A Comprehensive Market Mix Model

Marketers are always interested in measuring the impact of their marketing initiatives. They look to quantify their inputs, so as to measure their contribution to business and to estimate the Return on Investment. This will then be used to improve the impact of inputs by moving money to the more productive initiatives and reduce money to unproductive activities. The quantifying of such inputs however is not an easy task. Marketing is a complex task and customer purchase behavior is affected by a myriad of factors. The kind of complexity is described in the next few paragraphs. Multiple KPI’s with the same inputs The marketers of today, need to measure the impact of their marketing initiatives, across multiple business KPI’s. These KPI’s include lower funnel metrics such as sales & market share, mid funnel metrics such website visits & engagement, and upper funnel metrics such as brand search and ad clicks. They believe lower funnel metrics are accrue immediately but upper funnel metrics convert to sales at a later stage. Thus want to investigate, how one dollar of marketing input, percolates through the sales system, and affect all the KPI’s that are being measured.