UNIT-1

Objective, Need, Scope and Significance of Marketing Analysis

Decision Making

Business Analytics- Descriptive, Predictive and Prescriptive Analysis

Overview of Using data

Types of Data

Introduction to Marketing Analysis:

Marketing analysis is the process of evaluating and interpreting marketing data to inform strategic
decision-making. It involves collecting and analyzing data on customer behavior, market trends, and
competition to identify opportunities and challenges. The objective of marketing analysis is to provide
insights that can guide marketing decisions and improve the effectiveness of marketing campaigns.

The need for marketing analysis arises from the increasing complexity of the marketplace, where
businesses face fierce competition and changing customer preferences. Marketing analysis helps
businesses stay ahead of the curve by identifying emerging trends and opportunities that can be leveraged
to drive growth.

The scope of marketing analysis is broad, covering a range of activities from market research to customer
segmentation to performance analysis. Its significance lies in the fact that it helps businesses make
informed decisions based on data rather than intuition or guesswork.

Decision Making:

Marketing analysis plays a crucial role in decision-making by providing data-driven insights that can
inform strategy development and tactical execution. It helps marketers answer questions such as:

Who are our target customers?

What are their needs and preferences?

How are they interacting with our brand?

How do we compare to our competitors?

Which marketing channels are most effective?

How can we optimize our marketing spend?

By answering these questions, marketing analysis enables marketers to make better decisions about where
to allocate resources, which marketing tactics to employ, and how to optimize their campaigns for
maximum impact.

Business Analytics- Descriptive, Predictive and Prescriptive Analysis:

Marketing analysis is a subset of business analytics, which is the use of data and statistical methods to
inform business decision-making. Business analytics can be broken down into three categories:
descriptive, predictive, and prescriptive analysis.

Descriptive analysis involves the use of data to understand what has happened in the past. It is often used
for reporting purposes and provides a summary of historical data. Examples of descriptive analysis in
marketing include tracking website traffic, measuring social media engagement, and analyzing customer
satisfaction surveys.

Predictive analysis uses data to forecast future trends and behavior. It is used to identify opportunities and
risks and inform decision-making about the future. Examples of predictive analysis in marketing include
customer lifetime value modeling, churn analysis, and market forecasting.

Prescriptive analysis uses data to optimize decision-making by recommending the best course of action
based on available data. It is used to solve complex business problems and make data-driven decisions.
Examples of prescriptive analysis in marketing include marketing mix modeling, pricing optimization,
and product portfolio analysis.

Overview of Using data:

Marketing analysis relies on the use of data to inform decision-making. Data can be collected from a
variety of sources, including internal databases, external data providers, and third-party tools. The most
common types of data used in marketing analysis include:

Demographic data: information about customers' age, gender, income, and other characteristics

Behavioral data: information about customers' actions, such as purchases, clicks, and website visits
Attitudinal data: information about customers' opinions, preferences, and beliefs

Competitive data: information about competitors' products, pricing, and marketing strategies

By using data to inform decision-making, marketers can gain a deeper understanding of their customers
and the marketplace, identify trends and opportunities, and optimize their marketing efforts for maximum
impact.

Types of Data:

There are two main types of data used in marketing analysis: quantitative and qualitative data.
Quantitative data is numerical in nature and can be measured and analyzed statistically. It is often used to
answer questions about the "what" and "how

UNIT-2

Introduction to Fundamentals of Statistics:

Statistics is a branch of mathematics that deals with the collection, analysis, interpretation, presentation,
and organization of data. It involves the study of the methods used to collect, summarize and interpret
data. The use of statistical methods is crucial in decision-making as it helps to make sense of data by
identifying patterns and trends.

Identification of Statistical Techniques-Population Vs Sample:

Statistical techniques can be classified into two types: Population and Sample. A population refers to the
entire group of individuals or objects that share common characteristics and are of interest to the
researcher. A sample, on the other hand, is a subset of the population that is used to represent the entire
population.

Variables/Data:

Variables are characteristics or attributes of a population or sample that are being measured or observed.
Data is the information that is collected during a study or research. There are two types of data:
quantitative and qualitative.
Different Visualization Techniques for Data:

Data visualization is the graphical representation of data and information. It helps to communicate
complex information in a simple and easy-to-understand manner. Some common techniques of data
visualization are scatter plots, bar graphs, line graphs, histograms, and pie charts.

Descriptive Measures:

Descriptive measures are statistical parameters that summarize and describe the features of a dataset.
These measures include measures of central tendency such as mean, median, and mode, and measures of
variability such as range, variance, and standard deviation.

UNIT-2

Normal Distribution and Linear Regression:

The normal distribution is a probability distribution that describes how the values of a variable are
distributed. It is a symmetric distribution with the majority of the values clustered around the mean.

Linear regression is a statistical method used to establish a relationship between two variables. It involves
drawing a line of best fit through a scatter plot of data points to determine the correlation between the two
variables.

Application of Linear Regression:

Linear regression can be applied in many fields, including finance, economics, engineering, and social
sciences. For example, in finance, it can be used to predict stock prices based on historical data.

UNIT-3

Revenue Management and Pricing:

Revenue management is the process of maximizing revenue by managing pricing and inventory. It
involves analyzing customer behavior and market trends to determine the best pricing strategy.
Point-of-Scale data:

Point-of-scale data refers to the information collected at the point of sale, such as transaction data,
customer information, and inventory data.

How to arrive at the Right Pricing Approach:

The right pricing approach depends on various factors such as competition, demand, and cost of
production. A company can use various pricing strategies, such as cost-plus pricing, value-based pricing,
and dynamic pricing, to arrive at the right pricing approach.

Managing Pricing to meet Topline and Bottom Line Goals:

Topline goals refer to the revenue targets of a company, while bottom-line goals refer to the profit targets.
Managing pricing is crucial to meet both the topline and bottom-line goals of a company.

Pricing Plans:

Pricing plans are a set of pricing strategies that are designed to meet the needs of different customers.
Examples of pricing plans include subscription-based pricing, usage-based pricing, and tiered pricing.

UNIT-4

Consumer Decision Making and Analytics:

Consumer decision making involves the process of identifying consumer needs, evaluating alternatives,
and making a purchase decision. Analytics can help to understand consumer behavior and preferences,
which can be used to develop targeted marketing strategies.

Market Segmentation Using Analytics:

Market segmentation is the process of dividing a market into smaller groups of customers with similar
needs or characteristics. Analytics can be used to identify these segments and develop targeted marketing
strategies.
Consumer Perception Mapping:

Consumer perception mapping is a tool used to understand consumer perceptions of a product or service.

Topic: Consumer Decision Making and Analytics

Market Segmentation Using Analytics:

Market segmentation is the process of dividing a market into smaller groups of consumers with similar
needs or characteristics. Analytics can help in identifying these segments by analyzing various data points
such as demographics, psychographics, behavior, and more. For example, a company that sells beauty
products can use analytics to segment its customers based on their age, gender, income, and beauty
preferences.

Consumer Perception Mapping:

Consumer perception mapping helps in understanding how consumers perceive a brand or product. This
can be done by analyzing customer feedback, reviews, social media posts, and more. Perception mapping
can help companies identify areas where they need to improve their product or brand image to better meet
consumer needs and expectations.

Push Vs Pull Strategy:

A push strategy involves promoting a product directly to consumers through advertising, sales
promotions, and other marketing efforts. A pull strategy, on the other hand, involves creating a demand
for a product by generating interest among consumers. Analytics can help companies identify which
strategy is more effective based on consumer behavior and market trends.

Assortment and Demand:

Assortment refers to the range of products offered by a company. Analytics can help companies optimize
their product assortment by identifying which products are in demand among consumers and which are
not. By offering the right mix of products, companies can increase their sales and profitability.

Bundling of Product and Services:

Bundling refers to offering multiple products or services as a package deal to consumers. Analytics can
help companies identify which products or services are frequently purchased together and create bundles
that offer value to consumers. For example, a telecommunications company can offer a bundle of internet,
phone, and television services to customers at a discounted price.
 UNIT-5

Introduction:

Customer Lifetime Value (CLV) is a crucial marketing metric that helps in understanding the total amount
of revenue a customer is expected to generate during their relationship with a business. It provides a
detailed insight into how profitable a customer is in the long-term, and helps organizations make informed
decisions regarding their marketing strategies, pricing policies, and customer service initiatives. The
calculation of CLV helps organizations in identifying high-value customers, retaining them, and
maximizing their profitability.

Loyalty - The Concept:

Customer loyalty is a critical factor in calculating CLV. The concept of loyalty is characterized by the
willingness of customers to continue to buy from a company despite the availability of other options in
the market. Loyalty is the result of an emotional connection between the customer and the brand. Loyal
customers are valuable for a company as they provide repeat business and help in acquiring new
customers through positive word-of-mouth.

Customer Lifetime Value Concept:

Customer Lifetime Value (CLV) is the net present value of the future cash flows a customer is expected to
generate during their relationship with a company. It is a measure of the customer's total value to the
business over time. CLV is an essential metric for businesses that are looking to maximize customer value
and profitability. CLV helps in identifying high-value customers, improving customer acquisition and
retention, and optimizing marketing strategies.

Calculation of Customer Lifetime Value (CLV):

There are various approaches to calculating CLV, depending on the nature of the business, customer
behavior, and data availability. The simplest approach is to calculate CLV as the total revenue a customer
generates during their relationship with a company minus the cost of acquiring and servicing the
customer. Another approach is to use statistical models to estimate future customer behavior based on past
data. The following formula represents a basic approach to calculating CLV:

CLV = (Average Purchase Value x Average Purchase Frequency x Customer Lifespan) - Customer
Acquisition Cost
Using CLV to Make Decisions:

CLV is a crucial metric for making informed decisions regarding customer acquisition, retention, and
profitability. By analyzing CLV, companies can identify the most profitable customer segments, improve
customer service initiatives, optimize pricing policies, and allocate marketing resources effectively. For
example, if a company finds that its high-value customers are more likely to purchase certain products or
services, it can allocate its marketing resources to target these customers with personalized offers and
promotions.

Net Promoter Score:

Net Promoter Score (NPS) is a metric that measures customer loyalty and satisfaction by asking
customers to rate the likelihood of recommending a company's products or services to others on a scale of
0-10. Customers who rate a company between 0-6 are considered detractors, those who rate between 7-8
are considered passives, and those who rate 9-10 are considered promoters. NPS is calculated by
subtracting the percentage of detractors from the percentage of promoters.

Advertising, Sale and Sales Analytics:

Advertising and sales analytics play a crucial role in understanding customer behavior, preferences, and
purchase patterns. Sales analytics help companies in analyzing sales data to identify trends, customer
preferences, and potential opportunities for growth. Advertising analytics, on the other hand, help
companies in analyzing the effectiveness of their advertising campaigns and optimizing them for better
results.

For example, by analyzing sales data, a company may find that customers who purchase a certain product
are more likely to buy a complementary product as well. The company can then use this information to
create bundled offers that cater to the customer's preferences and increase overall sales. Similarly, by
analyzing the effectiveness of its advertising campaigns, a company can identify which campaigns are
generating the most leads and revenue, and optimize them for better results.
Conclusion:

Customer Lifetime Value (CLV) is a critical metric for businesses that are looking to maximize customer
value and profitability.

Marketing Analytics has made it easier to calculate and estimate the Customer Lifetime Value (CLV)
which enables marketers to predict the amount of revenue they will earn from a single customer over the
entire duration of their relationship with the brand. CLV can be used to make important business decisions
such as acquisition costs, product pricing, and advertising budgets.

The Net Promoter Score (NPS) is another important metric used in Marketing Analytics. It is a simple but
effective tool used to measure customer loyalty and satisfaction. It measures the willingness of customers
to recommend a brand to their family and friends. NPS is a valuable metric as it provides insights into
how customers view your brand and helps identify areas for improvement.

Advertising, Sale, and Sales Analytics are other important topics in Marketing Analytics. Advertisers use
various metrics such as impressions, click-through rates, and conversion rates to measure the
effectiveness of their advertising campaigns. Sales analytics, on the other hand, focus on analyzing sales
data to gain insights into customer behavior and preferences. Sales analytics helps in identifying the most
profitable customers, sales channels, and products.

In conclusion, Marketing Analytics has become an indispensable tool for marketers to make data-driven
decisions. From customer segmentation to pricing strategies and advertising campaigns, Marketing
Analytics helps in optimizing various aspects of the marketing mix to achieve better results.