Steps toward implementing MMM
There are several steps involved in implementing MMM:
- Define business questions and scope: Like any other analysis, defining the scope and what questions you are trying to answer is critical as a first step. This will help you define what data you need to collect and what data you need to have access to, to get the best value out of an MMM.
- Data collection: MMM requires historical data on sales and marketing efforts across different channels, such as television, radio, print, digital, social media, and out-of-home advertising. It takes into account not only the direct effects of marketing activities but also indirect factors such as economic conditions, seasonality, competition, and market changes. Inaccurate or incomplete data will lead to misleading results.
- Data analysis and review: Before modeling begins, you need to check the data for any issues, such as missing values, outliers, or data quality issues. This is a critical step as it...
