Analytical Approach to Marketing

Decisions
Fall 2021-IBA Karachi

Instructor
Fawad Mahdi
 Introductions

Course overview

Agenda Course objective

House keeping

Presentation
ABOUT MYSELF
 • 12+ years of industry experience – Finance,
strategy, entrepreneurship, & finally data
science!

Work • Consulted and worked on some of the

Experience challenging data problems for large FMCGs,
Fintechs, Logistics & much more..
Data Science Journey Pakistan
• Training students and professionals with no CS
background to learn Data science
 • First Name
MORE • Why are you here?
• What are your expectations from the
ABOUT YOU! course?
Course Overview
Course objectives

• Have a critical mindset about a problem

• Understand there is no “one solution fits all” perspective.
• Develop an understanding of how can YOU help organizations get
meaningful information from their data (with a focus on marketing)
• Able to communicate in a data language
• Able to solve data problems yourself via industry leading tools like
Tableau.
House keeping

• Be on time because I won’t be repeating the concepts

• Please don’t make learning for others a mess (I am perfectly fine with you bunking classes)
• Have a laptop fully charged/backup internet (in case KE shows it’s magic)
• Try to understand the concept and its application rather than worry about grades. (My story of
Sydney Uni)
• Even if things get difficult, don’t give up!
• Youtube, Google will be your best friends in this course.
• I might take attendance randomly during the class, not because I want to catch you off-guard but I
don’t always remember to take it!
• Install relevant software before the lab. Lab will take place in class on your laptops (Mainly Tableau –
full of fun!)
• Focus on learning not on grades. No one will ask you what you earned in this course, rather what you
CAN do after this course.
• Namaz breaks will be provided.
Lessons learnt from last semester

• You cannot call or message me on my cell phone, unless urgent!

• Keep track of your attendance/quizzes and exams
• I am not responsible if you miss a quiz or an exam
• If you need an appointment, email me or ask TA to get an appointment for you
Questions?
 Lecture 1
Importance of data analytics in decision making
Gaining competitive
advantage
Stability is no longer the benchmark
of success in business

A business must focus on agility and

innovation if it wants to prosper

Navigating this constant fluidity

brings a range of unique challenges
 How do they stand out from the
competition, and be perceived as

Competitive unique despite having similar

operations as others in the industry?

advantage is
good but … And how do they remain proactive
rather than reactive in their
approach?
What’s happening now?
• The data tidal wave
• More data has been created in the last two years than in all of human history

2016 2020
Big Data Era
Understanding the Data Space

• In the past, firms could employ teams of statisticians, modelers, and analysts
to explore datasets manually, but the volume and variety of data have far
outstripped the capacity of manual analysis

• Alternately, computers are now super fast – algorithms have been

optimized.

• Hence we see a wide range of application of these concepts in organizations

today.
Understanding the Data Space

• Probably the widest applications of data-mining techniques are in marketing

for tasks such as targeted marketing, online advertising, and
recommendations for cross-selling.

• Data mining is used for general customer relationship management to

analyze customer behavior in order to manage attrition and maximize
expected customer value

• The finance industry uses data mining for credit scoring and trading, and in
operations via fraud detection and workforce management.
The gathering and analysis
of data in real-time is
allowing us to address
some of humanity’s biggest
challenges

Video: The Human Face of Big Data

INTRODUCTION

Data Analytics is an interdisciplinary field which includes

Marketing Analytics as an essential element in influencing
data driven decision making.

20
Few Reasons to learn Data analytics

DA is booming Data the new Oil Skill of the century

Data science is a field More data means more HBR termed data science
that is seeing continued information that can be as the sexiest job of the
growth on a tremendous extracted using 21st century.
advanced algorithms to
scale. 25% growth
solve business problems. More importantly, you
each year since 2015
can make a positive
impact on society

21
Reimagining A.I. is reshaping
A.I. will add
+$13 Trillion in
the business
changing from crop
the next 10 years
in productivity
harvests to bank
paradigms loans to logistics
gains and new
market creation
Some terminologies
• At a high level, data science is a set of fundamental principles that
guide the extraction of knowledge from data

• Data mining is the extraction of knowledge from data, via

technologies that incorporate these principles.
EXAMPLES OF DATA ANALYTICS
▪ Customer segmentation for a shopping mall
▪ Which company to invest your savings?
▪ Who is going to be saved? Titanic
▪ Predicting default on credit/nano loans
▪ Predicting house price.
▪ Predicting customer lifetime value (CLV) for on online
store
▪ Predict sales via different marketing channels 24

▪ Customer churn – saving our brand

Use cases
Use case 1

How does Walmart reduce its health care expenditures on employees?

• Just predict who will fall sick!
• Collect health and personal data (eating habits, spending habits etc.)
Use case 2
Use case 3- Banking the Unbanked

• Predicting loan default rates

using digital footprints for the
population without banking or
credit history

• A.I. enabled lending to 5 million

customers who were not served
by traditional banks
Use case 5

• MasterCard had high customer attrition since it flagged transactions as fraudulent

when they were not – False positives
• Impact to wider economy $118 Billion
• Solution - Building an A.I. tool that studied data in real-time to make predictions
Use case 4

35%
of revenue is generated by its
Recommendation Engine!
The Magic behind Touchless Checkout

The world’s most

advanced shopping
technology

Amazon go
QUIZ
Where do you want
to go in a data
team?
There are a variety of roles