Despite the benefits of advanced analytics, marketing mix optimization (MMO) has been largely opaque to its users, and backward-looking in its orientation. Andreas Dullweber, a leader of Bain's Customer Strategy & Marketing practice in Europe, the Middle East and Africa, shares several steps marketers can take to make their MMO approach transparent, forward-looking and focused on results.
Read the Bain Brief: How CMOs Can Get—and Keep—Their Marketing Mix Right
Read the transcript below.
ANDREAS DULLWEBER: We see a lot of CMOs these days who try to use the power of data and advanced analytics to better understand and to better guide their marketing mix. They use models that we call marketing mix optimization model, which have often the limitation that they're relatively backward-looking, relatively opaque, and difficult to really buy into for the organization.
We believe these models need to be complemented by quite a few steps, like for example, in-market tests for results, in order to better understand what really makes a difference, what really moves the needle on marketing, combined with a relatively clear strategic alignment around what do we want to test, what do we believe is the right thing, how can we push it forward for our category or for our tactic, or for our strategic ambition. And all these very much within the market, so embedded in the organization so that people can really understand what's going on there, they can trust it, and they can adjust their behaviors and their decision making based on those results.
Only then, the marketing mix is really continuously improving, and CMOs can get a marketing mix right.