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Marketing Managers have to look at how image parameters are being built up over time to protect the brand’s market share as well as grow sales in the longer run. To understand how the image and awareness parameters are moving, brands commission brand tracking studies to track key KPIs like top-of-mind awareness, total awareness, scores on parameters such as quality, innovativeness, relevance, bonding and so on.
Given that marketers have to drive both image and sales, it is important to understand how these image parameters are connected to sales as well as the impact of advertising on the changes in these parameters.
The ideal technique to use is MarketingMix Modelling (MMM) where a two-stage model is used first to link changes in image parameters to sales and secondly how advertising media is moving these image scores. In this way, one is able to understand the impact of image parameters on sales, indirectly.
Case Study
A consumer goods brand that had been a category leader for over 2 decades was suddenly buffeted by competition. The brand's communication had been a consistent mix of functional and emotional messages, but the competition aggressively used its inputs and pricing to grab market share. Pricing adjustments and consumer promotions partly improved the situation, but the company also felt that to regain its market position, it needed to understand how consumers felt about its brand imagery.
To do so, RainMan created an architecture that linked sales with mind measures (top-of-mind awareness, spontaneous awareness, brand consideration levels, etc.) and then linked those mind measures with brand media. It showed which mind measures best increased sales, and then suggested imagery and media metrics that could best optimize sales. We then applied this architecture to an extensive amount of consumer brand track data, using factor analysis to avoid redundancy. RainMan's marketing domain and modelling expertise helped in identifying the right imagery drivers. Check out www.therainman.in
The brand was relaunched using the modelling results. The outcome was a 12% improvement in the sales, which continue to grow. The brand team continues to monitor the relevant variables out of consumer track research, keeping the brand healthy and enhancing media ROI.
An MMM study revealed the overall price elasticity over the past few years. This meant that if the competition maintained or took a lower price increase, the brand would lose 7% of its value sales
MMM can take media variables at different levels to estimate their effectiveness. It can be at the media type level – TV, Print, Digital Media, Out of Home, In-store media, Mobile.
Marketing mix modelling(MMM) is an analytical approach to optimize marketing efforts. It quantifies the impact of various marketing inputs,such as product features, pricing strategies, distribution channels,promotional activities, competition activity, and environmental factors, to maximize return on marketing investment ( ROMI ).