Question

Marketing analytic approaches can be thought of by considering the level of analytic complexity and the value that is created from employing each within the specific context of interest. Generally, greater levels of complexity come with a higher cost in the form of the level of expertise and effort required to execute the related analytic approach, but more complex analytical approaches also tend to yield higher value customer insights.

This activity is important because marketing managers benefit from being able to determine what the most appropriate marketing analytics approach is for a given decision making context. The goal of this exercise is to demonstrate your understanding of the four key types of marketing analytic approaches. There are four key types of marketing analytics: descriptive analytics, diagnostic analytics, predictive analytics, and prescriptive analytics. Each has its place in taking Big Data and providing valuable insights for marketing management decision making. Hover over each individual item to read fictional company examples highlighting different ways that marketing analytics can be used to yield specific insights.

Match the item to its appropriate position based on which type of marketing analytics approach it represents.

a. Quality Software
b. ABC Supermarket
c. Global Hospitality
d. XYZ
e. Manufacturing

1. Descriptive Analytics
2. Predictive Analytics
3. Diagnostic Analytics
4. Prescriptive Analytics

Answer 1

a. Quality Software - Prescriptive Analytics

b. ABC Supermarket - Descriptive Analytics

c. Global Hospitality - Diagnostic Analytics

d. XYZ - Predictive Analytics

e. Manufacturing - Descriptive Analytics

Step-by-step explanation:

Descriptive analytics is the strategy which uses the past data and creates a summary for historical data to create future analysis.

Predictive Analytics is the strategy which uses statistical calculations and models to predict the future.

Diagnostic Analytics is the strategy which the analyst observes the past event and then examines why certain situation happened. This is used by analysts to make sure that historic mistakes are not repeated.

Prescriptive Analytics is the strategy in which strategic planning is made after the operational activities are analyzed and then strategies are formed in order to plan future performance.