W3: Accenture Market Mix Optimization PapeR Flashcards
What are the traditional and digital channels important for marketing?
Traditional channels like direct mail, billboards, radio, and TV advertising, along with digital channels like email, digital banners, and social media.
What is Market Mix Optimization (MMO)?
A two-tiered approach involving the creation of Marketing Mix Modeling (MMM) and its analysis through an optimization engine to allocate resources effectively.
How have MMM techniques evolved over time?
They have adapted to the digital age, considering faster-moving digital channels and consumer behavioral trends.
What are the transformations applied in MMM to address linear model limitations?
Adstock, Saturation, and Lag are transformations used to address limitations of linear models in MMM.
What is the concept of Mixed Models in MMM?
Mixed models introduce random coefficients for more targeted marketing strategies, particularly at the DMA level.
What does State Space Modeling (SSM) in MMM involve?
SSM includes adjustments for seasonality and creation of time-specific coefficients for marketing tactics.
What advantages do DMA Level Models offer in MMM?
They provide detailed, geographically specific data, enhancing marketing strategy accuracy and ROI.
How did the DMA level model improve Facebook’s marketing strategy?
By enabling more accurate and targeted budget allocation, leading to higher ROI and a significant increase in the marketing budget allocated to Facebook.
What is the future direction of media according to the paper?
Media will become more targeted and personalized, with a focus on taking advantage of the digital media boom.
How can MMO be integrated with machine learning algorithms?
MMO can be used alongside machine learning algorithms for dynamic marketing optimization, constantly updating the marketing mix with new data.
