PRACTICE QUIZ: MARKETING MIX MODELING

1. Your manager is asking you to put a report together that shows how much incremental sales was generated by the TV campaign you ran last quarter and she also wants to know how that compares to the money that you invested in ads on Facebook during that same time. Which would be the best metric to highlight in your report:

2. Which of the following are typical outputs of a MMM?

3. For which of the following questions could a marketer use a Marketing Mix Model to get the answer:

4. Marketing Mix Modeling is an interaction between a team of modelers and an econometric model. What is the role of the team of modelers?

5. Imagine you are working in the marketing department of a restaurant chain and your manager asks you to provide management with a monthly report that provides an update on the effect of each of the media channels used by your company on sales volume. What would be your best response?

PRACTICE QUIZ: ATTRIBUTION

1. Which of the following business questions can you answer with an Attribution study? (Choose all that apply)

2. Which rule-based attribution model is best described by the following definition?

Gives 100% credit to the last click seen from a person before a conversion took place, even if an impression (ad view) was the last interaction.

3. Which rule-based attribution model is best described by the following definition?

Gives more credit to touchpoints (clicks or impressions) based on how recently they happened. This attribution model gives an increasing percentage of the credit for a conversion to touchpoints as they get closer in time to the conversion.

4. Which rule-based attribution model is best described by the following definition?

Gives 100% credit for a conversion that happened to the first click or visit that happened in the conversion path. If there is no click or visit, then it will credit the conversion to the first impression.

5. Which rule-based attribution model is best described by the following definition?

First and last touchpoints (clicks or impressions) are given more credit, while the credit for the remaining touchpoints in the middle is divided equally.

PRACTICE QUIZ: SALES FUNNEL ANALYSIS

1. What is this funnel shape called?

2. If you see the shape below and you’re in B2C marketing, what is the most likely thing you want to investigate?

3. What is one question you’ll want to ask yourself at the interest and consideration stages of the sales funnel?

4. “Where do users drop off in the purchase process?” is a question you’d ask yourself in the _____ stage of the sales funnel.

GRADED QUIZ: OPTIMIZATION

1. True or false? You would run a marketing mix modeling study to show how your advertising on different platforms contributed to company sales.

2. A marketing mix model can help you better allocate your marketing budget by knowing what works and what doesn’t. True or False?

3. Which of the following is correct about a last click attribution model?

4. Attribution is the process of assigning credit to touch points along a customers conversion path.  True or False?

5. True or false? Statistical attribution models are not as robust as rule based attribution models and less accurately reflect reality.

6. Marketing Mix Modeling helps with in-channel optimization.  True or False?

7. What is the last step of the Marketing Mix Modeling methodology?

8. Which of the following statements is true about connecting touchpoints to one individual person? (Select all that apply)

9. Awareness, Interest, Conversion, and Retention are the four stages of a sales funnel.  True or False?

10. When you encounter a block in your funnel, which of the following approaches should you use to try to fix it?

11. Which of the following is correct about a time decay attribution model?

12. True or false? Attribution is mostly used to evaluate the impact of online media channels on a purchase.

13. Why may advertisers want to use attribution modeling studies?

14. Which of the following is not true about Marketing Mix Modeling? (select all that apply)

15. Which of the following are part of the Marketing Mix Modeling methodology? (select all that apply)

16. Which of the following describes some of the most common challenges we face when measuring the effect of advertising across different marketing platforms?

17. When troubleshooting a block in a sales funnel, it is important to check out the flow. True or False?

18. A marketing mix model can only help you understand the impact of organic engagement on your sales. True or False?

19. Attribution has nothing to do with ROI. True or False?

20. True or false? In statistical or math attribution models you let the data speak and you don’t decide on a model ahead of time.

21. True or false? Historically, advertisers have relied on cookies to connect a sequence of touchpoints to a person.

22. Which of the following are stages of a sales funnel? (select all that apply)

23. Imagine you work in the marketing department of a large clothing retailer. You want to run a marketing mix modeling study.

Which of the following statements regarding the benefits of conducting this study are true? (Select all that apply)

24. What are the four stages of most sales funnels?

25. Before you recommend Marketing Mix Modeling, what should you consider? (select all that apply)

26. Imagine you work in the marketing department of a large clothing retailer. You are working on a ‘year in review’ presentation and you would like to show how your advertising on different platforms (TV, radio, Facebook and YouTube) contributed to sales for the denim line you introduced this year. 

You reach out to a market research agency to help you with this. What type of study should they do for you?

27. Which of the following are part of the troubleshooting process for a blocked funnel? (Select all that apply)

28. What is the first step of the Marketing Mix Modeling methodology?

29. A marketing mix model can help you… (Choose all that apply.)

30. Which of the following is correct about a positional model?

DATA ANALYTICS METHODS FOR MARKETING FINAL QUIZ

1. For this final project, we are going to follow James at Snackwall.  James launched Snackwall a year ago, and so far, it’s been a real success.  Now, James is eager to expand his audience and he is preparing to give his manager an overview of the past year’s success and ask for an advertising budget to help him grow the business. 

James knows that going to his boss with a solid plan will help to convince him to allocate marketing budget to the expansion of Snackwall.

As a starting point, James identifies the segments that he should focus on for his advertising campaign. After all, James knows that it would not be a good use of his money to market to everyone. James relies on K-means clustering, using last year’s data on business size and amount spent for Snackwall clients. James worked with Alya, his analyst, and together they ran several iterations of their K-means clustering. Now they are using the chart below to determine the number of clusters James should focus on in his campaign.

How many segments do you suggest James defines for his marketing campaign based on this plot?

2. Based on the K-means clustering, James found 3 clusters that seem to define his current client base. Since James used the dollar amount spent and the business size as the starting variables for his cluster analysis, he knows that the segments are quite distinct in terms of these variables.

How would you define Cluster 1?

3. James decides that he should focus on the third cluster for his marketing campaign. He believes this segment has more potential, because he has seen from his previous campaign that it is a little harder to convince large businesses to subscribe. After the profiling exercise, he decides to call the segment the ‘Health conscious startups’ to help other people understand and remember this segment.

Next, James turns to showing his management that the advertising budget he was given last year was money well spent. So, James calculates the Return on Ad Spend for last year, and he looks at ROAS by cluster.

He shows the following results based on the total ad spend last year of $200K. The total revenue generated was $800K. The total cost invested last year was $500K, so the profit for the year for Snackwall was $300K.

4. James understands that his management will also want to know the ROI for the advertising campaign he ran last year. The equation to calculate ROI is ROI = (net spend / net profit) * 100. True or False?

5. James is hoping to get a substantial advertising budget for next year. To achieve that, he knows that it would help to show the CLTV for his clients. That may help convince management that their investment now will really pay off in the future. But, since James only launched Snackwall a year ago, it is going to be difficult to show CLTV. The problem is the value of the Customer Retention Period. True or False?

6. James decides to estimate the retention period for his clients. He believes that he can keep a client for 3.5 years, which is similar to the retention period for the cleaning subscription side of his business. With this in mind, what is the CLTV for Snackwall if the following is true:

• Average order value = $1800
• Average number of orders per year = 9
• Profit Margin = 63%

7. Finally, for his budget presentation, James showed the following chart from a linear regression analysis he ran, evaluating the influence of advertising spending on sales, based on last year’s experience. What does this chart help James prove?

8. James’ management is happy with the progress he made last year, and his presentation was a success. He is given a large advertising budget for the next year, in fact, his budget will now be $250K. James’ manager told him that he trusts he will use the budget well, but that he wants to see that the advertising campaigns James runs are resulting in additional subscriptions.

James should plan to run an attribution study. True or False?

9. Before spending any of his budget, James wants to compare the results from all of his different marketing channels over the past year, to see where his budget would make the most impact. What study should James run to analyze the impact of all of his marketing initiatives on sales?

10. While optimizing the sales process, James creates a visualization to represent the sales funnel.

Based on this visualization, which approach should James take to increase subscriptions?

11. Based on the K-means clustering, James found 3 clusters that seem to define his current client base. Since James used the dollar amount spent and the business size as the starting variables for his cluster analysis, he knows that the segments are quite distinct in terms of these variables.

How would you define Cluster 3?

12. James understands that his management will also want to know the ROI for the advertising campaign he ran last year. Which of the following formulas should James use to calculate the ROI?

13. James is hoping to get a substantial advertising budget for next year. To achieve that, he knows that it would help to show the CLTV for his clients. That may help convince management that their investment now will really pay off in the future. But, since James only launched Snackwall a year ago, it is going to be difficult to show CLTV. What value is James missing to calculate CLTV?

14. James decides to estimate the retention period for his clients. He believes that he can keep a client for 3.5 years, which is similar to the retention period for the cleaning subscription side of his business. With this in mind, what is the CLTV for Snackwall if the following is true:

• Average order value = $1000
• Average number of orders per year = 15
• Profit Margin = 46%

15. Finally, for his budget presentation, James showed the following chart from a linear regression analysis he ran, evaluating the influence of advertising spending on sales, based on last year’s experience. This chart helps James prove that sales and advertising spending are 93.5% correlated. True or False?

16. James’ management is happy with the progress he made last year, and his presentation was a success. He is given a large advertising budget for the next year, in fact, his budget will now be $250K. James’ manager told him that he trusts he will use the budget well, but that he wants to see that the advertising campaigns James runs are resulting in additional subscriptions.

What type of test should James plan to make sure he can prove this to his boss?

17. Before spending any of his budget, James wants to compare all of the results in the different marketing channels last year, to see where his budget would make the most impact. James should run an Attribution Study to analyze the impact of all of his marketing initiatives on sales. True or False?

18. Based on the K-means clustering, James found 3 clusters that seem to define his current client base. Since James used the dollar amount spent and the business size as the starting variables for his cluster analysis, he knows that the segments are quite distinct in terms of these variables.

How would you define Cluster 2?

19. James is hoping to get a substantial advertising budget for next year. To achieve that, he knows that it would help to show the CLTV for his clients. That may help convince management that their investment now will really pay off in the future. But, since James only launched Snackwall a year ago, it is going to be difficult to show CLTV. Which of the values that James requires to calculate CLTV does he have access to? (Select all that apply)

20. While optimizing the sales process, James creates a visualization to represent the sales funnel.

Based on this visualization, which approach should James take to improve subscription rates?

21. James decides that he should focus on the third cluster for his marketing campaign. He believes this segment has more potential, because he has seen from his previous campaign that it is a little harder to convince large businesses to subscribe. After the profiling exercise, he decides to call the segment the ‘Health conscious startups’ to help other people understand and remember this segment.

Next, James turns to showing his management that the advertising budget he was given last year was money well spent. So, James calculates the Return on Ad Spend for last year, and he looks at ROAS by cluster.

He shows the following results based on the total ad spend last year of $120K. The total revenue generated was $940K. The total cost invested last year was $510K, so the profit for the year for Snackwall was $430K.

22. While optimizing the sales process, James creates a visualization to represent the sales funnel.

Based on this visualization, which approach should James take to increase subscriptions?

23. For this final project, we are going to follow James at Snackwall.  James launched Snackwall a year ago, and so far, it’s been a real success.  Now, James is eager to expand his audience and he is preparing to give his manager an overview of the past year’s success and ask for an advertising budget to help him grow the business. 

James knows that going to his boss with a solid plan will help to convince him to allocate marketing budget to the expansion of Snackwall.

As a starting point, James identifies the segments that he should focus on for his advertising campaign. After all, James knows that it would not be a good use of his money to market to everyone. James relies on K-means clustering, using last year’s data on business size and amount spent for Snackwall clients. James worked with Alya, his analyst, and together they ran several iterations of their K-means clustering. Now they are using the chart below to determine the number of clusters James should focus on in his campaign.

How many segments do you suggest James defines for his marketing campaign based on this plot?

24. James decides that he should focus on the third cluster for his marketing campaign. He believes this segment has more potential, because he has seen from his previous campaign that it is a little harder to convince large businesses to subscribe. After the profiling exercise, he decides to call the segment the ‘Health conscious startups’ to help other people understand and remember this segment.

Next, James turns to showing his management that the advertising budget he was given last year was money well spent. So, James calculates the Return on Ad Spend for last year, and he looks at ROAS by cluster.

He shows the following results based on the total ad spend last year of $250K. The total revenue generated was $750K. The total cost invested last year was $500K, so the profit for the year for Snackwall was $250K.

25. Finally, for his budget presentation, James showed the following chart from a linear regression analysis he ran, evaluating the influence of advertising spending on sales, based on last year’s experience. What does this chart help James prove? (Select all that apply)

26. James decides to estimate the retention period for his clients. He believes that he can keep a client for 3.5 years, which is similar to the retention period for the cleaning subscription side of his business. With this in mind, what is the CLTV for Snackwall if the following is true:

• Average order value = $1500
• Average number of orders per year = 12
• Profit Margin = 59%

27. Before spending any of his budget, James wants to compare the results he achieved in all of his different marketing channels last year, to see where his budget would make the most impact. James should run a Marketing Mix Model to analyze the impact of all of his marketing initiatives on sales. True or False?

28. For this final project, we are going to follow James at Snackwall.  James launched Snackwall a year ago, and so far, it’s been a real success.  Now, James is eager to expand his audience and he is preparing to give his manager an overview of the past year’s success and ask for an advertising budget to help him grow the business. 

James knows that going to his boss with a solid plan will help to convince him to allocate marketing budget to the expansion of Snackwall.

As a starting point, James identifies the segments that he should focus on for his advertising campaign. After all, James knows that it would not be a good use of his money to market to everyone. James relies on K-means clustering, using last year’s data on business size and amount spent for Snackwall clients. James worked with Alya, his analyst, and together they ran several iterations of their K-means clustering. Now they are using the chart below to determine the number of clusters James should focus on in his campaign.

How many segments do you suggest James defines for his marketing campaign based on this plot?

29. James understands that his management will also want to know the ROI for the advertising campaign he ran last year. Which of the following formulas do NOT calculate ROI. (Select all that apply)

30. James’ management is happy with the progress he made last year, and his presentation was a success. He is given a large advertising budget for the next year, in fact, his budget will now be $250K. James’ manager told him that he trusts he will use the budget well, but that he wants to see that the advertising campaigns James runs are resulting in additional subscriptions.

James should plan to run a random control trial experiment. True or False?

31. A marketing mix model can help you… (Choose all that apply.)

32. How much data do you need for an accurate marketing mix model, at the very least

33. A marketing mix model is essentially a series of…

34. What elements are needed to conduct a successful Marketing Mix Model analysis? (Select all that apply.)

35. Which ad caused Kathy to buy the mattress?

36. Should Imra conclude to put all her advertising dollars in a Facebook campaign with a coupon next year?

37. What does Facebook leverage to help solve the challenge of connecting touchpoints to one person? (Select all that apply)

38. You head into your site analytics tool and see people dropping off after visiting your homepage. What is one of the first questions you might ask your data?

39. What does a “reverse funnel” shape tell you?