MMM (Marketing Mix Modeling) is an extremely useful analytical method in areas that many marketers struggle with, such as cookie regulations and ROI accountability, and is now beginning to attract the attention of many companies.
On the other hand, just as any analytical method has its limitations, MMM also has areas where it is not good at. However, understanding these limitations is important in order to use MMM appropriately in the future.
Therefore, this document will explain the value and limitations of MMM, as well as alternative methods that complement MMM's weak areas, and one alternative method, CMM (Consumer Mix Modeling).

I recommend this hotel

  • Those who have issues understanding the effect of marketing activities on business results such as sales
  • Those who want to compare the effectiveness of online and offline advertising using a common indicator
  • Those who have issues visualizing advertising effectiveness as a basis for budget allocation changes
  • Those who have already introduced MMM but are looking for ways to make even more effective use of it
  • People who are interested in "CMM", a new approach that complements the limitations of MMM

Material content

  • What is MMM?
    • Background of the growing interest in MMM

    • MMM Basics

  • The value of MMM
    • 1. Effectiveness analysis possible without using cookies

    • 2. Compare the ROI of marketing initiatives side-by-side based on a common indicator such as "sales"

    • 3. Calculate the budget allocation plan that maximizes "sales"

  • A beverage manufacturer used MMM to clarify "how much each measure contributed to sales volume" and "what is the best budget allocation plan to increase sales volume"
  • The Limitations of MMM
    • 1. The implementation process is time-consuming

    • 2. It relies heavily on statistical expertise and marketing knowledge

    • 3. You can't explain the "why" of a result

  • What is CMM?
    • A scientific approach to understanding consumer behavior

    • Differences between MMM and traditional surveys

    • Implementation Process

  • A consumer goods manufacturer's use of CMM to quantify "why their company is not being chosen" and "what appeals will encourage switching from competitors"
  • In conclusion

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