School of Data Science and

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● Marketing is a broad term that encompasses many activities and processes related to
creating, communicating, delivering, and exchanging value for customers, clients,
partners, and society at large.

● Marketing involves understanding the needs and wants of your target market, developing
products or services that meet those needs and wants, setting competitive prices,
distributing your offerings through convenient channels, and promoting them through
various media. Marketing aims to attract and retain customers by satisfying their
expectations and building long-term relationships.
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 Marketing Analytics
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be defined as “a technology -enabled and

Marketing analytics can
model-supported approach to harness customer and market data
to enhance marketing decision making.”
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Definitions and Aliases of Marketing Analytics
● Data analytics refers to a “multidimensional field that uses mathematics, statistics,
predictive modeling and machine learning techniques to find meaningful patterns
and knowledge in recorded data.”
● Business analytics typically reduces the scope and focuses on data mining,
predictive analytics, applied analytics, and statistics targeted at industry business
processes.
● Big data analytics is similar to data analytics but highlights the amount or breadth
of data processed (i.e., very large amounts) and often the use of specific techniques
(data mining, machine learning, AI) that are most relevant for this type of data
structure.

Marketing analytics can

be defined as “a technology-enabled and
model-supported approach to harness customer and market data
to enhance marketing decision making.”

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Kroger’s direct mail coupon to customers prompted a redemption rate is
over 70 percent within six weeks of the mailing, compared with an
average coupon redemption rate of 7.93 percent.

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● These customized coupons are used much more often than they would have
been without this deep customer knowledge
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“Hotels can double their profitability by successfully marking up rooms just
10 percent.”

● Using customer data analysis, hotels can drop room prices when demand on
the website and call centers is low but rapidly increase prices when it senses
an increase in demand

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“The U.S. Bureau of Labor Statistics sees strong growth in

the data science field and predicts the number of jobs will
increase by about 28% through 2026. To give that 28% a
number, that is roughly 11.5 million new jobs in the field.”

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Marketing Channels
Marketing Activities are conducted using different communication mediums called
channels.
Traditional Channels: Channels which uses traditional methods of marketing using
physical mediums like : Hoardings, Displays, Events, Field Marketing, Showcase, Door
to Door Marketing using demos, brochures, print channels such as news papers,
magazine, brochures, pamphlets etc.
Digital Channels:
Digital channels are the mediums which uses digital technologies, devices for
communication are called Digital Channels:
Broadcasting: Online Displays, For e.g. TV, Radio,
Social:Twitter, Facebook, Instagram, TikTok, YouTube, LinkedIn
Messaging: Whatsapp, TeleGram:
PR: PRWeb, Twitter
 Marketing Analytics
Based on First Principles:

All Customers All Customers All Competitors All Resources are

Differ Change React Limited

First Principles: The foundational concepts or assumptions on which a

theory, system, or method is based (Oxford Dictionaries )
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 Why Use a First Principles Approach for Marketing
Analytics?
◼ Managers are being overwhelmed with more and more analysis tools,
processes, and research techniques, but 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

First Principles approach present a structure relevant marketing context and

clear purpose and defines a marketing analytics toolbox for analysts to select or
develop right devices to address different marketing challenges.
Aligning Key Marketing Tools and Models According to First Principles

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First Principle Applicable Analysis Techniques
Cluster analysis for segmentation
MP#1 All
Discriminant analysis for targeting and classification
Customers Differ
Perceptual and preference mapping for competitive positioning
Recency, frequency, and monetary (RFM) analyses for customer
MP#2 All selection
Customers Logistic regression models for customer selection
Change
Customer lifetime value (CLV) analysis for customer selection
Survey design and design to derive customer insights
MP#3 All
Competitors Conjoint analysis for product and pricing decisions
React Forecasting sales for new products

MP#4 All Using marketing mix models to optimize the marketing mix
Resources Are Using marketing experiments to optimize the marketing mix
Limited Using topic models to glean customer insights
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Why Use a First Principles Approach for Marketing

Analytics?
● Managers are being overwhelmed with more and more analysis tools, processes, and
research techniques, but 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.

First Principles approach present a structure relevant marketing context

and clear purpose and defines a marketing analytics toolbox for analysts to
select or develop right devices to address different marketing challenges.
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 First Principle #3: All Competitors React
● Competitive reactions to a firm’s success can take various forms

○ Discover new technical innovations that disrupt the overall market and relegate
the focal firm’s existing offerings

○ Pay close attention to environmental and cultural shifts that open new niches and
make the focal firm’s offerings to seem out of touch

○ Not change the firm’s basic offering but provide it more effectively or efficiently
● Companies need to build a “barrier” to being copied, giving them time to adapt to
innovation by others
● These barriers are termed sustainable competitive advantage (SCA) and are critical to
long-term superior financial performance
● Marketing analytics can help firms determine which marketing activities—involving
brands, offerings, or relationships (BOR)—are going to provide the best reinforcements
for these SCA.
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Q1: What is marketing research?
Q2: What kinds of questions can marketing research answer?
Q3: Why is marketing research important?
Q4: What is the relationship among marketing, marketing research, the rest of the firm?
Q5: Who does marketing research?
Why Market Research?
Many people think that marketing research is about asking consumers what they think about a brand.
That’s true, but it’s so much more. Consider these examples (each of which is discussed in greater
detail in later chapters).

• In “A/B” tests, marketing researchers run experiments:

• To compare advertisement A to ad B to see which makes the featured brand most attractive,
• To compare sales discount promotions run in city A to price bundling promotions in city B to see
which marketing mix will yield optimal ROI. • Before investing millions to launch a new
product, marketing researchers conduct “concept testing” to get consumer reactions via focus
groups.
• Increasingly, focus group are run online using Skype-like video technology. Managers like the cost
savings (e.g., minimal travel expenses) and participants like the convenience (e.g., they can log in
from all over the world). Participants can see each other so the online forum simulates fairly well a
traditional focus group (where everybody’s in the same room).
• Customer satisfaction surveys are pervasive—surveys are popular because customers like
giving their opinions on just about anything.

• Surveys also supplement a firm’s own “big data” of its customers’ purchase transaction
histories, their contact information, and basic demographics.

• The big data tell what the customer has bought, and the survey helps provide an
understanding as to the customer’s motivations.

• The integration of these data sources in a Customer Relationship Management system

(CRM) enables the company to tailor direct marketing offerings to the customer.
• Marketing researchers use “data mining” of big data to analyze consumer purchases and
preferences and “predictive analytics” to forecast sales, market shares, and growth figures.

• Marketing researchers monitor social networks, blogs, and searches (e.g., via Google Trends)
using text analytics for “sentiment analysis”—how frequently do comments pop up about a
focal brand, and are the comments generally positive.

• Online brand and affinity communities offer efficient samples of highly involved consumers.
For example:
o Text analyses of movie scripts can predicted their later commercial success.
o Marketing researchers have shown that online sharing communities have given rise to an
increase in consumers posting photos of their culinary achievements.
o Google analytics show that lots of people spend hours surfing.