In the age of analytics, The Marketing Analytics Practitioner’s Guide serves as a comprehensive guide to marketing management, covering the underlying concepts and their application.
As advances in technology transform the very nature of marketing, there has never been greater need for marketers to learn marketing.
Essentially a practitioner’s guide to marketing management in the 21st century, the guide blends the art and the science of marketing to reflect how the discipline has matured in the age of analytics.
Application oriented, it imparts an understanding of how to interpret market intelligence and use analytics and marketing research for taking day-to-day marketing decisions, and for developing and executing marketing strategies.
Having existed since 1932, developments in the use and application of consumer panels have greatly contributed to the science of consumer analytics.
More recently, the explosion of data has expanded the role and application of consumer analytics, such that it cuts across virtually every sector of economic and social activity.
This chapter imparts an understanding of consumer analytics through consumer panels. It covers the analytic tools used to extract insights from consumer transactions.
The chapter takes an easy to understand approach to explain a repertoire of metrics and techniques such as:
The focus is on the applications of these techniques to diagnose brand health and address business issues.
The use of consumer panel data is also illustrated in many of the cases featured in this book. In particular the Vizag case, which is centred on consumer panel data, exemplifies the diagnostic capabilities of consumer panels.
The basket is an analysis of transactions by a buyer group. The buyer group may be a demographic group, a segment, or it may be a user-defined group of consumers, defined on the basis of what they bought, where they bought or how much they bought. It is often defined as buyers of a particular brand, in which case the basket constitutes the repertoire of brands bought by the buyers of that brand.
This analysis is frequently used in internet marketing or e-commerce. For example, the use of recommendations (“Customers who bought this also bought ...”) by NetFlix and Amazon, to drive sales and improve customers’ on-site experience.
Cross basket, an interesting variation of the basket analysis, analyses the purchases of some other category by a buyer group. For example, the below chart depicts the body wash basket of purchases by the Johnson’s hand and body lotion buyers’ buyer group.
In the context of buyer groups, the share of Johnson’s body wash in total market (9.5%) is called the “fair share” — i.e. the share we would expect if there was nothing extraordinary about a buyer group. The index 27.5/9.5 (= 290 re-based to 100), called the fair share index, is extraordinarily high. It tells us that the propensity of a Johnson’s hand and body lotion buyer to buy Johnson’s Body Wash, is 2.9 times higher than that for the average brand buyer.... less