Recap of the March Evening Meeting
On Wednesday, March 12 from 5pm to 7pm
Location: Webinar
INFORMS New York Metro Chapter Presents
Marketing Mix Modeling and Optimization of Promotion Resources
Speaker: Dr. Moshe Rosenwein
Director, Data Science & Consumer Insights at Bayer Healthcare, Whippany, NJ
Abstract:
Allocation of scarce promotion resources among competing brands in a portfolio is a key strategic planning decision in pharmaceutical marketing. Typical business questions include:
- How effective were specific promotion tactics in the past as measured by return-on-investment (ROI)?
- Can the promotion budget for particular tactics for specific brands be modified going forward in order to efficiently increase revenue?
Marketing mix (MMx) – a series of statistical, regression models – estimates the level of return associated with each level of promotion spend. The model generates response curves for each tactic and brand across the portfolio, which are then used in a non-linear programming (NLP) model for portfolio optimization.
At Bayer Healthcare, we integrated MMx statistical models with an NLP optimization model. Our approach identified opportunities to grow top-line revenue and profitability by optimally investing in various promotion tactics.
Speaker Bio:
Dr. Moshe Rosenwein is Director of Data Science and Consumer Insights at Bayer Healthcare. His role focuses on Marketing Mix Modeling, which optimizes the allocation of marketing promotion resources to pharmaceutical brands. Previously, he worked at AT&T Bell Laboratories, Medco Health Solutions, Novartis, and Eisai. Moshe holds a Ph.D. in Decision Sciences from the Wharton School and has published numerous peer-reviewed journal articles. He has also served as an adjunct professor at Columbia University, teaching Project Management for over 15 years.