Market Mix

Marketing Mix Modeling & Optimization

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Key Elements: |

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| Measures effectiveness of all types of marketing – branding as well as promotional, including competition and external factors like weather |

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| Provides ROI for each advertising and promotional campaign, including halo effects on related brands |

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| Shows how to maximize sales and/or profit by finding optimal marketing spend |

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| Allows for diminishing returns, cannibalization, and media lag effects |

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Marketing Mix Models quantify the sales impact of various marketing activities and determine effectiveness and ROI for each marketing activity. Our optimization techniques can provide a roadmap for the future by showing how to adjust marketing strategies, plan budgets, manage channels, create pricing strategies, and produce the highest return for your marketing investments.

Marketing Mix Modeling helps brand managers identify the right mix of advertising media and make better business decisions in terms of allocating marketing spend and media planning.

Analyze Current Business Performance |

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How We Do It | Key Model Insights | |

| Why are sales up or down vs. a year ago?What is incremental sales lift from promotion vs. media advertising?Does any vehicle look to be near diminishing returns in terms of spending?Which ad campaigns run recently have been most effective? Which least?Which markets exhibit the greatest response to promotions? | |

 Align sales with marketing. Sales | |

Promos | |

TV | |

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Attribute sales to activities occuring when sales increased. Time |

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Decompose Sales | Explain Change vs. Year-Ago | Calculate ROI |

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Maximize ROI by Allocating Marketing Spend to More Productive Investments |

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| How We Do It | Key Model Insights |

| Models | Financial Input | Business Rules |

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| What is the highest...