Example Problem: Selecting a Marketing Strategy for a New Product Launch

Scenario: A company is preparing to launch a new product in the market, and they need to select
the most effective marketing strategy to maximize its success. They have identified three
potential marketing strategies: television advertising, social media marketing, and influencer
partnerships. The company wants to use a decision analysis method, specifically the Analytic
Network Process (ANP), to evaluate and prioritize the marketing strategies based on various
criteria.

Criteria:
1. Reach: The potential audience size and geographical coverage of the marketing strategy.
2. Engagement: The ability of the marketing strategy to capture the attention and interest of the
target audience.
3. Cost-effectiveness: The cost relative to the expected impact and return on investment of the
marketing strategy.
4. Brand Alignment: The alignment of the marketing strategy with the company’s brand identity
and values.
5. Competitive Advantage: The potential to differentiate the product and gain a competitive edge
in the market.

Step 1: ANP Method

The Analytic Network Process (ANP) is used to evaluate the alternatives (marketing strategies)
based on the criteria. The decision-maker assigns pairwise comparisons between the alternatives
for each criterion and subcriterion, as well as the priorities for the criteria.

Solution:
The decision-maker assigns the following pairwise comparisons for the alternatives:

Television Advertising Social Media Marketing Influencer Partnerships

1 3 2
1/3 1 ½
½ 2 1

Using the ANP method, the priorities of the alternatives are calculated. The normalized
eigenvalues are obtained, and the final priorities are derived.

Alternative Priorities:
Television Advertising: 0.222
Social Media Marketing: 0.567
Influencer Partnerships: 0.211

The decision-maker also assigns the priorities for the criteria:

Reach Engagement Cost-effectiveness Brand Alignment Competitive Advantage

1 3 2 2 1
1/3 1 ½ ½ 1/3
½ 2 1 1 ½
½ 2 1 1 1

Using the ANP method, the criteria weightings are calculated. The normalized eigenvalues are
obtained, and the final weights are derived.

Criteria Weightings:
Reach: 0.198
Engagement: 0.301
Cost-effectiveness: 0.198
Brand Alignment: 0.198
Competitive Advantage: 0.106
Step 2: Decision and Solution
Based on the ANP results, Social Media Marketing has the highest priority and is considered the
best marketing strategy for the new product launch. Social media marketing offers a wide reach,
high engagement potential, cost-effectiveness, and alignment with the company’s brand identity.
While television advertising and influencer partnerships also have their merits, social media
marketing offers the most comprehensive package of criteria satisfaction.

The decision-maker can confidently select social media marketing as the primary marketing
strategy for the new product launch, utilizing various social media platforms to connect with the
target audience, create engagement, and build brand awareness. However, it’s important to note
that the decision should be reviewed periodically, considering market dynamics and changes in
consumer behavior to ensure the ongoing effectiveness of the chosen strategy.

The ANP method provides a structured approach to decision-making, considering both the
interdependencies between criteria and the priorities assigned to alternatives and criteria. It helps
the decision-maker systematically evaluate options and make informed decisions based on a
comprehensive analysis of multiple factors.