Stop Flawed Marketing Mix Models From Stunting Growth
David Hoo and Michael von GontenEffective Marketing Management
'Remember that all models are wrong; the practical question is how wrong do they have to be to NOT be useful"
George Edward Pelham Box
We argue that Marketing Mix Models are wrong enough to NOT be useful. Specifically, we argue that the mix models currently in use, either the original format or the newer, VAR style, systematically understate the true effects of advertising, leading CPG marketers to undervalue the real effects of advertising and to reduce their advertising spending, reallocating those funds...