|
|
|
MSA customizes marketing mix models to the client's business - whether
CPG or non-CPG. Customization is critical in the current era of
micromarketing, media fragmentation and heightened ROI accountability.
Innovative ways of measuring non-traditional marketing such PR,
billboards, events, sponsorships, etc. are developed for the models.
Environmental and other non-sales/marketing factors are taken into
account as applicable to the business. MSA's team of analysts has the
breadth and scope of modeling and consulting experience that encompass
diverse industries and product categories.
Marketing mix models enables:
- ROI estimation of each advertising/marketing medium and
marketing campaign
- Estimation of the volume contribution of each component of
the marketing mix to the business as well as to period-to-period
total sales change
- Simulation of changes in ROI through "what-if" scenarios such
as shifting spending allocation among marketing activities
Marketing mix models can also address the following issues:
- Provide a foundation for rigorous sales forecasting -
implemented as an Excel-based forecasting tool or via MSA's
web-based tools
- Identify geographies that have a stronger than average
response to specific media
- Evaluate the effect of competitive advertising/promotion
- Identify advertising threshold and/or saturation levels
- Identify if interactions exist between promotional vehicles,
and quantify their impact
Sophisticated modeling is necessary to "un-bundle" the confounding
effects of simultaneous marketing activities.
- Multiple regression analysis utilizes cross-sectional
and time series data.
- Additive and multiplicative model forms are used as
appropriate to best fit the data.
- Newer techniques such as Bayesian shrinkage/mixed models
are employed when limited information is available for some
distribution channels, accounts or geographies.
Quantify volume contribution of marketing mix:
Estimate revenue per dollar spent on marketing activity:
Estimate the impact of marketing mix on sales from one period to
another:
|
|
