DATA SCIENCE IN MARKETING:

Marketing is an integral function of all industries. To establish any newly launched product or service, or manage the entire product lifecycle, marketing plays a pivotal role in the same. Data Management becomes an integral part of marketers, as most of the decisions are now based on the data. SevenMentor is the best institute for Data Science Training in Pune.

This blog mainly covers the use of Data & its usage on the basis of the marketing 4P technique. The 4P of marketing are Product, Price, Place & Promotions.

There are various ways in which brands can differentiate themselves, & below are some of the techniques:

 

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1) Product:
Product plays a very vital role in any product-specific industry like Automobile, Paint, consumer durables, etc.  As a brand, one needs to understand what is the product, whom they will cater to i.e which segment of class & who are we targeting i.e the age group, income-wise, etc. This is exactly where data science can help us. An initial survey of customers & competitors can give us how the competitor’s product is positioned, what strategies they are adopting etc.

For eg, consider a brand that wants to enter an Automobile premium segment, the first & foremost thing that the brand will look for is the industry size, competitors in it & consumers’ demand. The Data from various sources can help us to find what are the customers liking about a particular brand, their needs & their sentiments for the same.

This Data can be analyzed to find out the need-gap analysis which will help in positioning the product with appropriate features.

 

2) Price:
India is Price conscious market. The recent survey gave the data point that if the average income of any household is Rs 25,000 he is top 10% of strata. This itself shows the gap & hence the right product with the right prices can do the miracle in any segment.

The best example of a brand, which has used this very effectively is Jio. They studied the needs of Indian customers, back when the internet was not easily available, & one had to pay thousands of bucks the have data/ internet connection, Jio revolutionized the entire market. They priced the internet at a very lower rate so that maximum strata of Indian consumers can avail of the services, thereby increasing the digitalization of India & and the loyal customer database for the brand.

 

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3) Place:
The 3rd important pillar to consider for any brand & data can play a very important role in the choice of place for the product. Whether the product should go only online or to it should have traditional brick & motors type. What should be the catchment area where the brand should rent out the spaces, all these questions can be easily handled by Data.

In the world of digitalization, where maximum people think of buying the product online, D’Mart had a different technique as a whole. They always prefer to have a place in the outskirts as the cost of the spaces is much cheaper as compared to prime location & which not only helps in reducing the operating cost but also helps in increasing profits & thereby gaining leverage in pricing for the product.

Another example of this is the placement of product at eye level, many brands bid for this space in selves as the research proved that if the product is placed at eye level, the probability of buying it is very high.  This is also a space where data can be helpful, as no one has all the resources, but one can optimally allocate the same & get benefits out of it.

 

4) Promotions:
For any brand to be successful, one needs to adopt various promotional techniques to increase its reach for the same. Some of the techniques may include giving cash discounts to consumers, free services, Free coupons, Advertisements, Leaflets, and increasing referral sales.

 

These techniques can be useful in not only getting additional customers but also it helps in retaining loyal customers. The cost of retention is always lower than the cost of acquisition of new customers, hence most brands try to retain the loyal customer’s data set.

 

 

Above all are the pillars for any marketers & where data can be helpful can be seen in the below example. If a brand wants to check what should be the budget allocated in doing promotions so that they can increase a sale for the product.

 

For this problem statement, we can first collect the previous data sample for the day-wise amount spent in various media channels like newspaper, TV, digital, radio, etc. & corresponding sales increase in the same. Once this data is collected, we can do a simple EDA to understand the correlations in various channels & the impact that they create in sales. A Scatter plot can be one of the good metrics for the same. Besides, we can also have basic analysis via line graph to understand the trend of the budget over days & retail spike for the same.
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Once basic EDA analysis is done, we can check for the correlation (r – Value) for all the parameters against the sale. This will give the major variable which impacts the sales. Post this, we can apply LPP optimization techniques to understand the weightage of allocations. This gives us a more scientific & data-centric approach to have our budget allocated to the various media options.

 

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This kind of approach gives marketers a better tool not only to identify the budget allocation but also on which market to focus on, what should be the place to promote the products, what should be featured & what are the customer’s feedback. This kind of approach gives way to a more result-oriented focus.

 

To summarize, 4P is the basic building block for marketers, which if utilized effectively can help any brand to segment, position & target the market in a systematic framework so that they can gain an advantage in it.  This backed with data & customer analysis will help to increase revenues & thereby profit for the company.

 

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