INTRODUCTION
Marketing-mix models fundamentally are designed to measure the impact on brand sales of each of the key elements of a brand’s marketing mix. Broadly, marketing-mix modeling consists of statistical analyses, such as multivariate regressions, using sales and marketing time-series data to estimate the impact of various marketing tactics on sales.
Marketers rely on these models to optimize their marketing spending by using them to determine how they should allocate their marketing budget among the various alternative tactics. Once the models are built, it is possible to run alternative scenarios of marketing spending across tactics and optimize that spending as...