/marketing-promotions

Doing some regression analysis on a small business' historical marketing promotion data

Primary LanguageJupyter Notebook

Perform multiple linear regression for marketing promotion data.

In this notebook, I'll be analyzing a small business' historical marketing promotion data. Each row corresponds to an independent marketing promotion where their business uses TV, social media, radio, and influencer promotions to increase sales.

Sale from unsplash

Key Findings

According to the model, high TV promotional budgets result in significantly more sales than medium and low TV promotional budgets. For example, the model predicts that a Low TV promotion is 154.2971 lower on average than a high TV promotion given the same Radio promotion.

The coefficient for radio is positive, confirming the positive linear relationship shown earlier during the exploratory data analysis.

The p-value for all coefficients is 0.000 , meaning all coefficients are statistically significant at 𝑝=0.05 . The 95% confidence intervals for each coefficient should be reported when presenting results to stakeholders.

For example, there is a 95% chance the interval [βˆ’163.979,βˆ’144.616] contains the true parameter of the slope of π›½π‘‡π‘‰πΏπ‘œπ‘€ , which is the estimated difference in promotion sales when a low TV promotional budget is chosen instead of a high TV promotion budget.

Recommendations

High TV promotional budgets have a substantial positive influence on sales. The model estimates that switching from a high to medium TV promotional budget reduces sales by $75.3120 million (95% CI [βˆ’82.431,βˆ’68.193]) , and switching from a high to low TV promotional budget reduces sales by $154.297 million (95% CI [βˆ’163.979,βˆ’144.616]) . The model also estimates that an increase of $1 million in the radio promotional budget will yield a $2.9669 million increase in sales (95% CI [2.551,3.383] ).

Thus, it is recommended that the business allot a high promotional budget to TV when possible and invest in radio promotions to increase sales.

Useful Resources

πŸ’¬ If you have any question, feel free to send me a message on LinkedIn.