If you know the future impact of your marketing mix, you can have greater impact using less. The latest findings from GfK survey Branding and Marketing in the New Abnormal reveal that a whopping 83% brand marketers run some form of marketing measurement. However, the question needs to be asked – are they measuring correctly? Evidently, measuring marketing performance by itself is not going to help you drive business growth.
The pressure is on to squeeze every last drop of value from marketing budgets to support your sales effort. And the end goal is to optimize ROI. Here are the five reasons why a Marketing Mix Model is more relevant in the new abnormal for overall brand success.
1. Transformational times require transformational tools like a Marketing Mix Model
If your goal is digital transformation and ultimately driving sales and ROI, then using the right tools to measure, transform and optimize your business is more essential now than ever before,. Faced with new external forces and shrinking budgets, you need to make every dollar count. The Marketing Mix Model is one such transformation tool that can deliver visible performance improvements by enabling marketing teams to maximize budgets and finance teams to control costs.
2. Doing ‘more’ with ‘less’ is the new abnormal
Marketing Mix Modeling has been in existence for over 5 decades and the sheer fact that it remains widely used today testifies to its longevity and relevance. Research shows that maximizing marketing ROI is top-of-mind for 55% of surveyed brand marketers. Thus, measuring and optimizing ROI is imperative for brands to outperform their competitors in driving business performance.
3. Leverage the rise of digital influence to connect with consumers
The upsurge of digital consumption coincides with the rise of challenges in digital attribution. It is no surprise that increasing privacy concerns in recent years have put the existence of 3rd-party cookies at risk. At stake is an entire system for measuring digital marketing effectiveness by tracing the digital footprint of the consumer from ad exposure to conversion. The Marketing Mix Model sidesteps this challenge completely by utilizing aggregate-level modeling that circumvents the need to consider individuals in the equation.
4. Quickly re-align objectives and lead through digital transformation
COVID-19 continues to leave an indelible mark on the economy, media consumption, and other consumer behavior. Of the six in ten surveyed marketers who indicated a shift in KPIs and how they measure it, 56% said digital transformation is increasingly seen as an important KPI to achieve their goals. This demonstrates that things may change quickly – and marketing planning needs to keep pace. You need a simulation tool that enables brand marketers to pivot quickly and effectively based on changing circumstances. The Marketing Mix Model can help you to plan ahead of time and make pre-emptive decisions, whatever the circumstances might be.
5. Innovation in marketing is crucial for business recovery
Considering the entire marketing mix is not for the faint of heart! There are traditional media, promotional activities, and a plethora of digital marketing platforms that may all conceivably work in tandem to help you maximize sales. No other tool than Marketing Mix Model can enable you to consider a wide array of factors that may explain your business performance.
COVID-19 has not only disrupted businesses globally, but also shed light on the future-readiness of brands and marketers to drive growth in the new abnormal. Brands need to leverage data-driven approaches to evolving and fast-changing times. A holistic framework and approach for maximizing marketing ROI and brand measurement have become even more critical than ever in the post pandemic environment.