Marketing Mix Modeling
By taking a more holistic, unified approach to marketing mix modeling, one that captures all of the marketing and non-marketing variables that have a direct or indirect effect on sales and MROI, organizations are able to more effectively and accurately measure marketing effectiveness, optimize investments and simulate the future impact on sales and profit.
The ability to measure and drive improved Marketing ROI and tying that back to increases in sales continues to be a challenge for marketing-driven organizations. In order to produce a result that can be trusted and applied to future marketing and business plans, executives need to be confident that the data being used in the process is holistic and portrays a comprehensive picture of all business drivers and their impact on both revenue and profit. For this reason, it is important that a more unified, holistic approach to marketing mix modeling be taken.
Sales, profit and MROI are directly and indirectly impacted by many things. Promotion, pricing, product, operational, economic, competitive, seasonality, weather and other external factors can all have direct or indirect effects on marketing effectiveness. To accurately measure MROI and its impact on sales the synergies, and halo effects of all of these variables need to be measured and accounted for using one integrated and unified measurement framework
With advances in data and modeling technologies the ability to manage the end-to-end process of converting many terabytes of data into predictive models capable of solving complex business problems has been reduced from months to weeks. Dynamic simulation and optimization software enables users to quickly wargame and plan for the future in real-time supporting more effective and efficient forward-looking planning, investment optimization and increases in revenues.
Ipsos MMA enables companies to address critical business questions, including:
- What is the omni-channel impact from traditional, digital and social media on sales? What is the ROI for each marketing touchpoint and campaign?
- What would be the future impact of a change in the marketing strategy and budget?
- What is the optimal spend and mix of marketing investments
to achieve financial objectives?
- What is the right balance of investments in brand building vs. product focused marketing?
- What is the right investment to drive sales and profit by customer segment?
- How does marketing perform in-season vs. out of season? What is the optimal timing and execution?
- What is the impact of brand equity and customer satisfaction on sales?
- What is the right strategy to optimize the value of a loyalty program?
- What is the optimal sequence of activities to drive customer behavior (Next Best Action)?
- How does marketing effectiveness vary by response channel and geography?
- What is the best way to optimize the effectiveness of each marketing touchpoint by campaign, geography, timing, format, audience, duration and publisher to improve ROI?
- What is the right strategy to take advantage of media synergies (e.g. TV driving Search)? What is the role of paid, earned and owned media?
- What is the impact of operations factors and external factors (macroeconomic, weather, competition, etc.)?
Ipsos MMA provides clients continuous, actionable insights into how their marketing performance can be optimized for the future based upon a rich historical perspective of marketing and operations, economic indicators, customer insights, the competitive landscape 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, Optimization Software and Scenario Planning Capabilities:
Ipsos 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 Ipsos 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.