Market mix models can assess the impact of the elements of the marketing mix so that marketers may align their brand’s initiatives into a coordinated programme designed to drive revenue and profit. The models use statistical methods of analysis of historic market data, to estimate the impact of various marketing activities on sales. They reveal the effectiveness of the marketing mix elements in terms of their contribution to sales and profits, and can be benchmarked against costs to compute ROI. This knowledge empowers marketers to craft plans that optimize the use of resources, and infuse marketing decisions with the logic and discipline of analytics.
Details about key design considerations for market mix models are provided in the Marketing Analytics eGuide. The guide also offers guidance on how to apply, and how to interpret and analyse the output of these models. Snippets from the relevant chapter, Market Mix Modelling, provide illustrations of some of the techniques commonly applied by practitioners, including sales decomposition, due-to analysis and what-if analysis.
Ashok Charan,
Marketing Analytics Practitioner’s Guide,
Digital Marketing,
Marketing Mind,
Destiny Marketing Simulator,
ashok.charan@gmail.com