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6 Non-Media Factors You Might Not Realize Are Impacting Sales (And How to Leverage Them)

Navreen Aulakh
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In advertising, understanding what drives sales can be puzzling, because there are many overlapping factors. While businesses focus on things they can control; pricing, product quality, and customer service, many other things out of the marketer’s control significantly impact sales figures. This is where marketing mix models (MMM) can help, by identifying these hidden influences. 

 

The different non-media factors that may impact sales

 

Seasonality 

Seasonal trends can dramatically affect sales. Beyond holidays and weather changes, seasonality includes less obvious cycles like fiscal periods or industry-specific events. Marketing mix models help identify these patterns, allowing you to adjust strategies accordingly. For example, a sales spike every spring might indicate the need to ramp up inventory and marketing efforts in advance.

Vehicle Sales or House Sales

The automotive and housing markets indicate consumer spending power and overall economic health. Fluctuations in these markets often reflect broader economic trends, such as changes in disposable income and consumer confidence. For example, a surge in car or house purchases typically correlates with increased consumer optimism and economic stability, which can positively impact sales in other sectors. On the other hand, a decline in vehicle or house sales might signal economic downturns, prompting consumers to tighten their budgets. By incorporating vehicle and housing sales data into your marketing mix model, you gain valuable insights into the economic context affecting your business. This allows you to adjust your strategies effectively, ensuring agility and responsiveness to market conditions.

COVID-19 

Events like the COVID-19 pandemic have reshaped consumer behavior, influencing online shopping habits and product demand. Global events can have profound impacts on sales, and MMM helps quantify these effects. This enables you to adapt strategies to mitigate negative impacts and capitalize on emerging opportunities.

Economic Conditions

 The broader economic environment, including factors like inflation, unemployment rates, and consumer confidence, plays a crucial role in consumer spending behavior. By incorporating economic indicators into your marketing mix model, you can forecast sales more accurately and make informed business decisions.

Competitive Actions

Competitors' actions, such as changes in pricing, product launches, and marketing campaigns, directly affect your sales. Monitoring the competitive landscape through MMM allows you to anticipate and respond to these moves effectively, ensuring you maintain or enhance your market position.

Arima's self-directed marketing mix model

 

Consumer Trends and Preferences 

Consumer preferences constantly evolve, influenced by cultural shifts, technological advancements, and changing lifestyles. Staying attuned to these trends helps you stay ahead of the curve. MMM tracks these changes, enabling you to adjust offerings and messaging to align with current consumer desires.

So what? 

Understanding the factors that influence sales is essential for any business looking to thrive in a competitive market. Marketing mix models provide a powerful tool for uncovering these hidden influences and making data-driven decisions. By considering elements like seasonality, discounts, global events, and more, you can develop a comprehensive strategy that drives sustainable growth. Arima’s self-directed marketing mix model allows advertisers to input their own non-media factors, making unforeseen circumstances expected. This also helps forecast results accurately. 

Arima's MMM highlights overall attribution, revealing how macroeconomic conditions impact business. For instance, changes in new motor vehicle sales over the model period generated an extra $60 million for the business. This insight is crucial for an insurance seller, as increased car sales naturally boost car insurance demand. 

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If you're ready to stop guessing and start knowing, investing in marketing mix models could be the game-changer you need. Reach out to us today to learn more

 

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