Essay Sample on Using Market Analytics to Drive Superior Growth

Introduction

In the era of big data, market analytics has become an integral part of marketing goods and services for many businesses. It entails measurement, management, and analysis of marketing performance with the aim of ensuring that resources spent on marketing of goods and services earn value and increase profitability for the organization. With the right application of market analytics, organizations can uncover new markets, new customer audiences as well as enhance the value of their brands (Marr). As such, companies are using big data to anchor their marketing operations; they are also making better decisions by adopting an integrated approach to marketing spending, emphasizing the value of market analytics in all of their workforce.

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Due to enhanced information technologies, many organizations have made the deliberate decision to use big data to adopt models that are cost-effective. Marketing-mix modeling and attribution models have been critical in anchoring marketing analytics. Marketing-mix modeling uses big data, to establish the effectiveness of marketing through a given channel. This method uses statistics to link to marketing spending to sales drivers such as the season of the year, behaviors of competitors, and sales promotion activities. This linkage helps decision-makers to determine the effects of expenditures on the performance of sales (Bhandari et al.).However, Bhandari et al. note that this approach has the limitation being effective in measuring changing marketing activities going back for years but cannot measure activities that change very little over a given period.

Attribution modeling uses algorithms to convert online traffic into sales. These algorithms use the number of visits made by users to online sites, websites, or social media feeds to drive sales. The algorithms are used by marketers to evaluate the contribution of online investment in driving the sales of an organization. However, this technology depends on cookies which are responsible for directing people online towards the sites that offer certain product sales. This may not be reliable as many people often choose to ignore the cookies as marketing tools on their PCs.

Given the weaknesses of the current big data modeling approaches to market analysis, many organizations are recognizing the significance of integrating various modeling techniques to make better decisions regarding the marketing of their products. For instance, marketers may decide to market their products using the traditional channels such as television, radio, newspapers and magazines and, at the same time, deploy their adverts on social media platforms to target tech-savvy consumers and millennials (Bhandari et al.). Results from the application of this strategy indicate that firms can know when to use radio, television, newspapers or online platforms as integration allows them to find the right mix of the strategy to employ when targeting a given segment of the population (Bhandari et al.; Marr). As a consequence, better decision-making has manifested itself in the power of companies to understand where to focus their spending and messaging to retain current customers and attract new ones thereby fostering efficiency in marketing communications.

Besides the integration of marketing models, companies are ensuring that all of their workers are informed about the significance of the new tools. For instance, organizations have realized the need to integrate information sharing between various marketing departments to ensure that every employee embraces the new means of marketing communication. This has made it possible for close collaboration and evidence suggests that it reduces the cost of modeling-mix in a significant manner (Bhandari et al.).

Conclusion

In conclusion, companies are anchoring market analytics on big data to devise effective strategies of optimally investing their money in marketing activities. The use of marketing-mix modeling and attribution modeling are the some of the most prominent strategies used to create value out of marketing investments. To ensure that better marketing investment decisions are made, companies have embraced the integration of different models to determine the amount of spending that the different marketing platforms absorb efficiently. Moreover, companies have resolved to make market modeling a core activity of all employees.

Works Cited

Bhandari, Rishi, et al. "Using Marketing Analytics to Drive Superior Growth." McKinsey & Company, 2014, www.mckinsey.com/business-functions/marketing-and-sales/our-insights/using-marketing-analytics-to-drive-superior-growth.

Marr, Bernard. "The 18 Best Analytics Tools Every Business Manager Should Know." Forbes, 2016.