reading 3 Flashcards
Market mix optimization (MMO)
offers a two tiered approach to marketing. The first stage involves building a statistical model called marketing mix modeling (MMM) the second stage involes the analysis of MMM resulting through an optimization enginge, which ensures the best possible allocation of resources
Baseline revenue:
revenue a company can expect to receive in the absence of any marketing tactics. Includes base sales, macro-economic trends, seasonality, other external factors
M
Marketing contribution
incremental revenue generated from each marketing tactic, where each coefficient measures the impact of every extra dollar invested in each marketing tactic onto sales
Regression models are very useful when
sales can be explained via a linear relationship to marketing activities. however in the absence of such a relationship regression models are a poor fit
Fixed coefficient:
the average impact of a marketing activity across all panels. This can be referred to as a global estimate which does not differentiate between each individual panel defined in the analysis
Random coefficient
the individual response of a marketing tactic for each panel
While mixed models provide good, targeted results…
a significant amount of data is required to properly estimate the random effect
what is media mix and why is it important
a media mix, or marketing mix, is the combination of communication methods in which brands can reach their desired audiences
Four elements of marketing
product people place promoition and price idk why its 5
Why is media mix important
a brands media mix is important for total ROI and testing new campaigns. having a diverse mix of media means a brand isnt putting all its marketing or advertising budget in one place and relying on only one method of reaching their desired audience. if one method is underperforming having a diverse mix means taht the other methods can help balance out the total ROI while you optimize or choose to eliminate ineffective options
What is media mix modeling FR?
media mix modeling also referred to as marketing mix modeling is a technique used by advertisers to predict how media will perform based on previous activity and other factors like seasonlaity
It helps marketers answer questions like:
what is the right mix of budged allocation in orderfor me to drive the highes tpossible ROI
how will different methods perform now and in the future
How do non marketing factors like weather influence my ROI
What is media mix optimization
Media mix optimization analyzes how your messages are resonating with customers . It is the process of figuring out which combinations of marketing methods work best together in order to see the best results. It involves creating models that predict likely results from each type of media, or place, a brand is considering investing in
Digital advertising as a key part of the marketing mix
Digital advertising is a great way to maximize effeectiveness of brands marketing mix and has 5 core elements:
Mission: what you want the campaingn to achieve
Money: how much will you spend ont he cammpaign budget
Message: The primary call to action you want to communicate
Media: the tools for delivery of your message
Measurement: the metrics youll track to show campaign results
