Database: Model Behavior
But the potential payoff is enormous. The seven questions discussed here build up to what might be called integrated marketing decision support, with predictive and optimization capabilities that are just now infiltrating marketing management.
Imagine the future: A company needs X sales. Using advanced analytics, we can determine the exact marketing budget - broken into specific media budgets from direct to mass with precise flight plans - that will yield those results. We don't get there from data and number crunching alone. It still takes people. All the experience a marketer has is still required to interpret the analytical results.
So how can you tell which companies are using the best analytics models? It's not always readily apparent from an outside perspective. A good indication is the degree to which a company's marketing efforts are integrated across multiple media. The more you see coordination, the more you can bet that it's learned how to tell a good analytics model from a bad one.
Li Zhou, Ph.D., is vice president of research and modeling for Javelin Direct. After earning bachelor's and master's degrees in mathematics, Zhou completed his Ph.D. in management science. He has 15 years of professional experience, first in demand forecasts and optimizations for airlines, followed by media-mix modeling for marketing. He can be reached at (972) 443-7000.