A: Agent-based modeling or ABM is a method of modeling systems at the level of the individual "actors". These models reproduce the behavior of complicated systems, like consumer markets, better than any other technique known.

A: By creating simple yet accurate "rules" describing the behaviors of individuals and their interactions, more complex behaviors arise naturally, as in real life. This accurate, higher-level behavior emerges from the model without being predefined. An ABM model can tell you things you didn't already know, rather than simply refining what you already knew.

A: In marketing, the "actors" are consumers, companies, and channels. The interactions among companies and consumers — via the marketing mix elements of price, product, distribution and promotion — produce emergent phenomena including price elasticity, response to media flighting and brand equity. The interactions reproduced within consumer populations in ABM software include word-of-mouth or "buzz" which is a significant force in many markets.

A: MarketSim is DecisionPower's flagship product. Using agent-based modeling, MarketSim provides insights into past and future consumer behavior based on any number of variables including competitive landscape, marketing mix, external influences and unforeseen events.

A: Over the past 15 years, ABM has been found to be a valuable tool for specialized technical design, education and research as well as complex scientific evaluations and tools. Until recently, desktop computing power was not capable of bringing this technology to end-users. Increased processing power has enabled DecisionPower™ to create the first "productized" version of ABM software, known as MarketSim. DecisionPower has over a decade of experience applying ABM technology to real-world business environments.

A: The DecisionPower team has been applying ABM for more than 15 years in categories such as interactive games (SimLife), education (ActiveChemistry), science (NASA) and business (MarketSim).

A: Once the business issues are defined, you then gather data regarding your market including brands, competition, segments, product attributes and channels. You also need to consider the consumption habits, consumer preferences, price sensitivity, and external factors such as weather and political events. MarketSim also uses historical data to accurately calibrate the model.

A: New users have interactive contact and regular reviews with DecisionPower to answer any questions that may arise. We help you formulate the parameters for the scenarios you wish to explore — competitors' actions, potential events, etc. Experienced users often become self-sufficient in applying MarketSim to new markets and business questions.

A: No company has all the data. Your company is making marketing decisions today, and you can begin using MarketSim with the information you are currently using to base your decisions. Often the more detailed your input data, the more detailed the answers, and the more questions you will be able to answer. Remember that this is a "living" model that evolves over time and can be refined as you learn more.

A: MarketSim lets you know how your business will react to the data you are using. It quickly tells you the value of the data you are purchasing, what data you need to improve, and what isn't necessary.

A: MarketSim lets you know which data is most important. It also allows you to forecast future outcomes based on uncertain events. You determine what these events could potentially be and MarketSim provides the answers.

A: Typical brand projections will fall well within a tightly calibrated level of +/- 1% of actual.

A: Agent-based modeling (ABM) is the most accurate way of replicating what actually happens in your market. We will prove this accuracy during the calibration process, when we describe historical behavior (including the hold-out period) such as category volume, sales and market share by brand.

A: MarketSim works the way your real market works and provides insights into all marketing activities, such as price elasticity, brand equity, and response to media flighting. It also tells you what is happening in your consumers' households and minds (awareness, trial, repeat purchase, persuasion, etc.)

A: MarketSim is not a "black box". The rules used in MarketSim explain behavior in the future as well as in the past. Compared to MMM, MarketSim is both economical and reusable. Each model can be reused as you vary your inputs and learn from the market. It is also more updatable and scalable. Best of all, MarketSim can reveal emergent behavior and other surprises, which is not possible with Market Mix Modeling.