In the marketing industry, professionals often have to run a lot of techniques to undergo market research and analysis. When dealing with more than one variable, multivariate techniques help in reaching robust conclusions and add clarity to the research. Let us take an example of marketing research where a company wants to understand the impact of variable ‘sales’ on the other variable ‘advertisement expenditure.
We will apply the multivariate technique to understand the relation between these two variables and the impact of one on another. One way to achieve this is by making a list of sales through various advertising channels and how each advertising channel impacts the overall sales. The data and findings can be worked into a model to find certain patterns or correlations to understand the impact of these variables on various outcomes. This will help the company to make informed decisions and set an advertising budget accordingly for driving more sales.