You can use Marketing Mix Modelling to identify the adjustments needed to drive real incremental growth.

Marketing Mix Modelling (MMM) is designed to help you optimise the 4 main elements in the marketing mix (4Ps). These elements are:
  1. Product – Product attributes
  2. Price – Changes in price and price promotions
  3. Place – Distribution, including delivery metrics for online such as delivery times and returns policies
  4. Promotion – Your promotional spends in media, including non-paid organic media activity
MMM also accounts for the impact of non-marketing context variables such as:
  1. Seasonality
  2. Climate
  3. Competitor pricing and advertising
  4. Underlying category trends
  5. Economic factors such as interest rates, inflation, fuel and energy costs etc
  6. Consumer confidence
  7. Business confidence
  8. Covid impacts (for the period 2020-22)
How does MMM work?

MMM looks at how these variables change over time, usually 3 to 5 years and statistically estimates how those changes impact your business outcome metric – usually sales or share. MMM can capture product changes, changes in price (including promos), distribution and your marketing and adverting spend.

What benefits does MMM provide?

If you know how each of these variables contributes you can optimise your resource allocation to them. For example, if price changes increase both volume and revenue, you might want to consider more price promotions. Or, if you can show that certain media investments drive incremental sales, you might want to consider increasing those investments. We can also identify interaction effects, this might be where a combination of price changes and advertising create  a positive outcome for your business or brand.

Why use MarketingIQ for MMM?
  1. 25 years experience of MMM
  2. Extensive subject matter expertise across multiple categories
  3. Expertise in light, fats MMM, known as MMM Lite
  4. Multi-cross category experience includes automotive, charities, ecommerce, retail, telecoms, travel, TV (global subscriber channel).
  5. Multiple awards for Econometrics and MMM (3 x Media Week Awards: one gold and two silvers in the last five years). WARC Best Use of Data and a WARC Special Prize for Attribution
Pricing: Our models are priced on a flat fee which includes:
  1. Data sourcing
  2. Data auditing
  3. Data preparation
  4. Feature engineering
  5. Modelling
  6. Testing
  7. Diagnostics
  8. Model selection
  9. Reporting
  10. Budget optimisation
  11. Scenario planning
  12. Actionable insight

Contact for more info HERE