Grow Brands & Marketing Performance · Capability 05
Marketing Mix Modelling (MMM)
Quantify how each marketing lever contributes to sales, and plan budgets with a clearer view of return on investment.
Questions this answers
- ?Which marketing activities are actually driving sales?
- ?What return are we getting from each channel?
- ?How should we reallocate budget to improve results?
- ?How much of our sales would happen without marketing?
Overview
What Marketing Mix Modelling (MMM) gives you
Marketing Mix Modelling (MMM) quantifies how media, promotions, pricing, distribution and external factors each contribute to sales. By separating base demand from incremental effects, it shows which activities are working, how they interact, and where diminishing returns begin, giving marketing and finance a common basis for budget decisions.
RSB builds models from your historical sales and marketing data using econometric techniques, and explains them in plain language. Scenario planning tools translate the results into forward-looking budget allocation, and models can be refreshed as new data arrives so that planning keeps pace with the market.
Methodology
How we approach it
Data collection
Sales, media spend, pricing, promotion, distribution and external data are gathered and aligned at a consistent time granularity.
Econometric modelling
Regression-based econometric models, with adstock and saturation effects, estimate the contribution of each driver to sales.
Model validation
Models are tested for statistical fit, stability and business plausibility, and checked against holdout periods.
Budget optimization
Response curves and scenario planning tools recommend budget allocation across channels and time periods.
Deliverables
What you receive
- Sales decomposition by driver
- Channel ROI and response curves
- Budget optimization scenarios
- Scenario planning tool
- Model documentation and refresh plan
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