Every market has varied engagement preferences (Figure 2).
Source: IQVIA Promo Suite, IQVIA channel dynamics data, IQVIA National Sales Audit (NSA) data.
Need for Analytical Approach in Modern Marketing
With so many touchpoints available for a brand to interact with its audience, today's marketing environment is defined by its dynamic nature. The digital revolution has not only expanded the arsenal of tools available to marketers but has also heightened consumer expectations for personalised and relevant interactions. In this context, traditional one-size-fits-all marketing strategies fall short. Businesses must now sift through an overwhelming amount of data to identify what truly drives customer engagement and, ultimately, sales.
The challenge does not end there. The fluidity of market conditions, influenced by factors such as technological advancements, economic shifts, and competitive movements, adds another layer of complexity. Marketers are tasked with not just understanding the past but also forecasting trends for the future with greater certainty to answer questions such as:
- How can we allocate our marketing budget to maximise impact and drive greater returns?
- Which marketing channels are most effective for our target audience?
- How do we measure the success of our marketing efforts in real time?
- What impact do external factors have on our marketing performance?
Answering these questions requires a deep dive into data, an examination of the past, and an educated forecast of the future. It calls for an approach that can dissect the myriad influences on marketing success, offering not just insights but actionable strategies tailored to a brand’s unique objectives.
Is Market Mix Modelling (MMM) an Answer to This?
Most companies have embarked on MMM initiatives. MMM allows sales and marketing teams to understand the impact of various promotions and channels on sales. This allows answering the business questions listed above.
However, there are a few key aspects to consider in the context of MMM that will determine the accuracy of estimates to guide future investments.
- Complexity in choosing the right model –It is necessary to carry out a large number of experiments using various models with the assistance of subject matter experts.
- Measurement of synergies across channels – Channel interaction and impact cannot be assessed in isolation. These are not directly measurable through the traditional MMM approach.
- Continuous refinement is required to ensure accuracy – Continuous validation to account for new external factors beyond promotion data is required for maintaining its predictive accuracy. Adapting the model for new market trends and strategic changes ensures its relevance and effectiveness in guiding future investments.
IQVIA's approach to MMM addresses the above challenges by combining advanced analytics, rich market insights, and a technology-driven framework. Central to this methodology is the strategic use of extensive datasets, capturing everything from consumer behaviour to interactions with healthcare professionals, ensuring the generation of actionable insights for strategic decision-making.
IQVIA enhances its offering with an extensive benchmark database. This valuable resource allows brands to measure their performance directly against the broader market. By providing a clear comparison, companies can identify areas where they excel and uncover opportunities for improvement. This benchmarking capability empowers brands with the insights needed to refine their strategies, ensuring they stay competitive and responsive to market dynamics. This integration of benchmark data into the MMM aims to provide comprehensive, actionable intelligence to the life sciences sector.
IQVIA’s method is akin to having a highly intelligent navigator for the complex journey of decision-making. This navigator, or "master guide," learns from each decision made, much like an experienced traveller who becomes with savvier every trip. It uses a mix of advanced learning strategies, drawing inspiration from the way humans think and the adaptive patterns found in nature. The objective here is to pinpoint the most effective routes that satisfy both analytical rigour and real-world business needs, mirroring the thought process of a seasoned data scientist.
What sets IQVIA's approach apart is its emphasis on agility – transforming raw data into actionable insights swiftly, thereby enabling companies to quickly pivot their strategies in response to evolving market dynamics and preferences. This methodology advocates for a "trial, evaluate, and enhance" cycle, granting companies the flexibility to experiment with innovative ideas in a secure setting. They can gauge the success of these initiatives, make necessary adjustments, and progressively refine their strategies with minimised risk. This dynamic process equips companies to be more adaptable and responsive, effectively navigating the ever-changing business landscape.
For those eager to dive deeper into how IQVIA can help transform your brand’s marketing strategy and drive impactful results, we invite you to connect with us wherein we plan to dig deeper into the market landscape, exploring the subject further.
