Marketing Analytic

Marketing
Analytics
Introduction
What will we learn
Introduction
Characteristics
Advantages
Disadvantages
Market Data resources; primary and
secondary
New Realities of Marketing Desicion Making
Market Sizing
Marketing analytics is the
process of identifying metrics
that are valid indicators of
marketing’s performance in
pursuit of its objectives, tracking
those metrics over time, and
using the results to improve how
marketing does it work.
Analytics are both the
process and the collective
output of that process—
performance information with
the ideal use as a
▫
management tool. Metrics
are the “atomic unit” of
analytics. The marketing
analytics process consists of
creating a series of metrics or
measurements in specific
areas.
Components • Valid indicators: There are many things
about marketing’s work and results that
from
are measurable. The analytics process
must determine which metrics have
meaning and best represent the value
Definintion that marketing creates for the

organization.
• Pursuit of objectives: The analytics

process is ideally built to measure
progress toward a set of objectives. The
objectives come first, followed by an
identification of the relevant performance
metrics.
Components ▫
• Tracking metrics over time: The
analytics process isn’t about taking a
from
random, one-time snapshot of a
performance measurement, but tracking
measurements over time to monitor
Definintion trends and direction of performance.
• Improve how marketing works: There

are several reasons a marketing
organization might implement an
analytics process, such as accountability
or justification of resources, but the
noblest and ultimately most valuable
reason is to improve its performance.
• People: The marketing analytics process is
created, executed, and managed by people who
own it. In most marketing organizations, the
process owner is the chief marketing officer (CMO)
or the marketing director. Key
• Steps: The marketing analytics process consists
of a sequence of steps. Elements of
• Tools and technology: While the marketing
analytics process isn’t necessarily complex, tools Marketing
Analytics
and technology help marketing organizations
deliver greater value faster than they ordinarily
might.
• Input and output: Data feeds the process, with

insights and decisions as the output of the process.
Marketing Analytics
Capabilities
Understanding marketing’s Reporting marketing’s performance. For external
performance. For internal use, the use, the output of the analytics process, or at
metrics an analytics process tell least part of it, is useful to show the rest of the
marketing how it is performing. organization that it is getting a return on its
investment in marketing.
Impact of Marketing Analytics
Brand recognition: Content: Channel optimization:
Understand the mindshare your Know with certainty which of your Compare performance of various
brand enjoys and the sentiments marketing content is most widely marketing channels, such as email or
customers have toward it. consumed, shared, and produces pay-per-click, to improve their
the best conversion. performance or invest only those that
perform the best.
Customer understanding: Predictive intelligence:

Gain a deeper understanding of Accurately predict early in the
customer behavior to better understand buying cycle which customers will
their needs and preferences. buy and when.
Getting Started
with Analytics
Assessing Organizational Readiness
Reviewing Objectives
Establishing Metrics
Advantages
of Marketing Analytics
Granular Segmentation Become more proactive and effective
Multi-channel Customer View Sharpen social media strategies
Treat data as a strategic asset Visualize success across the enterprise

Disadvantages
of Marketing Analytics
Misidentifying Market Needs Evaluating Market Growth without Market Share
Multi-channel Customer View Misinterpreting Market Segmentation Versus

Target Markets
Primary
Primary data is the kind of data that is collected
directly from the data source without going
through any existing sources. It is mostly
Data
collected specially for a research project and
may be shared publicly to be used for other
research
Primary data is often reliable, authentic, and
Source objective in as much as it was collected with the

purpose of addressing a particular research
problem. It is noteworthy that primary data is not
commonly collected because of the high cost
of implementation.
Sources: surveys, observations, experiments,

questionnaires, focus groups, interviews, etc.
Secondary
Secondary data is the data that has been
collected in the past by someone else but
made available for others to use. They are
Data
usually once primary data but become
secondary when used by a third party.
Secondary data are usually easily accessible to
researchers and individuals because they are
Source mostly shared publicly. This, however, means

that the data are usually general and not tailored
specifically to meet the researcher's needs as
primary data does.
Sources include; books, journals, articles, web

pages, blogs, etc. These sources vary explicitly
and there is no intersection between the primary
and secondary data sources.
A Quick Comparative Look
New Realities of
Marketing
➢ Production Concept
➢ Product Concept
Evolution of ➢ Selling Concept
➢ Marketing Concept
Marketing ➢ Holistic Marketing Concept
Philosophies ➢ Relationship Marketing

➢ Integrated Marketing
➢ Internal Marketing
➢ Performance Marketing
The New
Technology Realities
Social Globalisation
Responsibility
Three Major Two Key Four Fundamental
Market Forces Market Outcomes Pillars of Holistic Mktg
Relationship
Technology Marketing
New
Consumer Integrated
Capabilities Marketing
Globalisation
Internal
New
Marketing
Company
Social Responsibility Capabilities
Performance
Marketing
Technology Whereas the marketing terminologies states
technology as a mode or a medium which helps
marketer propagate his/her deliverables to the
end user.
The best outcome of bringing in technology has

been innovation.
The technology has been dynamic throughout

right from television (advertisement) to internet
(viral marketing).
Globalisation Globalization refers to the changes in the world
where we are moving away from self-contained
countries and toward a more integrated world.
Globalization of business is the change in a

business from a company associated with a
single country to one that operates in multiple
countries.
The impact of globalization on business can be

placed into two broad categories
a. Market globalization
b. Production globalization
Social In marketing is important because the practice
involves focusing efforts on attracting
consumers who want to make a positive
Responsibility difference with their purchases.
Many companies have adopted social

responsibility strategies in marketing as a means
to help the community or produce services and
products that benefit society.
Initial investment may be involved to split

portions of profits or donate to those in need.
Social responsibility in marketing promotes a

positive company image, which can significantly
impact productivity and profitability favourably.
Market Sizing
Market Sizing is the process of estimating the potential of a market.
Understanding the potential of a market is important for companies
looking to launch a new product or service. Using a wide variety of
secondary market research sources and databases, we synthesize
results from previously published research and other data sources
to help define:
The total size (or potential size) of a market
The major competitors in a market by category
The composition and profile of a target customer
The products/services available in the market
The most significant trends in the market
Developing a Size of Market estimate is a critical
first step in building the business case for any new
product development initiative. The amount of
The Value
investment required to be successful needs to
make sense given the potential return that the
market offers.
Of Market
Sizing
By being explicit about the facts and assumptions
used to generate a market size estimate, we are
able to identify critical factors that need to be
addressed in downstream development business
planning activities.
Knowledge of market size lies at the nub of strategic
planning.
Market Sizing: Stakeholders
Marketing Channel
Departments Partners
- Investigate new markets - Number of units to
- Calculate market share move in channel
Stakeholders
Operations Financial
Departments Services
- Products manufacturing: -VC: Large and growing
how many units to make market
- Service delivery: how many
people to hire
Market Sizing: Application
Market Segments Market Trends
- Number & size of segments - Take advantage of trends
Salesforce Sizing
Market Share - Number of salespersons to
- Need total size to calculate share Applications hire
Adoption Rate Sales Forecasts

- Forecast as % of total market
- Keeping up with industry average?
Life Cycle Market Investment Distribution Channels

- Growth or decline? -Continue investing in market? - Type of channel(s) to
- Explore new niche? employ
How to use top-down market sizing
Use reliable data sources. Some of the data that can help you calculate your market
size is available for free or at low cost and can be obtained from analysts like Gartner
and the Bureau of Labor Statistics. This can be supported by primary research to give
you a rich picture of the market. Spend some time analysing multiple, reliable sources
to come up with an estimate.
Be consistent and clear in your approach. Make sure your calculations are well-
documented and rely on the same data.
Ask lots of questions throughout the process. Who are our customers? Where are they
located? Is the market growing? Aim to get as full and accurate a picture of your market
as possible.
Top-down market sizing starts by looking at the
current market as a whole, taking a macro view Top Down
Market
of all the potential customers and revenue, and
then narrowing it down to a section you can
realistically target. This gives you your
Sizing
serviceable obtainable market, (SAM).
Bottom-up market sizing, on the other hand, is
where you start with your own product and the
basic units of your business and work out how
Bottom Up
you can scale them. Where can your products
be sold, how much for, and how much of the
current market could you command? You start
Market
small and build up to the result.
Sizing

Marketing Analytic

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Marketing

Definintion that marketing creates for the

• Pursuit of objectives: The analytics

Definintion trends and direction of performance.

• Improve how marketing works: There

• Input and output: Data feeds the process, with

Customer understanding: Predictive intelligence:

Multi-channel Customer View Sharpen social media strategies

Treat data as a strategic asset Visualize success across the enterprise

Multi-channel Customer View Misinterpreting Market Segmentation Versus

Source objective in as much as it was collected with the

Sources: surveys, observations, experiments,

Source mostly shared publicly. This, however, means

Sources include; books, journals, articles, web

Philosophies ➢ Relationship Marketing

The best outcome of bringing in technology has

The technology has been dynamic throughout

Globalization of business is the change in a

The impact of globalization on business can be

Responsibility difference with their purchases.

Many companies have adopted social

Initial investment may be involved to split

Social responsibility in marketing promotes a

Adoption Rate Sales Forecasts

Life Cycle Market Investment Distribution Channels

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