Using the Dirichlet model.(predict market)

Many models are used in marketing, but very often they are proprietary and few people can assess or benefit from them. The Dirichlet model is widely available and can predict how many customers will buy a brand, how often, and how much they will buy other brands in steady state markets. While some people consider the Dirichlet model to be too limited a view of brands, because it does not consider customer attitudes or segmentation, the model has many practical purposes for marketers.

The first use is to assess how well brands are performing, because the benchmarks are not always obvious. For example, a brand may appear to have a low purchase rate compared to what …