Archive for the ‘Marketing’ Category
Missing Data Analysis
When taking THE ‘Market Intelligence’ course here at Goizueta, we came across a data set that contained lots of missing values. Yes, I know that most of the data sets you see out there have some missing data or the other. But when I started looking for material on how to deal with these data points (other than simply discarding them) I was frustrated not to find anything for a manager-type audience. Most of the discussion was for statisticians. So, based on what I heard in class, here is a flow diagram that should help. Note that there are some acronyms used, but you can look them up and find out what they mean. They are not difficult.
- Various Statistical packages have automated functionality to achieve this.
- Various options available to impute data. Use business judgement.
Optional
- Run analysis with imputed data and dropped cases
- Check for any significant difference in the models
- Provide necessary details of imputation when presenting analysis
“Pricing and Marketing Productivity” Reading List
As part of our “Pricing and Marketing Productivity” class, we had to prepare a reading list from the articles that we referenced in order to get a good understanding of the subject matter. Many of these articles have been immensely helpful in learning about the various material we have covered. Though this is a formal submission, I am also releasing this to the blog so that it benefits its readers also.
Marketing productivity analysis
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With social media exploding in the past few years, many companies are entering this channel in order to reach its consumers. But one complex issue that arises with this is how to measure your ROI. This article talks about one such idea.
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Similar to the article above. It mentions that marketing is slowly transitioning from the domain of just art to a combination of art and science. Given this fact, the C-level executives are interested in knowing exactly how the ad revenue translates into tangible sales of their company’s products and services.
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An interesting twist to the thought process. The author of this article argues that ROI is really a ‘trailing’ indicator and not a ‘leading’ indicator. So should new strategies be first justified and thus constrained in its creativity? Leave the marketers alone.
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Market response models
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I haven’t read this thesis completely because of it is actually a complete book in itself. But I have often referred to it in absence of a true textbook whenever I have to understand certain types of models. This document has helped me get familiar with many models not discussed in class but handy and useful.
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This article talks about building a market response model. The interesting thing about this was the ideas in this document matched very closely with the data we used most of the semester. Very helpful article. There are some portions that involve higher knowledge of mathematics but apart from that, very good.
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Functional forms, Estimating competitive effects
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Mid semester module course material – Syndicated Data Analysis for Brand Scientists by Prof. Doug Bowman
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This is not a link because the material was provided in hard copy by one of our other professor. I always have this deck handy because it is easy to read and clearly explains various functional forms and methods of estimating competitive effects. It starts from the very basic and slowly builds in the concepts.
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Costs, Customers, Competition, and Pricing
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Games of Strategy – THE book on game theory
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This book is a required material on one of my other subjects – Strategic Decision Analysis. A lot of the concepts we study in pricing involves understanding competition, their actions, and consumer’s willingness to pay. This book is a great resource to learn about concepts like the prisoner’s dilemma and other games that are helpful in maximizing marketing dollars.
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A basic presentation on willingness to pay – covers basic economic concepts and the ever elusive consumer surplus
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White paper on Value based pricing model. This model speaks about an approach a specific company takes in measuring the true value to consumer. Interesting approach.
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Value based pricing vs. cost based pricing
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An interesting insight from one of my favorite sites about what actually determines our willingness to pay. Are we objective or subjective? But the real question is how can marketers exploit this sweet spot to sell their product.
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Psychological aspects
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Influence: Science and Practice – A seminal reading – Read review here.
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Wikipedia provides this interesting article on psychological pricing for e.g. why do prices of most items end in 99? The article talks about similar pricing mechanism in order to lure the customer into purchasing.
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Segmentation, and pricing
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A fresher’s guide to the importance of customer segmentation – probably one of the most important step before any marketing can actually be done.
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Segementation and pricing at its best. This paper by a Goizueta professor was not only an interesting read but also very informative. Given the right strategy and right method to segment customers, Harrah’s Cherokee Casino truly knows which customer to give their rooms and what to charge them.
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Read Cluster Analysis concepts
iPhone vs. iPod Touch
No. This is not a feature by feature comparison of iPhone and iPod touch. But these are my views pertaining to a discussion I was having yesterday whether iPod touch is in a declining stage of its lifecycle. I say not.
First the facts: I have been an avid user of iPod touch and love the device. Though it is restricted in its use of wifi to connect to internet (data), I find it quite satisfactory as all places I frequent – home, office, hotels, most fast food restaurants (yes!) and school, have free wifi connection. The only time I am unable to check my emails is when I am commuting to and fro these places. I am completely fine with that as I do not need to do that anyways (and it may be dangerous). Most apps that work on the iPhone also work on the iPod touch. I have an RSS reader that helps me read various blogs and news sites I frequently visit. There are music applications, even an NPR application for radio. There are various applications for Facebook, Twitter, and other social networking sites. It also doubles as a mobile gaming platform. I don’t mind carrying a phone with me as my pants mostly have four pockets and there are enough slots in the dashboard and my bag to accommodate both these devices. What are absent is a phone and a GPS. The lack of GPS is compensated by an excellent maps application in iPod touch. I just download the directions one way and use that if necessary and voice direction is provided by my wife. Needless to say, a lot of innovation is still left in this product (adding a camera, GPS, office applications, etcetera) for a long time to come. Total cost of ownership for an iPod touch is $229, $299, or $399 depending on the memory one desires.
On the other side, iPhone has all of the above including what’s lacking in iPod touch. Will I prefer one over the other. If I have a choice, yes!!! I will go for an iPhone. But the cost of ownership of the device is prohibitive, for now. It comes to around $120 per month. I will go on to say that unless a corporate is sponsoring my data plan, I may never buy an iPhone and be happy and content with my iPod touch.
Coming back to the original argument – Broadly speaking, there are two categories of people – one who can afford and one who cannot afford an iPhone. In my opinion there are more in the latter than in the former. And I also believe that there are many more people in the latter category who haven’t yet switched to iPod touch from their current mp3 player. This is a huge market segment that will show itself in the years to come and buy the product. With Apple providing free iPod touch to Mac buyers as part of back to school program, this device will continue to have users and will get continuous traction among the 15 – 27 age group.
What can also point us in coming to the right conclusion are the sales figures of these devices. Per last announcement by Apple, sales of iPod touch doubled over the last year. Almost 3.21 million devices were sold last quarter, in line with 3.79 million iPhones. More here.
In the end, I would still place iPod touch in the growth stage. iPhone is going to be the choice of device for corporate users and those who can afford it.
Conjoint Analysis – A Brief Introduction
As promised earlier, here is my first guide. These guides are being prepared as I learn a few new concepts and methodologies during the course of my MBA (during the summer break).
I have also given a name to the series – Cow’s guide to <Subject>…. If you ask me, I may tell you why I have named it such. But for now, just consider it unique. These guides are intended to be a beginner’s reference and should be used as a casual read to get basic understanding of the concepts discussed.
So, here is the first guide – Cow’s guide to Conjoint Analysis. In my document Conjoint Analysis is referred to as applied in Market Research. Conjoint Analysis is extensively used statistical technique to quantify customer preferences for your potential/existing product based on its attributes and values. Attributes are nothing but features of your product and values are the various types (levels) within each attribute. You will understand better once you read my guide.
Conjoint Analysis is a powerful method and is applied extensively in Marketing Strategy, New Product Development, Pricing Strategies, and even Sales Forecasting.
I would much appreciate if you can provide me your feedback on the guide. You can comment on my structure, level of detail, or even the use of language.
Download link –> Cow’s guide to Conjoint Analysis
