Connecting marketing mix modelling to supply chain: How to make better inventory decisions

David Beaton

The techniques that go into building successful Marketing Mix Models can be adapted to forecast demand for products on promotion and reduce the negative impact of out-of-sale items.

As marketers develop analytical tools to help improve effectiveness, use cases beyond marketing are beginning to emerge. In our experience, the techniques that go into building successful Marketing Mix Models can be adapted to forecast demand for products on promotion. Forecasting demand for promotion items can be challenging for retail operations teams; the forecasting tools used often do not take into account the full effect of marketing and the changes marketers make in comms planning in anticipation of launching promotions.

Promotions are an established part of the marketing mix for many retailers and, for some brands, are popular and anticipated...

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