Market Mix Modelling

Market Mix Modelling (MMM) is also known as Mixed Model Marketing and has been around for 40-50 years. During its early origin, the data collection tools and technologies available were far less than today. Digital tools have become a big form of marketing, and mixing them up with typical marketing methods can prove to be greatly effective. Mixed Model Marketing helps reshape marketing techniques based on effectiveness, return on investment (ROI), and conversions. The data collected from executing a mixed model marketing campaign helps improve cost-effectiveness while maximizing the margins and gaining maximum traffic and customers. MMM enables marketing to be performed using a “divide and rule” method. Using digital tools and primary marketing tools (hoardings, promotions) to enable maximum reach to the target audience is the first priority for all MMM campaigns.

Market Mix Modelling - Explained

To understand why Market Mix Modelling can be extremely effective, we must understand what this method comprises.

• Multiple Methods of Marketing - Multiple methods of marketing are used to optimize the reach. Traditional marketing (billboards, promotions, television ads) are used along with outbound marketing (email campaigns, cold calls, etc). These are the conventional ways of marketing, but MMM also combines Social Media Marketing, Search Engine Marketing, and other forms of Digital Marketing to achieve the desired results. Market Mix Modelling maximizes marketing through social media, emails, search engines, influential personalities, consumable content (readable or video), and building an overall brand presence. There are several other forms of marketing that may be integrated into an MMM strategy - such as product integrations, brand building, product marketing, targeted user marketing, and also proximity marketing.
• Budget allocation - Using different marketing techniques equals expanding the budget. However, budget is one of the primary decisions when it comes to testing out an MMM strategy. Money must be allocated according to the results that are expected. If content marketing, search engine marketing, and social media marketing fetch greater results than cold calling or email campaigns, more money must be allocated to those. There’s no one shoe that fits all approach for budget allocation. The methods of marketing that work efficiently will differ from company to company depending on various things such as target market, product type, and a lot of other factors. The initial budget allocation must be done according to the hypothesis on what method is most likely to fetch greater results. More budget must be allocated to the more effective type of marketing, but it must also be distributed among all marketing types in a manner that it creates the most reach for the company.
• Deep Data Analysis - Like most effective marketing campaigns, MMM involves deep analysis of collected data. Data is quintessential when it comes to designing an effective and successful Market Mix Model. From the first round of an executed MMM campaign, extensive data collection takes place which helps analyze if the results could have been better optimized. A typical MMM deep analysis process will involve seeing the average marketing cost spent to acquire each customer and calculating the effective margin that a sale or a purchase would acquire. These marketing campaigns can be expensive, but the cost-effectiveness can increase with tweaking the ratios of investments for the next MMM campaign. This analysis would aim to find out what methods of marketing were the most effective in converting a potential lead into a customer.
• Restructuring the campaign - Once the most effective methods have been ranked according to revenue generated, the budget allocation can be changed and the strategies can be adjusted. Deep analysis is done in order to restructure and optimize the MMM campaign to maximize revenue generated and to increase the profit margin. Whatever a marketer learns from deep data collection and analysis, they apply to the new MMM strategy. Restructuring the campaign, the budget allocation, and methods of marketing according to the data collected optimizes profits, increases cost-effectiveness, and results in maximum sales being achieved.

Why Market Mix Modelling?

Data collection, budget optimization, and branching out to multiple marketing techniques make Market Mix Modelling an incredibly productive way to make more sales and build up a brand reputation. In the marketing world, email marketing is considered to be one of the most effective methods of making sales.

Above 70% of all email marketing campaigns are successful in increasing traffic and making sales. However, we also live in a world where 8/10 people prefer to consume content and advertisements in video format. Close to 80,000 searches are done on Google every second. An average youngster with an income spends close to 3 hours on their mobile phone every day. These statistics indicate a world that is so diversified, yet unified through multiple methods of connectivity. Search engine marketing, outbound marketing, brand positioning, location-based ad targeting, and social media marketing are all essential to making a brand successful. However, a carefully devised MMM strategy can optimize cost and enable growing companies and businesses to maximize marketing for their business.

Corporality offers multiple digital marketing services that help you build your brand and maximize sales. From imagining a product to product design, from market research to market penetration strategies, we offer you multiple forms of marketing that are bound to increase the profitability of your company. Contact us to book a discovery session today!