1 / 11

Marketing Resource Allocation

Marketing Resource Allocation. Optimal Marketing: Misallocations Revealed. Resource Allocation Process . Determine the objective function? Market Share, Profits, Customer Lifetime Value etc. Build a econometric (regression) model for the unknown values in the objective function

alaqua
Télécharger la présentation

Marketing Resource Allocation

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Marketing Resource Allocation Marketing Analytics

  2. Optimal Marketing:Misallocations Revealed

  3. Resource Allocation Process • Determine the objective function? • Market Share, Profits, Customer Lifetime Value etc. • Build a econometric (regression) model for the unknown values in the objective function • The regression model will be a function of marketing inputs of interest. E.g., price, advertising, sales calls etc. • Once the regression model is obtained, predict the objective function using the regression function • Identify the optimal value of the marketing input that maximizes the objective function. • Hint: Solver • Hint: Regression function connects marketing inputs to the objective function

  4. Resource Allocation Process Linear Regression Number of New Prescriptions Sales Calls Profit Per Physician Direct to Consumer Advertising Probability of a New Prescription Logistic Regression Marketing Cost

  5. Resource Allocation Process • Profit per physician = # of New Prescriptions * prob (New Prescriptions) - # of Sales Calls * Unit cost of Sales Calls – # of DTC Spots * Unit Cost of a DTC Spot • # of New Prescriptions = a + b1*# of Sales Calls + b2 * # of DTC Spots • prob (new prescriptions) = exp (u) / [1+exp(u)] • u = c + d1* # of sales calls + d2* # of DTC spots • Regression gives you; • a, b1, b2, c, d1, d2

  6. Relationships Among Metrics • Marketers generally rely on a portfolio or “dashboard” of metrics to better assess market dynamics and derive focused strategies and solutions. • Marketers should appreciate the relationship between and among metrics as well as the limitations inherent in each. • But, KISS

  7. System of Identities • Decomposition and diagnosis • Triangulation • Empirical Models and Dashboards Marketing Analytics

  8. 7/13/2014 8

  9. Empirical & Definitional Relationships

  10. The Three Pillars Econometrics Experimentation Decision Calculus

More Related