Relationship between Variables

Marketers are often concerned about how variables relate with one another. For instance:

  • Sales and price.
  • Advertising spend vs sales.
  • Advertising spend and GRP vs advertising awareness.
  • Distribution and sales.

Marketers need to know if there is a relationship. How strong is the relationship? What is the nature and direction of the relationship?

Tools such as scatter diagrams are used to visualize the relationship, and metrics like covariance and correlation measure the strength of the relationship. The nature of the relationship may be linear, or it may change over the range of the variables (curvilinear).

Detailed knowledge and understanding of the relationship between variables, helps marketers make well informed business decisions. For instance, setting price to achieve sales objectives. Or for instance, optimizing media spend or tweaking the marketing mix.

Previous     Next

Use the Search Bar to find content on MarketingMind.







Marketing Analytics Workshop

Marketing Analytics Workshop

In an analytics-driven business environment, this analytics-centred consumer marketing workshop is tailored to the needs of consumer analysts, marketing researchers, brand managers, category managers and seasoned marketing and retailing professionals.


What they SHOULD TEACH at Business Schools

What they SHOULD TEACH at Business Schools


Is marketing education fluffy too?


Experiential Learning via Simulators | Best Way to Train Marketers

Experiential Learning via Simulators | Best Way to Train Marketers


Marketing simulators impart much needed combat experiences, equipping practitioners with the skills to succeed in the consumer market battleground. They combine theory with practice, linking the classroom with the consumer marketplace.