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MarketingResearchTwelfthEditionCarlD.McDanielandRogerGatesChapter#10MarketingAnalyticsLearningObjectivesUnderstandwhat’sincludedinmarketinganalytics.Reviewtechniquesforanalyzingdata.Gainagreaterunderstandingofbigdata.Exploredatamining.Understanddifferencesinanalyticalforbigandlittledata.Defineartificialintelligence,machinelearninganddeeplearning.Outlinethekeyissuesregardingconsumerprivacy.Copyright©2021JohnWiley&Sons,Inc.10-2IntroductionStructureddataisdatathatarehighlyorganizedandcanberepresentedastablesmadeupofrowsandcolumnsRowsareobservationsforasingleunitofthepopulationColumnsarevariableslikeage,gender,andincomeCanbeshowninExcelUnstructureddataisdataorinformationthatisnotneatlystructuredExamplesincludeemails,socialmediaposts,onlinereviews,photos,andtextChapters12-14discussanalyzingstructureddataThischapterlooksattoolstoanalyzealltypesofdata10-3Copyright©2021JohnWiley&Sons,Inc.WhatIsMarketingAnalytics?Marketinganalyticsisthediscovery,interpretation,andcommunicationofmeaningfulpatternsindataTheinsightsgainedenablesmarketingmanagerstobetterunderstandtheircustomersandmarketsThedevelopmentofmarketinganalyticshasrapidlyacceleratedbasedontheemergenceofbigdata,advancesinanalyticaltoolsandimprovementsininformationtechnologyPartsoftheprocessGetthedataOrganizeandmergethedataAnalyzeAct10-4Copyright©2021JohnWiley&Sons,Inc.TheMarketingAnalyticsProcessGettingthedata:weneedtogothroughaprocessthatfirstinvolvesidentifyingdatasourcesandthenobtainingandanalyzingthedatatoanswerourquestionsBigdatasources:OnlineretailersSearchenginesSocialmediaDatafromtraditionalsources:InternalcompanydataDatafromtraditionalprimarysources10-5Copyright©2021JohnWiley&Sons,Inc.TheMarketingAnalyticsProcessContinuedTraditionaldatabase/datawarehousesystemsoffernomeansofstoringandanalyzingunstructureddataWenowhavetoolsforhandlingthesetypesofdataManagerswhodonotactontheresultsofanalyticstendtosaytheresultsare“notactionable”Couldtheissuebeunderstandingortrust?CompaniessuchasGoogle,Twitter,InstagramandFacebookdemonstratedtothoseinthedataanalysisbusinessthatthereissignificantvalueinstoringandanalyzingunstructureddataOneofthewidelyusedtoolsforhandlingbig,unstructureddataisHadoop10-6Copyright©2021JohnWiley&Sons,Inc.BackgroundonBigDataIssuesBigdataistheaccumulationandanalysisofmassivequantitiesofinformationTobeabletohandlethesehugedatasets,newtoolsneededtobedevelopedBigdatahasthethreeVs:VolumereferstotheamountofdataVarietyisconcernedwithputtingtogetherdatafromdifferentsourcesVelocityconcernsthefactthatthedataarearrivingcontinuouslyindatastreamsBigdataaremoreabout“what”than“why”10-7Copyright©2021JohnWiley&Sons,Inc.HowDoesItWork?In2005anopen-sourceframeworkcalledHadoopwasdevelopedtoanalyzebigdataHadoopconsistsoffourprincipalmodules:Adistributed-filesystem:allowsdatatobestoredinaneasilyaccessibleformatMapReduce:readsthedataandputsitintoaformatsuitableforanalysisHadoopCommon:readsthedataYARN:managestheresourcesofthedatastoragesystemOneoftheimportantinnovationsofHadoopisitsuseofnetworkedserversThisdistributescomplexqueriestomanyinexpensiveservers10-8Copyright©2021JohnWiley&Sons,Inc.AnalyzingDataDescriptiveanalyticsPredictiveanalyticsPrescriptiveanalytics10-9Copyright©2021JohnWiley&Sons,Inc.DescriptiveAnalyticsInthistypeofanalytics,wesummarizedatainrudimentaryformstodiscernpatternsThisistheessenceofoldschoolmarketingresearchanalyticsCrosstabulationtablesarecommonThenextlevelispredictiveanalytics10-10Copyright©2021JohnWiley&Sons,Inc.PredictiveAnalyticsPredictiveanalyticsusesmorepowerfultoolstoprovidemoreinsightandmorerobustdecision-makingtoolsWeusedatafromprimary,secondaryandbigdatasourcesWeapplyanalyticaltoolssuchasregressionanalysisofvarioustypes,discriminantanalysis,clusteranalysis,neuralnetworksandothersExamplesofproblemstoaddress:PredictingtheimpactofimprovingcustomerservicethroughourcallcentersonoverallcustomerexperienceEstimatethelikelihoodthatanindividualwillbuyornotbuyournewproductorserviceClassifypeopleintomarketsegmentsPredictwhichproductdifferentconsumersaremostlikelytobuy10-11Copyright©2021JohnWiley&Sons,Inc.PrescriptiveAnalyticsPrescriptiveanalyticsfindthebestcourseofactioninagivensituationItusetheresultsofdescriptiveandpredictiveanalyticstoguidedecision-makinginmorespecificwaysSteps:YoudeterminewhatquantityyouwanttomaximizeYoulistthedecisionleversavailabletoyouYoubuildandcalibrateamodelthatisrobustunderawiderangeofwaysofadjustingthedecisionleversYouembedthesimulatorinsideanoptimizationtoolthatevaluatesalargenumberofdifferentwaysofsettingthedecisionleversandidentifieswhichcombinationofleversettingsmaximizesyourobjective10-12Copyright©2021JohnWiley&Sons,Inc.ExampleUsesofPrescriptiveAnalyticsAcompanycouldautomaticallyadjustpricinginresponsetovariousfactorsDoctorsandhospitalscoulduseprescriptiveanalyticstochoosethebesttreatmentsforpatientsAirlinescanadjustfaresfordifferentdestinationsbasedonmultiplefactorsFiredepartmentscanevaluatewheretoorderevacuations10-13Copyright©2021JohnWiley&Sons,Inc.DataMiningDataminingisanumbrellatermforanalytictechniquesthatfacilitatefastpatterndiscoveryandmodelbuilding,particularlywithlargedatasetsTheobjectiveistoidentifypatternsThemostpowerfuldataminingtoolsoftodayuseacombinationofstatistics,artificialintelligence,andmachinelearningNeuralnetworksareanalyticaltoolsthatmimictheprocessesofthehumanbrainThroughaprocesscalledbackpropagation,theneuralnetworkmakesadjustmentstoimprovefuturepredictionsandisthuscapableoflearningandadjusting10-14Copyright©2021JohnWiley&Sons,Inc.AStandardizedApproachtoDataMiningAwell-knownmethodologyforconductingdataminingprojectsistheCRISP-DMframeworkCross-IndustryStandardProcessforDataMiningItisbasedonasequenceofsixsteps:BusinessunderstandingDataunderstandingDatapreparationDatamodelingEvaluationofresultsDeploymentofaplan10-15Copyright©2021JohnWiley&Sons,Inc.BehavioralTargetingisaBigDealAmajorreasonwhycompanies“minedata”istheabilityofanalyticstoolstodobehavioraltargetingBehavioraltargetingistheuseofonlineandofflinedatatounderstandaconsumer’shabits,demographics,andsocialnetworksinordertoincreasetheeffectivenessofonlineadvertisingeXelategathersonlineconsumerdatathroughdealswithhundredsofwebsitesInJanuary2019,Amazonreportedthatmorethan100millionAlexapowereddeviceshadbeensoldTheadditionofsocialnetworkingdatahasbeenahugeboosttobehavioraltargetingintheformofsomethingcalledremarketingorretargeting10-16Copyright©2021JohnWiley&Sons,Inc.MachineandDeepLearningMachinelearningiswheremachinescanlearnbyexperienceandacquireskillswithouthumaninvolvementItperformpredictiveanalyticsfarfasterthananyhumancanDeeplearningiswhereartificialneuralnetworks,algorithmsinspiredbythehumanbrain,learnfromlargeamountsofdataasinmachinelearningbutnowweaddbackpropagationwheremachineslearnfromtheirmistakes10-17Copyright©2021JohnWiley&Sons,Inc.ArtificialIntelligence(AI)Roughly,AIisanydevicethatperceivesitsenvironmentandtakesactionsthatmaximizeitschanceofsuccessfullyachievingitsgoalsAlsoknownasintelligentagentsAIistheendpayoffthatcomesfromtheuseofbigdata,datamining,predictiveanalytics,anddeeplearningAllofthiscanbetakingplacewithout“supervision”withthemachinemanagingthewholeprocessTheusesforAInumberinthemillions10-18Copyright©2021JohnWiley&Sons,Inc.AFewUsesofAIVirtualassistantssuchasAlexaandHeyGoogleTranslationsappsVisionforcarsandothervehiclesChatbotsandservicebotsImagecolorizationFacialrecognitionMedicineandpharmaceuticalsPersonalizedshoppingandentertainment10-19Copyright©2021JohnWiley&Sons,Inc.SurgeorDynamicPricingSurgepricingisapricingstrategyinwhichbusinessesvarypricesforproductsorservicebasedoncurrentlevelofdemandordemandatthespecificmomentAlsoreferredtoasdynamicpricing,demandpricing,ortime-basedpricingTheabilitytopricegoodsandservicesdynamicallybasedonrealtimedemandcanalreadybefoundorisspreadingtootherindustriesThereisafinelinebetweensurgepricingandpricegouging10-20Copyright©2021JohnWiley&Sons,Inc.DataVisualizationApictureisworthathousandwordsPictures(andgraphs)cancommunicatemuchmoreeffectivelyandefficientlythanwordsDatavisualizationisgraphictoolsthatmakedataunderstandabletoawideraudiencethanjustanalystsanddatascientistsItincludecharts,graphs,photosandvideos,eventables,andmapsifappropriate10-21Copyright©2021JohnWiley&Sons,Inc.InfographicsAninfographicisacollectionofimagery,charts,andminimaltextthatgivesaneasy-to-understandoverviewofatopicTherearenoparticularrulesforcreatingthemTocreategooddatavisualization,youneedtoconsiderthetypeofdata,theaudience,andthemessageyouwishtoconvey10-22Copyright©2021JohnWiley&Sons,Inc.SampleInfographic10-23Copyright©2021JohnWiley&Sons,Inc.MarketingDashboardsMarketingdashboardsareareportingtoolthatprovidesacomprehensivesnapshotofperformance-basedanalytics,KeyPerformanceIndicators(KPIs),andothermarketingmetricsTheyareaspecializedformofinfographicTherearethreetypesofmarketingdashboards:Strategicdashboardsmonitorperformancetowardshigh-levelgoalsTacticaldashboardsusepastdatatoidentifytrendsthatcanimpactfutureplansOperationaldashboardsarethemostspecificandareoftenusedtotracktheperformanceofadepartment10-24Copyright©2021John
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