Marketing & Driving Brand ROI
I read this article and this topic has been rattling around in my mind now for quite some time.
We look at marketing measurement using 4 broadly defined types of tools. I’m sure you could classify them differently:
- Last touch attribution
- Experimental design
- Marketing Mix Modeling – MMM – (Using statistics)
- Consumer centric modeling – (Using Agent-based modeling – ABM)
Left off the list are a few still important types of attribution, such as predictive modeling and digital attribution modeling, but these generally use statistics and are broadly a combination of the mentioned techniques.
Traditional is not always best…
Some of the new Marketing Mix Modeling techniques are moving to measuring the value of the brand using Bayesian techniques, so these are certainly moving up the ladder to get closer to determining the value of the brand and coming up with a number that determines the value of marketing investments in their ability to drive Brand ROI. These are still evolving and may be able to start to deliver some results over the next few years.
Is there a solution?
A more comprehensive approach is to take a very different methodology and apply it to marketing (the 4Ps) and how these influence consumer purchase behavior. ABM starts with a definition and framework of how consumers make purchase decisions. The ‘agents’ represent virtual consumers acting in the marketplace. Then, based on that framework, the agent-based model evaluates the influence of competitive activities (media activities, price changes, brand imagery and availability in stores) combined with external factors, to determine the relative contribution from each of these elements. If it’s done right, these models deliver the actual influence changes in any of the 4Ps – including the brand image – have on volume. With that, it’s now very easy to determine the value a particular media channel – such as TV – has on driving the value of the brand and therefore the short and long term value a particular media channel has overall on sales.
As marketers continue in their quest to beat the competition, they will continue to demand more from their data. They will look for new methods and techniques to drive competitive advantage to make certain they understand their consumers better and how the right strategic and tactical marketing decisions advantageously influence their consumers’ behavior.