Mu Sigma

Knowledge Center - Case Studies

MARKETING MIX MODELING

Client’s marketing team has the following business imperatives

Obtain the best return on investment on individual marketing initiatives while optimizing on the total marketing spend
Allocate the optimal set of dollars for different marketing programs like advertising, direct response or interactive media

Create a market mix model that links major types of marketing activities to revenue and profits
Account for baseline revenues, interaction effects, and macro and other factors that you cannot control
Deseasonalize data on sales and remove the impact of any changes in price from your data
Look for a statistical linkage between the major types of marketing activities you field and variations in revenue and/or profitability
Build a model that pinpoints how different spending on marketing activity drives revenue
Complex mathematical algorithms are used to determine how to reallocate dollars to optimize revenues, profits, or ROI for a given campaign

Link major media investments to financial outcomes
Provide detailed and tactical recommendations on how to invest marketing dollars so as to maximize revenue and profitability
Help organization take advantage of pricing anomalies by market and media type

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