Interpretation and Analysis — Market Response Modelling and Promotions Evaluation

The suite of analysis of market response models such as for promotions, includes:

  • Discount Elasticity: Price elasticity (discount elasticity) is a measure of the responsiveness of sales quantity demanded to a (temporary) change in price.
  • Cannibalization: When a product drops price, increases advertising, improves product quality or expands distribution, it cannibalizes competing products. Cross elasticity of demand is the measure for these competitive effects.
  • Displays and Cooperative Advertisement: The impact of displays, co-op advertising and seasonal effects is usually presented as sales lift, the percentage increase in sales volume due to the incidence of the marketing effort.
  • Sales Decomposition and Due-To Analysis: Market Mix Models can decompose sales into the baseline and each of the factors driving sales.
  • What-if Analysis: The output of a market model is a set of equations that spell out the relationship between sales and the variables of the market mix. These equations can predict what will happen if changes are made to the mix variables.
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Market Mix Modelling - Solutions

Market Mix Modelling - Solutions

Solutions for market mix modelling.