Analytical marketing means using survey methods to analyze market data, in order to improve methods of increasing sales and profitability. In this method, statistical analysis and modeling methods are used for data analysis.
In the business world, marketing is known as one of the main factors affecting sales and profitability. Considering the importance of marketing, it is necessary to use different tools and methods in this field. One of these methods is analytical marketing, which will be discussed in this article.
In this article, you will get to know the concepts and practical methods of analytical marketing. Also, to read more articles about business organization, you can refer to the articles page.
What is Analytical Marketing?
Analytical marketing is a marketing method in which past and present data are analyzed in detail and through which decisions are made for the future. This method uses the internal and external information of the organization, including the behavior of customers, competitors, opportunities and threats in an analytical way and due to having a more complete view of the market, better decisions are made for the future.
By using this method, organizations can achieve topics such as competitive analysis, competitive advantage identification, SWOT analysis, risk assessment, and competitive advantages. This topic is known as one of the main methods of market research.
Advantages of Marketing Analytics
Using this method for businesses has many advantages, such as:
Increasing the accuracy of analysis: By using analytical methods, businesses can achieve a more detailed analysis of the market and customer behavior and, according to this data, make better decisions about their marketing strategy.
Identifying market patterns: By using data analysis, businesses can identify patterns in the market and customer behavior and thus achieve strategies to attract their customers.
The Advantages of Marketing Analytics are:
•Increasing knowledge and perspective for the organization
•Identifying new opportunities
•Increasing the return on investment
Disadvantages of Marketing Analytics
Although this issue has its advantages, it also has its own disadvantages, some of which can be mentioned as follows:
1. High Costs for Big Data Processing: One of the most important points to consider in analytical marketing is the high costs for big data processing. These large-scale data require heavy resources at each processing time.
2. Limitation in Data Collection: Another challenge of analytical marketing is the limitation in data collection. Some data are not available and many problems must be solved to collect them.
3. Privacy Problems: Analytical marketing needs to collect customers’ personal information. This can lead to privacy issues for customers, which can ultimately lead to reduced trust and added value for customers.
4. Problems with Data Analysis: problems may arise with data analysis, such as inconsistencies in data, incomplete data, and other errors that may occur in data and cause larger errors.
5. Some Technical Issues: Due to the large amount of data, some technical issues may arise during their analysis.
Marketing Analytics Components
Marketing analytics is divided into four main elements:
Data: Analytical marketing requires internal and external data. This data includes information such as purchase history, payment methods, gender, age and place of residence of customers.
Analysis: Analytical marketing is used to analyze data collected from customers, competitors and the market. These analyzes are carried out quantitatively, qualitatively and quantitatively.
Technology: Technology is one of the main components of analytical marketing. Software and analytical tools used by solution marketing, such as CRM (customer relationship management) tools, should be used to collect data and analyze it.
Humans: People involved with data analysis and implementation of marketing analytics should have sufficient expertise, knowledge and experience.
Applications of Analytical Marketing
Marketing analytics is used as one of the main methods of market research, in order to identify new opportunities and improve decision-making in organizations. Some applications of analytical marketing are:
Competitive Analysis: This helps businesses to identify their competitors and determine strategies for business growth and development.
Identifying Competitive Advantage: This helps businesses to accurately identify their advantages over competitors and determine ways to improve.
SWOT Analysis: This topic helps businesses to identify their strengths, weaknesses, opportunities and threats so that they can fully develop their business.
Risk Assessment: Analytical marketing helps businesses to identify the risks associated with the decisions they have to make and deal with the risk in this way.
Marketing Analysis: This helps businesses to identify their target market and determine the best strategy to achieve successful marketing in that market.
Improve Customer Experience: This topic helps businesses to improve their customer experience on site, in store and in contact with customers by analyzing customer data.
Customer Relationship Management: This topic helps businesses analyze customer data to determine the best approach to engage with their customers at each stage of the customer cycle.
Marketing Analytics Methods
There are different methods for analytical marketing, such as:
1. SWOT Analysis: In this method, the strengths, weaknesses, opportunities and threats of the business are analyzed. And according to this data, the optimal marketing strategy for the business is determined.
2. PESTEL Analysis: In this method, factors such as political, economic, social, technological, environmental and legal are analyzed in the market. And their impact on the business is examined.
3. Customer Analysis: In this method, using customer data, their needs and desires are identified. And thus, an improved marketing strategy is determined to attract customers.
4. Customer Behavior Analysis: In this method, customer behavior in the market is analyzed. And by using their behavioral data, the appropriate marketing strategy is determined to attract customers.
Up to Sum
Marketing Analytics helps businesses to make better and more effective decisions about their marketing strategy by analyzing and analyzing data. Due to the large volume of data and the need for strong analytical tools, there may be problems in collecting and analyzing them, but the correct use of this method can lead to a significant improvement in the marketing performance of businesses. .
Considering the advantages of using analytical marketing and various methods in this field, it seems that using these methods is necessary and vital to improve the marketing strategy and increase the sales and profitability of businesses. Stay with the specialists of Uprodemy website to get business advice and international trade.