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Marketing Mix Modelling (MMM) provides a fact based assessment
of what marketing activities are actually driving a brands' sales
volumes.
Qualitative insights, neural nets and artificial intelligence form
the engine that uses scanner data, sales, advertising and promotion
data to isolate the impact on sales.
Decision support software provides an 'intelligent agent' to search
through the data and point managers in the right direction.
Marketing mix modelling has its origins in fast moving consumables
(FMCG) or packaged goods companies, but has applications well beyond
these industries.
Development and implementation of MMM can improve profitability
through enabling superior marketing and tactical decisions with
regard to the mix of:
- TV advertising
- Radio and other Media
- Distribution and availability
- Relative Price
- Trade Promotion
- Competitive Effects
- External Factors eg. Economy, seasonality.
Sophisticated analytic modelling is required to produce models
that optimise profitability. Our experience in FMCG markets has
been that we can lift return on investment by at least 100 percent,
or put another way, increase sales volume by 40 percent by focussing
on areas where superior decisions can be made.
Superior decisions can be made in strategic marketing effectiveness
and promotional efficiency.
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