Welcome

to
What is marketing Analytics?
• Marketing Analytics is a discipline that uses Statistics, Machine
Learning models, and visualizations to provide data-driven inference
for marketing decisions
• Marketing analytics is the practice of using data to evaluate the
effectiveness and success of marketing activities. Marketing analytics
allows you to gather deeper consumer insights, optimize your
marketing objectives, and get a better return on investment.
Characteristics of Marketing
Analytics
• Ensure High-Quality Data
• Get Real-time Insight
• Perfect your dashboard
• Choose the right analytics visualization
• Use a tool featuring machine learning & AI to predict and prescribe
Scope of Marketing Analytics
• Customer Analysis
• Campaign Performance
• Market Research
• Pricing Strategies
• Channel Optimization
• Sales Forecasting
• Customer Segmentation
Marketing Analytics Methods:
……………..
• Marketing mix modeling
Marketing mix modeling is the process of analyzing the impact of the
marketing variables on your business goals. It’s a way to determine which
marketing tactics work best and which aren’t. Marketing mix modeling
allows you to adjust and improve your results over time.
• Demand forecasting
Demand forecasting predicts how much customers will buy in the future
based on historical data about their buying habits. This method is used by
companies that sell physical products (like clothing) or services (like
insurance). It can also be used for digital products like online subscriptions
or software as a service (SaaS).
Marketing Analytics Methods:
• Competitor analytics
Competitor analytics focuses on analyzing your competitors’ strategies, strengths,
weaknesses, and market share to develop better ways to compete with them or outpace
them altogether.
• Unmet needs analytics
Unmet needs analytics is a method of gathering, analyzing, and interpreting data to
determine customers’ unmet needs. It helps in understanding what customers want, how
they think, and what they are looking for. Marketers can use this information in product
development, promotion, and pricing decisions.
• Trend analytics
Trend Analytics is a technique that allows marketers to identify trends and patterns to
make predictions about future sales or profit. It involves collecting data from websites,
social media, apps, etc., and then analyzing it to find patterns.
What are the critical skills in
Marketing Analytics?
• Data analysis
• Ability to interpret Data
• Spreadsheet Skills
• Data visualization
Why is Marketing Analytics an
essential skill?
• Marketing Analytics is a crucial skill for anyone who wants to be successful in
marketing. The combination of data, math, and science helps you make better
business decisions. To understand the importance of marketing analytics, let’s
break it down:
• You can make informed decisions
You can’t make informed decisions if you don’t have the information to back them
up. And when it comes to marketing, there are so many variables involved that it’s
impossible to know what works unless you have something to compare it to.
Marketing Analytics gives you access to information that helps you make better
decisions about your marketing plan. Without it, you’d be making choices based on
gut instinct or personal preference alone—and those aren’t always great bases for
decision-making!
• Support your actions with data
By using analytics, we can take a step back from our assumptions and see how
our actions play out in the real world. This is especially important for marketers
who want to demonstrate their value beyond just saying, “I did X.” It allows
them to point at complex data and say, “Look! This is why I was right!”
• You can predict customer behavior
Marketing analytics allows you to track customer behavior and see what they
are doing, so you can plan for the future. This is especially helpful if you are
running a campaign based on promotions or deals, as you will know what
promotions your customers respond to best and when they come back for
more.
 Types of Analytics
• Descriptive Analytics
• Diagnostic Analytics
• Prescriptive, and
• Predictive Analytics
Descriptive analytics
• Descriptive analytics is one of the most common forms of analytics that
companies use to stay updated on current trends and the company’s
operational performances. It is one of the first steps of analyzing raw
data by performing simple mathematical operations and producing
statements about samples and measurements. After you identify
trends and insights with descriptive analytics, you can use the other
types of analytics to learn more about what causes those trends.
• You will need to use descriptive analytics when dealing with finance,
production, and sales. Some tasks that require this type of analytics
include the production of financial reports and metrics, surveys, social
media initiatives, and other business-related assignments.
Descriptive analytics benefits
• Descriptive analytics offers many benefits. One of its main benefits,
however, is that it helps companies make sense of the large amounts
of raw data they gather by focusing on the more critical areas.
• Descriptive analytics has changed the way companies do business.
• Nowadays, they use this type of analytics to understand their current
business situation better in comparison to the past.
• It is a crucial step in data analytics, and without it, it would be
impossible to anticipate any future trends or make data-driven
decisions.
 Diagnostic analytics
• Diagnostic analytics is one of the more advanced types of big data analytics
that you can use to investigate data and content. Through this type of
analytics, you use the insight gained to answer the question, “Why did it
happen?”. So, by analyzing data, you can comprehend the reasons for
certain behaviors and events related to the company you work for, their
customers, employees, products, and more.
• Let’s say there has been a drastic change in a product’s sales even though
you have not made any marketing changes to it. You would use diagnostic
analytics to identify this anomaly and find the causal relationship for such a
change. Some tools and techniques used for such a task include: searching
for patterns in the data sets, filtering the data, using probability theory,
regression analysis, and more.
Diagnostic analytics benefits

• The benefits of diagnostic analytics include a better understanding of

your data and various ways to find the answers to company questions.
This type of analytics enables businesses to understand their
customers by using tools for searching, filtering, and comparing the
data produced by individuals.
Predictive Analytics
• Predictive analytics is the process of using data to forecast future
outcomes. The process uses data analysis, machine learning, artificial
intelligence, and statistical models to find patterns that might predict
future behavior.
• In order to get the best results, it uses many sophisticated predictive
tools and models such as machine learning and statistical modeling.
• Predictive analytics is one of the most widely used types of analytics
today.
• The market size and shares are projected to reach $10.95 billion by
2022, growing at a 21% rate for six years.
Predictive analytics benefits
• The main benefit of predictive analytics is the reliable and more
accurate forecast of the future.
• Through the predictions made with this type of analytics, companies
can find ways to save and earn money, manage shipping schedules,
and stay on top of inventory requirements.

• Using predictive analytics in the marketing department can help

organizations attract new customers and retain old ones.
• By analyzing the customer’s data or the current trends, companies
can anticipate the customer’s needs.
How does predictive analytics work?
• Define the problem: A prediction starts with a good thesis and set of
requirements. For instance, can a predictive analytics model detect
fraud? Determine optimal inventory levels for the holiday shopping
season? Identify potential flood levels from severe weather? A
distinct problem to solve will help determine what method of
predictive analytics should be used.
• Acquire and organize data: An organization may have decades of data
to draw upon, or a continual flood of data from customer interactions.
Before predictive analytics models can be developed, data flows must
be identified, and then datasets can be organized in a repository such
as a data warehouse like BigQuery.
• Pre-process data: Raw data is only nominally useful by itself. To prepare the
data for the predictive analytics models, it should be cleaned to remove
anomalies, missing data points, or extreme outliers, any of which might be
the result of input or measurement errors.
• Develop predictive models: Data scientists have a variety of tools and
techniques to develop predictive models depending on the problem to be
solved and nature of the dataset. Machine learning, regression models, and
decision trees are some of the most common types of predictive models.
• Validate and deploy results: Check on the accuracy of the model and adjust
accordingly. Once acceptable results have been achieved, make them
available to stakeholders via an app, website, or data dashboard.
What are predictive analytics
techniques?
• Predictive analytics tends to be performed with three main types of
techniques:
• Regression analysis
Regression is a statistical analysis technique that estimates
relationships between variables. Regression is useful to determine
patterns in large datasets to determine the correlation between
inputs. It is best employed on continuous data that follows a known
distribution. Regression is often used to determine how one or more
independent variables affects another, such as how a price increase
will affect the sale of a product.
• Decision trees
Decision trees are classification models that place data into different categories based
on distinct variables. The method is best used when trying to understand an individual's
decisions. The model looks like a tree, with each branch representing a potential choice,
with the leaf of the branch representing the result of the decision. Decision trees are
typically easy to understand and work well when a dataset has several missing variables.
• Neural networks
Neural networks are machine learning methods that are useful in predictive analytics
when modeling very complex relationships. Essentially, they are powerhouse pattern
recognition engines. Neural networks are best used to determine nonlinear relationships
in datasets, especially when no known mathematical formula exists to analyze the data.
Neural networks can be used to validate the results of decision trees and regression
models.
Prescriptive analytics
• Prescriptive analytics takes the results from descriptive and predictive
analysis and finds solutions for optimizing business practices through
various simulations and techniques. It uses the insight from data to
suggest what the best step forward would be for the company.
• Google is one of the many companies that use this type of analytics.
They made use of it when designing their self-driving cars. These cars
analyze data in real time and make decisions based on prescriptive
analytics.
Prescriptive analytics benefits
• Some benefits of prescriptive analytics include improving processes,
campaigns, strategies, production, and customer service.
• By using statistics and modeling, this type of analytics helps
manufacturers better understand the market and anticipate its
condition in the future.
• It also assists them in setting their priorities straight and seeing what
course of action can lead to greater financial gains.