MMM assists marketers in optimizing future spends and maximizing effectiveness (i.e. it establishes which mediums are working better than others). Then, budget allocation is done, by shifting money from low ROI mediums to high ROI mediums, thus maximizing sales while keeping the budget constant. Types of MMM MMM can be built using regression methods and […]
Tag: marketing mix modeling
What is essential for successful marketing mix modeling? Regardless of method, MMM can be successful only if accurate and highly specific data are available upon which the modeling can be based. The greatest barrier to successful modeling is always a lack of relevant, specific, accurate data. So, the first step in any modeling effort is […]
It’s a great challenge to accurately measure the effects of advertising, packaging, distribution channels, media expenditures, social media Likes and Tweets, and sales organizational structure on brand share or sales revenue. Is marketing solely a game of chance, or might there be a way to bring scientific methods to the table? Let’s draw a distinction […]