Column 8 · Marketing Programs · Era 2, Planning (1970s)
Decision Calculus
Formulation, process · Major · Cluster III, Organization and Programs
Description
Little argued that models managers will actually use must be simple, robust, easy to control, adaptive, complete on important issues, and easy to communicate with, and named this model-based approach to marketing decisions a decision calculus.
Managerial Implications
Managers use models they understand, can adjust, and that run on data they have. When adopting analytics, favor simple, transparent models whose assumptions the team can question over black boxes that are accurate but unused. Build models around the decisions managers actually make, such as budget and allocation, and let judgment calibrate the inputs. Adoption, not sophistication, determines value.