Key Questions Answered

How much to spend on marketing?

What is the optimal mix of marketing investments?

What is the ROI of each marketing vehicle?

What is the impact of external factors such as the economy or competition?

What is the impact of operational factors?

Is marketing driving the desired consumer behavior?

What is the impact of marketing on various consumer segments?

Are there synergies between marketing vehicles?

What are the interactions across a portfolio of products (halo and cannibalization)?

 
Related Services
Forecasting
Optimization
Media Scheduling
 
Relevant Items
Download the Marketing Mix Modeling fact sheet >>
 

 

 

 

“Improving The Effectiveness and Efficiency Of Marketing Investments”
Given the size of modern marketing spending, managers are demanding increased accountability and effectiveness. However, without measurement, optimization and benchmarking efficiency, it is difficult for marketing organizations to know how best to allocate
spending, or to justify spending at all. The axiom of pioneering retailer John Wanamaker is as true today as it was when he said it nearly 100 years ago; “Half the money I spend on advertising is wasted; the trouble is I don’t know which half.”

Using MMA’s marketing mix models, marketers can look backwards to determine the return on investment for marketing tactics across products or brands. The models can also help diagnose the reasons for changes in marketing effectiveness over time. Additionally, MMA’s marketing mix models can be used to look forward for forecasting and to create “what if” scenarios for response planning.

MMA’s Marketing Mix Modeling Benefits Marketers By:

  • Getting more out of the current marketing budget.
  • Establishing an apples-to-apples comparison of all marketing tactics media vehicles such as TV, sponsorships, digital, etc.
  • Understanding the impact of changes in the marketing budget.
  • Confidently delivering marketing forecasts (sales delivered by marketing investment).

MMA Helps Marketers Take Action By:

  • Determining how much to spend by marketing vehicle for each brand or product or a portfolio of brands or products.
  • Improving the ROI and execution of marketing vehicles such as timing, duration, message, etc.
  • Understanding the impact of operational factors such as pricing, distribution, training, etc.
  • Understanding the impact of external factors such as economy, competition, weather, etc.

Why MMA?
MMA pioneered the methodology for quantifying diminishing marginal returns for advertising, and has modeled more than 1,000 brands and products for Fortune 500 companies. We have been the thought-leader, innovator, and trusted marketing sciences advisor to some of the largest global companies for more than 17 years.

 

 

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