Agenda
     Introduction
     Research Methods and Data
     Marketing Engineering Analysis
     Markstrat Simulation (Part II)
     Marketing Strategy Project
   © Palmatier                                                 2
   Is Marketing an Art or a 
                      Science?
   © Palmatier                                                 3
      Marketing is Transitioning from an Art to a 
      Science
     Global 1,000 companies spend over $1 trillion on 
       marketing, but only about 16% use marketing analytics
       One unit increase in use of marketing analytics (7 point scale) led to a 
         8% increase in ROA (70M$ in net income) for Fortune 500 firms
       Same change in competitive markets where customer needs are 
         changing led to 21% increase in ROA (180M$ in net income)
       Different study shows marketing productivity increases by 5 – 10% 
         with minimal additional costs 
     “You can count on us to combine a strong quantitative and 
       analytical culture with a willingness to make bold decisions. 
       As we do so, we’ll start with the customer and work 
       backwards. In our judgment, that is the best way to create 
       shareholder value.” (Jeff Bezos in letter to shareholders)
   © Palmatier       (Germann, Lilien, and Rangaswamy 2013)                        4
     Data  Insights for Action Analysis
   © Palmatier                                                 5
    Key Steps in Marketing Research
      1.   Define question or decision (importance, 
           timing)
           E.g., How best to acquire new customers?
           E.g., Should we launch this new product?
      2.   Decide on research “methods and models” 
           Qualitative (e.g., interviews, focus groups)
           Quantitative (e.g., experiments, models)
      3.   Collect data
           Sampling and source (e.g., survey, CRM, interviews)
      4.   Perform analyses
           Decision type & variables (e.g., go/no go, tradeoffs)
           Analysis/model (e.g., cluster, choice, conjoint)
   © Palmatier                                                                     6