Marketing Mix Modeling (MMM)
Marketing Mix Modeling is an advanced statistical analysis technique that uses historical data to evaluate the impact of various marketing activities on sales and other business outcomes. It helps determine the effectiveness of different marketing channels and optimize budget allocation across the marketing mix by accounting for both controllable marketing variables and external factors like seasonality, competition, and economic conditions.
Definition
Marketing Mix Modeling is an advanced statistical analysis technique that uses historical data to evaluate the impact of various marketing activities on sales and other business outcomes. It helps determine the effectiveness of different marketing channels and optimize budget allocation across the marketing mix by accounting for both controllable marketing variables and external factors like seasonality, competition, and economic conditions.
Examples
Using MMM to determine that TV advertising drives 40% of sales while digital channels drive 35%
Analyzing the impact of weather patterns and seasonality on retail sales performance
Optimizing marketing budget allocation across channels based on ROI analysis
Measuring the halo effect of brand campaigns on direct response performance
