Apply fact-based marketing mix ROI optimization solutions to marketing investments to drive 40% improvements in your marketing effectiveness
- Use fact-based, predictive analytics to optimize future marketing investments to drive increases in sales, profits and share
- Balance short term marketing and promotion tactics with long term brand building needs
- Understand ROI for each off-line and online media channel, campaign and execution (i.e., search vs. circular vs. TV)
- Optimize allocation of traditional media vs. digital media and determine the synergies between the two with marketing modeling
- Quantify the value and impact of emerging/new digital media (Facebook, Groupon, Foursquare, mobile aps, etc.)
- Lock into the right mix of marketing investment by DMA, region, country and “go to market” channel
- Determine which media vehicles and campaigns are most effective at driving revenue, profits, share and consumer segments
- Understand the economic, competitive, seasonal, weather and operational factors impact on sales by key time period
- Quantify the ROI of improving marketing effectiveness in terms of sales, profits, share and target consumer growth
A Tale of Two Companies
Applying analysis from previous case studies, two hypothetical competitive $1B companies found themselves battling for revenue and share growth in a low growth economy where 50% of any growth came from the other. Both had $75M marketing budgets. Both companies had pools of efficient/productive investments which averaged returns of $1.75 in revenue for $1 invested. However, 35% of their budget returned less than $1 in revenue and had little to no impact on long term brand equity.
Company A hired MMA to conduct marketing performance models to identify what worked and what didn’t and what investment would produce higher revenue and profits in the future. Company B stuck with their “gut intuition” metrics and stayed the course.
Company A identified specific areas where marketing was over-allocated and inefficient as well as areas for future ROI improvement. They opted to re-allocate budget from the “worst” performing 25% to the “best” 25% of the opportunity areas. Fourteen months later the marketing productivity of Company A and Company B was re-evaluated…
Marketing Improvements Drive Marketplace Advantages
MMA provides clients continuous, actionable insights and a value proposition into how their marketing performance can be optimized for the future based upon a rich historical perspective of marketing and trade promotion performance, pricing actions, economic indicators, customer attitudinal insights, competitive landscapes and other business conditions.
CONSULTATIVE DISCOVERY AND VALUE PROPOSITION:
Collaborative sessions are conducted with key business stakeholders to identify important issues they are seeking to solve by applying marketing mix modeling results. Issues are identified and a roadmap to value is created that aligns with organizational objectives.
POWERFUL, REAL-TIME SIMULATION AND OPTIMIZATION SOFTWARE AND SCENARIO PLANNING CAPABILITIES:
MMA’s clients have the ability to conduct real-time “what if scenario” simulations as well as optimization routines across a variety of potential and planned business situations.
HISTORICAL “DUE TO’S”:
This provides pinpoint reads on exactly why and how much each marketing, media, promotion, distribution, operational, competitive, economic and other variables had on either positively or negatively impacting the business.
PREDICTIVE STATISTICAL MODELS:
Custom client models incorporate a rich set of client specific data enabling an expedited understanding of what will happen, when, where and why based on a wide variety of optimized and simulated marketing and media programs.
INTEGRATED MARKETING DATA MANAGEMENT PLATFORM:
A rich set of data is collected at a granular level by MMA’s professional data management personnel. The data is collected, cleansed and harmonized in a powerful database that acts not only as a modeling and analytic platform for the ROI analysis but also as a database for developing rich and insightful business reporting.
EXPERIENCED CONSULTATIVE SUPPORT AND VALUE:
Count on Partner-level insights from experienced consultants who work collaboratively with clients to assimilate the predictive insights into client ongoing business processes support value creation.