What is it and why do you need it
Econometric models are a way to predict the sales volume of a product with an accuracy of up to 95% and increase the profitability of a business.
We create sales models that take into account the weight and influence of each factor (advertising, price, distribution, competitors, and so on) on product sales.
The model makes it possible to check the scenarios of the intended marketing activities, advertising and price changes before they are implemented, which helps to make the right decision and brings the cost of the test error to zero.
At the same time, the resulting formula is able to show the levels of investment in a particular type of advertising in order to get a response that maximizes ROI; to determine the price of the product that maximizes off-take in the current market situation.
In complex and complex models, it is possible to determine the cross-dependence of one product on the promotion of another within the brand portfolio.
The model breaks down the final level of sales into influencing factors, and studies the dynamics of the response to certain changes.