MK304E-B- Marketing Analytics
Lecture 2
Data in Marketing Analytics
Course code and title:
IBM-MK304E-B Marketing Analytics
• Introduction
• Activity (1)
• Data and research
• Importance of data in Marketing Analytics
• Sources of data
• Types and use of data
• Data ethics
• Research design
• The use of the first Principles Approach for Marketing
Agenda Analytics.
• Aligning Key Marketing Tools and Models
According to First Principles
• Marketing matrices
• Understanding Markets with data
• Selection of Analytical tools
• Frameworks for leading change
• Summary
• Activity (2)
MK304E-B- Marketing Analytics 2
Activity 1
Why data is • Performance
• Personalize experiences, and
important for • Predict trends.
For example, Spotify’s ‘Wrapped’ campaign
Marketing uses individual user data to create
personalized playlists and summaries,
analytics? which users then share on social media,
doubling as free advertising for Spotify
MK304E-B- Marketing Analytics
Sources of • Primary data sources
• Website analytics,
data • Social media engagement, and
• App interactions
• Secondary sources
• Market research reports or competitor
analyses.
• Google Analytics tracks website
behavior,
• SEMrush provides insights into
competitors’ strategies.
Types of data
Customer data Campaign data Technological data
Interactions or tracing customers’ Email marketing Cold calls,
online journeys. Social media marketing Direct email surveys,
• Email open rate Content marketing Auditing websites for information
• Website visits Mobile marketing on apps and software a business
• Click-through rate (CTR) uses
Influencer marketing etc
• Online conversions
• Phone call conversions
Potential and actual
Transactional offline and online
purchase
data transactional
activities
Competitor websites
Reviewing public
filings,
Types of data Competitive data News articles,
Social media posts,
Monitoring online
customer comments,
reviews, and surveys.
Competitor
resources,
Market data Market studies, and
Market research
Use of data
Collection Integration and Analysis Develop target Test and refine Forecast and Performance Data-driven
organisation campaigns plan monitoring culture
Data ethics
Transparency:
Communicate how data is collected and used to build consumer trust.
Data Minimization:
Collect only necessary data. Avoid hoarding irrelevant user
information.
Compliance with Laws:
Adhere to regulations like GDPR (EU) and CCPA (California) for data
handling.
Ethical AI Use:
Ensure algorithms don’t reinforce bias or misuse consumer data.
Research design
Figure 1.3: Research designs (based on Malhotra 2010)
Reference: Palmatier, Petersen, and Germann
Research by objective
Based on the classification of data science tasks by Hernán et al. (2019)
Reference: Palmatier, Petersen, and Germann
Selecting Analytics
Tools
1. Alignment with business goals
1. Google Analytics is a good fit for web traffic
2. For advanced visualization, Tableau, Excel,
and Power BI might be better.
2. Budget
1. Free tools like Google Analytics are great for
small businesses, while premium tools like
Adobe Analytics offer more features.
3. Ease of use
The use of the first Principles Approach for Marketing
Analytics.
Managers are being overwhelmed with more and more analysis tools, processes, and research
techniques, but it is hard to know when to apply each one
A key requirement for making good marketing decisions is to identify underlying factors on which the
analytic tool depend
The First Principles Framework for marketing analytics provides a way to align each of the four First
Principles with a set of approaches, processes, and analysis tools that can deal with the unique
issues associated with each principle
The First Principles approach presents a structure-relevant marketing context and clear purpose
and defines a marketing analytics toolbox for analysts to select or develop the right devices to
address different marketing challenges.
Reference: Palmatier, Petersen, and Germann
Aligning Key Marketing Tools and Models According to
First Principles
First Principle Applicable Analysis Techniques
Cluster analysis for segmentation
MP#1 All Customers
Discriminant analysis for targeting and classification
Differ
Perceptual and preference mapping for competitive positioning
Recency, frequency, and monetary (RFM) analyses for customer
MP#2 All Customers selection
Change Logistic regression models for customer selection
Customer lifetime value (CLV) analysis for customer selection
Survey design and design to derive customer insights
MP#3 All
Conjoint analysis for product and pricing decisions
Competitors React
Forecasting sales for new products
Using marketing mix models to optimize the marketing mix
MP#4 All Resources
Using marketing experiments to optimize the marketing mix
Are Limited
Using topic models to glean customer insights
Reference: Palmatier, Petersen, and Germann
Key marketing metrics
Customer Acquisition Cost
Return on Ad Spend (ROAS): Conversion Rate:
(CAC):
Measures revenue generated for Percentage of users who take a
Tracks the cost of acquiring a
every dollar spent on advertising. desired action, such as
single customer. Lower CAC
Example: A ROAS of $4 means $4 purchasing or signing up.
indicates efficient marketing.
of revenue is generated for every Formula: (Conversions ÷ Total
Formula: Total Marketing Spend ÷
$1 spent on ads. Visitors) × 100.
Number of New Customers.
Lifetime Value (LTV): Engagement Metrics (CTR, Time
The total revenue expected from on Page):
a customer over their Measure user interaction with
relationship with the brand. content or ads, revealing
Example: For a subscription campaign effectiveness.
service, LTV is subscription value CTR: (Clicks ÷ Impressions) ×
× expected duration. 100.
Segmentation Analysis:
Divide markets into segments (e.g., age,
geography) to identify profitable audiences.
Competitive Analysis:
Understanding Analyze competitors’ performance metrics.
Markets with
Data Trend Identification:
Leverage data analytics tools to uncover
emerging market trends.
Market Sizing:
Estimate the total market opportunity using
historical sales data and predictive modeling.
Identifying Frameworks for Leading Change
Kotter’s 8-Step Process for Change:
A structured approach to organizational change, focusing on creating
urgency and enabling quick wins.
Balanced Scorecard Framework:
Aligns marketing goals with broader organizational objectives.
Agile Marketing Framework:
Promotes iterative processes and real-time decision-making based on
performance metrics.
Kotter’s 8-Step Process for Change
https://www.google.com/url?sa=i&url=https%3A%2F%2Fwww.inkstrategy.com%2Fpost%2Fthe-kotter-model-8-steps-for-managing-change
Balance
score
card
https://www.google.com/url?sa=i&url=https%3A%2F%2Fwww.professionalacademy.com
Agile
Marketing
Framework
https://www.google.com/url?sa=i&url=https%3A%2F%2Fstatusneo.com%2Fthe-agile-marketing-revolution-staying-ahead-of-the-competition
Activity 2 (Group)
