In this article, you'll learn...
- Four reasons in-house marketing mix analysis is beneficial
- Five drawbacks to bringing marketing mix analysis in-house
- Whether or not in-house marketing mix analysis is right for your organization
The question isn't should you be doing marketing mix analysis, but rather, how you can best do it. Marketers across multiple industries are learning what consumer packaged goods manufacturers have known for years: Marketing mix analysis provides insights from market dynamics and past performance that improve return on investment (ROI) and optimize spend.
So what is the debate? It's whether organizations get the best results from outsourcing marketing mix analytics or building in-house capabilities.
Here are some relevant factors:
- Business scope (breadth of products/geographies and current and future levels of marketing spend)
- Data availability
- Current state of marketing mix in your organization
- Complexity of your specific business market
Though many organizations initially outsource marketing mix analysis to get moving quickly, most will eventually consider bringing the process in-house. Cost is often the preeminent consideration, but it's not the only one.
Let's consider the pros and cons of in-house implementations.
1. Consistency and Transparency
Vendor models—those used in hosted services—are often closed and proprietary. Your organization has limited to no visibility into weaknesses, failures, and potentially hazardous "workarounds." If you engage multiple suppliers, they'll almost certainly provide inconsistent information for identical marketing decisions across different brands or products. An in-house process, on the other hand, allows you to produce, validate, and manage the predictive marketing response models at the heart of marketing mix analytics.