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Marketing mix modelling

Marketing mix modeling (MMM) is a statistical analysis technique that helps
marketers measure the impact of their marketing efforts.

Business challenges

- Calculate ROI of advertisement spend across various channels like television, print and web

- Understand consumer behaviour with regard to exposure to advertising

Analytics solution and results

- Develop an analytic model showing impact of various marketing campaigns on sales

- Evaluate media effectiveness, ROI and simulate what-if scenarios

Solution Approach

1. Identify channels, campaigns, causal factors that impact sales

Historical data

Market spend data

Macroeconomic factors

Market mix model

  • - Parse out seasonality
  • - Create baseline
  • - Analyse drivers
  • - Identify lift from activity

Assumptions and business constraints

Output

2. Develop model-driven scenario analysis to analyse their impact on sales

Impact

  • Prioritised advertisement and promotion spend in favour of channels that provide better ROI
  • Reduced the overall spend on advertising and promotion
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