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KMB MK 05 : UNIT ONE
MARKETING ANALYTICS Introduction Traditional Theory
Marketing analytics is the practice of measuring, managing
and analyzing marketing performance to maximize its effectiveness and optimize return on investment Modern Theory
Marketing analytics is the set of Models and Metrics that
provides actionable insight, to have practical and directly applicable nature of the analysis done for pure marketing purposes. Models & Metrics MODELS METRICS Models are simplified representations of Metrics are measurements quantifying reality we use to solve problems and gather important attributes of marketing insight to make decisions. phenomenon. The purpose of the models is to understand Its purpose is to monitor and diagnose the nature of marketing phenomenon and marketing phenomenon. use that understanding to predict the outcome of our marketing actions. Marketing Analysis Adoption Several factors are driving increased adoption of marketing analysis
•Accountability
•Data-Driven Presentations
•Massive Data
•Online Data Availability
•Reduced Resources Marketing Analysis Advantages
•Drives Revenue
•Saves Money
•Persuade Executives
•Encourages Experimentation
•Decrease Effect of Politics
Market Data Sources Secondary Sources Primary Sources
• Government Data • Surveys
• Analyst Reports • Commissioned • Business and Trade Reports Publications • B2C : Retail Sales • Other such Sources Persons • B2B : Company Sales Persons 8 Market Sizing Market Sizing is the process of estimating the potential of a market. Using a wide variety of secondary market research sources and databases, we synthesize results from previously published research and other data sources to help define: •The total size (or potential size) of a market •The major competitors in a market by category Stakeholders for Market Sizing Marketing Departments Distribution Channel Partners
Stakeholders For Market Sizing
Operations Departments Financial Service
Stakeholders for Market Sizing
Operations Department Marketing Department Financial Service Sizing activity will also Distribution Channel affect Manufacturing Partners Marketing Employees like Financial Service Provider Personnel and Service Executives, Vice- like Banks, Venture Providers. Manufacturing Channels Partners are the Presidents, M.D.s will all Capitalists and Angel people will need info one who take the product have to conduct Market Investors, use market related to how many units or service to the Sizing efforts when sizing as an important to produce, what machine customer. They need to investigating new markets metric when deciding to be used, what process know how much products or calculating market how much money to to use. Service Provider are they expected to sell share within existing invest or lend in needs to know how much and where. markets companies. resources needs to be employed. Sizing Determine if money should be invested in the Market Investment Market Investment market, and that too how much.
Helpful in determining number of market segments and
Market Lorem ipsum dolor sitSegment amet which one to target.
Provides good insight into current market share, telling
Market Lorem ipsum dolor sit ametshare about sales of given product of the company.
Adoption rate is the relative speed at which the
Adoption Lorem ipsum dolor sit amet Rate customer purchase and use the product, sizing can help Applications in determining Adoption Rate
of Market Life cycle
Lorem ipsum dolor sit amet Periodic Market sizing can help to identify the correct stage of the product with respect to the Life cycle. Sizing By alert Market Sizing current market trends can be Market Lorem ipsum dolor sit amet Trend worked out.
Timely sizing the market can enable marketers to have
Sales Lorem ipsum dolor forecast sit amet fruitful sales forecasts.
B2B organizations can work out an estimated no of sales
Sales Lorem ipsum Force dolor Sizing sit amet force to be employed for their given market with the help of Sizing.
Number of Channels, Type of Channels, Channel Location
Distribution Channels 12 all can be worked out with the help of Sizing. 10/15/2024 Market Size Approaches
Top-Down Approach Bottom-Up Approach
Niche Market with Total Market Area Market Limited No. of Market with Limited No. of Distribution Demand Demand Market Segments Channel Market Sizing : Top Down Approach Total Market Demand G I n e t n e r e m r e d a i l a t e M M a a r r k k e e t
t21
O b j e
Factor 1 c t i v e
M a r k e Factor 2 t
( T a r
Factor 3 g e t
M a r k e t ) Market Sizing : Top Down Approach Area Market Demand
Market Element 1 Market Element 2 Market Element 3
Specially used in following situations:
Niche Market Market with Limited No. of Segments Market with Limited No. of Distribution Channels Market Sizing : Bottom-Up Approach
Bottom-Up Approach for Niche Market has very limited market as product has very specialized features, this approach has a simple three step process
1 •Identify Relevant Organization
2 •Determine Quantity of these Relevant Organization
3 •Multiply Quantity by Price to Get Market Size
Market Sizing : Bottom-Up Approach
Bottom-Up Approach for Niche Market Eg. Tunnel Boring Machine
` Market Sizing : Bottom-Up Approach
Bottom-Up Approach for Niche Market Eg. Tunnel Boring Machine
Sandvik Mining and Construction Crushing Technology GmbH
LISSMAC ` MSD Maschinen Epiroc UK E-Berk Tunneling & Foundation Technologies Market Sizing : Bottom-Up Approach Bottom-Up Approach for Market with Limited Number of Segments has products intended for limited no of markets or market segments
• Identify New or Existing
1 Groups ` of Buyers
• Identify Buyers Rate of each
2 Group
• Sum up Potential from Each
3 Group Market Sizing : Bottom-Up Approach
Bottom-Up Approach for Market with Limited Number of Segments
Eg. Glass Lift Manufacturer •Aichi •Marshall Elevator •Anton Freissler •Mitsubishi ` Electric •Cibes Lift •Otis Elevator Company •Fujitec •Schindler Group •Hitachi •Stannah Lifts •Hyundai Elevator •Toshiba •Kleemann •Kone Market Sizing : Bottom-Up Approach Bottom-Up Approach for Market with Limited Number of Distribution Channels
In this situation companies distribute their products and services through a limited number of distribution channels. `
One can calculate potential annual sales by multiplying number of goods each distribution channel member expects to move in one year by the number of channel members. Eg. FERRARI has approx 39 dealerships in U.S.A. which has the population of about 308 million people, if each dealer sells 100 Super-Premium vehicle each year than total sales will be limited to only 3900 vehicles per year. Market Sizing : Bottom-Up Approach Bottom-Up Approach for Market with Limited Number of Distribution Channels
