Marketing professionals are more and more accountable for proving value, and making investment recommendations and decisions, based on business and marketing performance. Marketing mix modeling is quickly being adopted across different industries as the preferred way to measure, forecast, optimize, and plan marketing budgets.
Today, I am pleased to announce the publication of The Forrester Wave™: Marketing Mix Modeling, Q2 2013. This evaluation is a result of countless hours of vendor reviews and assessments, in-person briefing reviews, customer calls, fact-checking, and intensive research work. This Forrester Wave will help firms create a shortlist of providers, based on their unique business needs.
After long days and nights, I am glad to share with you the key takeaways that emerged from the Forrester Marketing Mix Modeling Wave:
Wide arrays of firms are adapting marketing mix modeling. Marketing mix modeling is the traditional approach to uncover value and build a marketing plan for consumer packaged goods companies. However, other industries, including financial services and retail, are quickly taking an interest in adopting this approach because they need a more scientific, holistic way to understand marketing and business performance. As a result, we see an upsurge in adoption across different industries.
Over the past few years, the rise of the always addressable customer combined with a challenging economic environment and stagnant markets has created a perfect storm — challenging marketers' ingrained assumptions about how to best invest their budgets. And with that comes one major recurring question that senior marketers must face. While simple, it still proves daunting for marketers: How can I make sure that I have best allocated my marketing and communication investments to support my brand in the marketplace and clearly drive positive outcomes? We at Forrester have created a brand-new research framework — called playbooks — designed to effectively answer this crucial question, not only helping marketers figure out where to start but also providing a practical step-by-step guide to help achieve mastery in a given area.
Today I'm pleased to introduce you to the marketing mix optimization playbook to help you master the art of multichannel planning and the science of marketing mix modeling. With this playbook, we will help you to:
Discover: Chart a new course for marketing planning to drive effectiveness. Marketers will learn to better orchestrate their programs across platforms by mixing art and science and adopting the RaDaR framework.
Plan: Build a link between marketing investments and business outcomes. Marketers will learn how to assess their maturity and competencies for a modern marketing mix modeling initiative.
Marketing mix modeling solutions have been around for quite some time, providing marketers in several key categories with complex statistical models that aim to find the correlation between past marketing activities and business outcomes, like sales or market share.
However this space has recently seen significant changes, due to a few specific dynamics:
The proliferation of digital and social media with increasing importance in the marketing mix.
Marketers' increased demand for tools that are not only able to deliver insights on past campaigns but also able to give forward-looking recommendations on how to improve marketing return on investment (ROI) in the future.
The rising role that sophisticated software plays in integrating the ever-growing number of data streams and in enabling complex analysis to be navigated and customized via powerful graphic user interfaces.
To help navigate this complex and highly relevant space for senior marketers, our research team has published the first Forrester Wave™ for vendors in the marketing mix modeling space. We screened more than 30 vendors, shortlisted six that we consider to be the key players in this very fragmented market, and ranked them according to more than 40 different criteria. The evaluation uncovered a market in which:
MarketShare, Marketing Management Analytics, and ThinkVine lead the pack.
SymphonyIRI is a Leader but lacks collaborative functionalitites.
Marketing Analytics and Ninah are competitive Strong Performers.