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An effective marketing strategy combines all the tools available to communicate the benefits of a product. The key is crafting the right mix of these tools to achieve sales increases and market share goals. In the second chapter, you will learn how to incorporate the effects of advertising and promotion in your sales-response model and how to identify the marketing strategy that is most likely to succeed.

A company can only be successful in the market if its products have a competitive advantage over those of its rivals. To develop an effective marketing strategy in a competitive environment, it is essential to understand the interrelationship between marketing activity and customer behavior. In this chapter, you will learn how to explain the effects of temporary price changes on customer brand choice by employing logistic and probit response models.

The main goal of response modeling is to enable marketers to not only see a payoff for their actions today, but also tomorrow. In order to view this future payoff, a simple but reliable statistical model is required. In this last chapter, you will learn how to evaluate the predictive performance of logistic response models.