How to use big data in marketing27 December 2016
According to IBM analysts, users daily generate 2.5 quintillion bites of data using connected devices. It includes web publishing, downloaded media files, information from various sensors, etc. Among the immense amount of Big Data there are those that should be mentioned while creating a marketing strategy for a certain product. Fortunately, one has already developed special tools, allowing to process information and use only information required for promotion.
Forecasting based on Big Data
common process of marketing strategy development is quite simple: based on last year’s advertising budget give or take 15%, one forms a plan of activities where a defining role is taken by the most efficient previous mediums. Activities budget is sorted in proportion to time that users spare for given mediums.
due the increasing amount of data on users and their interaction with products, marketers have started paying great attention to the quality of each contact rather than to maximum reach of target audience. Implementation of IoT technologies gradually leads to more “point” targeting. Now, companies can create a thorough psychological profile of their consumers and offer them the product they need.
currently, the development of promotional strategy is based on data that are directly relevant to consumers of a certain product instead of target audience. Major companies like Target have been long analyzing customer purchases data to create customized newsletters and landing pages.
tools of big data collection and analysis allow to develop more efficient activity plan. In particular, Google.trends service will allow to determine seasonal spikes of demand for certain goods in certain regions. If taking into account analytics of website activity, one can more advantageously allocate advertising budget by months and cities.
Big data application in marketing
A marketing strategy is based on four main elements: promotion, product, place, and price. Big data can be applied in all these aspects.
Promotion: data analysis allows marketers to create an accurate profile of potential customers. Moreover, they can also forecast consumers’ reaction to advertising.
Product: Modern data processing tools can be used for researching products and market. Besides, manufacturers can review and analyze digital activity, which helps to improve a product according to customer’s needs and wishes.
Place: Big data analysis allows to determine the most efficient channels for placing advertising about products and goods. In particular, nowadays, online selling is more profitable in some cases.
Price: Pricing is a very significant factor, influencing the success of product promotion. To establish the price correctly, one can analyze suppliers’ data, financial reports, business models, etc. If a target audience is quite vast and various, one can use customized pricing. And big data helps to deal with these aspects.
Advantages of applying Big Data analysis tools in marketing
In conclusion, we will give a list of undeniable advantages of big data application in marketing:
- creation of the fullest consumer’s profile;
- opportunity to forecast users’ reaction to products and advertisement messages;
- differentiation of products and marketing approach;
- optimization of advertising budget;
- opportunity to create digital marketing;
- obtaining of sufficient vision of your own product.
Therefore, big data tools bring marketing to the whole new level.
12 July 2017