Process / pipelineMarketing ROI and budget allocation
Marketing Mix Modeling
Marketing Mix Modeling (MMM) is an econometric methodology for estimating the impact of various marketing activities (advertising, pricing, promotions, distribution) on sales or other business outcomes. Developed through work by Hanssens, Parsons, and Schultz, MMM integrates time-series data on marketing spend, sales, and market factors to quantify the return on investment for each marketing channel and inform budget allocation decisions.
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Sources
- Hanssens, D. M., Parsons, L. J., & Schultz, R. L. (2001). Market Response Models: Econometric and Time Series Analyses (2nd ed.). Kluwer Academic Publishers. ISBN: 978-0792372158
- Naik, P. A., Raman, K., & Winer, R. S. (2005). Planning Marketing-Mix Strategies in the Presence of Interaction Effects. Marketing Science, 24(1), 25-34. DOI: 10.1287/mksc.1040.0073 ↗
- Madigan, D. (2012). Bayesian Methods for Complex Data. Annual Review of Statistics and Its Applications, 1(1), 1-30. DOI: 10.1146/annurev-statistics-022513-115603 ↗