Marketing
Overview
Marketing refers to the activities that a company uses to engage its target customers. This includes elements of branding and
sales, as well as the analtyics necessary to understand product market fit and optimal pricing.
From a
firm modeling perspective
(supply side vs demand side),
marketing is responsible for modeling and managing the
demand side,
that is, the amount of product that consumers will buy at different price points.
Of course, customers respond to factors other than changes in price. Customers also respond to sales and
marketing campaigns designed to make them aware of the firm and its products. Marketers analyze the
customer response in order to optimize its advertising spend.
Marketing Analytics
-
Demand Forecasting and Price Dynamics refers to the interaction between the price of a product, and the
amount that customers buy at that price. It represents the demand curve in the supply and demand relationship.
-
Total Customer Value is a dollar value that is assigned to each customer that measures the
value to the company that accrues from having the customer in question.
- Purchase response
is the a forecast of how customers will respond to marketing activities in terms of their purchasing behaviour. That is, if a firm
increases some sales activity, such as mailings or sales calls. The question then becomes, how much does sales increase in response
to the new marketing activity.
-
Customer Experience :
is a key concern of the marketing department. It is the recognition that the product or service being sold
encompasses all the interactions the interactions that the customer has with the firm, and not just the product or service
in and of itself.
-
Market Segmentation -
refers to segmenting a companies customers
into a set of groups with shared characteristics that help
to explain the customer behaviour, for instance by age or income. Typically, the groups are a discrete set, and designed
to simplify the customer analysis.
Marketing Tools
- Marketing Surveys are a series of question and answers that are posed to customers or
likely customers in order to understand customer needs and/or the customer experience with the company and its products.
- Marketing Campaigns
