Marketing Analytics — Basics
While working as an Associate Data Scientist after graduation, I got introduced to Marketing Analytics and found myself increasingly captivated by this niche as it’s intriguing to realize how these marketing strategies influence my decisions daily. I don’t know if it happens with me, but uncovering the impact of these influences on my choices motivates me to delve deeper into understanding the mechanics behind them. Maybe it feeds the mini-Sherlock in me 😉. So here I am to share what I have learned about it.
As Harvard defines it, Marketing Analytics is the process of tracking and analyzing data from marketing efforts, often to reach a quantitative goal. The techniques involved in the process help in quantifying the impact of several marketing inputs on sales or market share.
Marketing Analytics comes in very handy to organizations to make decisions related to budgets and additional spending. To point out a few of them:
· Gives an understanding of which marketing channel contributes to the sales.
· Aids in spend-related decision-making related for each channel.
· Helps in determining whether a specific channel spurred the consumer to act.
· If the promotion deployed in the market was successful.
· Were there other factors in play apart from the promotions that led to the rise/fall of product sales?
We talked about a few marketing jargon, let’s try to learn what these mean before taking a deeper dive into this ocean.
Marketing, as we all know can be described as the process of understanding what people need or want and then figuring out ways to connect those needs or wants with products or services that can satisfy them. And we can’t move forward without knowing about the 4P’s of marketing.
4P’s of Marketing:
1. Product: Product is basically what a company is trying to sell to its customers. It can be a tangible item like bath soaps, utensils or an intangible item like insurance, educational course, etc. Based on what the product does and how it fulfills the customer’s demands, it helps in determining what segment of customers to target, how much to spend on marketing and which medium to use for selling it
2. Price: This signifies how much money customers are willing to pay for the product or service. Pricing strategies involve considerations about setting an optimal price that covers costs, meets customer expectations, reflects the value of the product or service, and remains competitive within the market.
3. Place: Also known as distribution, this involves making the product or service available to the customers at the right place and time. It includes decisions related to distribution channels, inventory management, logistics, warehousing, and ensuring the product reaches the target audience efficiently.
4. Promotion: This involves all the activities and strategies used to communicate the value of the product or service to the target audience. Promotion includes advertising, sales promotions, public relations, direct marketing, digital marketing, and any other form of communication aimed at raising awareness and persuading customers to purchase or use the product.
These 4Ps represent the controllable elements that a company can use to influence customer perceptions and preferences, thereby shaping its marketing strategy to effectively meet customer needs and achieve business objectives. In the 1950s, Neil Borden, a Harvard advertising professor, made the marketing mix a big deal — yep, those famous four Ps! His article in 1964, “ The Concept of the Marketing Mix,” showed how companies could rock their advertising game to connect with customers.
Marketing Channels:
I also talked about Marketing Channels or Marketing Mediums which are used to roll out the promotions for the product. You might be familiar with most of these:
- Offline Marketing (Out of Home [OOH]): Traditional marketing methods without using the internet
o Print Media (Newspaper, magazines)
o Direct mail
o Television
o Radio
o Advertisements like billboards
o Telemarketing
o Sponsorship and free product samples
2. Online Marketing: Uses the internet to promote products or services
o Search Engine Marketing like Content Marketing
o Pay per click, pay per impressions
o Email marketing
o Social Media Marketing (like Facebook, Instagram etc.)
o Affiliate Marketing
We’ve just scratched the surface of this topic. Are you excited to explore the depths of Marketing Analytics? Get ready to level up, because in my next post, I’ll be back with even more!
