September 4, 2017

New trends in marketing: what is the power of big data analysis?

To date, practically in any discussion concerning the topic of marketing, we automatically start using terms such as “digital world”, “content marketing”, “social media”, “viral marketing”, etc. These terms determined the main changes in the marketing environment, which occurred very quickly. Consumers, as well as marketers, are ready to live in this new reality. Excellent! Then let us dig a bit deeper and analyze what the most significant shifts have taken place in the field of marketing and what key trends determine such a massive use of the above partially technical, partially creative terms.

Probably everyone will agree that, in general, the transition to the widespread use of digital technologies creates a new conceptual framework for individuals and businesses. Among the new opportunities that the digital era opens up for marketers, we often forget about one very important moment, the importance of which also rapidly increased in the era of the Internet and digital technologies – I am talking about the huge databases that exist in almost all areas of our lives. The phrase “data not available” is outdated. It would be more honest to admit “we cannot extract the necessary data from a huge array of information and do not know how to properly analyze and understand them.”

Let us go back to marketing and sales. As a result, a simple visit to a supermarket store computer system receives a large amount of data – purchased product, the price, the time of purchase, discounts, credit / debit card (if they are used by the customer), as well as discount programs (storage card). A very rough calculation allows you to see how much information can be collected per day in a regular store. Moreover, if we imagine that we are not talking about one store, but about a network of 100 outlets, and not for one day, but for example, for a month? Obtained and correctly processed data is of enormous importance both for marketers, who can evaluate the effectiveness of the use of certain advertising messages and campaigns, and for the business as a whole.

That is why for business it becomes necessary to be able to distinguish the facts and trends hidden in huge massifs of information and be able to understand their meaning. As a result, more and more scientists and practicing marketers are increasingly using terms such as “large data analysis”, “data mining”, “multidimensionality”, etc. We come to the fact that the success of marketing now depends on the analysis of data much more than ever before.

Another very important point is what to analyze? On the one hand, the answer is simple. In marketing, the absolute majority of data reflects consumer characteristics and priorities, as well as patterns of behavior when making purchases. The purchase can be made in an ordinary or online store, using the latest mobile applications or without using any technological devices at all, along with thousands of friends within the global network or independently. In the end, business interests one thing: the logic of the buyer’s behavior. Consequently, modern marketing needs not so much in mathematicians who are good at analyzing data, but rather in marketers who, based on mathematical analysis, can draw conclusions about the causes of a particular consumer behavior. This integration of the two sides is still extremely rare.

Marketing increasingly needs another new type of integration. I am not talking about the integration of communicative or synergies between different marketing solutions. This is so well known. I am talking about the increased need for the integration of all marketing and communication activities with an adequate understanding of consumer behavior, which is based on a qualified analysis of available information. Marketers should understand that the main goal of their activity is not just to show creativity, to conduct successful campaigns or to achieve other planned goals.

The real task is to understand and manage consumer behavior using appropriate integrated mechanisms. If such understanding is achieved, the marketing steps will be really adequate and, therefore, successful. In addition, this means, in the end, we will be able to come to the famous “win-win” solution (in which everyone benefits).

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