A study on Marketing Analytics helps in building

Business Strategies

Brijesh Vora1 and Akash Chavda2

1
Student of Masters of Business Administration – Oakbrook Business School, 2Student of Masters of
Business Administration – Oakbrook Business School.

Affiliated by Gujarat Technological University, Ahmedabad

E-mail: 1brijesh.vora@yahoo.com, 2akashchavda201@gmail.com

Abstract – Sustaining a business is the prominent part and Marketing Analytics & Big data are
the key to sustain the business and which helps in intensifying marketing opportunities and the
productivity of the business. Patterns and insights which is like a key or conclusions or answer to
your problem in business which is derived and interpreted from the data & analytics. Reading the
mind of market and specially customers in market gives a great useful insights to business which
helps business to generate actionable results for business. Company’s resource decides its
performance & its competitive advantage and that’s why study of a Resource based theory helps
business in Marketing Analytics.
Keys: Marketing Analytics, Big Data, RBT

A study on Marketing Analytics helps in building business strategy

INTRODUCTION

In today’s world lots of big data and real time data is generated through real time per
second’s transactions. This data can be generated through various technologies like sensors,
industry 4.0, robotics machines, IOT devices, etc. The best example of big data is Internet
itself generating a huge amount of big data. Reading this data and taking corrective steps in
the business will escalates opportunities to intensify the productivity.
Like from a big mine lots of analysis is done for the search of a Kohinoor diamond, the same
applies in the world of business where customer mind is a mine and their thinking’s,
attitudes, etc related to purchase decision is a Kohinoor diamond which needs to be analysed
and understood properly by a business to gain a meaningful insights and patterns. Not only
customer mind but it analyses the performance of digital marketing and gain insights
accordingly and increase return on investment. Here comes the technical word named
“MARKETING ANALYTICS”. It is also called as customer analytics or CANalytics.
Marketing analytics is important because business has to take care of the costs related to
marketing because if costs are reduced than margins & ROI can be increased. The another
part of Marketing analytics which played a major role is Neuroscience.
Marketing Analytics is a part of Big Data Analytics where there are a huge volume of data
with a high velocity from which a data is mined through Data Mining techniques so that some
insights are gained from a pure raw form of data. Big data provides patterns & insights about
consumers and the market trends and the analysts implement those insights as a business
strategies to gain a Market advantage which is a Marketing analytics.

MEANING
“It's not what you look at that matters, it's what you see” - Henry David Thoreau.
Marketing analytics is a technical process which helps the business by gaining insights from a
raw big data of say market, consumer, social media, etc. and interpreting those insights into a
business strategy to gain competitive and market advantage.

Marketing analytics can also be done from social media where company is listed and there is
a lot to analyse like customer reviews, ratings, likes, traffic, etc. Facebook insights & Twitter
analytics are the major social media analytics tools which helps business in marketing
analytics.

Literature Review
Xu, Z., Frankwick, G. L., & Ramirez, E. (2016). Effects of big data analytics and
traditional marketing analytics on new product success: A knowledge fusion
perspective. Journal of Business Research, 69(5), 1562-1566.
This study introduces the knowledge fusion taxonomy to understand the relationships among
traditional marketing analytics (TMA), big data analytics (BDA), and new product success
(NPS). With high volume and speed of information and knowledge from different
stakeholders in the digital economy, the taxonomy (classification) aims to help firms build
strategy to combine knowledge from both marketing and big data domains.
Erevelles, S., Fukawa, N., & Swayne, L. (2016). Big Data consumer analytics and the
transformation of marketing. Journal of Business Research, 69(2), 897-904.
Consumer analytics is at the epicentre of a Big Data revolution. Technology helps capture
rich and plentiful data on consumer phenomena in real time. Thus, unprecedented volume,
velocity, and variety of primary data, Big Data, are available from individual consumers. To
better understand the impact of Big Data on various marketing activities, enabling firms to
better exploit its benefits, a conceptual framework that builds on resource-based theory is
proposed. Three resources—physical, human, and organizational capital—moderate the
following: (1) the process of collecting and storing evidence of consumer activity as Big
Data, (2) the process of extracting consumer insight from Big Data, and (3) the process of
utilizing consumer insight to enhance dynamic/adaptive capabilities. Furthermore, unique
resource requirements for firms to benefit from Big Data are discussed.
Zhao, P. Y., & Shi, Y. M. (2017, April). Predicting the likelihood of purchase by big
data. In AIP Conference Proceedings (Vol. 1834, No. 1, p. 040002). AIP Publishing.
Big data has changed our way of life and learning, for example, information extraction and
information analysis methods have been radically changed, which we usually classify
into data mining. Big data analytics is used to find the possibilities for consumers to purchase
the specific product. In this paper, we constructed models for estimating existing products
and predicting the likelihood of purchasing new products. And the results indicated that our
methods is feasible and effective.
Objective of the study:
 To gain insights of the concepts of Marketing Analytics
 To understand the usage of marketing analytics in business strategies
 To understand theory related with marketing analytics.

A Resource Based theory of Marketing Analytics (RBT)

RBT gives a great insight on Big Data’s impact on marketing, because companies resource
decides its performance & its competitive advantage and resources can be a physical capital
resource which includes a software where a big data is collected and stored, human capital
resource which includes a data scientists/business analysts/data analysts who gain insights
and from consumer activities and data mining from the market & organisational capital
resource which helps the business to transform that achieved insights and patterns into an
achievable actions.

A Diagrammatic representation of RBT model of marketing analytics is as follows:

Consumer’s Structured
data & activities Insights from
Semi-Structured Product
customers
Price Competitive
Physical Unstructured
Advantage
Resources Place
Big Data
Human Promotion
Resources
Value
Organizational
Resources Creation

By understanding the above diagram there’s a good example of Southwest Airlines which
records conversations between service personnel & consumers so as to gain insights using
speech analytics software (physical capital resources) and to re-engineering its organisation
(organisational capital resources) and accordingly train its service personnel (human capital
resources).

Conclusion: Some drawn insights

Data is the king in any business and that data has to be properly analysed. Companies are
always in a search for excellent data and beholding for intellectual ways to analyse this big
data so they can understand their customers and reach their goals much faster. If company
can understand its resources and then conduct marketing analytics than it provide a great
insights for business.
Challenges in marketing analytics
1) Sometimes data is missing or there is not a optimum use of available data and then it
occurs increase in costs and sometimes data discrepancy also occurs.

2) Data Privacy in this analytics field is very much important.

Benefits of marketing analytics

1) Through marketing analytics, great insights are gained through which it helps the
business in implementing a proper marketing plan.

2) It also helps in saving of costs behind marketing.

3) Helps in collection of proper data which helps in knowing customer demand.

 Some Jargons related to this research

1) Big Data: It is usually a big pool or say an ocean of data. For instance Google as a big
data.
2) Real time data: This data can also be known as live data which are generated on real
time intervals say for instance data generated from Black box, sensors, RFID’s, etc.
3) Industry 4.0: It is the subset of the fourth industrial revolution say for instance Apple
watch generates a lots of person’s health data and transferring this health data to
health care sectors for gaining better insights.
4) Petabyte: There are 1024 terabytes (TB) in a petabyte or 1 million gigabytes (GB).
5) Exabyte: Approximately 1024 petabytes makes one Exabyte.
6) Zettabyte: 1 billion terabytes makes one zettabyte.
7) Yottabyte: A trillion terabytes or a million trillion megabytes or 1000 zettabyte
makes one Yottabyte.

References
1) https://blogs.sas.com/content/customeranalytics/2014/09/17/seven-benefits-from-using-
marketing-analytics/
2) http://www.consultyasser.com/foundation-of-marketing-analytics-challenges-process-
profit/
3) https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/using-
marketing-analytics-to-drive-superior-growth