Why Market Mix Modelling Should Be Integrated Across the Whole Business

I am here to say that nobody puts MMM in a corner.

MMM not only quantifies the impact of various marketing activities on key performance indicators (KPIs), but also provides a measure of the effect on business performance of other controllable and external factors, such as price or distribution changes, competitors' actions, economic climate, and can even answer the question we all love to discuss, “How much of our performance is really down to the weather?” 

As MMM provides this panoramic view of all the key drivers, it is important to ensure it never operates in a silo if you want it to deliver its full potential. Here's why:

1. Cross-Functional Collaboration: MMM involves analyzing vast amounts of data from various teams. By demonstrating the benefits of MMM in terms of additional insights and recommendations, it encourages greater engagement from teams. This collaboration leads to a more comprehensive understanding of marketing effectiveness and drives better outcomes.

2. Influence Beyond Marketing: MMM has a significant role in shaping commercial decisions, particularly in pricing and promotions. Informed decision-making in these areas, such as identifying optimal price points, understanding price elasticity, and evaluating the impact of promotions on sales and revenue, empowers businesses to strike the right balance between profitability and customer demand.

3. Engaging Finance Teams: MMM often provides budget allocation recommendations across media channels, campaigns, departments, different brands in your portfolio as well as different markets. Involving finance teams ensures that recommendations are implemented and beneficial across the entire organisation. This collaboration quantifies the business decisions in both the short and long term.

In conclusion, MMM should be integrated across the whole business. By breaking down silos, fostering collaboration, and incorporating MMM into the decision-making processes, businesses gain more accurate insights, make better decisions, and achieve improved marketing performance and overall results.

Soon everyone will be holding MMM results and recommendations aloft above their head in the middle of the boardroom.

For more information on how we can help with your Marketing Effectiveness measurement or Market Mix Modelling,visit our Measurement page or contact us.