Making brands successful: Optimising marketing return on investment

Despite the availability of fact-based approaches to measure the impact of marketing, many practitioners still rely on ‘gut feeling’ to make their budgeting decisions. In large part this is due to the incompleteness of available analytical approaches. The core approach for fact-based decision making...

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Bibliographic Details
Published in:Journal of brand strategy 2013-04, Vol.2 (1), p.21-27
Main Authors: Perrey, Jesko, Spillecke, Dennis, Umblijs, Andris
Format: Article
Language:English
Subjects:
Marketing Budgeting
Marketing Econometrics
Marketing Mix
Marketing Roi
Social Media Impact
Online Access:Get full text
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Summary:Despite the availability of fact-based approaches to measure the impact of marketing, many practitioners still rely on ‘gut feeling’ to make their budgeting decisions. In large part this is due to the incompleteness of available analytical approaches. The core approach for fact-based decision making — marketing mix modelling (MMM) has two main deficiencies. First, MMM can capture only short-term effects and therefore significantly underestimates marketing return on investment, and leads to sub-optimally small budgets. Secondly, MMM analytics could not include social media. This paper addresses both of these deficiencies and introduces an improved MMM approach with inclusion of long-term effects and ability to measure the impact of social media. This new approach is illustrated with two case studies — one from consumer packaged goods and another from telecoms.
ISSN:2045-855X
2045-8568
2045-8568
DOI:10.69554/ARWW3115