Markets are dynamic by nature, and marketing efforts can be directed to stimulate, reduce, or to utilize these dynamics. The field of marketing dynamics aims at modeling the effects of marketing actions and policies on short-term performance (“lift”) and on long-term performance (“base”). One of the core questions within this field is: “How do marketing efforts affect outcome metrics such as revenues, profits, or shareholder value over time?” Developments in statistical modeling and new data sources allow marketing scientists to provide increasingly comprehensive answers to this question. We present an outlook on developments in modeling marketing dynamics and specify research directions.
- marketing dynamics
- time series models
- dynamic linear models
Leeflang, P. S. H., Bijmolt, T. H. A., van Doorn, J., Hanssens, D. M., van Heerde, H. J., Verhoef, P. C., & Wieringa, J. E. (2009). Creating lift versus building the base: current trends in marketing dynamics. International Journal of Research in Marketing, 26(1), 13-20. https://doi.org/10.1016/j.ijresmar.2008.06.006