Limitations of conventional market-mix modelling

Conventional marketing-mix econometric models are inadequate for measuring the true return on marketing investment (ROMI) because they only show incremental or short-term sales effects, and ignore the long-term effects of brand-building from successful media campaigns and the eroding effects of excessive discounting.

Limitations of conventional market-mix modelling

Peter Cain

The ultimate objective of all marketing-mix models is to quantify the sales contribution of marketing activities, to calculate return on marketing investment (ROMI). To accomplish this, the models...

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