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    Market Mix ModelingMarket Mix Modeling

    Efficient Marketing andEfficient Marketing andAdvertising yields bottomAdvertising yields bottom--lineline

    dollarsdollars

    Market Mix ModelingMarket Mix Modeling

    Efficient Marketing andEfficient Marketing andAdvertising yields bottomAdvertising yields bottom--lineline

    dollarsdollars

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    What is Market Mix Modeling?

    A process that uses data, analysis and

    technology to help companies plan,

    measure, validate and optimize their

    marketing spend

    M3 Market Mix ModelingM3 Market Mix Modeling

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    Why Market Mix Modeling?

    New media, new markets, new demographics are creating greater

    opportunities and greater challenges for marketers.

    CEOs are demanding greater accountability of marketing spend.

    The impact of multi-channel marketing is difficult to quantifyusing traditional reporting techniques.

    Marketers are being asked to make choices regarding allocation

    of scarce resources.

    Assessing the relative ROI of these choices enables the marketerto make optimize activities and allocations of resources in order

    to maximize sales, return and profitability.

    M3 Market Mix ModelingM3 Market Mix Modeling

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    The Objectives of Market Mix Modeling

    Identify and quantify sales, marketing and advertising activities

    and spending that drive sales

    Determine the impact of each activity on sales

    Determine the ROI for each activityDetermine the optimal mix of media that will drive new

    customer acquisition costs down while optimizing your total

    return on customers

    Establish a data driven process to monitor and track theeffectiveness of future sales, marketing and advertising activities

    M3 Market Mix ModelingM3 Market Mix Modeling

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    Op

    timize the Marketing Mix

    M3 Market Mix ModelingM3 Market Mix Modeling

    Increase Marketing Effectiveness

    Enable targeted marketing campaigns and a

    tighter link with sales

    Optimize Sales Performance

    Identify which accounts to focus

    on, with what programs and at

    right time

    Increase Customer Loyalty and Share

    Provide benchmarking and interactive

    portal / value add reports to B2B

    customers and suppliers to share relevant

    data

    Ability to plan and execute campaignsbased on highly focused customertargets

    Track results across all sales and

    marketing activities across variousdimension and calculate ROI

    Exception reportingability to identifyand act on unusual behavior

    Drive strategic analysis to tactical level.i.e.Which partners should be offeredco-branded advertising?

    Increase confidence in decisionsand underlying data

    Provide benchmarks, trends andanalytical capabilities in amultidimensional format

    Utilize predictive analytics touncover trends in customerbehavior

    Interactive portal

    Provide value-add data and information to customers and suppliers

    Provide individualized/targeted customer portal with advertising

    Accelerate market

    share growth

    Transform Marketing

    Mix into an agile

    vehicle used by the

    organization to make

    fast, fact-based decisions

    Operational Efficiencies

    Data Integration, cleansing, and

    preparation automated and supportable

    Automated Processes

    Minimal ManualIntervention

    Supportable

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    M3 Market Mix ModelingM3 Market Mix Modeling

    ExampleAnalysis - Market Mix Modeling

    Sample Product Market Mix Model - Analysis

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    M3 Market Mix ModelingM3 Market Mix Modeling

    ExampleAnalysis - Market Mix Modeling

    Base: 86.2% Base: 64.4%

    Sales Drivers In Top Retailers(All data has been sanitized)

    Base: 85.7%

    20122012 20132013 20142014

    Base Sales

    (M)2,066 2,258 2,361

    Incr. Sales (M) 176 627 738

    Total Sales (M) 2,242 2,885 3,099

    % change % change

    + 28.7%

    + 257%

    + 7.4%

    + 17.7%

    + 9.3% + 4.6%

    + 98.3%

    - 37.0%

    + 63.3%

    + 48.4%

    - 44.7%

    + 24.4%

    % change 03/2014

    Modeling Period:

    Marketing driven

    retail sales increased

    18% in 2014.

    Retailer Pr m ti ns

    Acc unt Activities

    PO

    C nsumer PR

    Print

    V

    3000 3861 4146

    2824

    77

    3234 3408+14.51% +5.38%

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    M3 Market Mix ModelingM3 Market Mix Modeling

    Are you Ready for Market Mix Modeling

    Readiness Self Assessment

    Assessment of Information: Analyze the information currently being collected and

    understand if it will support providing the answers and activities desired

    Assessment of Resources: Determine current state to support, and receive value from

    the analysis. Are complementary resources and assistance available from third

    parties. Assessment of Delivery Options: Market Mix Modeling can be delivered via

    multiple delivery vehicles including outsourcing, Application Service Provider

    (ASP), in-house supported.

    Value Assessment: Analyze and quantify potential value of this solution.

    Recommendations: Market Mix Modeling is an evolutionary process that maychallenge existing paradigms. Prepare a delivery model that recommends

    measurable action that can be taken on the highest-value activities first. Deliver in

    phases that support the addition of data elements to optimize models to end state

    while ensuring that immediate actions delivery promised results.

    Readiness Self Assessment

    Assessment of Information: Analyze the information currently being collected and

    understand if it will support providing the answers and activities desired

    Assessment of Resources: Determine current state to support, and receive value from

    the analysis. Are complementary resources and assistance available from third

    parties. Assessment of Delivery Options: Market Mix Modeling can be delivered via

    multiple delivery vehicles including outsourcing, Application Service Provider

    (ASP), in-house supported.

    Value Assessment: Analyze and quantify potential value of this solution.

    Recommendations: Market Mix Modeling is an evolutionary process that maychallenge existing paradigms. Prepare a delivery model that recommends

    measurable action that can be taken on the highest-value activities first. Deliver in

    phases that support the addition of data elements to optimize models to end state

    while ensuring that immediate actions delivery promised results.

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