Business Economics

Econometrics for Marketing

To find out more contact David Merrick at Business Economics Limited on 07714 456068 or david@BizEcon.com

Overview Econometrics is one of the key techniques

used to provide analytical support in the field

of marketing. However, traditional approaches

typically involve considerable effort in data

manipulation, model development and report

preparation. The net effect is to push up the

cost per model produced.

For this reason, Business Economics Limited

has developed the StatsPro econometrics

software package designed specifically to

make the use of econometrics in marketing as

streamlined and efficient as possible.

The above chart, taken from a typical modelling study,

shows an automatically-generated decomposition chart in

which the relative impact of the various key drivers can be

assessed.

What does StatsPro do? StatsPro provides a quick and easy platform

for a range of regression analyses, including:

Advertising effectiveness

Price and promotional analysis

Demand forecasting

Propensity analysis

It is a general econometrics package and

contains a range of standard regression

models but, in order to deliver fast and well-

formed models, it also contains a number of

special productivity features as follows:

A quick and easy method of including

or omitting variables, or fixing their

coefficients

The user can experiment with lagged

variables, differences, logs, etc.

without re-defining the model

Built-in transformations to enable

diminishing returns curves to be

included in linear regression models

The ability to generate new variables

“on-the-fly” without having to calculate

separate data series

Automated production of reports and

charts on predicted versus actual

values, residuals, decomposition and

waterfalls for all model types, including

log and difference models

A highly intuitive and visual approach

to system models

The above chart, also generated automatically by the

system, shows the same information as that in the chart

opposite but highlights the year-on-year changes.

How is StatsPro used? StatsPro is currently available on two main

platforms.

For generic econometric modelling,

StatsPro would normally be used an

add-in to Microsoft Excel as this

provides a flexible and highly

responsive modelling tool

Alternatively, the kernel of the

regression system can be used as a

DLL in a bespoke econometrics

modelling solution for specific

applications.