KDnuggets : News : 2008 : n14 : item6 < PREVIOUS | NEXT >

Software

From: Sachin Kapoor
Date: 21 Jul 2008
Subject: Fractal Analytics: Marketing Mix Modeling

In this age of multiplicity and cut-throat competition, brand and marketing managers are increasingly accountable for improving the efficiency of spend behind various marketing and promotional activities within budget constraints. With so many marketing channels to advertise, managers need to optimize the combination of marketing and advertising investments in order to increase sales and improve overall marketing ROI. With the help of marketing mix modeling, one can measure potential value of all these initiatives and hence identify the right marketing investment channels.

Marketing mix modeling involves sales volume decomposition into components, and analyzing marketing spend to calculate marketing ROI from each marketing or promotional activity. After knowing marketing ROI at different levels of marketing activity, one can understand the impact of different activities and forecast sales through each of these activities and hence optimize the marketing spends to gain maximum value.

In the last few years several companies have made marketing mix modeling an integral part of their marketing planning by leveraging the expertise of niche analytics service providers such as Fractal Analytics, who have developed marketing mix models to help their clients optimize their marketing spends and hence improve their brand performance. Fractal Analytics is a pioneer in marketing mix modeling and has helped several Fortune 100 companies improve the performance of their marketing spends across multiple brands, categories and markets. Fractal has deployed MMM solutions for clients in various industries that include consumer packaged goods , over the counter (OTC) drugs manufacturers, prescription drugs manufacturers, grocery retailers, insurance and financial services including prepaid cards and credit cards. These clients are spread across various geographies including North America, Europe, Asia Pacific and Latin America.

To develop marketing mix models, Fractal Analytics analyzes both incremental (media advertising, promotions, distributions) and base factors (brand equity, pricing, competition). By deploying marketing mix analytics, Fractal Analytics has helped clients optimize their media budget up to 35 % and increase revenues by 5 % with same marketing spend.

Fractal has also deployed promotions analysis solutions to help a client identify inefficiencies in trade spending and increase promotion effectiveness by 25%, hence enabling it to realize an incremental profit of $1.2 million per trade promotion.

About Fractal Analytics

Fractal Analytics is a pioneer in analytics outsourcing and provides solutions in

  • CRM Analytics (Acquisition and response, Cross-sell, Attrition, Retention, Lifetime value and Value migration),
  • Marketing ROI Analysis (Marketing mix modeling, Promotions analysis, Price analytics, Media mix analytics),
  • Business Analysis (Agent defection analysis, Performance analysis, Reporting and insight generation),
  • Consumer Insights (Consumer Segmentation, Driver�s Analysis & Structural Equation Modeling, Initiative and Launch Assessment and Panel Data Analysis) and
  • Risk Analytics (Loss modeling, Pricing, Inspection of risk modeling and Claims analysis).

For more information, please feel free to or mail us at sales@fractalanalytics.com or call us at 1 201 633 8728.

Website: www.fractalanalytics.com

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