What we do
Management Science Associates, Inc. (MSA) works with clients to maximize their return on marketing investments: across markets, across a portfolio of brands, and across a myriad of diverse marketing activities. These activities can include trade promotions, traditional media communications, and digital and social media communications.
How we do it
MSA develops full Marketing Mix Models (MMM) for all brands within the scope of the analysis using what we describe as an artisan approach to model development. Our highly experienced and talented Analysts create all brand models from scratch, and then finely tune them by hand to completion. Our clients find that there are many advantages to taking an artisan approach for brand model development, versus using automated modeling tools or black box algorithms.
Secondly, we implement a unique, two-stage process to develop models:
- We first develop Stage 1 models to determine the interdependent effects of all paid media (traditional as well as digital and social media), owned (websites, Facebook sites, etc.) and earned media (organic search, website visits, etc.).
- We then develop Stage 2 models that are full marketing mix models to determine the impact of all factors on sales.
The final key component to MSA’s solution for our clients is NaviGATE™, which is our cloud-based simulation and optimization application. With NaviGATE, we harness the explanatory and predictive power of marketing mix models to measure and optimize Marketing ROI: across markets, across a portfolio of brands, and across marketing vehicles. NaviGATE is technology that acts as an enterprise wide repository of analytical models, and allows for the ongoing utilization of marketing mix models.
Additionally, an alternative to analyzing full marketing mix models to measure the ROI of marketing investments is to apply them to conduct Base Sales Volume Analysis. The focus here is to clarify all of the non-marketing drivers of sales, such as seasonality and economic factors, as well as measure sales not affected over the short-term from marketing investments. This proportion of base sales is from loyal buyers; sales driven by brand equity.
What data is required?
Since the heart of this solution is the development of marketing mix sales models, historical sales data is required, along with data sets over the same period that represent the full marketing mix, including distribution, pricing, new product/service introductions, all promotional and communications activities, and consumer social media behaviors.