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Marketing Mix Modeling / MMM

ROI analysis of marketing initiatives

For Addressing the Following Issues

Ascertaining ad effectiveness

Are TV and Web ads effective?

Measure the effect of each activity.

Using a model of the relationship between sales and each marketing measure, we can measure their efficacy.

Clarifying the causes of sales decline

Which of the marketing activities is causing sales to go down?

Break down the sales components.

The sales “structure” can be clarified and compared with that of the previous year to identify the components that caused sales to increase or decrease.

Marketing plan development

What are the most effective measures? What is the optimal amount of investment?

Conduct simulations.

Using multiple investment scenarios, sales simulations can be performed to determine the optimal marketing plan.

What the Output Looks Like

ROI charts for determining which measures to invest in

Marketing Mix Modeling / MMM output image1

Waterfall charts for factor analysis of sales changes from previous year

Marketing Mix Modeling / MMM output image2

Measure-by-measure elasticity charts showing the optimal volume for each measure

Marketing Mix Modeling / MMM output image3


We propose starting small. For example, try using MMM for a single brand, and if the results are positive, expand usage to other brands. On average, our analyses have resulted in a 3% reduction in costs. This means that if you are spending ¥500 million per year on marketing activities, you may be able to achieve the same sales with a ¥15 million reduction in cost.

In the insurance, finance, and telecommunications industries, for example, MMM can be applied to sales data on the no. of policies, subscriptions, or devices sold. The analysis will be conducted after signing a confidentiality agreement that allows us to access and analyze your sales, investment, and other data.

We propose the sort of marketing research that can deal with your company's challenges.

Please feel free to contact us. The relevant team member will get in touch with you.

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