
MIT Laboratory for Manufacturing and Productivity
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