Clarifying The Market Mix Modeling Landscape

In the process of developing my new coverage area: marketing measurement, I'm working on a report to clarify the market mix modeling landscape and give customer intelligence professionals a sense of where they can turn for help with these complex projects. We understand the challenges that surround the traditional approach to market mix modeling (they're static, they require too much time to put together, they're not granular enough) and have outlined them in a Q & A report. But we want to help you get a better sense of the partners behind the models.

We typically point to the same handful of vendors that can build these models -- Analytic Partners, Hudson River Group, Marketing Evolution. These vendors, and a small group of up-and-coming technology-based solutions like ThinkVine, M-Factor, and MarketShare Partners, have the analytics and statistical chops to build models, for sure. But what I'm really after is who do customer intelligence professionals seek out and why? What are the plusses and minuses with your current partners? And what would you ideally like to accomplish?

The outcome of this research will carve up the market mix modeling space to share with customer intelligence professionals which vendors can help them make the best investments in the online space, deal with turbulent market conditions, provide the best ROI for their models. I need your help: I'm about to reach out to a host of vendors, but I need to know:

  • Who do you use to build your market mix models (so I don't leave anyone off of my list)?
  • What questions would I regret not asking of the vendors?
  • What core challenges do you face in building or using the models?

Thanks for your help! I'll keep you posted on the research as it develops.

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Comments

re: Clarifying The Market Mix Modeling Landscape

I would recommend including Oliver Wyman and/or Ninah on your list of vendors. Both represent opposite ends of the spectrum in terms of ROI modeling capabilities: Oliver Wyman will custom build all models and a front end GUI for what-if scenario planning where the client "owns" the end product; Ninah is a much more cost effective solution but maintains ownership of the models, charging ongoing maintenance for updates and recalibration.In terms of challenges, our top issues are data collection and applicability - as a large financial services corporation with millions of households as clients, we tend to find that one size doesn't fit all. Trying to engineer a solution that works across all customer segments, products, and channels is unrealistic; determining how to disaggregate the solutions into smaller, more manageable and applicable chunks is daunting.

re: Clarifying The Market Mix Modeling Landscape

I think you should certainly consider DRAFTFCB. Their analytics team has produced some brilliant work in Marketing Mix Modeling. They also make it actionable for clients to use a simulator tool for scenario planning. Talk to their sagacious Practice Head in Chicago