Marketing Mix Modeling
If you are the marketing
manager of a brand and are accountable for the marketing
budget to support your brand than you must be confronting
the challenge of improving the efficiency of spend behind
various activities and also of the overall budget. You
might also be facing a dilemma whether to spend more behind
media advertising or behind promotional activities that
gives instant push to sales.
To counter that challenge and to wipe off that dilemma you need
to know the extent to which each of the support activity impact
the brand performance (sales). You need to know what is driving
your business to what extent and what ROI is each of the activity
delivering.
By building Marketing Mix Model (MMM) for your brand, we can break
the sales volume into various components, each component is the
result of a specific activity, whose spend is known to us, and
hence can let you know the ROI from each of the activity, or even
sub-activities, year-on-year.
By being aware of the ROI at different levels of activity for each
of the marketing activity, by being aware of the threshold and
saturation levels through the diminishing return curve, you can
foresee the impact on sales through each of the support activity
and optimize the spends to gain maximum volume.
Using MMM, we have helped Fortune 50 companies to improve performance
of various brands across markets. We optimize their marketing spends
across activities and across time and have improved the brand sales
by upto 10% using the same budget. For one of our clients, we have
optimized their media budget to improve media contribution by upto
35%.
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