Course Code: BBA 309

Course Title: Marketing Analytics

BBA 5 Semester

Unit 1
PPT_1
-Prof.(Dr.) Ekta Rastogi

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 Syllabus of Unit 1
• Unit -1: Introduction to marketing
Analytics (14 hrs.)
• Introduction to Marketing Analytics: Meaning ,
nature, Data Collection, Predictive analysis,
Summarising market data using excel or R
software- Pivot Table , charts, Exploratory
Data Analysis

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 Analytics
• Analytics refers to the systematic analysis of data or statistics to uncover
meaningful patterns, insights, and trends that can inform decision-making,
optimize processes, and drive improvements in various domains.
• It involves the use of statistical, mathematical, and computational techniques to
interpret data, extract valuable information, and derive actionable conclusions.
• Analytics encompasses a wide range of methodologies, including
• descriptive analytics (which summarizes historical data),
• diagnostic analytics (which investigates the causes of past events),
• predictive analytics (which forecasts future outcomes),
• prescriptive analytics (which recommends actions to achieve desired
outcomes).
• In essence, analytics enables organizations to make data-driven decisions,
enhance performance, and gain a competitive edge in today's data-rich
environment.

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Analytics types

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 Data Analytics: Process
The data analytics process involves a systematic
approach:
– Data Collection: Gathering relevant data from various sources,
such as databases, sensors, or web scraping.
– Data Cleaning: Ensuring data integrity by removing errors,
duplicates, and inconsistencies.
– Data Analysis: Employing statistical techniques, data mining,
and machine learning algorithms to extract insights.
– Data Visualization: Representing data through charts, graphs,
or dashboards for easy understanding and communication.
– Data Interpretation: Drawing meaningful conclusions and
actionable insights from the analyzed data.

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 Scope of Data Analytics
• Business Analytics: Data Analytics is extensively used in businesses to optimize operations,
improve customer experiences, and make strategic decisions based on data-driven insights.
• Healthcare Analytics: It plays a crucial role in improving patient care, medical research, and
healthcare efficiency through data analysis of patient records, medical imaging, and clinical
trials.
• Financial Analytics: Data Analytics is employed in the finance sector to detect fraud, assess
risks, and make investment decisions based on market trends and historical data.
• Marketing Analytics: Data Analytics helps marketers in understanding consumer behavior,
targeting specific audiences, and optimizing marketing campaigns for better results.
• Social Media Analytics: It is utilized to analyze social media data for sentiment analysis,
brand reputation management, and understanding customer feedback.
• Supply Chain Analytics: Data Analytics is applied to optimize supply chain processes,
inventory management, and logistics, improving efficiency and reducing costs.
• Sports Analytics: It aids sports teams in analyzing player performance, optimizing strategies,
and enhancing fan engagement through data-driven insights.
• Environmental Analytics: Data Analytics is used to study environmental data, monitor climate
change, and support sustainability efforts.

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 Evolution
• Analytics 1.0—the era of “business intelligence.”
• Analytics 2.0—the era of big data.
• Analytics 3.0—the era of data-enriched offerings.
• The Era of Consumer-Controlled Data
• The Next Big Thing, in Beta
• Analytics 1.0: Traditional Analytics - From the 1950s to mid 2000s, analytics were
based on some form of reporting and were segregated from business decision-makers
and marginal to business strategy, even among enterprises who recognized the
potential of analytics.
• Analytics 2.0: Big Data - At Internet-based and social network firms, big data and
analytics informed internal decisions and formed the basis for customer-facing
products, services and features. However, more traditional enterprises had to reconcile
and integrate big data with more traditional sources of data and IT infrastructures. Data
scientists began to demand a role in shaping business strategy.
• Analytics 3.0: Data Economy - By blending big data and traditional analytics, Analytics
3.0 yielded insights and offerings with speed and impact. With faster big data
technologies, new agile analytical methods and machine learning techniques produced
insights at a faster rate. The role of Chief Analytics Officer became essential to
managing diverse data science, analytics, and IT teams while simultaneously working
with business decision makers.
• Analytics 4.0: Automated & Embedded - Analytics is fully embedded, but invisible and
automated, in business tasks. Two forces - impedance within organizations and
acceleration of automation capabilities - have jointly created an environment in which
embedded and automated advanced analytics have become the dominant focus of
forward-thinking organizations intent on competing on analytics. New roles, like
catalyst, data sociologist, data engineer, and automation specialists, are necessitated by
increasing dependence on data analytics.
 Introduction to marketing Analytics

• What is Marketing Analytics?

• The measuring, managing and analyzing the
marketing performance.
• The concept of marketing analytics facilitates not
only to improve the effectiveness but also allows the
marketers to take a successful shot at optimizing the
return on investment.
• Marketing analytics portrays the customer insights
and trends.
• The importance of marketing analytics is not only
depicted from the fact that it provides a clear picture
about the marketing efforts, but also from the fact
that it also allows you to monitor campaigns that can
easily facilitate the saving of resources.
 MARKETING ANALYTICS
• Marketing Analytics is a discipline that uses Statistics and
Machine Learning models and visualizations to provide data-
driven inference for marketing decisions.
• Market Research is the discipline that examines feasibility of
new product or service by using research conducted
• Business model itself determines data availability and data
gathering mechanisms
• Marketing decisions are made to a varying extent using
analytical tools on data
 Characteristics of Marketing Analytics
• Marketers are expected to use analytics to inform and justify their
decisions.
• Marketing analytics enables marketers to measure, manage and analyze
marketing performance to maximize its effectiveness and optimize return
on investment (ROI).
• Beyond the obvious sales and lead generation applications, marketing
analytics can offer profound insights into customer preferences and
trends, which can be further utilized for future marketing and business
decisions.
• Marketing Analytics involves the use of various models and metrics.
• It includes text mining, social network analysis, sentiment analysis, real-
time bidding, online campaign optimization, and so on.
• It helps in answering the following questions:
• (1) who are the customers,
• (2) which customers should be targeted
• (3) what's the future value of customers.
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 IMPORTANCE OF MARKETING ANALYTICS
• Understanding the customer and market trends is really important in
today’s time. Marketing analytics easily allows understanding of big
picture trends that too by focusing on every single detail.
• With the aid of providing you with a clear picture of the efforts and
the returns, it allows you to easily depict that which programs
worked and also depicts the reasons why it failed or even succeeded.
• The market study is also an important part of the business.
Marketing analytics allow monitoring of trends over time.
• Marketing analytics allows understanding the return on investment
by providing a clear picture of the working and the reports of each
programme .
• By easily helping to study the market trends, marketing analytics
facilitates to proficiently forecast future results.
 Trends Driving Marketing Analytics Adoption

Accountability Online Data Availability

Improve productivity Cloud-based data storage

Reduce costs
Marketing Online = speed
“What gets measured gets done” Analytics Online = convenience
Adoption
Data-Driven Presentations Reduced Resources

Data to back up proposals Do more with less

Massive Data
Predict success of plans Scrutinized budgets
Marketers must show
Initiatives to capture customer
outcomes
information
What to do with all that data?

Before: Now:
Huge Tiny
budgets budgets
 MARKETING ANALYTICS
• Advantages
• First, it can help drive revenue, positioning the marketing department as a
profit center, instead of a cost center.
• Second, it can save money. CEOs will no longer tolerate the old approach,
where marketing sent out campaigns hoping for results. Now, marketing
analysts can predict the outcome of their efforts.
• Third, executives trust numbers. Analytics is thus a powerful tool to
persuade executives.
• Fourth, analytics tools can be applied to side-step politics in some cases.
Some CEOs do not appreciate marketing departments, especially if they
themselves do not have a marketing and sales background. But virtually
every CEO appreciates revenue, and analytics can deliver revenue when
used effectively.
• Analytics can encourage experimentation by allowing marketers to test
multiple scenarios before proceeding. That way, they can make their
mistakes on paper, where they have little to lose.
DISADVANTAGES OF MARKETING ANALYTICS

• Misidentifying Market Needs

• Evaluating Market growth without Market
Share
• Market Segmentation Vs Target Markets
• Improper interpretation of data

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Process of Marketing Analytics

Fig: Processes followed in a typical marketing analytics project