Based on the provided document for the MBA MK02 course, here is a

summary of the topics covered in Unit 5, which focuses on Retail and

Advertising Analysis:

Retail and Advertising Analysis (8 hrs.)

1. Market-based Analysis

Two-way and Three-way Lift: Techniques for computing associations between

products bought together.

RFM Analysis: Recency, Frequency, and Monetary analysis to segment

customers.

2. Allocating Retail Space and Sales Resources

Sales-to-Marketing Efforts Relationship: Understanding and modeling how

sales and marketing efforts interact.

Optimizing Sales Effort: Methods to efficiently allocate and enhance sales

efforts.

3. Advertising Analysis
Measuring the Effectiveness of Advertising: Techniques to evaluate how well
advertising campaigns are performing.

Pay per Click (PPC): Understanding and using PPC advertising.

Online Advertising: Strategies for advertising on digital platforms.

Hands-on with Excel or other Software: Practical application of tools to

analyze retail and advertising data.

Detailed Breakdown of Key Topics:

Retail Analytics

Definition and Importance: Provides data on inventory levels, supply chain

movement, consumer demand, and sales to aid in decision-making.

Features of Retail Analytics Tools:

1. Competitor Monitoring

2. Data Drill-down
3. Trend Prediction

4. Action Triggers and Alerts

5. Real-time Competitor Benchmarking

6. Onsite Recommendations and Cross-sell Suggestions

Benefits of Retail Analytics:

Customer behavior insights

Improved marketing ROI

Optimized in-store operations

Managing the basics like stocking and inventory

Enhancing customer loyalty

Market Basket Analysis

Objectives:

1. Helps in setting prices

2. Arranging SKU display

3. Customizing promotions

4. Identifying sales influencers

Benefits:

Store layout optimization

Improved marketing messages

Inventory management

Content placement for e-commerce

Recommendation engines for personalized shopping

Effective advertising and promotion strategies

Precise targeting and improved ROI

Increased in-store traffic

Optimized store layout

Advertising Analysis

Methods to Measure Effectiveness:

1. Message Evaluations: Evaluating the ad copy and infrastructure.

2. Evaluating Respondent Behaviors: Analyzing customer responses to ads.

Tests for Measuring Effectiveness:

Pre-testing (e.g., check-list tests, opinion tests)

Concurrent testing (e.g., consumer diaries, mechanical devices)

Post-testing (e.g., recognition tests, sales tests)

Importance of Measuring Effectiveness:

Justifying advertising costs

Exercising control over ad campaigns

Evaluating ad-copy and message

Comparing different market areas

Effective media planning and scheduling

Identifying the saturation point of advertising

Reducing wastage in advertising expenses

Keeping in touch with new trends in advertising

Online/Internet Advertising
Components:

Websites

Search Engine Marketing

E-Mail Marketing

Banner Advertising

Press Releases on Internet

Blog Marketing

Article Marketing

Types:

Pop-ups

Interstitials

Banner ads

Sponsorships
These topics cover comprehensive aspects of retail and advertising analysis,
providing a strong foundation for strategic decisions in marketing analytics.

Based on the provided document for Unit 4 of the MBA MK02 course, here is
an explanation of the topics that are likely to be covered in the semester
exam:

Customer Analytics

Customer Lifetime Value (CLV)

1. Concept and Importance

Definition: CLV is the total revenue a business can expect to earn from a
customer over the course of their relationship.

Importance: Identifies and prioritizes the most profitable customers, helping

businesses focus marketing efforts and resources effectively.

2. Measuring Customer Lifetime Value

Basic Formula: CLV = Average Revenue Per Customer × Purchase Frequency

× Customer Lifespan
Example Calculation: If the average revenue per purchase is $50, purchase
frequency is 4 times/year, and customer lifespan is 5 years, then CLV = 50 ×
4 × 5 = $1000.

3. Advanced CLV Calculation

Formula:

Variables:

: Revenue at time

: Profit margin

: Retention rate at time

: Discount rate

: Time period

Customer Value Multiplier: Used to estimate long-term value based on

retention and discount rates.
 4. Estimating Customer Activity

Method: Use purchase history and timing to estimate the likelihood that a
customer is still active.

Schmittlein, Morrison, and Colombo Method: Uses the ratio of the time of last
purchase to the total time elapsed to estimate activity probability.

Market Segmentation

1. Segmentation-Targeting-Positioning (STP) Framework

Segmentation: Dividing the market into distinct groups based on various

criteria.

Targeting: Selecting which segments to focus on.

Positioning: Crafting a marketing message tailored to the selected segments.

2. Types of Market Segmentation

Demographic: Age, gender, income, education, occupation.

Geographic: Region, city, climate.

Psychographic: Lifestyle, values, interests, attitudes.

Behavioral: Usage rates, loyalty, benefits sought.

3. Managing the Segmentation Process

Survey Stage: Collect data on attributes, brand awareness, product usage,

attitudes, and demographics.

Analysis Stage: Use factor analysis to identify key variables and cluster
analysis to create segments.

Profiling Stage: Describe each segment in detail, including demographics,

behaviors, and attitudes.

4. Cluster Analysis

Definition: A statistical method used to group data into clusters with similar
characteristics.

Steps:
 1. Define objectives.

2. Select variables.

3. Standardize data.

4. Choose a clustering method.

5. Determine the number of clusters.

6. Form clusters.

7. Interpret results.

Methods:

Hierarchical Clustering: Creates a hierarchy of clusters.

K-Means Clustering: Partitions data into a predefined number of clusters.

Distribution-Based Clustering: Groups data based on statistical distributions.

Density-Based Clustering: Defines clusters based on areas of high density.

Key Customer Analytics in Use Today

1. Customer Satisfaction Analysis

Measures how well customer needs are met and determines satisfaction
levels.

2. Customer Lifetime Value Analysis

Evaluates the entire relationship with a customer to determine their value.

3. Sales Channel Analytics

Analyzes different sales channels to identify the most effective ones.

 4. Customer Segmentation Analytics

Identifies sub-groups within the customer base for targeted marketing

efforts.

5. Web Analytics

Analyzes online behavior to optimize website usage and increase

engagement.

6. Social Media Analytics

Gathers and analyzes data from social media to understand public sentiment
and customer feedback.

7. Customer Engagement Analytics

Measures the quality of interactions between a company and its customers.

 8. Customer Churn Analytics

Assesses and predicts the rate at which customers stop doing business with
a company.

9. Customer Acquisition Analytics

Evaluates the effectiveness of strategies used to acquire new customers.

Importance of Customer Analytics

1. Reducing Attrition Rates

Predicts when customers are likely to leave and develops strategies to retain
them.

2. Boosting Response Rates, Customer Loyalty, and ROI

Targets the right audience with appropriate offers to increase engagement
and return on investment.

3. Reducing Campaign Costs

Focuses efforts on the customer base most likely to respond to marketing

campaigns.

4. Optimizing Customer Experience

Creates personalized marketing strategies for different customer segments.

5. Identifying Trends in Big Data

Uses data to identify trends that can boost sales and improve marketing
strategies.

Best Practices for Effective Customer Analytics

 1. Walk in Customers’ Shoes

Understand customer interactions and gather insights from customer-facing

employees.

2. Ask Smart Questions

Identify the right questions to ask to gain actionable insights.

3. Know the Data

Utilize available data effectively and ensure it is granular enough for detailed
analysis.

4. Make it Count

Plan how to turn insights into actions and measure the results.

5. Target a Quick Win

Focus on small, achievable projects that can generate valuable insights
quickly.

These topics form the core of Unit 4 in the Marketing Analytics course and
will likely be key areas of focus for the semester exam.

Based on the provided documents for the MBA MK02 course, here is a
detailed explanation of the topics covered in Unit 3 and Unit 4, which will
likely be included in the semester exam:

Unit 3: Sales Forecasting

Introduction

Sales forecasting involves predicting future sales based on past data, trends,
and other variables. It is crucial for planning and decision-making in
businesses.

Techniques of Sales Forecasting

1. Qualitative Techniques:

Opinion Poll Methods:

Consumer’s Survey or Survey of Buyer’s Intention: Consumers are surveyed
to know their buying intentions.

Sales Force Opinion: Sales personnel provide insights based on their

interactions with customers.

Experts Opinion: Experts provide forecasts based on their knowledge and

experience. This can include the Delphi Method, where a panel of experts
independently provides forecasts which are then summarized and refined.

2. Quantitative Techniques:

Trend Projection:

Graphical Method: Historical sales data is plotted on a graph, and a trend line
is drawn.

Method of Semi-Averages: Data is divided into two parts, and averages are
calculated to find a trend line.

Method of Moving Averages: Uses the average of the most recent data points
to smooth out short-term fluctuations.

Method of Least Squares: A regression line is fitted to the data using the
least squares method to minimize the sum of squared deviations.
Simple Linear Regression:

A method to model the relationship between two variables by fitting a linear

equation to observed data.

Multiple Regression:

Used when there are two or more independent variables influencing the
dependent variable.

Special Techniques

Forecasting in the Presence of Special Events: Adjustments are made for

special events that might affect sales, like holidays, promotions, etc.

Modeling Trend and Seasonality: Time series analysis to identify and model
trends and seasonal variations.

Ratio to Moving Average Method: Used to calculate seasonal indices by

eliminating trend and cyclical variations.
Forecasting Sales of a New Product

Using S-curves: Predicts the growth of new product sales over time, typically
following an S-curve pattern that includes phases of introduction, growth,
maturity, and decline.

Unit 4: Customer Analytics

Customer Lifetime Value (CLV)

1. Concept and Importance:

CLV is the total revenue expected from a customer over their entire
relationship with a business.

Important for identifying and focusing on the most profitable customers.

2. Measuring CLV:

Basic Formula: CLV = Average Revenue Per Customer × Purchase Frequency

× Customer Lifespan
Advanced Calculation: Uses discounted cash flow methods considering profit
margins, retention rates, and discount rates.

3. Estimating Customer Activity:

Methods to estimate the likelihood of a customer being active based on their

purchase history.

Market Segmentation

1. STP Framework:

Segmentation: Dividing the market into distinct groups.

Targeting: Selecting which segments to focus on.

Positioning: Crafting a marketing message tailored to selected segments.

2. Types of Market Segmentation:

Demographic, Geographic, Psychographic, and Behavioral.

3. Managing the Segmentation Process:

Survey Stage: Collecting data.

Analysis Stage: Using factor analysis and cluster analysis.

Profiling Stage: Describing each segment in detail.

4. Cluster Analysis:

Grouping data into clusters with similar characteristics.

Methods: Hierarchical, K-Means, Distribution-Based, and Density-Based

Clustering.

Key Customer Analytics

1. Customer Satisfaction Analysis: Measures customer happiness and
loyalty.

2. Customer Lifetime Value Analysis: Evaluates the overall value a

customer brings.

3. Sales Channel Analytics: Determines the most effective sales channels.

4. Customer Segmentation Analytics: Identifies sub-groups within the

customer base.

5. Web Analytics: Analyzes online behavior.

6. Social Media Analytics: Gathers and analyzes data from social media.

7. Customer Engagement Analytics: Measures the quality of interactions.

8. Customer Churn Analytics: Assesses and predicts customer loss.

 9. Customer Acquisition Analytics: Evaluates the effectiveness of
acquiring new customers.

Importance of Customer Analytics

1. Reducing Attrition Rates: Predicts customer loss and develops retention

strategies.

2. Boosting Response Rates, Customer Loyalty, and ROI: Targets the right
audience.

3. Reducing Campaign Costs: Focuses efforts on the most likely

responders.

4. Optimizing Customer Experience: Creates personalized marketing

strategies.

5. Identifying Trends in Big Data: Uses data to boost sales and improve
strategies.

Best Practices for Effective Customer Analytics

 1. Walk in Customers’ Shoes: Understand customer interactions.

2. Ask Smart Questions: Identify the right questions for insights.

3. Know the Data: Utilize data effectively.

4. Make it Count: Turn insights into actions.

5. Target a Quick Win: Focus on small, achievable projects.

These topics form the core of Units 3 and 4 in the Marketing Analytics course
and will likely be key areas of focus for the semester exam.