**Marketing Mix Modeling (MMM)**
**Definition**: Marketing Mix Modeling (MMM) is a quantitative analytical technique used to predict the impact of various marketing tactics on sales and other key performance indicators. By analyzing historical data, MMM helps businesses understand the effectiveness of their marketing investments across different channels and optimize future marketing strategies.
**Key Components**:
1. **Data Collection**: Gathering historical data on sales, marketing expenditures, promotional activities, and other relevant variables.
2. **Statistical Analysis**: Applying statistical methods to identify relationships between marketing activities and sales performance.
3. **Model Development**: Creating mathematical models that simulate the impact of different marketing mix elements on sales.
4. **Optimization**: Using the model to test different scenarios and