Tag: marketing mix model

IR23

Marketing Mix Modeling: Top 10 Success Stories that Will Help You Decide If You Really Need It

In today’s competitive landscape, businesses find it difficult to measure marketing effectiveness. Understanding the future impact of a change in marketing metrics and optimizing investments to drive sales and profits for profitable customer segments is challenging for most companies. Moreover, the impact of operational factors and external factors such as weather, macroeconomic factors, and aggravating competition is increasing the marketing spend for businesses.

If investments are not optimized and analyzed properly, companies cannot identify their key drivers of profit, sales, and performance. Therefore, marketing managers need to take marketing mix modeling into account, to set the right foundation for their marketing initiatives and branding solutions.

Marketing mix strategy has the potential to streamline marketing activities to maximize revenues, profits, and predict sales while simulating various scenarios.

At Quantzig, we understand the impact that marketing mix modeling can have on your business. And to help companies bost marketing efficiency, we have listed below some of our top success stories that have helped numerous companies to implement an effective marketing mix modeling technique to maximize ROI.

Marketing Mix Modeling Success Stories

Success story #1: Marketing mix modeling paved the way for precise marketing mix strategyAnalyzing the key components of the marketing mix is a pre-requisite when it comes to developing a solid marketing mix strategy. Don’t you agree? Marketing mix modeling comes to rescue here as it did for one of Quantzig’s clients. By leveraging marketing mix modeling solutions, the client was able to use multiple regression techniques. Furthermore, this helped them predict the optimal mix of marketing variables and develop a rigid marketing mix strategy to persuade their customers to act immediately.

Success story #2: Marketing mix modeling paved the way for a 50% boost in ROI:Want to avoid wasteful spending and suboptimal results in your business? If yes, then this success story can inspire you. One of the Quantzig’s clients was facing issues boosting their ROI and approached Quantzig to leverage our expertise in offering industry-leading marketing mix modeling solutions to examine the relationship between marketing mix elements and performance measures. Our marketing mix modeling solutions proved useful for the client, especially in ascertaining the effectiveness of each marketing input in terms of ROI and this boosted returns to 50%.

Driving Market Advantage with the Help of Marketing Mix Modeling – A Retail Banking Case Study

Success story #3: Marketing mix modeling optimized the incremental value of investments: With the aid of marketing mix modeling, it becomes easy for any company to analyze the incremental value of investments. Do you want to know how? Our latest success story can shed light on how Quantzig’s marketing mix modeling techniques integrated both digital and traditional channels through the effective allocation of marketing budgets. With the help of marketing mix modeling, it becomes easy to gain actionable insights into the impact of the marketing campaigns across various business segments. Furthermore, marketing mix modeling is also very helpful when it comes to budget optimization, channel and campaign ROI analysis.

Analyzing the Incremental Value of Investments Through Marketing Mix Modeling for a Gourmet Food Retailer

Success story #4: How can marketing mix modeling can transform your business? Marketing mix modeling is the best way to evaluate past marketing outreach activities, forecast the return on investment, and measure its impact on the overall sales. It allows companies to gain actionable insight into market variables and their impact on sales. Irrespective of the industry in which the business operates, tmarketing mix analysis allows organizations to make strategic business decisions, identify opportunity costs, and optimize marketing strategies.

Marketing Mix Modeling Transforms the Healthcare Industry

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Success story #5: Marketing mix modeling quantified the impact of sales on marketing activities :Do you think quantifying the impact of sales on marketing activities is a tough nut to crack? Well, not anymore! Marketing mix modeling solutions can help you do so very easily as it did for one of Quantzig’s clients. Marketing mix modeling provided assistance to the client in understanding the impact of online media on sales and optimizing investments to drive profit. Furthermore, marketing mix analysis proved beneficial in measuring the potential value of all marketing inputs and make investments to increase long-term revenue.

Marketing Mix Modeling: How Quantzig Helped a Prominent Client in the CPG Industry Optimize their Marketing Spend

Success story #6: Leveraging marketing  mix modeling to reduce marketing spend significantlyThe key advantage of leveraging marketing mix modeling solutions is its go-to-market research evaluation approach. This is what formulated the way for better savings since Quantzig’s marketing mix modeling solutions quantified the effectiveness of marketing channels in terms of revenue, incremental sales, ROI, and contributions for the client. Furthermore, it also unlocked the business potential and reduced marketing spend significantly.

Marketing Mix Modeling Helps an Electronics Retailer Reduce Marketing Spend

Success story #7: Why is marketing mix modeling inevitable for your business? Marketers often face the challenge of correctly determining and analyzing the effectiveness of their campaigns across offline and online marketing channels. Ideally, marketing strategies are concocted by using primary and secondary media research, but if you do not measure the marketing effectiveness efficiently, you might be missing out on some vital information. This is where marketing modeling mix helps and therefore, ignoring it is not at all recommended for businesses if they really want to stay ahead in the competition.

Why is Marketing Mix Modeling Inevitable for Your Business?

Success story #8: Marketing mix modeling offered a real-time solution for investment decisionsMaintaining and increasing market share on the basis of optimization of marketing spends is a real challenge that almost all businesses face. This is the problem that one of the clients of Quantzig also faced and marketing mix solutions helped them effectively. With its ability to analyze various data such as sales data, market-level media measure, variable marketing expenses, fixed marketing expenses, and economic and purchase funnel indicators, it provided the management with a decision support system and analyzed the sales at the granular level.

Marketing Mix Modeling Helps a Leading Bank Gain a Holistic Overview of Their Marketing Spend

Success story #9: What are the thumb rules of marketing mix modeling? Marketing mix modeling may include a vast range of marketing variables; however, companies must understand that it does not follow a ‘one size fits all’ approach. Every brand is unique and so are the variables impacting that particular brand. The thumb rules such as setting realistic levels or base line, avoiding hasten decision making, understanding the underlying factor behind growth, maximizing participation and involvement across all channels of an f organization, can help companies boost their ROI to an optimum level.

The Heuristics of Marketing Mix Modeling (MMM)

Success story #10: Marketing mix modeling laid mechanism for comparative ROI analysis :In this era of technology, understanding the impact of media investments at both national and local levels for products or services is very crucial for companies. Don’t you feel so? Marketing mix model can assist companies in improving the ability to quantify the marketing effectiveness of various media channels and events in terms of ROI and revenue. Furthermore, it can also contribute to synergy analysis to identify the direct and indirect effect of media types on incremental sales.

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IR3

Marketing Mix Optimization: How a Food Retail Client Leveraged Analytics to Improve Budgetary Decisions

The client: Food Retail Company

Area of engagement: Marketing mix optimization

Retail trade has emerged as one of the most significant industry contributions to revenue generation, employment generation, and increased turnover. Among various segments within the retail industry, the food retail sector has emerged as the most dynamic and fast-paced sector with several players venturing into this market space. The food retail industry has strong linkages with the economic growth and development of the economy, including the rise in per capita income, improved infrastructure, and growing consumerism. Moreover, the food retail segment is expected to dominate the retail market space with more than fifty percent share of the overall retail market.

Some of the factors that will influence the growth prospects of the global food retail industry over the next few years include:

  • Increasing customer preference for private label brands: The rising consumer spending on food items and increasing supermarket shopping culture are some of the major drivers of the food retail The share of private label strategy in the US and the UK markets is estimated to be around 19% and 39%, respectively; thereby, providing an excellent opportunity for the homegrown labels to expand their customer base.
  • Increasing investments in infrastructure: With the increase in government spending on infrastructure, connectivity to towns and other rural markets have become much more accessible. This helps the retailers to increase their reach in such high potential markets.

Due to many such factors, leading food retail firms are leveraging the use of market mix optimization solutions. Marketing mix optimization solutions help companies in measuring the impact of marketing tactics on sales. QZ- Request free proposalFurthermore, these solutions help firms in developing marketing mix models to understand and access the incremental value of their investments.

The Business Challenge

The lack of supply chain effectiveness and the threat from unorganized food retailers are the major restraints of the market.

The client, a reputed food retail firm with an international presence wanted to allocate their fixed marketing budget among various marketing channels. The client also wanted to make use of marketing mix modeling (MMM) tools to develop a robust marketing model, which will reflect the impact of each marketing channel on their overall sales. Additionally, the client was looking at quantifying the impact of individual marketing activities on revenues, volume, and price perception.

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The Solution and the Business Impact:

The marketing mix modeling solutions offered by the team of experts at Quantzig helped the food retailer determine the past impact of various marketing channels on revenues and provided insights to reallocate resources to form an optimum marketing mix model. Additionally, the marketing mix modeling solution helped the food retailer allocate their marketing budget efficiently among various marketing channels. Also, it assisted the client in establishing investment synergies that provided a considerably more accurate attribution of ROIs.

Marketing Mix Optimization Predictive Insights:

By applying a more holistic, commercially-focused approach to marketing mix modeling, marketing-driven analytics organizations such as the food retail segment can get a more accurate read on the ROI of their marketing investments. Moreover, applying fact-based marketing mix ROI optimization solutions to marketing investments can help firms drive improvements in their marketing effectiveness.


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IR22

Why is Marketing Mix Modeling Inevitable for Your Business?

Ideally, marketing strategies are hatched by using primary and secondary media research, but if you do not measure the marketing effectiveness, you might be missing out on some vital information. Marketers often face the challenge of correctly analyzing and determining the effectiveness of their campaigns across online and offline marketing channels. This is where advanced analytics tools such as marketing mix models come handy. Marketing mix modeling refers to the statistical analysis that is carried out to estimate the past impact and predict future prospects of various marketing tactics on sales. Marketing mix modeling has gained wide popularity in the in the retail and consumer packaged goods industry. Apart from these industries, this technique has also garnered considerable attention in the healthcare industry, telecom industry, banking and insurance industry, and financial services. Given below are a few ways in which marketing mix modeling proves to be a more comprehensive approach when compared to traditional test marketing techniques:Free demo

Leverage insights to drive marketing effectiveness

The conventional methods of measuring campaign performance are expensive and time-consuming. Marketing professionals can gain data-driven insights to deliver profitable results by using marketing mix modeling. This advanced analytics technique helps organizations to procure insights quickly, simultaneously expediting strategic decision making.

Gives the complete picture

The marketing mix modeling technique provides companies with a 360-degree perspective of marketing effectiveness and also helps them to calculate the marketing ROI. The technique analyzes in detail the external as well as internal factors that affect the offline and online media channels. This method is a more accurate measure of the marketing mix variables as it takes into account the current and future attribution of the variables.

Combination of customer insights and digital attribution

With digital attribution, marketing mix modeling helps in optimizing market efforts and measures the increase in profit and revenue by undertaking specific campaigns. When measuring ROI from marketing campaigns, companies must understand that each key performance indicator(KPI) includes smaller levels that vary in intensity. To drive marketing campaigns and derive better insights, it is highly essential to bring together digital attributions and customer insights.

Facilitates change management in the organization

To drive profits, organizations need to head forward and embrace new techniques and processes to unlock their hidden potential. In today’s fast-paced world marketers look for quick insights and results in that budget allocation to facilitate strategic decision making. Hence, companies gain an integrated platform through marketing mix modeling that provides data-driven facts and digital attribution to create a sustainable competitive advantage for marketing professionals.

 Few thumb rules that businesses must keep in mind while undertaking marketing mix modeling:

  • Keep it simple – The marketing variables must be focused on a limited number of significant marketing variables. Cluttering up the model with a large number of trivial variables can complicate and confuse the modeling work.
  • Be realistic – Marketing mix modeling might not pay off immediately. Marketers must come to terms with this and not be impatient and expect results in the short-run.
  • Seek top management support – While modeling the marketing mix it is essential to involve the top leadership and the senior management in the organization. This is highly important during the initial stages of planning. Their valuable insights from years of experience will ensure the success of the modeling effort.

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Market Mix Optimization and Campaign Analysis for a Leading Retail Firm

Lately, the retail industry players have started looking for ways to gain traction and drive traffic in this ever-changing competitive environment. To be on par with the competitors, retail industry players must understand their customers, their likes and dislikes, and buying preferences that influence shopping behavior. Marketing mix optimization involves a robust analysis of several variables, including sales, marketing, operations, and other external activities. Additionally, marketing mix optimization helps retail industry players gain an in-depth understanding of the key drivers impacting the growth of the business and accordingly allocate budgets to maximize revenues and profits across channels.

Quantzig’s marketing mix optimization solutions assist clients in the retail industry space to increase and maintain market shares based on the optimization of marketing spends. Also, through a robust marketing mix model, businesses can evaluate and improve individual and granular ROIs across channels.

The Business ChallengeQZ_DEMO

A leading retail industry player with offices spread across the globe wanted to optimize the mix of short-term and long-term marketing activities to achieve sales growth and increase marketing effectiveness. Additionally, due to the relatively short life cycles for new electronics products, there was a significant dip in their sales. As a result, the retail industry player wanted to determine a proper mix of long-term brand building and short-term marketing activities to increasing revenues.

Our Approach

To cater to the client’s business requirements, Quantzig’s team of marketing mix optimization experts built a dashboard to quantify the contribution of each media type on incremental sales and the ROI, response curves to understand saturation point for spends. Quantzig also conducted a deep dive analysis of campaigns for each media type and simulation of expenditure for future budget allocation.

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Marketing Mix Solution Benefits for Manufacturing Industries

Based on their business requirements, the client joined forces with the Quantzig’s team to yield a wealth of quantitative insights on the negative impact of competitor sales for products in the same category. The marketing mix solution helped the client measure the effectiveness of activities by selling seasons. Also, we provided additional insights into how the retailer should reschedule manufacturing activities to support key selling seasons, leading to an increase of 12% in returns.

Marketing Mix Solution Predictive Insights:

  • Measured the impact of spends across marketing and sales channels
  • Assessed and revised budget allocation based on revenue and ROI forecast for each channel
  • Determined the point of diminishing returns for each media type and investment amount
  • Improved cost savings based on optimized media spending

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IR35

Marketing Mix Model Helps Companies in the Telecom Industry to Increase Operations Across Multiple Geographies

Quantzig’s recent study on marketing mix model helps a leading telecommunications company in the US to increase its market share in the retail sector through optimizing marketing spends.

Demand trends in the telecom industry

The increasing volatility in the telecom industry is making it difficult of suppliers to identify and attract high-value customers. Implementing marketing mix model will help organizations analyze the demand trends and allocate marketing budgets that result in improved ROI. The exponential rise is digital platforms, and dynamic patterns of consumer preferences are raising the requirement for real-time and customized solutions. Marketing mix model will help telecom organizations to predict the future media investments and allocate funds in a more precise manner. The growing importance of consumer-driven data consumption and advancement in technology is encouraging service providers to invest in developing effective marketing strategies that will promote business growth. The marketing mix model assessment by Quantzig helps telecom companies create brand and product awareness to drive infiltration and influence customers to upgrade service and product packages. The study also analyzes the impact of media investments at both national and local levels for products such as Internet, wireless, and cable television.

The emergence of 5G networks is revolutionizing the telecom industry. The leading service providers are focusing on the development of 5G architecture and initiating their field tests to ensure efficient services. Developing strong marketing and advertising campaigns will help vendors to attract a larger customer base and promote a faster deployment of these services. The launch of 5G services will enable smoother next-generation IoT and M2M applications.

Focus on cyber security

The recent 2017 cyber threat – WannaCry ransomware attack – is encouraging suppliers to undertake proactive protection from the entire internet value chain. Technological innovations to build strong encryption, firewalls, and holistic network security will help companies protect their systems from unwarranted and sudden cyber-attacks. Furthermore, building strong networks guarantees data security, which in turn, will help companies gain more consumers in this highly competitive market. Implementing security strategies for testing networks using the emulation of malware threats to identify weaknesses, which would be targeted by cyber hackers will give organizations a competitive advantage.

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Emergence of virtual reality (VR) and WiGig

The surge in VR technologies across industries is fueling the demand for better and faster networks. The service providers are offering virtualized software solutions that offer flexibility and can adapt to fit several business requirements. These solutions are cost effective and offer higher interaction with the end-users. The launch of WiGig technology will initiate developments and improvements in wireless video streaming, gaming, AR and VR, and networking applications. Designing effective marketing strategies to promote this new technology will fuel growth in this market.

Outcomes and solutions offered

Quantzig’s recent market mix model assessment helps a leading telecommunications company in the US improve their profitability and cost savings based on optimized media spending. Some of the solutions offered are as follows:

  • Improved ability to quantify marketing efficiency of channels and events in terms of ROI, contributions, revenue, and incremental sales
  • Designed effective strategies to boost future investment decisions based on simulated scenarios
  • Created a real-time solution for investment decisions, providing administrative management a powerful decision support system
  • Analyzed data across media types based on advanced regression methods for each product (the internet, wireless, and cable)
  • Identified direct and indirect impact of media types on incremental sales and the ROI generate

The complete case study on marketing mix models increase marketing ROI for the telecom industry is now available.

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IR31

Digital Data Enabling Modern Marketing Mix Model

Marketing mix model (MMM) along with data-driven attribution are the two measurement best practices employed by marketers. Especially as MMM provides a rather holistic view on the impact of marketing investments on business, it has emerged as one of the most preferred tools by marketers. Typically a marketing strategy is a mix of various online and offline activities. The four Ps – namely – Price, Product, Place, and Promotion, are considered by the MMM to quantify and provide deep insights on cross channel promotions.

Shortcomings in the traditional marketing mix model

Critics have often pointed out how the traditional marketing mix model is slow and a costly process. Also in spite of being a deciding factor in the quarterly and annual budget allocation process, the traditional model fails at providing actionable insights on a real-time basis.

How is digital data improving MMM?

The direct result of digitization has been that there is a ready availability of digital data. Modern MMM leverages this digital data attribution to assess which marketing plan has benefited the business and enables better marketing budget allocation. Tools like Google attribution 360 enhance the performance of the model by providing a top-down analysis of the data. This kind of input at the granular level helps marketers optimize their advertising strategy. Even time-series marketing data like economic and seasonal data sets are taken into consideration by MMM for an accurate analysis of the marketing plan.

So, digital data adds an edge and sharpness to MMM, which was missing in its traditional version.

Quantzig’s Take

Contrary to popular belief, digital analysis alone is not sufficient to get a realistic picture on the performance of the marketing strategy. Rather it is recommended that data driven attribution, along with MMM be adopted to capture the results of online and offline marketing channels. Even factors like external influence, seasonality of products, along with competitive actions required, are considered by the modern MMM.

Even though many industry experts proclaim that MMM is a dead marketing strategy, when backed with digital data attribution this model is sure to enhance marketing plans and bring in better ROI.

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Google and Facebook Adopt MMM to Boost Marketing Campaigns

After being intensely used in the retail, finance, banking, and healthcare industry, guess who has welcomed the marketing mix model (MMM) into its business plan? Social media giant, Facebook along with Google made news recently with their decision of adopting MMM for measuring performance and visibility.

An advanced statistical tool, MMM provides one of the most comprehensive analysis of the performance of marketing campaigns regarding:

  1. Reach of the campaigns
  2. Effect of campaigns in driving sales
  3. Profits generated
  4. Generation of new customer base and customer retention

Facebook and marketing mix model

Facebook has been progressively working towards providing clear metrics to marketers on the performance of their ad campaigns. In a bid to take this task on the next stage, the company recently launched its marketing mix modeling portal. Through this portal, advertisers will be able to measure and compare the performance of their ad campaigns across mediums like TV, print, and digital platforms. By tracking the effectiveness of ad campaigns regarding money spent, impressions created and returns gained, the portal also enables companies understand areas which need better strategy building. Already more than 150 brands have benefited from Facebook’s MMM Portal, by improving their sales and marketing strategies.

Facebook has collaborated with Neustar MarketShare, Analytic Partners, Nielsen, and Marketing Evolution to gain access to their marketing mix modeling portal.

Google – Mixing MMM with attribution

Given the fact that its existing multitouch attribution (MTA) does not capture the impact of advertisements at the micro level, Google too has taken the plunge into the MMM partner program. Just like in the case of Facebook, Nielsen and Neustar MarketShare are the launch partners of Google as well. With the amount of investment in mobile and digital advertising growing at a fast pace, it has become critical for marketers to adopt models which can enable better optimization of the sales to spend across various platforms.

Why adopt MMM?

There was a time when digital media and real-time data was sufficient to provide insights into the marketing strategy. But gradually industry experts have realized that the data provided by MMM is far more in-depth and efficient in performance measurement. MMM offers:

  1. A detailed, accurate, and granular interpretation of the campaign data across various platforms
  2. Highlights areas which need focused attention for better sales of the product and services
  3. Actionable insights which help boost ROI

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