MARKETING MIX MODELING: THEN & NOW
A few years ago,MMM as a concept was used by consumer
packaged goods (CPG) industries only. But in recent times, its popularity
has spread to other industries as well. As thepenetration of MMM in various categories and
markets expanded, the discipline also witnessed
advancements. Till recently, regression was used by treating most of the marketing variables as
linear and media, especially TV as non linear. As the usage of MMM expanded, the utility of the
same also expanded beyond just TV weight setting. The approach found increasing usage in
determining
the type of distribution outlet that influences sales/market share, determination of optimal
price
for the brand and the inter-relationship of media especially between the paid, owned and earned
media on sales/market share movement. Increasingly MMM is being used not only for deriving the
insights but as a "live" scenario planner answering "what if" questions to the marketing
practitioner.
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