Webcast: Why Marketing Analytics Matters

© AIPMM 2013 www.aipmm.com
AIPMM Webinar Series
www.aipmm.com

– Founded 1998
– World’s largest professional association for product
management, product marketing and brand management
– Provides globally recognized certifications:
• Certified Product Manager
• Certified Product Marketing Manager
• Agile Certified Product Manager
• Certified Innovation Leader
• Certified Brand Manager

AIPMM: @AIPMM
Stephan Sorger: @StephanSorger
Tweet!

Three lucky winners will win a
copy of Stephan’s latest book:
“Marketing Analytics: Strategic
Models and Metrics”
Participate and Win!

Today’s Speaker
Moderator:
Hector Del Castillo, Product Innovation Consultant
Presenter:
Stephan Sorger
Website: www.stephansorger.com
LinkedIn: www.linkedin.com/in/stephansorger
Twitter: @StephanSorger

FEATURED PRESENTATION

Why Marketing Analytics Matters
Association of International
Product Marketing and Management (AIPMM)
July 12, 2013
Stephan Sorger
© Stephan Sorger 2013 www.StephanSorger.com; Marketing Analytics: Cover Page

On Demand Advisors: Process
© Stephan Sorger 2013 www.StephanSorger.com; Marketing Analytics: Introduction 1.7
2.
Market
Definition
3.
Lead
Generation
4.
Lead
Management
5.
Sales
Enablement
1. Revenue Engineering

On Demand Advisors: Clients

On Demand Advisors: Upcoming Events
Revenue Acceleration Workshops
Learn how to significantly grow revenue without costly marketing and sales
experimentation. See how to “engineer” revenue for growth & predictability.
Boston, MA
July 23, 2013, 8AM – 2PM
Miami, FL
July 30, 2013, 8AM – 2PM
San Diego, CA
August 27, 2013, 8AM – 2PM
$395 per person; Discounted price of $325 for AIPMM members; Use code “AIPMM”
To register, go to OnDemandAdvisors.com or call 800.208.5688

New Book:
“Marketing Analytics: Strategic Models and Metrics”
Authoritative Guide to Marketing Analytics
• Over 10 years of professional experience
• Over 5 years of academic research
Comprehensive
• Nearly 500 pages of text
• Nearly 400 figures, tables, and graphs
Practical
• Structured around marketing and products, not math
• Packed with examples
Available on Amazon.com:
• Search on “Marketing Analytics”
www.amazon.com/Marketing-Analytics-Strategic-Models-Metrics/dp/1481900307/

Top Concerns of Product Managers
Pragmatic Marketing Annual Survey:
2013 State of Product Management & Marketing*
Biggest Gaps:
Importance of Activity vs. Competency
• Market Problems  Market analysis
• Win/ Loss Analysis  Competitive analysis
• Product Profitability  Profitability analysis
• Customer Retention  NPS metrics, etc.
*Source:
https://pragmatic-marketing-469ad240.s3.amazonaws.com/PDF/AnnualSurvey2013Final.pdf

Topic Description
Definition (Broad) Broad definition (but too vague):
Data analysis for marketing purposes,
from data gathering to analysis to reporting
Definition (Applied) Techniques and tools to provide actionable insight
- Models - Metrics
Models Decision tools, such as spreadsheets
Metrics Key performance indicators to monitor business
Marketing Analytics: Definition

Models and Metrics
Metrics = Gauges:
- Monitor situation
- Diagnose problems
Models = GPS:
- Representation of Reality
- Decide on course of action

Trends Driving Marketing Analytics Adoption
Marketing
Analytics
Adoption
Online Data Availability
Reduced Resources
Massive Data
Accountability
Data-Driven Presentations

Marketing Analytics Advantages
Marketing
Analytics
Advantages
Persuade Executives
Side-step Politics
Encourage Experimentation
Drive Revenue
Save Money

Confusion: What is Marketing Analytics?
“It’s a Snake!”
It must be Marketing Automation!
“It’s a Fan!”
It must be Social Media!
“It’s a Tree!”
It must be Google Analytics!
“It’s a Wall!”
It must be Big Data!
“It’s a Rope!”
It must be Predictive Analytics!

Example: Tracking the Wrong Metrics
McDonald’s Campaign 2010
• Used location-based media
• Selection of metrics:
• Social media camp: “Track Foursquare Check-Ins!”
• Traditionalist camp: “No, Track Foot Traffic!”
• McDonald’s CEO
• “You’re Both Wrong!”
• “Track Incremental Revenue from Campaign!”

Mapping: Categories to Models & Metrics
Topic Model Metric
Products/Services Conjoint analysis Product revenue
Decision tree Market adoption
Portfolio allocation Cost of goods sold
Distribution Gravity model All commodity volume
Retail location Product category volume
Promotion Budget estimation Traditional: Reach, CPM
Budget allocation Social: Topic intensity

Marketing Feedback System
Marketing Mix
Business Operations
Strategy
Strategic Metrics
Results

Solution: The Marketing Analytics Framework
Strategic Tactical
Market
Analysis
Chapters 1-3
Competitive
Analysis
Chapter 4
Strategy and
Operations
Chapters 5-6
Marketing Mix
The 4 Ps
Chapters 7-10
Sales and
Support
Chapter 11
Analytics
in Action
Chapter 12

Market
Analysis
Chapters 1-3
Competitive
Analysis
Chapter 4
Strategy and
Operations
Chapters 5-6
Marketing Mix
The 4 Ps
Chapters 7-10
Sales and
Support
Chapter 11
Analytics
in Action
Chapter 12
Market Analysis:
• Market Definition
• Market Sizing (Top down; Bottom up)
• Market Analysis (PESTLE; Porter)
• Segmentation
• Targeting
• Positioning

Market
Analysis
Chapters 1-3
Strategy and
Operations
Chapters 5-6
Marketing Mix
The 4 Ps
Chapters 7-10
Sales and
Support
Chapter 11
Analytics
in Action
Chapter 12
Competitive Analysis:
• Competitive Intelligence (Info)
• Analysis Tools: Alexa, Compete, etc.
• Competitor Identification
• SWOT
• Defensive Actions (Competitive Attack)
• Offensive Actions (Market Opportunities)
Competitive
Analysis
Chapter 4

Market
Analysis
Chapters 1-3
Marketing Mix
The 4 Ps
Chapters 7-10
Sales and
Support
Chapter 11
Analytics
in Action
Chapter 12
Strategy and Operations:
• Growth through New Products
• Growth through New Markets
• Brand: Brand Equity Index (BEI)
• Customer Lifetime Value
• Product/Service Development Metrics
• Forecasting; Predictive Analytics; Data Mining
Competitive
Analysis
Chapter 4
Strategy and
Operations
Chapters 5-6

Market
Analysis
Chapters 1-3
Sales and
Support
Chapter 11
Analytics
in Action
Chapter 12
Marketing Mix: 4Ps
• Product: Conjoint analysis
• Product: Decision tree analysis
• Pricing: Techniques and assessment
• Place/Distribution: Location; Multi-Channel
• Promotion: Budget estimation and allocation
• Promotion: Social media measurement
Competitive
Analysis
Chapter 4
Strategy and
Operations
Chapters 5-6
Marketing Mix
The 4 Ps
Chapters 7-10

Market
Analysis
Chapters 1-3
Analytics
in Action
Chapter 12
Sales and Support Analytics:
• Ecommerce sales model
• Sales and profitability metrics
• Profitability through channels
• Customer tiering
• Customer satisfaction
• Net Promoter Score (NPS)
Competitive
Analysis
Chapter 4
Strategy and
Operations
Chapters 5-6
Marketing Mix
The 4 Ps
Chapters 7-10
Sales and
Support
Chapter 11

Market
Analysis
Chapters 1-3
Analytics in Action:
• How to Get Started
• Rapid Decision Models
• Excel Excellence
• Data-driven Presentations
Competitive
Analysis
Chapter 4
Strategy and
Operations
Chapters 5-6
Marketing Mix
The 4 Ps
Chapters 7-10
Sales and
Support
Chapter 11
Analytics
in Action
Chapter 12

Marketing Analytics: 3 Things to Do Today
Pareto Analysis: Identify 20% of efforts responsible for 80% of results
Cross-Sales Analysis: Determine product/service upsell opportunities
Metrics Alignment: Express yourself with metrics that matter

Pareto Analysis
Step #1: Collect the Data

Pareto Analysis
Step #2: Sort the Data (by Dependent Variable)

Pareto Analysis
Step #3: Interpret the Data
Sales for top 2 customers: 80% of all sales!

Cross-Sales Analysis
Product A
Service C
Product B

Step #1: Collect the Data

Step #2: Sort the Data (by Dependent Variable)

Step #3: Interpret the Data
Top 3 Insights:
1. 50% of all Product B sales come from cross-sales with A
2. Service C only sells when customers purchase A and B
3. Top customers regard B and C as essential related products

Meet with your CEO/ CFO/ GM;
Find out what metrics they track
Metrics Alignment
Brand Awareness
Facebook Likes
Email Open Rate
Product
Manager
Revenue
Profit
ROMI
CXO/ GM

Marketing Analytics: 3 Things Not to Do
Branding: Don’t sink money into branding efforts
without measuring results
 Instead, measure Brand Equity Index
Bug List: Don’t rely exclusively on “bug lists” to
identify improvements to product
 Instead, do market analysis
Bad Communications: Don’t fail to connect to audience needs
Executive audience: Revenue and Profit!
 See “Before” and “After” slides

Communications with Marketing Analytics: BEFORE
Engineering Department Status
• Engineering resources are very low; definitely need more engineers
• Some engineers working many hours per week
• Engineers risk getting burned out from working so many hours
• New projects coming up will require more resources than we have
• Engineering resource types
• Engineering resource type A: have 10 engineers; need at least 12
• Engineering resource type B: have 3 engineers; need at least 4
• Engineering resource type C: have 5 engineers; need at least 6
• Engineering resource type D: have 15 engineers; need at least 20
• Possible slips to schedule can occur unless we hire more engineers
• Recommend hiring at least 2 additional engineers in next month
• Many engineers complaining to their management about workload

Communications with Marketing Analytics: AFTER
Department
Revenue and
Resources
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Projected Revenue
Revenue to Date
Current Resource Level
Will Stop Producing Incremental Revenue
Here
Professional Services Organization Department Status

Next Steps
• Win 1 of 3 free copies of the book
• Execute Pareto, Cross-Sales, and Alignment
• Identify relevant models and metrics
• Attend other analytics-related AIPMM events

About Our Speaker
The “Analytics Ambassador”
Author
“Marketing Analytics: Strategic Models and Metrics” (2013)
Professional Expertise
VP Strategic Marketing, On Demand Advisors
• Applying marketing analytics to grow revenue
Academic Expertise
Instructor at UC Berkeley, San Francisco Extension
• Teaching Marketing Analytics since 2008
Board Member
Served on UC Berkeley Ext. Marketing Metrics Board
Website: http://www.stephansorger.com
LinkedIn: http://www.linkedin.com/in/stephansorger

Q & A
Moderator:
Hector Del Castillo, Product Innovation Consultant
Presenter:
Stephan Sorger
Website: http://www.stephansorger.com
LinkedIn: http://www.linkedin.com/in/stephansorger
Twitter: @StephanSorger

Upcoming Courses
Course & Location Dates Days Time
ACPM® Certification Prep Course & Exam
Teqcorner, McLean, VA
Seattle, WA
July 22, 2013
Aug 26, 2013
M 8:30 am – 5 pm
CPM® Certification Prep Course & Exam
Seattle, WA
July 23-24, 2013
Aug 27-28, 2013
T, W 8:30 am – 5 pm
CPMM® Certification Prep Course & Exam
Seattle, WA
July 25-26, 2013
Aug 29-30, 2013
Th, F 8:30 am – 5 pm
Contact Cynthia Petti, cynthia@280group.com for more information. Additional
certification prep courses are available in Austin, San Jose, and London.

Upcoming Courses
Course & Location Dates Time
CIL® Certification Prep Course & Exam
Athens, Greece Oct 10-11, 2013 9 am – 6 pm
CPM® Certification Prep Course & Exam
Athens, Greece
Singapore
Oct 8-9, 2013
Oct, 2013
9 am – 6 pm
8 am – 5 pm
CPMM® Certification Prep Course & Exam
Athens, Greece
Singapore
Oct 14-15, 2013
Oct, 2013
9 am – 6 pm
8 am – 5 pm
Follow the links provided to get more information regarding these courses.

For More Information About
• AIPMM membership benefits
• Certification courses near you
• How to prepare to take a certification exam
Hector Del Castillo, CPM, CPMM
Senior Product Innovation Consultant
hmdelcastillo@aipmm.com
linkd.in/hdelcastillo

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Webcast: Why Marketing Analytics Matters

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Webcast: Why Marketing Analytics Matters