ElecKart is an e-commerce firm based out of Ontario, Canada specialising in electronic products. Over the last one year, they had spent a significant amount of money on marketing. Occasionally, they had also offered big-ticket promotions (similar to the Big Billion Day). They are about to create a marketing budget for the next year, which includes spending on commercials, online campaigns, and pricing & promotion strategies. The CFO feels that the money spent over the last 12 months on marketing was not sufficiently impactful, and, that they can either cut on the budget or reallocate it optimally across marketing levers to improve the revenue response.
Imagine that you are a part of the marketing team working on budget optimisation. You need to develop a market mix model to observe the actual impact of different marketing variables over the last year. Using your understanding of the model, you have to recommend the optimal budget allocation for different marketing levers for the next year.