Using Big Data Analysis For Marketing

Big data makes a big impact on marketing by helping to gain competitive advantage in areas like segmentation, targeting, positioning and decision making etc.

Segmentation

Segmentation is the process of dividing the whole market into small parts considering one or more common factors. It is done to offer different products and services and then to increase customer satisfaction. In big data, clustering and classification methods are used to segment a market. Automatic segmentation can be done using big data, considering customer life time value etc. As an example call data can be used to do geographical segmentation. “Airbnb” uses big data for both product and marketing success. They use customer insights to segment their geographically and to customize their service according to people in different segments.

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Targeting

We do not need give equal attention to whole general public. We can segment them to address the relevant target market. Segmented market can be targeted easily. Targeting is identify the common characteristics of a target and offer suitable products to get higher sales. It is hard to target the right market but now big data helps to determine the attractiveness of segments and select the most suitable one to launch the product. And also big data can be used to check whether the segments are accessible and measurable. As an example, big data on consumers buying patterns are used to help in targeting. Social media web sites generate lots of data on consumer opinions and personal details. Marketers can market their products which are used by the targeted market. Analyzing credit card transaction in supermarkets, can be also used to identify buying patterns of consumers. Then they can be divided according to their choices and provide products targeting these different groups. As an example Netflix uses big data to target advertising. If we like a film it filters advertises of that customer according to his likes.

Positioning

Positioning is the process of putting the key benefits of the products into consumers’ minds. It leads to place the uniqueness our product in consumers’ minds and gain customer loyalty to that product. Big data from social networks and personal blogs provide details about people’s buying patterns, opinions, beliefs, attitudes, new trends etc. those things can be used to decide, what key factor of which product should be positioned into which customer. As an example “CocaCola” company uses big data to maintain a better customer retention.

Decision Making

Decision making process is a very important process for an organization as some decision affect to the overall organization. There are two types of decision; strategic decisions and operational decisions. Big data give insights of customer preferences. So it helps to take more accurate and realistic strategic marketing decisions such as the best product to develop for a particular market segment, by offering real time data from the industry.

Recognize Market Opportunities

Big data gives real time information on consumer behaviors on their buying patterns and desires. Sometimes those data reveals new segments of customers to whom our product can be addressable. And also we can identify new market opportunities by observing the increasing of sales. It is very useful to have updated data of customers and marketing environment as it helps to adapt according to these volatile environment. And also we can find more new ways to launch marketing campaigns. As an example if our firm sells a product related to teenagers, we can market our product using some web sites and social media which is recognized as mostly visited by teenagers with the aid of big data analytics.

Recognize New Market Trends

Market trends are changing quickly with the behavior of consumers. Recognizing those new market trends is a good opportunity for marketers to target their product relevant to them. Using big data analytics mainly in social media, we can recognize these new trends immediately as they give real time information on people.

Integrate Advertising

Advertising is a major step in marketing process which is used to position a product among targeted customers. A firm uses multiple channels and pays a lot of money for advertising. So it is important to select most appropriate channel to reach targeted customers. Marketers can use big data analytics to choose the suitable channel to advertise as it provides some other ways besides to traditional channels like TV and newspapers. It will help to address more targeted customers and do an effective marketing campaign.

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