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In this quick introductory blog post, you\u2019ll see what marketing mix modeling is. You’ll also learn how you can use it to increase the profitability of your company.<\/span><\/p>\n I first learned about marketing mix modeling while gathering a client testimonial from Kam Lee. For the record, the \u201cmixture\u201d of Kam\u2019s marketing data science expertise and the startup strategies he learned from within my course, led him to hit $350k in his first year of business!<\/span><\/p>\n If you want to learn more about how he marketed his marketing mix modeling services (pardon the pun \ud83d\ude42 ) to get such a terrific business outcome, I recommend you start by watching my free masterclass on the 4 Steps To Monetizing Data Expertise in Your Small Business<\/a>.<\/span><\/p>\n Now that you know the backstory, let\u2019s dig into marketing mix modeling\u2026<\/span><\/p>\n A marketing mix is <\/span>commonly defined as the 4Ps, which are:<\/span><\/p>\n When we talk about marketing mix, we are really talking about a particular point. This is identifying the exact mixture of Product, Place, Promotion, and Price. All that is responsible for producing the optimal number of sales.\u00a0<\/span><\/p>\n You don\u2019t have to use the 4Ps though. You could use the 7Ps. This is more commonly used when using marketing mix modeling to optimize the sale of services.<\/span><\/p>\n The big thing you need to know about the \u201cmarketing mix\u201d is that it should contain features which are reflective of both your product strategy and your product marketing strategy. Those features should be directly relevant to how well that product sells.<\/span><\/p>\n If you\u2019re interested in learning more about data product management, I encourage you to check out:\u00a0<\/span><\/p>\n Once you\u2019ve defined the <\/span>core product and product marketing attributes that you want to model within<\/span> your \u201cmarketing mix\u201d (in our case, the 4 Ps), you\u2019ll undoubtedly want to evaluate how that mixture of features directly impacts profitability. “Marketing mix model” is the model you\u2019d use to make that type of prediction.<\/span><\/p>\n Marketing mix modeling is simply the act of taking historical sales and marketing time series data, and using statistical machine learning methods to uncover relationships between your core product and product marketing features and sales.<\/strong><\/p>\n<\/blockquote>\n And marketing mix modeling? It is simply the act of taking historical sales and marketing time series data. Then we use statistical machine learning methods. These methods will uncover relationships between your core product and marketing features (as represented by the 4Ps) and sales. Once you\u2019ve ascertained those relationships, you\u2019ll be able to predict future sales and tweak your product marketing accordingly.<\/span><\/p>\n The entire point of marketing mix modeling is to quantify direct relationships between your marketing mix and sales for your business.<\/strong><\/p>\n<\/blockquote>\n Since the entire point of marketing mix modeling is to quantify direct relationships between your marketing mix and sales for your business, there is not a lot of room for conflating the issue.\u00a0<\/span><\/p>\n Once you\u2019ve identified statistically (and economically) significant relationships between your marketing mix and actual sales for the business, you\u2019ll be able to reliably predict what marketing mix will produce even more sales. Then, just adjust the product marketing strategy to increase profits.\u00a0<\/span><\/p>\n More sales with the same (or less) marketing spend results in increased profitability. It\u2019s as simple as that.<\/span><\/p>\n As far as books, a lot of stuff out there is for non-technical marketing people. It\u2019s not that helpful for actually learning how to do machine learning implementation of marketing mix modeling. In fact, from what I\u2019ve seen online, bloggers tend to make the topic A LOT more confusing than it actually needs to be.<\/span><\/p>\n There aren\u2019t really any online courses on this topic yet, but you can actually start learning to do it for free by <\/span>looking at this training documentation<\/span><\/a> over at R-Studio. And to learn how to implement it in Python, you may want to <\/span>check out this free demo<\/span><\/a> over on Kaggle too.<\/span><\/p>\n![\"what](\"http:\/\/data-mania.com\/blog\/wp-content\/uploads\/2022\/03\/Data-Mania-Website-Testimonials.png\")
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<\/a><\/p>\nWhat is a Marketing Mix?<\/b><\/h2>\n
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A marketing mix is simply a mixture of features that you use to describe your product. It\u2019s comprised of attributes that describe the <\/span>core product and the product marketing features you adopt when taking the product to market.\u00a0<\/span><\/p>\n\n
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<\/a><\/p>\nWhat is Marketing Mix Modeling (MMM)?<\/b><\/h2>\n
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How does Marketing Mix Modeling Increase Profitability?<\/b><\/h2>\n
Learning How to Implement MMM<\/b><\/h2>\n
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