In the age of analytics, this multimedia platform serves as a comprehensive guide to marketing management, covering the underlying concepts and their application. As can be seen from the snippets, the focus is not on the statistical theory, but more on the application of new analytics techniques and established research methods to enhance the marketing mix.
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 Marketing Analytics web learning platform blends the art and the science of marketing to reflect how the discipline has matured in the age of analytics.
Application oriented, it fuses marketing concepts with the analytical tools that practitioners use, to impart an understanding of how to interpret and apply research information and big data.
The focus is primarily on the practical application of well-established tools, techniques and processes, as the platform sifts through all elements of the marketing mix.
It is only apt that a book on Marketing Analytics should exemplify the use of digital technology. Unlike passive eBooks that replicate print versions in their original linear state, the online guide is a full-blown, multi-media platform that greatly enhances the reader’s experience.
As a website, it is dynamic, fluid, and connected with relevant and useful content, both within and beyond the platform. That it is continually updated and enhanced, keeps the guide evergreen, abreast of the latest developments in a the rapidly evolving fields of analytics and digital marketing. (In addition to numerous updates, over 100 new sections and four new chapter have been added, in the two years since the platform was set-up).
It is interactive with the facilities such as (shareable) notes/comments at any of the approximately 500 sections in the guide. The question papers/exercises allow subscribers to view answers and explanations. The site also supports business analytic platforms so that students can practise as they learn.
The online guide is made available on an annual subscription basis. Subscribers login with their email ID and password.
“It is difficult to hide from the illumination of a market response model.” — Hanssens et al. (2003).
Marketers need to align their brand’s marketing mix into a coordinated programme designed to drive revenue and profit. To achieve desired goals, they need an understanding of the level or combination of the mix variables that optimizes the brand’s performance. This in turn, requires an appreciation of how sales respond to the expenditures on these variables. It would be useful if there was a method to assess the impact of the elements of the mix, on sales and ROI.
Though far from perfect, there is such a method — it is referred to as market mix modelling or market response modelling. These models use statistical methods of analysis of historic market data, to estimate the impact of various marketing activities on sales. They reveal the effectiveness of the marketing mix elements in terms of their contribution to sales and profits, and can be benchmarked against costs to compute ROI. This knowledge empowers marketers to craft plans that optimize the use of resources, and infuse marketing decisions with the logic and discipline of analytics.
This chapter provides an outline of the key design considerations for market mix models. It guides you on how to apply them, and how to interpret and analyse the output of these models.
While an effort is made to keep the content simple and easy to understand, it does assume an understanding of statistics and econometrics. Market modelling in general requires specialized skills; unless you are interested in developing models, you do not need to know how market models are created. What you need to know is how to interpret and apply them. So if you suspect you lack the required knowledge of statistics, do feel free to skim the sections on design considerations and methodologies, and focus more on the section on analysis and interpretation.
Market response modelling is a vast topic covering a wide spectrum of methods and techniques. The discussion that follows is confined to a few such methods that are widely used by practitioners. None of them is ideal — the ideal model ought to be able to capture the full dynamics of the marketing mix, and its impact on sales. No such model exists today, though there are many that can turn data into actionable insights.