Marketing Mix
Analytical Software
  Marketing Budget Allocation
  Market Segment Allocation
  Marketing Channel Allocation
  Marketing Cross-Sell Allocation
  Marketing Resource Optimization
Solutions

Problem/Benefit

The problem faced by many marketing managers is that, traditionally, marketing budgets are based on a percentage of last year's sales or budget, which may have a short-term focus leading to limited success.   We developed the MBA software, which helps executives apportion their marketing budgets between important areas: new customer acquisition and current customer retention.   The benefit of using the MBA software is that companies can optimize the budget allocation and improve customer lifetime value and profits.  The value of using this as a strategic tool is that the chances for long-term success increase.  To our knowledge, this is the only software that optimizes the marketing budget.

 
 
 
MBA Software Results

The output is an optimized budget, allocated between acquisition of new customers and retention of current customers, whose upper budgetary limits can be constrained.  The following pages represent the software screen shots.

Acquisition Only Market Response Curve


Acquisition Only Value per Prospect Curve



Retention Only Value per Current Customer Curve


Combined Summary – Current and Optimized Scenarios


CAV Optimized Acquisition-Value per Prospect Curve

Inputs

Using historical data, the MBA software requires inputs about acquisition and retention in the following areas:

  • Number of prospects/customers in a period
  • Number of prospects converted to customers/customers retained
  • Profit margin on transaction
  • Acquisition/retention cost
  • Discount rate (cost of capital)
  • Ceiling acquisition/retention rate

 

Acquisition Only Input:



Retention Only Input

 

General Information Email: barbaralewis@marquantanalytics.com
Telephone: (310) 471-8979 Fax (310) 471-6533