How Artificial(ly) Intelligent is your Marketing Mix Model?

Marketing Mix Modelling (MMx) has long established itself as a credible method to evaluate marketing effectiveness and is used by Brand Managers for media planning. Marketing Mix models are sophisticated Regression models that are built on past data that help us understand the relationship between marketing & some non-marketing factors (like economy, weather, competition etc) with a brand’s sales (or any other similar KPI). Marketing factors typically include TV GRPs, spend on other media channels like Radio, Print, digital, Outdoor marketing etc. Non-Marketing factors would include price, distribution, competition activities, GDP, seasonality etc. Once the Marketing mix models establish the exact relationship between these factors and sales (dependent variable), this knowledge is further used for business planning, understanding price elasticities & media spend optimization.

You can download the report here.