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This week I went to a marketing seminar and was able to talk about the marketing mix modeling case study. It was a great learning experience and I learned a lot.
The case study is what I use when I write content for sales. I try to make it as simple as possible so that as I explain it, I leave more room to think about it and come up with an explanation that can be easily understood. I’m always on the lookout to learn more, so I will be doing more content like this in the future.
What I learned is that even though every business knows when it has a good marketing mix, it can still be difficult to know how to manage it. It’s not enough to say you have a great marketing mix and then see if you have a good marketing mix. You need to be able to measure it and then see where it is and how do you measure it. There are a few different ways to do this, and a lot of what I learned I can apply to my own business.
That’s right, I said “your.” Because I spent a great deal of time talking with business owners and I was able to learn a lot of things which I can use to improve my own marketing mix. I think the most important thing is to learn to measure it. I also found out that you need to know what you want to measure as well. I didn’t use the word “measure,” but I think the word “measurement” is a good one.
Measurement has two different meanings. First, it’s just a measurement of some thing. Like for example, how many shoes you have. Second, it can be used to describe something. Like for example, a business that you want to grow. These two different meanings are important because you need to be able to separate the two. You need to be able to see a difference between the two, so you know you’re doing something right.
The first meaning of measurement is “something”. So for example, if you were designing an app for your boss, you could measure it by how many followers you got on the app. So if everyone on the app likes your app, you’re doing something right.
In marketing this is called measurement, but the second meaning is marketing mix modeling. In marketing mix modeling you have a set of measurements that you want to use to judge how your marketing mix is going to perform. So you can judge if your marketing mix is doing well, and when youre not doing well, you need to adjust your marketing mix.
Marketing mix modeling is the act of adding, changing, or eliminating one of your marketing mix measurements so that you can gauge how your marketing mix is doing. For example, a marketing mix that uses all of the marketing channels (traditional advertising, direct mail, email, etc.) may be doing well. But if you are only using your email list, then you need to add an email channel to your marketing mix.
In the case of these two examples, we were able to see a marked improvement in mix measurement and the increase in marketing channel usage. But there are more complicated cases when mix is doing poorly.
First, let’s talk about the mix measurement. If you have a marketing mix of direct mail, internet marketing, etc. and you are seeing a reduction in these channels, then you are probably seeing a reduction in the effectiveness of your marketing mix. In these cases, it may be that it is not the marketing mix, but the way you have been marketing this product or service.