Marketing Analytics

• Marketing is the fastest growing area for the application of analytics
• A better understanding of consumer behavior through analytics leads to:

  • Better use of advertising budgets
  • More effective pricing strategies
  • Improved forecasting of demand
  • Improved product line management
  • Increased customer satisfaction and loyalty
• Descriptive, predictive, and prescriptive analytics are heavily used in marketing
• NBC-Universal uses predictive models to support its annual upfront market in late May, where television networks sell the majority of on-air advertising for the upcoming season
• Example of high-impact marketing analytics, automobile manufacturer Chrysler teamed with J. D. Power and Associates to develop an innovate set of predictive models to support its pricing decisions for automobiles. .‘
• Google Trends graph shows a pronounced increase in interest in marketing analytics compared to financial and HR analytics
• A better understanding of consumer behavior through the use of scanner data and data generated from social media has led to an increased interest in marketing analytics.
• Over 200 NBC sales and finance personnel use the results of the predictive model to support pricing and sales decisions.
• Set of predicitve models help Chrysler to better understand the ramifications of proposed pricing structures
• Ramification (a combination of manufacturer’s suggested retail price, interest rate offers, and rebates) and, as a result, to improve its pricing decisions. The models have generated an estimated annual savings of $500 million