Marketing and Web

analytics
Objectives of Marketing analytics

 Getting information about new market trends

 Demand forecasting
 Evaluating successful marketing programs
 Analysing ROI
 Forecasting
 Relation building
 Better Segmentation and Positioning
 Break even quantity analysis
 Transportation model to decide which product from which warehouse to
supply
Metrics
 Demand forecasting models
 Trend projection methods
 Average, Moving average, Weighted average, Exponential smoothing
methods
 Time series analysis- Tx Cx Sx E factors
 Regression analysis- Eg. Predict sales if Advertisement budget is known.
 Factor analysis and Cluster analysis for Segmentation
 Profitability Ratios- Revenue = FC + VC + Profits
 Gross Profit margin = Profit / Sales
 Net Profit Margin = (Profit – Tax) / Sales
 Inventory Turn over ratio = Sales / Average inventory
 Retail sales / Square feet area ratio
Data available in a Marketing
department
 Sales budgets
 Sales figures achieved
 Customers satisfaction survey data
 Customer profile data
 Competitor performance data
 Accounting data on profits, tax paid
 Marketing programs budget data
 Inventory movement data
 Invoice data
 Online business data
 Social media data
Descriptive, Predictive, Prescriptive
analytics in Marketing

DESCRIPTIVE ANALYTICS

MARKETING
ANALYTICS
PREDICTIVE ANALYTICS

PRESCRIPTIVE ANALYTICS
DESCRIPTIVE ANALYTICS IN MARKETING
 Sales analysis- product-wise, area-wise, sales man-wise
 Competitor sales analysis
 Enquiry to order conversion ratio
 Customer satisfaction index
 Customer complaints analysis
 Telecalling/ call centre data analysis
 Budget and actual expenses analysis
 Profitability ratios- Gross profit, Net profit
 Lost customer analysis
 Sales per square feet ( in retail)
 Effectiveness of marketing programs ( advt campaign)
 Segmentation, Positioning
 Social media analytics ( Reputation management)
 Web analytics
PREDICTIVE ANALYTICS IN MARKETING

 Demand forecasting
 Regression model to predict sales based on assumed advertisement
budget, price levels, economic variables etc.
 Brand switching behavior ( AAAA, AABBBA, ABCDAB)
 Lifetime customer value LCV
 Probability to respond to promotions
PRESCRIPTIVE ANALYTICS

 Transportation model to decide which is the store from which a

product should be supplied to market, considering constraints like
transportation cost, delivery time, distance etc.
 Deciding product mix . Considering constraints on inventory stock,
labor available etc. Which product mix will give optimum profits.
LP problem.
 How much incentives can be paid, considering constraints on
budget available, number of sales people etc. Which incentive
scheme will optimize profits.
 Communication or Promotion mix decision- which combination of
Advt, SP, Personnel selling is recommended based on total budget
available and effectiveness data from past.
Analytics in Segmentation
 Segmentation is the process of dividing the total customer
base in to smaller groups based on certain preference and
tastes and offering suitable products for each segment.
 Bases for Segmentation
 Geographic segmentation
 Demographic segmentation
 Psychographic segmentation
 Behavioral segmentation
 Advantages of Segmentation
 Better focus on segments, more efficient resource
allocation, Identify new segments, market expansion, better
communication, Target media, Better positioning.
Statistical tools used for segmentation
 Factor analysis- used as a data reduction technique. If there are large
number of variables influencing Sales, we can use Factor analysis to group
and reduce the number of variables . Many independent variables are
combines as an underlying group variable. From 30 influencing factors,
we may reduce it to 3 or 4 underlying variables through Factor analysis.
 Cluster analysis- this is also a grouping technique where segments are
identified with maximum homogeneity within segment and maximum
variation between segments.
 Regression analysis- it establishes a relation between a Dependent
variable and a number of Independent variable. The amount of influence
each independent variable has is indicated by a coefficient.
 Eg. Sales = A constant + 0.2 x income – 0.3 x Price + o.4 x Price of related
goods. For segmentation, we can select variables which have higher
influence or larger coefficients.
Analytics in Positioning
 Positioning is creating a unique image about the Brand in the minds
of the customers. It is done by identifying a unique feature and
then communicating it to the consumer.
 Positioning can be done based on
 Attributes
 Price- Quality positioning
 Use or application positioning
 User profile positioning
 Product class positioning
 Benefit positioning
 Corporate Brand positioning
Analytical tool for Positioning- MDS and
Perceptual Mapping
 Multi Dimensional Scale is a measurement tool for consumer preference to a
brand or store based on many dimensions simultaneously. This space distance
can be visualized as a diagram or Map called Perceptual mapping.
 Eg. Using suitable scales, we can ask customer perception about different
Retail shops in a city. The dimensions used are Price levels ( High to Low) and
Location convenience ( High to Low). Using these 2 dimensions we can create
a Perceptual map as follows.

Price
Location
Web analytics
 Is the application of data analytics tools to analyse the customer
behavior and other information received through the website of
the company.
 Eg. Hit rate analysis
 First visitor analysis, Repeat visitor analysis, Lost visitors analysis
 Single page view
 Duration of visit
 Click path
 Web analytics collects data on customer activities on the web and
uses it for
 Traffic control optimization, Advertising, Search engine
optimization, E marketing plans
Terminologies in Web analytics
 Hit or click
 Page view
 Event
 Session
 First visit
 Unique visor ( desk top plus browser)
 Repeat visitor
 Impression ( advertisement)
 Single page visitor
 Bounce rate
 Page visit duration, Session duration, Page depth
 Click path
Web analytics process

Develop KPI
Collection of web metrics
Processing Data Online strategies
data, counts Conversion rate
Time on page Save money
Time stamp Average order
Bounce rate Make money
Referral URL value
Unique visitors Market share
Query terms Task completion
rate
Web data collection methods

 Log files- the server keeps a local record of IP address,

date, time, referral site, OS information, cookie etc
 Page tagging- an invisible program detects when a page
is loaded for view and sends the details of the visit to a
remote server using java script. There is facility to
select complete details of visit or important details or
no details.
Advantages of web analytics
 Traffic- monitor and control traffic on the website. It provides information on
the visitors, from which media, which browser they are coming and where
they live, which pages they see etc. If most of the visitors are coming from
social media, company can invest more in social media marketing.
 Page view- data on which pages visitors are seeing more. Eg, for a
manufacturing co, if the visitors are seeing demo clips of products more,
then co can add more demo videos.
 Advertising- companies increase revenue by permitting advertisements in
their website. The detailed data on traffic, page view , referral websites etc
will help to canvass advertisements and charge more for the advertisements
if the co provides authentic web view data.
 Optimise website- if the co studies and analyse the actions of visitors, it will
be able to stream line the website , modify content, give better targeted
advertisements, rearrange navigation etc.
 E- marketing plan- better knowledge of web traffic and customers will help
the co to plan its e-marketing plans more effectively.
Click stream analytics
 It is the analysis of customer’s activities on the web through the
clicks they make on the page. The details of where he clicks, for
what purpose etc are recorded in the browser or server.
 This analysis helps to capture data on website clicks and make
analysis like
 Click path optimization
 Market basket analysis- there may be different routes or paths to
land on the final product for purchase
 Next best product analysis- if one product is not available, suggests
next best alternative
 Micro segmentation based on web behavior
Engagement quantification framework
 When large decisions and projects are being
implemented in a society, it is a good practice to inform
and involve the opinions of govt, organisations,
communities and individuals on the subject. It helps to
achieves out comes, develop understanding, solutions
for issues of concern. In other words, engagement
includes public and other stakeholder participation by
giving their opinions.
 It creates a situation of no surprise and remove
disagreements and conflicts in future
 It provides advance information to affected parties
Effective Engagement process or steps
 Clear and timely communications to stakeholders
 Transparent decision making
 Inclusiveness ( all levels of community included)
 Collaboration and cooperation among stakeholders
 Integrity , mutual trust and ethics.
 Engagement should happen through all stages of the
project implementation
 Concept stage, Evaluation of options, Primary design,
Detailed design, Implementation and commissioning
Social Media Analytics
 The opinions and reviews shared in Face book,
Whatsapp groups etc gives positive and negative
opinions about company and products.
 It is useful to analyse and compare the contents of
these comments.
 Online rating facility and its score analysis will help
improving the firm’s service and image.
User Generated Content (UGC) on the
web
 Blogs
 reviews
 Wikis
 Discussion forums
 Posts, chats, tweets
 Podcasts
 Digital images, files
 advertisements
Reason for adding UGC

 Better understanding of customers

 More site engagement
 Increased customer satisfaction
 Stronger community
 SEO benefits ( more content means more search
visibility)
 Trust worthy content
Sentiment analysis
 Also called Opinion mining or emotion AI
 It refers to the use of natural language processing, text analysis, etc to
analyse subjective info or opinions on the web.
 It gathers and analyses text info from reviews, surveys, u tube uploads etc
 It is a reflection of public perception
Data driven Predictive models
 Models using data to predict future events.
 Eg. Retail Pricing Mark down model.
 Mark down means discount. If a retail store has some
quantity of goods to be sold in a 6 months period, it can
offer increasing amount of discounts for 6 months. The
units that can be sold at various price levels can be
predicted using past sale data , applied to a suitable
model, like Regression model. This will help to liquidate
the stocks in the expected time of 6 months.