Marketing mix modelling
1
Business Economics Marketing Spend Optimisation To find out more contact David Merrick at Business Economics Limited on 07714 456068 or [email protected] Overview One of the key factors to business success is the ability to react to market developments in a timely and constructive way and, where appropriate, change the amount and allocation of the marketing budget. We have designed a general-purpose marketing spend software tool (OptPro) that helps businesses manage their marketing spends quickly, easily and effectively by optimising the allocation across products, brands, regions and media channels, and also over time. The above chart, taken from a typical case study, shows how the profit contribution from advertising spend at first increases with the size of the budget, then reaches a maximum and finally declines. However, spending less than the optimum amount results in a steeper decline in profit contribution than spending more. What does OptPro do? OptPro helps answer a range of questions about marketing spend allocation, including: How much should I be spending on which brands and in which regions? What will be the impact on sales and profit contribution of optimising marketing spends? What is the cost to the business of placing constraints on the levels of marketing spend? How do I choose the media mix that maximises the overall reach at a specified frequency? What is the optimum laydown for my media activity over time? The colours in the above chart represent different products, regions, media or brands. The chart, again taken from a typical case study, shows how the allocation of spend changes with the overall budget level. For low spend amounts, relatively few line items receive budget. But as the overall level of spend increases, the allocation becomes more diverse. Conversely, the chart illustrates that implementing a budget cut by reducing spends on all line items by the same percentage will not be optimal. How is OptPro used? OptPro is a flexible software planning tool that can operate in a number of different modes. At one extreme, it will construct response curves for you and, in this mode, requires only basic input data Equally it can handle the complex data sets and response functions arising from econometric analysis. It can also incorporate the user’s knowledge about how the markets and media work. OptPro contains a highly efficient calculation algorithm based on an advanced mathematical approach. As a result, it provides instantaneous answers in almost all situations. OptPro is quick and easy to use and highly scalable to handle large and complex problems for a wide variety of scenarios and portfolios. OptPro is licenced on a business-wide basis and is supported by documentation and workshops. OptPro can be implemented on a wide variety of platforms, including as an Excel Add-In and within a web environment. 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 Spend Contribution
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Transcript of Marketing mix modelling
Business Economics
Marketing Spend Optimisation
To find out more contact David Merrick at Business Economics Limited on 07714 456068 or [email protected]
Overview One of the key factors to business success is
the ability to react to market developments in a
timely and constructive way and, where
appropriate, change the amount and allocation
of the marketing budget.
We have designed a general-purpose
marketing spend software tool (OptPro) that
helps businesses manage their marketing
spends quickly, easily and effectively by
optimising the allocation across products,
brands, regions and media channels, and also
over time.
The above chart, taken from a typical case study, shows
how the profit contribution from advertising spend at first
increases with the size of the budget, then reaches a
maximum and finally declines. However, spending less
than the optimum amount results in a steeper decline in
profit contribution than spending more.
What does OptPro do? OptPro helps answer a range of questions
about marketing spend allocation, including:
How much should I be spending on
which brands and in which regions?
What will be the impact on sales and
profit contribution of optimising
marketing spends?
What is the cost to the business of
placing constraints on the levels of
marketing spend?
How do I choose the media mix that
maximises the overall reach at a
specified frequency?
What is the optimum laydown for my
media activity over time?
The colours in the above chart represent different
products, regions, media or brands. The chart, again taken
from a typical case study, shows how the allocation of
spend changes with the overall budget level. For low
spend amounts, relatively few line items receive budget.
But as the overall level of spend increases, the allocation
becomes more diverse. Conversely, the chart illustrates
that implementing a budget cut by reducing spends on all
line items by the same percentage will not be optimal.
How is OptPro used? OptPro is a flexible software planning tool that
can operate in a number of different modes.
At one extreme, it will construct
response curves for you and, in this
mode, requires only basic input data
Equally it can handle the complex data
sets and response functions arising
from econometric analysis.
It can also incorporate the user’s
knowledge about how the markets and
media work.
OptPro contains a highly efficient calculation
algorithm based on an advanced mathematical
approach. As a result, it provides
instantaneous answers in almost all situations.
OptPro is quick and easy to use and highly
scalable to handle large and complex
problems for a wide variety of scenarios and
portfolios.
OptPro is licenced on a business-wide basis
and is supported by documentation and
workshops.
OptPro can be implemented on a wide variety
of platforms, including as an Excel Add-In and
within a web environment.
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Spend
Contribution
