MARKETING

ANALYTICS
UNIT 1 MBA 3RD SEM (MK)
MS. PARVICA GUPTA
 MARKETING ANALYTICS
• Marketing analytics is the process of collecting, measuring, analyzing and
interpreting data about marketing campaigns and activities to improve
marketing effectiveness.
• Marketing analytics is the process of tracking and analyzing data from
marketing efforts, often to reach a quantitative goal.
• Itinvolves collecting data from various sources such as customer
surveys, social media, and sales data to gain insights into customer
behavior and marketing campaign.
 MARKETING ANALYTICS
• Marketing analytics is the study of data to evaluate the performance of a
marketing activity. By applying technology and analytical processes to
marketing-related data, businesses can understand what drives consumer
actions, improve their customer experiences, refine their marketing campaigns,
and optimize their return on investment, craft future marketing strategies.

• The goal of marketing analytics is to gain insights into the performance of

marketing campaigns and to identify areas where improvements can be made.
 COMPONENTS
• The marketing data analytics sphere usually includes three components:
analyzing the present, reporting on the past, and predicting for the future.
• Analyzing the present: Marketers need to assess marketing analytics from
current campaigns and activities in order to get a clear picture of where the
marketing activities stand and to compare them to past campaigns. In this case,
they’ll be focused on website traffic and sources for it, social media engagement
and click-throughs, as well as the current state of the sales pipeline and revenue
metrics.
• Reporting on the past: Marketing departments also rely on reported marketing
data analytics at the completion of campaigns, focusing on information such
as lead conversion, customer lifetime value, and sales funnel churn rate.
• Predicting for the future: Finally, marketing departments rely on marketing
analytics to plan future projects. This type of data analytics in marketing will
include lead scoring, targeted content distribution, and upselling readiness and
relies on datasets as well as modeling and AI.
Characteristics of Marketing
Analytics
1. Data Driven:- It relies on data to make decisions. This data can
come from a variety of sources such as website traffic data, social
media data, and customer purchase data.
2. Measurable:- It can be used to track the performance of
marketing campaigns. This allows businesses to see what is working
and what is not, and to make adjustments as needed.
3. Actionable:- It can be used to take action. This means that
businesses can use the insights from marketing analytics to improve
their marketing campaigns and achieve their marketing goals.
 Benefits of Marketing
Analytics
1. Improved marketing campaign performance
• Marketing Analytics helps businesses improve the performance of their marketing
campaigns by identifying what is working and what is not. This can lead to increased
brand awareness website traffic and sale.
2. Increased customer insights
• Marketing Analytics can helps businesses gain insights into their customers , such as their
interests, demographics and buying behaviour. This information cab be used to create
more targeted and effective marketing campaigns.
3. Beter decision making
Marketing Analytics helps businesses make better decisions about their marketing
strategies. Businesses can allocate their marketing budgets more effectively and achieve
their marketing goals.
Scope of Marketing Analytics
 Marketing Analytics
Advantages
1. Better Decisions About Branding
• Harnessing the marketing analytics advantages for branding decisions equips businesses with
the insights needed to craft a resonant and authentic brand identity. Through a detailed analysis
of consumer behavior, competitive positioning, and market trends, companies can fine-tune their
branding efforts to echo the values and preferences of their target audience.
• This alignment not only strengthens brand recognition but also cultivates a loyal customer base
that identifies with and champions the brand, setting the foundation for long-term success.
2. Better Forecasting
• The predictive capabilities inherent in marketing analytics offer a strategic foresight that is
invaluable in today’s fast-paced market environments. Businesses can leverage this foresight to
anticipate market shifts, adapt to evolving consumer preferences, and strategically time their
market entries or product launches.
• This level of forecasting precision minimizes risk and positions companies to capitalize on
emerging opportunities, ensuring they remain competitive and proactive in their market
strategies.
3. Increased ROI
• Marketing Analytics can helps businesses to increase their ROI by tracking the
return on investment of their marketing campaigns. This information can be used to
see which campaigns are most effective and to allocate future marketing budgets
accordingly.
4. Better Decisions About Product Updates
• Inthe dynamic arena of product development, marketing analytics serves as a
guiding light for making informed decisions about product updates and
enhancements. Detailed analyses of user feedback, engagement data, and market
demand help pinpoint the features and improvements that will have the most
significant impact on user satisfaction and product performance.
• This insight-driven approach to product updates ensures that resources are
invested in developments that genuinely resonate with users, thereby enhancing
product value and user retention.
5. Better Marketing Strategies
• Expanding on the advantage of informed strategy development, marketing
analytics empowers businesses to tailor their marketing efforts with unparalleled
precision. By unraveling the intricacies of consumer engagement, campaign
effectiveness, and content resonance, marketers can craft strategies that not only
speak directly to their audience’s needs and interests but also optimize the
allocation of marketing resources.
• Thisstrategic refinement leads to more impactful marketing initiatives, higher
conversion rates, and a stronger alignment between marketing activities and
overarching business objectives.
• In
sum, the strategic leverage gained through marketing analytics is transformative,
enabling businesses to navigate the complexities of the marketing landscape with
confidence and clarity.
• By embracing the depth of insights provided by marketing analytics, companies can
forge a path to enhanced brand equity, customer satisfaction, and market agility,
ultimately achieving a competitive edge in the ever-evolving business landscape.
Marketing Analytics
Disadvantages
1. Too Much Secondary Data
• One of the notable marketing analytics disadvantages is the sheer volume of data
available. In today’s digital age, the amount of information can be overwhelming,
making it challenging to discern what’s truly valuable.
• This overflow can obscure critical insights, delay decision-making, and increase the
likelihood of focusing on irrelevant metrics. To mitigate this, companies need to
develop robust data management strategies and focus on key performance
indicators that align with their strategic goals.
2. Requires the Right People
• Another significant disadvantage is the necessity for specialized
talent. Marketing analytics is a sophisticated field that combines
elements of marketing, statistics, and technology.
• As such, interpreting the data correctly and drawing actionable
insights requires skilled analysts who can navigate the nuances of
data analytics.
• This
creates a demand for professionals with a rare blend of skills,
making it challenging for many businesses to find the right
personnel.
• The shortage of qualified individuals can hinder the effective
implementation of marketing analytics, limiting its potential
benefits.
3. Time commitment
Marketing Analytics can be a time consuming process. Businesses
need to be prepared to commit time and resources to collecting
analysing and interpreting data.
4. Data Privacy
Businesses need to be careful about how they collect and use data
for analytics. They need to ensure that they are collecting data in a
way that is compliant with privacy regulations.
 Primary Data
• Primary data is information that you gather exclusively for
your research study. It has the advantage of being directly
customized to your study needs.
• This type of data collection method is costly to obtain- is one
of its negative factors.
• Primary data can also be called the particulars immediately
and entirely relevant to the issue at hand. These are unique
pieces of information, generally used as the foundation for
assessing and addressing any marketing-related challenge.
• If you’ve ever been contacted to participate in a survey,
you’ve been a part of primary data collecting.
 Characteristics of Primary
Data
1.Comprises original data.
2.Primary data is costly.
3.They are strategically gathered from appropriate responders.
4.Forprimary data collection, specific procedures (such as survey methods,
observation methods, experimental methods, and so on) and instruments
(such as printed forms, questionnaires, cameras, and so on) are utilized.
5.They are a necessary component of the research project.
6.They must be provided, processed, or evaluated before being used.
7.Gathering primary data takes a lot of time and work.
8.They are gathered about the topic at hand.
 Secondary Data
• Secondary research is research that has been assembled,
gathered, organized, and published previously by others. Reports
and studies from government agencies, trade organizations, and
other companies in your industry are included.
• Smallorganizations use most secondary research with limited
budgets since it may be accessed quickly and lower than primary
research.
• Secondary data sources can be found in abundance in the
market. One of the most prevalent resources for secondary data
collection is the Internet.
 Characteristics of
Secondary Data
1.Secondary data is generally published data, not original data, for the research
to be conducted.
2.They provide the most recent data.
3.Researchers or research houses may collect them from various sources, both
internal and external.
4.They are comparatively cheaper; they require less effort, time, money, and
resources.
5.Usingsecondary data is optional, so one can carry out research even without
using secondary data in your research.
6.This type of data can be used without processing and analyzing.
7.Relevance, accuracy, and timing are the main problems related to secondary
data.
Primary Data Secondary Data
Definition
Primary data are those that are collected for Secondary data refer to those data that have
the first time. already been collected by some other person.
Originality
These are original because these are collected These are not original because someone else
by the investigator for the first time. has collected these for his own purpose.
Nature of Data
These are in the form of raw materials. These are in the finished form.
Reliability and Suitability
These are more reliable and suitable for the These are less reliable and less suitable as
enquiry because these are collected for a someone else has collected the data which
particular purpose. may not perfectly match our purpose.
Time and Money
Collecting primary data is quite expensive Secondary data requires less time and money;
both in the terms of time and money. hence it is economical.
Precaution and Editing
No particular precaution or editing is required Both precaution and editing are essential as
while using the primary data as these were secondary data were collected by someone
collected with a definite purpose. else for his own purpose.
 Surveys

Primary Focus
Data Groups

Experime
nts
Market Data
Sources Books
and
Journals
Secondary Online
data database
Governm
ent
reports
 Stakeholders
•A stakeholder is a person or group that is affected by, or has an interest in company.
Stakeholders can be internal (within the organization) or external (outside the
organization). They can have a direct or indirect influence on the organization's
activities or projects.
• Stakeholderscan have big expectations and high hopes because they've invested in,
partnered with the company.
• Stakeholders
can have a positive or negative impact on a business. For example :-
happy customers are more likely to do business with a company again, while unhappy
customers mat spread negative word of mouth.
• It
is important for businesses to identify and manage their stakeholders. This involves
understanding their needs and expectations and communicating\g with them.
 Stakeholders
• Investors
are internal stakeholders who are significantly affected by a company and its
performance.
• External stakeholders do not have a direct relationship with the company but may be
affected by its operations.
• Examples of important stakeholders for a business include its shareholders, customers,
suppliers, and employees.
• Some stakeholders, such as shareholders and employees, are internal to the business.
Others, such as the business’s customers and suppliers, are external to the business but are
nevertheless affected by the business’s actions.
• Inrecent years, it has become common to consider a broader range of external stakeholders,
such as the government of the countries in which the business operates or the public at
large.
 Types of stakeholders
• Customers usually expect organizations to deliver products of value.
• Employees are often project stakeholders, who want to contribute to a project that
is related to their job.
• Owners supply an organization's equity and capital and are responsible
for organizational goals.
• Investors are shareholders, who invest in organizations in exchange for financial
returns and often receive regular financial reporting on the companies they invest
in as well as voting power in major decisions.
• Creditors, such as banks and bondholders, lend money to an organization to be
paid back with interest.
• Suppliers are vendors that supply materials and products to organizations and have
an interest in their business and the projects they pursue.
• Governments collect taxes from companies and their employees.

 Stakeholders vs. shareholders: What is the difference?

• Shareholders are stakeholders who are financially invested in an organization. While
stakeholders are interested in a company's overall performance, shareholders have an
added interest in the company's stock performance or return on investment.
 Examples of stakeholders
• Stakeholders exist across industries. For example, in healthcare, stakeholders are
those who have a direct interest in healthcare services provided and the decisions
made around them. These include doctors, nurses and other medical professionals;
hospitals, clinics and healthcare providers; healthcare IT, medical equipment and
other suppliers; governing bodies; nonprofit organizations; and patients.
• Another example is a stakeholder in a legal process. There, a stakeholder is an
individual or group in temporary possession of money or property while the owner
is being determined in court.
• In
a project setting, the stakeholders are people who have direct influence on
whether a project is successful
 How to manage
stakeholders
1. Know your stakeholders
• A stakeholder is anyone with an interest in the activities, team development or performance of your
organization. This can cover a huge variety of groups and individuals, from customers to regulatory
bodies. Before you can properly manage your stakeholders, you need to conduct a stakeholder
analysis that clearly defines each group of stakeholders.
2. Priorities your stakeholders
• Considering you may have hundreds of different types of stakeholder needs, prioritisation is key.
You need to determine the potential influence of each stakeholder, in line with the amount of
interest they have in the activities of your organization.
• This gives you an idea of the importance of each stakeholder and the potential impact of meeting or
ignoring their expectations. This process can be streamlined by identifying stakeholders using
stakeholder analysis models, some of which are covered in the guide mentioned above.
3. Understand your stakeholder
• Once you know who your most important stakeholders are, you need a clear
picture of what they expect from you, and what you could benefit from offering
them.
• Define what they need, what they want, and whether you should also satisfy the
needs or wants of those who influence your stakeholders, particularly their supply
chain. Don’t forget, speaking to stakeholders can often be the best way to gain this
information.
4. Effective communications
• As well as sharing your strategic thinking internally, you should communicate by
managing your team by contacting important stakeholders, both to establish trust
and to help your strategies play out smoothly. Ensure they know what your plans
are, and discuss what can be done on both sides to make things more effective.
5. Share data to maintain trust with your stakeholders
• Once your new strategy is in place, you should collect data so you can manage
internal customers, and share this with important stakeholders. Not only does this
create transparency and encourage trust, but it makes it easier for you to work with
stakeholders to iron out issues and plan responses.
6. Develop strong stakeholder relations
• Building relationships is essential for successful stakeholder management. It helps
ensure everyone is on board with the project’s goals and understands each other’s
expectations. Your relationships with stakeholders will help greatly when things don’t
go as planned. Build trust—it’s super duper important. Stuff happens, and when it
does, people need to trust you.
Market Size
 Market Sizing
• Market sizing is a strategic research process that quantifies the actual or
potential demand and supply of a specific product or service. This involves
estimating their current or future sales or revenues, in terms of volume or
value. The portion of the total market sales or revenue that a company holds
is referred to as Market Share.
• Market sizing is a crucial process in business and market research that
involves estimating the total market potential for a product, service and
industry. It provide valuable insight into the size and growth potential of a
target market, strategic planning, resource allocation, decision making.
• Accurate market sizing is essential for businesses to identify, opportunities
and assess market share and plan marketing and sales strategies.
 Market size and Market
share
• The main difference between market size and market share is that market size is the
total value of a market, while market share is the percentage of that market a
company controls:
Market size
• The total value of all products and services sold in a market, also known as total
market value or total market size. It's a measure of the overall size of the market.
Market share
• The percentage of a market's total sales a company controls. It's a measure of a
company's relative position in the market compared to its competitors
The below chart illustrates the interplay
between ‘Market Size’ and ‘Market Share’
Market Sizing Methodology/
Approaches
• There are two primary methodologies for market sizing:
 Difference Between Top-down and Bottom-up
• Youcan choose either the top-down or bottom-up approach
based on data availability, reliability, and accuracy. The
top-down approach can be preferable if you have scarce
data, rely mostly on estimations, and are covering an
already established market.
• On the other hand, bottom-up is ideal if you want to
capture data and variations in detail, especially when
dealing with emerging markets.
• The Top-down market sizing approach starts with
macro data on a broader industry scale and narrows
it down to estimate the market size. On the other
hand, the bottom-up approach starts with microdata
and goes into the finer details to estimate market
size.

• While the top-down approach tends to be more

optimistic, the bottom-up approach is considered
more conservative.
Top-Down Approach:
Top-Down Approach:
• Thismethod begins by determining the total market
size, which includes your market and potentially
more. It then breaks down this total into smaller
segments or components.
• For instance, if we consider the professional
networking app market, the total market size is
currently estimated at 67.28 billion USD(as per a
marketing analysis report) , it includes major players
like LinkedIn, Xing. (56,53,56,19,48,000 Indian
rupee).
Bottom-Up Approach:
 Bottom-Up Approach:
• In contrast, the bottom-up approach starts by
examining current sales made by existing similar or
slightly similar options. It focuses on individual
segments that the product targets, estimating the
segment size and calculating segment revenue per
unit.
• By summing up the revenue contributions from all
individual segments, it arrives at the market size.
Conclusion
• Top-down:- This might be used when the decision is urgent or when there is
a need for a consistent decision across the organization.
• Bottom-up:- This might be used when the decision is complex or when there
is a need for input from a variety of perspectives.
• Ultimately, the best way to decide which approach to use is to consider the
specific situation and the needs of the organization.
PESTEL ANALYSIS
• Politicalfactors include government policies, leadership, and change; foreign trade policies;
internal political issues and trends; tax policy; regulation and de-regulation trends.
• Economic factors include current and projected economic growth; inflation and interest rates; job
growth and unemployment; labour costs; impact of globalization; disposable income of
consumers and businesses; likely changes in the economic environment.
• Socialfactors include demographics (age, gender, race, family size); consumer attitudes,
opinions, and buying patterns; population growth rate and employment patterns; socio-cultural
changes; ethnic and religious trends; living standards.
• Technological factors affect marketing in (1) new ways of producing goods and services; (2) new
ways of distributing goods and services; (3) new ways of communicating with target markets.
• Environmental factors are important due to the increasing scarcity of raw materials; pollution
targets; doing business as an ethical and sustainable company; carbon footprint targets.
• Legal factors include health and safety; equal opportunities; advertising standards; consumer
rights and laws; product labelling and product safety
 PORTER’S 5 FORCES
•
ANALYSIS
Porter’s Five Forces is a classic model that organizations use to assess their competitive environment
and make informed decisions. The framework, developed by renowned Harvard Business School
• Michael E. Porter’s Five Forces framework is one of the most widely regarded business strategy tools.
Born out of his work in 1979, this framework offers organizations a systematic approach to assessing
their competitive environment and making strategic decisions that can influence their long-term
success.
• The five forces include the factors that influence every industry. The five critical dimensions which
shape the competitive business landscape are:
1. Competitive Rivalry
2. Supplier Power
3. Buyer Power
4. Threat of Substitution
5. Threat of New Entrants
1. Competitive Rivalry
• Competitive Rivalry evaluates the number of existing players and how
established they are in the industry. How many competitors do you
have? Are their products better than your own?
• In
industries with cutthroat competition, companies often lower prices
and invest in expensive marketing campaigns to increase market share.
That means suppliers and buyers can quickly move towards your
competitors. Conversely, businesses in less competitive sectors enjoy
more comfortable profit margins.
• For example, the airline industry has intense competition. Major
players such as American Airlines, Delta Air Lines and United Airlines
often differentiate themselves by reducing costs, improving customer
experience and launching new routes to attract passengers.
 2. Supplier Power
• Suppliers provide the essential ingredients for a business’s operations.
How much influence does a supplier wield over a company’s profits?
• When only a few suppliers can provide a product, they can dictate terms
and pressure businesses to accept higher prices. Even if terms are
unfavorable, some get pressured to take them because of the costs of
moving to another supplier.
• In an ideal scenario, companies must be able to diversify their supplier
base. By reducing their dependency on a supplier, businesses can
safeguard their supply chains, control costs and maintain a competitive
edge.
• For example, the automotive industry has many suppliers for engines,
electronics and tires. However, a relatively small number of companies
supply critical components such as semiconductor chips, which grants
them substantial power.
 3. Buyer Power
• Buyer Power refers to the influence customers wield over a business. If an industry has strong
buyer power, consumers can demand lower prices, higher quality or improved service, affecting a
company’s profitability.
• Buyers wield more power in a market with fewer customers and more sellers. In this scenario,
businesses can differentiate themselves by formulating unique value propositions to justify their
higher prices. Some examples include loyalty programs, excellent customer service and novel
experiences.
• The electronics industry provides a compelling example of buyer power within Porter’s Five
Forces framework. Consumers can access various electronic products, from smartphones and
laptops to smartwatches and home entertainment systems. Price comparisons are easily accessible
online, so finding the best deals and discounts is easy.
• For example, companies such as Apple let consumers customize their devices with various
features, colors and accessories. They consistently upgrade their products with new features
because it’s easy to transition to alternative brands or products.
4. Threat of Substitution
• The Threat of Substitution refers to the likelihood that
customers might switch to a different product or service.
When substitution threats are high, businesses are
vulnerable to sudden shifts in consumer preferences.
• One notable example of the threat of substitution occurs in
the beverage industry. Consumers can choose from many
beverages including carbonated soft drinks, bottled water,
juices, energy drinks, coffee, tea and alcoholic beverages.
• That’s why beverage companies must explore niche
markets, introduce limited-edition flavors and change their
packaging to differentiate themselves.
5. Threat of New Entrants
• How easy is it for new competitors to enter the market and
threaten existing players? Threat of New Entrants involves
evaluating the barriers to entry in an industry.
• High barriers such as high starting capital costs and a small
pool of suppliers can deter new rivals from early success.
• For example, an established company with significant
resources can lower prices to maintain a competitive edge
over new entrants. However, new competitors can easily
weaken your business’s position and quickly disrupt the
status quo.
 Advantages of Porter's Five
Forces
• Holistic Analysis: Porter’s Five Forces provides a comprehensive overview of
the competitive landscape. As a result, organizations can allocate their
resources and make decisions based on multiple factors existing in the
environment.
• Strategic Insight: The model lets businesses think critically about their
position in their industry and their existing competitors. That way, they can
make informed decisions.
• Risk Mitigation: By identifying potential threats, companies can address
challenges ahead of time. For example, it offers a unique value proposition to
remain relevant for consumers.
• Opportunity Identification: Recognizing industry gaps and unmet needs can
help businesses differentiate themselves or develop innovative solutions.
• Long-Term Sustainability: When strategies consider Porter’s Five Forces,
they are more likely to withstand market fluctuations.
 Disadvantages of Porter's
Five Forces
• Oversimplification: The model oversimplifies complex market dynamics and
fails to evaluate “why” some observations occur. As a result, it can be easy to
miss subtle nuances.
• Inaccurate Strategic Analysis: The framework needs to account for the
dynamic nature of industries and markets. They may evaluate their competition
on broad or narrow terms while failing to consider shifting boundaries.
• Backward-Looking: Porter’s Five Forces provides an overview of an industry
based on the past, which makes it ideal for short-term analysis. However, factors
including globalization and rapid technological advancements can make its
analysis inaccurate.
• Need To Understand the Purpose of Porter’s Five Forces
Framework: Porter’s Five Forces can help you analyze an industry to create a
business strategy. It is not used to analyze an individual company or determine
whether an industry is attractive.