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I T I S K N O W L E D G E T H AT L I B E R AT E S

MARKETING
ANALYTICS
Dr. V. Raj Kumar
Assistant Professor
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Course Objectives
I T I S K N O W L E D G E T H AT L I B E R AT E S

The objective of the course is to show you the benefits of using a systematic and
analytical approach to marketing decision-making. An analytical approach will enable you
to:

1. Use and execute data analytic techniques, and case studies to understand how to
solve marketing analytics problems in a scientific and process-driven manner, and

2. Understand how the “first principles” of marketing strategy help firms organize the
analytics opportunities and challenges that exist in today’s data era.
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Learning Outcomes
I T I S K N O W L E D G E T H AT L I B E R AT E S

Upon succeeding in this course, students will be able to complete the following tasks:
1. Execute and interpret a factor analysis, cluster analysis, and classification analyses
to better understand how to manage customer heterogeneity by segmenting and
targeting buyers. (L1)
2. Understand how choice model analysis can inform customer preferences and
improve customer lifetime valuation estimates. (L2)
3. Execute and interpret a conjoint analysis study with application to new product
design. (L3)
4. Use a response model to improve marketing resource allocation decisions. (L4)
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I T I S K N O W L E D G E T H AT L I B E R AT E S
TEXT BOOKS
• Palmatier, R. W., Petersen, J. A.,
Germann, F. (2022). Marketing
Analytics: Based on First Principles.
United Kingdom: Bloomsbury
Academic.
Miller, T. W. (2015). Marketing data science: modeling techniques
in predictive analytics with R and Python. FT Press.
 Inge, C. (2022). Marketing Metrics: Leverage Analytics and Data
to Optimize Marketing Strategies. Kogan Page Limited.
 Grigsby, M. (2022). Marketing analytics: A practical guide to
improving consumer insights using data techniques. Kogan Page
Publishers.
 Venkatesan, R., Farris, P. W., Wilcox, R. T. (2021). Marketing
Analytics: Essential Tools for Data-Driven Decisions. United
States: University of Virginia Press.
 Verhoef, P. C., Kooge, E., Walk, N., Wieringa, J. E. (2021). Creatin
g Value with Data Analytics in Marketing: Mastering Data
Science. United Kingdom: Taylor & Francis.
 Griffel, M., & Guetta, D. (2020). Python for MBAs. Columbia
University Press.
 Schwarz, J. S., Chapman, C., & Feit, E. M. (2020). Python for
marketing research and analytics. Springer Nature.
 James, G., Witten, D., Hastie, T., Tibshirani, R., & Taylor, J. (2023).
An introduction to statistical learning: With applications in
python. (No Title). https://www.statlearning.com/
 Software Tools

MS Excel

Tableau

KNIME
Python

R
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Course Outline
I T I S K N O W L E D G E T H AT L I B E R AT E S

Pedagogy – “Tell-Show-Do”
• Lectures Class Discussion
• Textbook Case Discussion Flipped Classroom

Evaluation Scheme

Sl. No. Components Activities Percentage (%)

1 Components – 1 Class Participation/Attendance 10
2 Components – 2 Quizzes 10
3 Components – 3 Project 20
4 Mid Semester Examination Written Exam 25
5 End Semester Examination Written Exam 35
Total 100%
 Define marketing analytics
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What are Marketing Analytics?

I T I S K N O W L E D G E T H AT L I B E R AT E S

• Marketing analytics (also called customer analytics, data analytics, or big data) are
changing the very world we live in and how we interface with businesses.
• With marketing analytics, firms can quickly make optimized decisions; they can
connect data in novel ways and thus earn incremental revenue.
• This expansion of marketing analytics has been driven by many technological
advances, such as the internet, GPS, smartphones, cheap data storage and
processing, artificial intelligence (AI), and widespread digitization.
• In many cases, the technology has advanced faster than managers’ ability to apply
the advances effectively.

Marketing analytics can be defined as “a technology-enabled and model-supported

approach to harness customer and market data to enhance marketing decision
making.”
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Definitions and Aliases of Marketing

I T I S K N O W L E D G E T H AT L I B E R AT E S

Analytics
• Data analytics refers to a “multidimensional field that uses mathematics, statistics,
predictive modeling and machine learning techniques to find meaningful patterns and
knowledge in recorded data.”
• Business analytics typically reduces the scope and focuses on data mining,
predictive analytics, applied analytics, and statistics targeted at industry business
processes.
• Big data analytics is similar to data analytics but highlights the amount or breadth of
data processed (i.e., very large amounts) and often the use of specific techniques
(data mining, machine learning, AI) that are most relevant for this type of data
structure.
Marketing analytics can be defined as “a technology-enabled and model-supported
approach to harness customer and market data to enhance marketing decision
making.”
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Difference between Marketing Research &

I T I S K N O W L E D G E T H AT L I B E R AT E S

Marketing Analytics
Marketing Research Marketing Analytics

Technology-led data collection and analyses

Data collection and analyses is part of market
considered as marketing analytics (i.e., analysis
research
enabled by technology).

Involves only collecting the data that answers Assembles massive amounts of data which tends to
specific questions. be impersonal and multi-faceted.

Used to predict outcomes based on a market’s size,

Findings are usually short-term, making it a more
competitor landscape, feasibility of sales channels,
ongoing process for businesses to stay updated.
social factors, etc.

Involves collating both quantitative and qualitative

Focuses on quantitative data
data.
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Evolution of Marketing Analytics

I T I S K N O W L E D G E T H AT L I B E R AT E S

• Marketing analytics have evolved dramatically due to the increasing amount and availability of
data in the digital economy, as well as novel analysis techniques and uses of data analytics.
• Marketing analytics in turn have evolved in two parallel, interrelated areas: the data and the
analytics.
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I T I S K N O W L E D G E T H AT L I B E R AT E S

Identify in detail the importance of learning

and utilizing marketing analytics. &
Explain the benefits of understanding
marketing analytics for firms and
individuals.
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Firm Example: Grocery Store

I T I S K N O W L E D G E T H AT L I B E R AT E S

Kroger’s direct mail coupon to customers prompted a redemption rate is over 70

percent within six weeks of the mailing, compared with an average coupon redemption
rate of 7.93 percent.

What did the store do?

By marketing analysis, the store:
• Creates a DNA on each customer to see what drives their behavior
• Target each customer with the most effective coupons
• These customized coupons are used much more often than they would have been without this
deep customer knowledge
• The coupons have generated $10 billion in revenue for Kroger
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Firm Example: Hotel Industry

I T I S K N O W L E D G E T H AT L I B E R AT E S

“Hotels can double their profitability by successfully marking up rooms just 10 percent.”

• There are times when there are not enough hotel rooms to meet massive customers'
demand and times with many unused rooms due to low demand
• This is an example ___________ management _______ pricing strategy

• Hotels can vary prices to attempt to match supply and demand in a dynamic fashion
• This is an called _______ pricing strategy

• Using customer data analysis, hotels can drop room prices when demand on the website and
call centers is low but rapidly increase prices when it senses an increase in demand
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The Data
I T I S K N O W L E D G E T H AT L I B E R AT E S

Science
Process

• SEMMA
• Sample, Explore, Modify, Model,
Assess

• CRISP-DM
• Cross Industry Standard Process
for Data Mining

• KDD
• Knowledge Discovery in
Databases
 CRISP-DM
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 The Team Data Science Process (TDSP)
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Assignment for Next Class

I T I S K N O W L E D G E T H AT L I B E R AT E S

• https://www.youtube.com/watch?v=OdW7vhYYSdM
• Watch this video and describe what they are doing with reference to CRISP-DM
process (see previous slide)
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I T I S K N O W L E D G E T H AT L I B E R AT E S

A Classic Data Science Project

It always starts with some data …

Data Model
Model Training Model Testing Deployment
Preparation Optimization

Data Manipulation Model Training Parameter Tuning Performance Files & DBs
Data Blending Bag of Models Parameter Optimization Measures Dashboards
Missing Values Handling Model Selection Regularization Accuracy REST API
Feature Generation Ensemble Models Model Size ROC Curve SQL Code Export
Dimensionality Reduction Own Ensemble Model No. Iterations Cross-Validation Reporting
Feature Selection External Models … … …
Outlier Removal Import Existing Models
Normalization Model Factory
Partitioning …
…
 Any Questions?

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