Marketing Mix Modeling

Marketing mix modeling refers to analytical solutions that help marketers to understand and simulate the effect of advertising (volume decomposition), and to optimize tactics and the delivery medium. More recently, it is being used to simulate and analyze the trade-offs between trade and consumer spending. Marketing mix modeling can also help managers with P&L responsibility understand ROI by tactic. For example, if I have $1 to invest, I can get an X return from advertising and a Y return from a consumer promotion. This helps marketers make informed decisions on where to invest based on their measures of success.

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