With the advent of newer technology with greater computing power, big data and contemporary media channels, organizations have realized the importance of marketing mix modeling (MMM) and identified the many benefits it entails that gives rise to cost savings opportunities and drives profitability. Advanced marketing analytics tools such as marketing mix modeling and attribution modeling have gained momentum over the years as marketing professionals strive to bridge the gap between marketing mix strategy, budget planning and allocation, and its marketing effectiveness.
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Marketing mix modeling tools have evolved over the years in order to cater to the varying needs of organizations across the globe, effectively measure the performance of marketing campaigns across different media channels and thereby evaluate marketing mix strategies. Marketing mix modeling can be defined as a statistical model that helps in measuring the impact of past marketing decisions, identify the present trends and forecast the effect of marketing variables on the overall sales. MMM helps in calculating the marketing return on investment (MROI) based on previous marketing decisions and enables marketing mix optimization.
Organizations often shy away from marketing mix modeling and other advanced marketing analytics tools as they perceive them to be complex, time consuming and face difficulties in interpreting the outcome. This is because marketers repeatedly overlook the factors that aid in successfully implementing marketing mix modeling and related advanced marketing analytics tools in the organization. Let us have a look at the factors that assist in the successful implementation of MMM in any organization.
Reliable Data is the Key Success Factor
In order to successfully achieve the marketing mix modeling objectives, marketers must ensure the availability of sufficient, accurate and reliable data. Owing to big data, information can be sourced from a variety of internal as well as external sources. Organizations have access to granular levels of data that can help derive insights and identify trends, forecast sales and understand consumer buying behavior.
Data and IT Architecture Compatibility
Marketers must ensure a high level of compatibility between the data architecture and the organization’s IT infrastructure bringing it in line with the organization’s internal business processes. Companies must carefully choose a marketing mix modeling tool and other advanced analytics solutions that align with their marketing strategies and tactics in order to achieve an effective return on investment (ROI).
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MMM is All About Flexibility and Cross Functionality
For a successful marketing mix implementation, organizations must form a team of cross functional experts so as to warrant data reliability and have a flexible mix of traditional as well as modern media channels. This enables MMM to provide actionable insights to marketers to devise marketing strategies and facilitates marketing mix optimization
At Quantzig, we offer a wide range of marketing analytics solutions including but not limited to marketing mix modeling and attribution modeling, that helps our clients to optimize their marketing strategies and improve their marketing effectiveness and ROI.