Introduction
Azra, a large, high-end, fast-fashion retailer that has operations all over the world, has approved its marketing budget for the latest campaign in a particular country. The marketing team is now looking to allocate the budget to each marketing channel, but they have many questions:
- How much should they spend on email? Read rates are low, but the quality of conversions is high.
- How about social media? It seems to be an effective channel in general.
- Should they do any offline promotions? If so, to what extent?
- How about paid search as a channel?
The company understands that each channel provides a different return on investment (ROI) – that is, some channels are more effective than others. However, all channels should be considered, nonetheless. Naturally, different distributions of allocation to these channels would provide different results. Incredibly low spending on a channel with great ROI is missed potential and high spending on an extremely...