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Marketing Mix Analysis

By Dave Mundo in Analytics & Information on April 17th, 2012

Have you ever wondered how marketing factors impact your sales?... 

What about that time sales decreased even though you had just increased your TV budget? Maybe you’d like to understand the ROI for each of your marketing channels, and what to do about it. If so, BKV Analytics can answer these business questions using Marketing Mix Analysis, the industry-wide approach that measures the impact of marketing on sales and conversions. Sound scary? Not really. Marketing Mix Analysis is a scientific, statistical approach that measures marketing performance and calculates a true ROI for each marketing mix element. Fortune 500 companies around the globe use it to understand marketing performance, allocate their marketing budgets, and make major decisions on how to efficiently drive their business forward. Maybe you already measure marketing ROI. How is a Marketing Mix Analysis different? Traditional ROI techniques involve allocating all your leads/sales across marketing channels based on the tracking for each channel, and then deriving an ROI. The problem with this approach is that it assumes that all sales can be traced back to marketing efforts, and that marketing is entirely responsible for changes in sales levels. Every marketer knows that sales are influenced by elements outside of her/his control: marketing spend from your competitors, seasonal effects, the health of the economy, etc... Marketing Mix Analysis is unique in that it accounts for the effect of all these outside influences, producing a much more accurate depiction of each marketing channel's incremental impact. A Marketing Mix Analysis from BKV will not only give you the true short-term ROI for each of your marketing channels, it will also help you understand how much to spend on each channel and what kind of return to expect.  BKV also provides specific recommendations for what to do with analysis results, and how to implement them. Finally, BKV is committed to helping you understand marketing ROI in the long run, which is why we can easily refresh each analysis with the most current data. New marketing channel? New product launch? Not a problem. We'll refine and improve the analysis to give you the tools you need to make informed decisions. image One of BKV's largest clients, Kool Smiles, works closely with our Analytics team to understand marketing ROI through Marketing Mix Analyses. The results of our work have allowed Kool Smiles to confidently allocate their marketing budget and understand what is driving their business in the long run. Not only do we regularly update our analyses for Kool Smiles, we frequently produce deep-dive analyses for specific marketing vehicles and even individual markets to help with further optimization. That's a Marketing Mix Analysis. Powerful tool? Yes. Hard to use? No. Let BKV guide you each step of the way and you'll be measuring and increasing your marketing ROI in no time.