ANSWERS – MARKETING ANALYTICS

1. 4 C’s - Consumer (PRODUCT) - In this marketing approach, the company

focus is consumer oriented rather than product oriented. The marketers
should focus on consumers’ needs and wants to provide high value.

Cost (PRICE) - Cost evaluate the amount of money a customer is willing to

exchange for satisfaction. If think about consumer perspective the price
becomes the cost.

Communication (Promotion) - The marketers offer the product should easily

be available to the customers and consumers. Convenience means strategically
place the product on many sales points.

Convenience (PLACE) S- It is the last element of 4 Cs marketing mix. While

using this approach marketers don’t promote but communicate the value they
offer to the customers.

2. Alternate hypothesis - Alternative hypothesis defines there is a

statistically important relationship between two variables. Whereas null
hypothesis states there is no statistical relationship between the two
variables. In statistics, we usually come across various kinds of hypotheses.
A statistical hypothesis is supposed to be a working statement which is
assumed to be logical with given data. It should be noticed that a hypothesis
is neither considered true nor false.
3. ANOVA - Analysis of variance (ANOVA) is an analysis tool used in
statistics that splits an observed aggregate variability found inside a data set
into two parts: systematic factors and random factors. The systematic factors
have a statistical influence on the given data set, while the random factors do
not. Analysts use the ANOVA test to determine the influence that
independent variables have on the dependent variable in a regression study.
The Formula for ANOVA is: F=MSE/MST

F=ANOVA coefficient
MST=Mean sum of squares due to treatment
MSE=Mean sum of squares due to error

4. Brand Positioning

Brand Positioning can be defined as the positioning strategy of the brand

with the goal to create a unique impression in the minds of the customers and
at the marketplace. The Brand Positioning has to be desirable, specific, clear,
and distinctive in nature from the rest of the competitors in the market.

Steps to create the Brand Positioning:

1) Identify the current positioning

2) Identify the direct competition

3) Understand the positioning of the competitor brands

4) Identify the uniqueness of the brand

5) Develop the unique selling propositions

6) Formulate the messaging statements

5. 4 P’s - Product - Product refers to a good or service that a company offers to

customers. Ideally, a product should fulfil a certain consumer demand or be
so compelling that consumers believe they need to have it. To be
successful, marketers need to understand the life cycle of a product, and
business executives need to have a plan for dealing with products at every
stage of their life cycles.
Price - Price is the cost consumers pay for a product. Marketers must link the
price to the product's real and perceived value, but they also must consider
supply costs, seasonal discounts, and competitors' prices. In some cases,
business executives may raise the price to make a product seem more like a
luxury or lower the price so more consumers can try the product.
Place - Place decisions outline where a company sells a product and how it
delivers the product to the market. The goal of business executives is to get their
products in front of the consumers most likely to buy them.
Promotion -Promotion includes advertising, public relations, and promotional
strategy. This ties into the other three Ps of the marketing mix as promoting a
product shows consumers why they need it and should pay a certain price for it.
In addition, marketers tend to tie promotion and placement elements together so
they can reach their core audiences.
For example, In the digital age, the "place" and "promotion" factors are as much
online as offline. Specifically, where a product appears on a company's web
page or social media, as well as which types of search functions trigger
corresponding, targeted ads for the product.

6. BUNDLE OF PRODUCTS - Sellers can create bundles composed of

different products to create a new bundled product. Well-designed product
bundles provide convenience and value to buyers. (OR) Product bundles are
several individual goods or services that are sold to consumers as one
combined package. Sometimes called "package deals," product bundles are
generally made up of complementary items or, less frequently, similar items.
Examples of product bundles would be a fixed-price meal at a
restaurant or a beach kit that includes sunscreen, sand toys, flip flops
and towels as one saleable item.
7. CAUSAL RESEARCH - Causal research falls under the category of
conclusive research, because of its attempt to reveal a cause and effect
 relationship between two variables. Like descriptive research, this form of
research attempts to prove an idea put forward by an individual or
organization.
Causal research will have only two objectives

- Understanding which variables are the cause, and which variables are
the effect

- Determining the nature of the relationship between the causal variables

and the effect predicted

8. CUSTOMER LIFETIME VALUE (CLV) - CLTV is the value a customer

contributes to your business over the entire lifetime at your company. It is a
very important metric and is used while making important decisions about
sales, marketing, product development, and customer support.
By applying Customer Lifetime Value marketing managers can easily arrive
at the rupee value associated with the long-term relationship with any
customer. It is difficult to predict how long each relationship will last, but
marketing managers can make a good estimate and state CLTV as a periodic
value.

The basic formula for calculating CLTV -

(Average Order Value) x (Number of Repeat Sales) x (Average Retention
Time)

9. CROSS TABULATIONS - When conducting survey analysis, cross

tabulations (aka crosstabs or contingency table) are a method used in
qualitative research. Crosstab is commonly utilised in the analysis of survey
results to seek out relationships and interactions between two variables by
laying each variable out on a table. It is quite useful in market research
studies and in surveys. A cross tab report shows the connection between two
or more question asked in the survey. Cross-tab is a popular choice for
 statistical data analysis. Since it is a reporting/ analysing tool it can used with
any level of data: ordinal or nominal, because it treats all data as nominal
data (nominal data is not measured it is categorised).
10. CLUSTER ANALYSIS - Cluster analysis is a class of techniques that are
used to classify objects or cases into relative groups called clusters. Cluster
analysis is also called classification analysis or numerical taxonomy. In
cluster analysis, there is no prior information about the group or cluster
membership for any of the objects. Cluster Analysis has been used in
marketing for various purposes. Segmentation of consumers in cluster
analysis is used on the basis of benefits sought from the purchase of the
product. It can be used to identify homogeneous groups of buyers.

11. CORRELATION - Correlation is a statistical technique that can show

whether and how strongly pairs of variables are related. (OR) Correlation
is a relationship between two or more variables or attributes. From a
statistics perspective, correlation (commonly measured as the correlation
coefficient, a number between -1 and 1) describes both the magnitude and
direction of a relationship between two or more variables.

12. CLOSE ENDED QUESTIONS - Close ended questions are defined as

question types that ask respondents to choose from a distinct set of pre-
defined responses, such as “yes/no” or among a set multiple choice
questions. In a typical scenario, closed-ended questions are used to
gather quantitative data from respondents. Closed-ended questions come in a
multitude of forms, but are defined by their need to have explicit options for
a respondent to select from.
13. DE MARKETING is marketing aimed at discouraging customer demand.
While the objective of marketing is to stimulate customer demand,
 discouraging aims at exactly the opposite: a demand reduction.

14. DEMOGRAPHIC VARIABLES - Personal statistics that include such

information as income level, gender, educational level, location, ethnicity,
race, and family size. For example, the marketing department of a business
might use demographic variables as an important input when formulating
target customer profiles.

A DEMOGRAPHIC VARIABLE is a variable that is collected by

researchers to describe the nature and distribution of the sample used with
inferential statistics. Within applied statistics and research, these are
variables such as age, gender, ethnicity, socioeconomic measures, and group
membership. Demographic variables are often reported using descriptive
statistics. Demographic variables may also be entered into multivariate
models for controlling and confounding effects.

15. A DEPENDENT VARIABLE is the variable being tested and measured in

a scientific experiment. The dependent variable is 'dependent' on the
independent variable. As the experimenter changes the independent variable,
the effect on the dependent variable is observed and recorded.
(OR)
 The dependent variable is the variable being tested and measured in an
experiment, and is 'dependent' on the independent variable.
16. DESCRIPTIVE ANALYTICS statistics are brief descriptive coefficients
that summarize a given data set, which can be either a representation of the
entire or a sample of a population. Descriptive statistics are broken down
into measures of central tendency and measures of variability (spread).
Measures of central tendency include the mean, median, and mode, while
measures of variability include the standard deviation, variance, the
minimum and maximum variables, and the kurtosis and skewness.
17. The DICHOTOMOUS QUESTION is a question which can have two
possible answers. Dichotomous questions are usually used in a survey that
asks for a Yes/No, True/False or Agree/Disagree answers. They are used for
clear distinction of qualities, experiences or respondent’s opinions. Here is
an example of a dichotomous type question:

Have you ever purchased a product or service from our website?

Yes
No

18. DISCRIMINANT ANALYSIS is a statistical method that is used by

researchers to help them understand the relationship between a "dependent
variable" and one or more "independent variables." A dependent variable is
the variable that a researcher is trying to explain or predict from the values of
the independent variables. Discriminant analysis is similar to regression
analysis and analysis of variance (ANOVA). The principal difference
between discriminant analysis and the other two methods is with regard to
the nature of the dependent variable.
19. EXPLORATORY RESEARCH is defined as a research used to investigate
a problem which is not clearly defined. It is conducted to have a better
 understanding of the existing problem, but will not provide conclusive
results.

20. A FOCUS group is a market research method that brings together 6-10
people in a room to provide feedback regarding a product, service, concept,
or marketing campaign. A trained moderator leads a 30-90-minute
discussion within the group that is designed to gather helpful information.
The moderator arrives with a set list of 10-12 questions that will be shared
with the group during their time together that are designed to elicit
thoughtful responses from all the participants. The moderator’s goal is to
hear from everyone and to encourage many different opinions and ideas to
be shared.
21. A HYPOTHESIS is a tentative statement about the relationship between
two or more variables. It is a specific, testable prediction about what you
expect to happen in a study. For example, a study designed to look at the
relationship between sleep deprivation and test performance might have a
hypothesis that states, "This study is designed to assess the hypothesis that
sleep-deprived people will perform worse on a test than individuals who are
not sleep deprived."
22.K-MEANS CLUSTERING is a method used for clustering analysis,
especially in data mining and statistics. It aims to partition a set of
 observations into a number of clusters (k. It is used mainly in statistics and
can be applied to almost any branch of study. For example, in marketing, it
can be used to group different demographics of people into simple groups
that make it easier for marketers to target.
23. INTERNET MARKETING (also known as online marketing, digital
marketing, E-Marketing, or web marketing,) is an all-inclusive term used to
describe marketing activities conducted online. For this reason, internet
marketing encompasses a wide range of strategies and tactics, such as social
media marketing, content marketing, pay-per-click, and search engine
optimization.

The 7 Types of Internet Marketing

There are seven main types of internet marketing:

1. Social media marketing

2. Influencer marketing
3. Affiliate marketing
4. Email marketing
5. Content marketing
6. Search engine optimization (SEO)
7. Paid advertising

24. The INTERVAL SCALE is defined as a quantitative measurement scale

where the difference between 2 variables is meaningful. Interval scale is the
3rd level of measurement. The interval scale gives the ability to quantify and
differentiate between options. This is better than the nominal scale and the
ordinal scale as they do not account for quantitative insights. The interval
scale consists of variables that exist along a common scale at equal intervals.

The question types for interval scales are:

 Likert Scale
Net Promoter Score (NPS)
Bipolar Matrix Table

25. Mega marketing was termed by Philip Kotler. Mega marketing refers to the
marketing activities needed to manage the elements of the firm’s external
environment and try to control those factors. The external environment factors
may include political, legal and technological factors. Other factors may
include media , social groups and pressure groups as well. The company
undertakes various mega marketing strategies widely to market its products
globally to generate profit and perform better than the competitors.
26. The Marketing Research is the systematic collection, analysis, and
interpretation of data pertaining to the marketing conditions.

27. The MARKETING PLAN identifies the target market for a product or brand.
Market research is often the basis for a target market and marketing channel
decisions. The marketing plan details the strategy that a company will use to
market its products to customers. The plan identifies the target market, the
value proposition of the brand or the product, the campaigns to
 be initiated, and the metrics to be used to assess the effectiveness of
marketing initiatives.
28. Marketing analytics is the practice of measuring, managing and analyzing
marketing performance to maximize its effectiveness and optimize return on
investment (ROI). Marketing analytics can offer profound insights into
customer preferences and trends.

29. A PRICE MARKDOWN is a deliberate reduction in the selling price

of retail merchandise. It is used to increase the velocity (rate of sale) of an
article, typically for clearance at the end of a season, or to sell off obsolete
merchandise at the end of its life.
(OR) Markdown pricing is often used in retail clothing stores, but it can be a
competitive advantage in any business where the store needs to move slow-
selling merchandise off the shelves as rapidly as possible to reinvest in more-
popular items. Markdown pricing can also be used to motivate bargain
hunters to make a buying decision.

30. A LINEAR DEMAND CURVE is the graphical representation of the

relationship between the price of a good and the quantity of that good
consumers are willing to pay at a certain price at a point in time. The slope, or
rate that the line rises or falls, is equal to the difference between two quantities
of a product
 31. LIKERT scale is defined as a unidimensional scale used to collect the
respondent attitudes and opinions. This scale is often used to understand
respondent ratings and agreement levels with the topic in-hand. Different
variations of Likert scale are focused directly on measuring the attitudes of
people, such as Guttman scale, Bogardus scale, Thurstone scale etc.
32. The LAW OF DEMAND asserts that there is an inverse relationship between
the price, and the quantity demanded, such as when the price increases the
demand for the commodity decreases and when the price decreases the
demand for the commodity increases, other things remaining unchanged.
(OR) The law of demand states that other factors being constant (cetris peribus),
price and quantity demand of any good and service are inversely related to
each other. When the price of a product increases, the demand for the same
product will fall.

33. STATISTICAL SIGNIFICANCE is used to accept or reject the null

hypothesis, which hypothesizes that there is no relationship between measured
variables.
- Statistical significance is the likelihood that a relationship between
two or more variables is caused by something other than chance.
 - Statistical significance is used to accept or reject the null hypothesis,
which hypothesizes that there is no relationship between measured
variables.
- Statistical hypothesis testing is used to determine whether the result of
a data set is statistically significant.

34. NICHE MARKETING is an advertising strategy that focuses on a unique

target market. Instead of marketing to everyone who could benefit from a
product or service, this strategy focuses exclusively on one group—a niche
market—or demographic of potential customers who would most benefit from
the offerings.

A niche market could stand apart from others because of:

● Geographic area
● Lifestyle
● Occasion
● Profession
● Style
● Culture
● Activity or habits
● Behaviour
● Demographic
● Need

35. An ORDINAL SCALE is a scale (of measurement) that uses labels to classify
cases (measurements) into ordered classes. An ordinal scale implies that the
classes must be put into an order such that each case in one class is considered
greater than (or less than) every case in another class. Cases in the same class
are considered to be equivalent.
 Some examples of variables that use ordinal scales would be movie ratings,
political affiliation, military rank, etc.

36. Price optimisation is the process of finding that pricing sweet spot, or maximising price
against the customers willingness to pay. Companies up and down the supply chain, both in
B2B and B2C settings, rightly dedicate a massive amount of time towards price
optimisation to ensure that their products will sell quickly at the right price while still
making a decent profit.

37. Open-ended questions are defined as free-form survey questions that allows
a respondent to answer in open text format such that they can answer based
on their complete knowledge, feeling, and understanding. This means that
response to this question is not limited to a set of options. Open-ended
questions are an integral part of Qualitative Market Research.

38. NON-PROBABILITY SAMPLING is a sampling technique in which the

researcher selects samples based on the subjective judgment of the
researcher rather than random selection. Non-probability sampling is most
useful for exploratory studies like pilot survey.

Types of non-probability sampling

● Convenience Sampling
● Consecutive Sampling
● Quota Sampling
● Judgmental or Purposive Sampling
● Snowball Sampling

39. A NOMINAL SCALE is a measurement scale, in which numbers serve as

“tags” or “labels” only, to identify or classify an object. A nominal scale
measurement normally deals only with non-numeric (quantitative) variables
 or where numbers have no value. Nominal scale possesses only the
description characteristic which means it possesses unique labels to identify
or delegate values to the items. When nominal scale is used for the purpose
of identification, there is a strict one-to-one correlation between an object
and the numeric value assigned to it.

40. The PARETO PRINCIPLE, also known as the 80/20 rule, is a theory
maintaining that 80 percent of the output from a given situation or system is
determined by 20 percent of the input. (OR)

The Pareto Principle, named after esteemed economist Vilfredo Pareto,

specifies that 80% of consequences come from 20% of the causes, asserting an
unequal relationship between inputs and outputs. This principle serves as a
general reminder that the relationship between inputs and outputs is not
balanced. The Pareto Principle is also known as the Pareto Rule or the 80/20
Rule.

41. PED - Price elasticity of demand (PED) is the responsiveness of quantity

demanded to a change in price. Price elasticity of demand is an economic
measure of the change in the quantity demanded or purchased of a product in
relation to its price change. PED is calculated using the following formula:

% Change in quantity
Demanded
% Change in price
42. A PERCEPTUAL MAP is of the visual technique designed to show how
the average target market consumer understands the positioning of the
competing products in the marketplace. In other words, it is a tool that
attempts to map the consumer’s perceptions and understandings in a
diagram.
 “Perceptual maps measure the way products are positioned in the minds of
consumers and show these perceptions on a graph whose axes are formed by
product attributes." (Kardes, Cronley, & Cline, 2011).

43. In marketing and business strategy, market POSITION refers to the

consumer’s perception of a brand or product in relation to
competing brands or products. Market positioning refers to the process of
establishing the image or identity of a brand or product so that consumers
perceive it in a certain way.

44. A NULL HYPOTHESIS is a type of hypothesis used in statistics that

proposes that no statistical significance exists in a set of given observations.
The null hypothesis attempts to show that no variation exists between
variables or that a single variable is no different than its mean. It is presumed
to be true until statistical evidence nullifies it for an alternative hypothesis.

45. PRICE SKIMMING is a product pricing strategy by which a firm charges

the highest initial price that customers will pay and then lowers it over time.
As the demand of the first customers is satisfied and competition enters the
market, the firm lowers the price to attract another, more price-sensitive
segment of the population. The skimming strategy gets its name from
"skimming" successive layers of cream, or customer segments, as prices are
lowered over time.
46. RATIO SCALE is a type of variable measurement scale which
is quantitative in nature. Ratio scale allows any researcher to compare the
intervals or differences. Ratio scale is the 4th level of measurement and
possesses a zero point or character of origin. This is a unique feature of ratio
scale. For example, the temperature outside is 0-degree Celsius. 0 degree
doesn’t mean it’s not hot or cold, it is a value.
47. The P-VALUE is the level of marginal significance within a statistical
hypothesis test representing the probability of the occurrence of a given
 event. The p-value is used as an alternative to rejection points to provide the
smallest level of significance at which the null hypothesis would be rejected.
A smaller p-value means that there is stronger evidence in favor of the
alternative hypothesis.
48. The number of different product categories across which different brands
and products created by a firm are classified is called PRODUCT WIDTH.
Companies often diversify and have a wide product portfolio which is
known as product width. Mostly these brands carry the name of their parent
brand and have their own unique name and identity so that the brand cam be
easily identified. EXAMPLE -

49. PRODUCT LINES are created by companies as a marketing strategy to

capture the sales of consumers who are already buying the brand. The
operating principle is that consumers are more likely to respond positively to
brands they know and love and will be willing to buy the new products based
on their positive experiences with the brand in the past. (For example, a
cosmetic company that's already selling a high-priced product line of
makeup (that might include foundation, concealer, powder, blush, eyeliner,
eye shadow, mascara, and lipstick) under one of its well-known brands
might launch a product line under the same brand name but at a lower price
point. Product lines can vary in quality, price, and target market. Companies
use product lines to gauge trends, which helps them to determine which
markets to target.)
50. The PRODUCT LIFE CYCLE is broken into four stages: introduction,
growth, maturity, and decline. This concept is used by management and by
marketing professionals as a factor in deciding when it is appropriate to
increase advertising, reduce prices, expand to new markets, or redesign
packaging.The process of strategizing ways to continuously support and
maintain a product is called product life cycle management.

51. PROBABILITY SAMPLING is based on the fact that every member of a

population has a known and equal chance of being selected.

Types of Probability Sampling

● Simple random sampling
● Stratified Random Sampling
● Systematic Sampling
● Cluster Random Sampling
● Multi-Stage Random sampling

52. PRICING BASED ON VALUE, NOT ON COST - Businesses have

methods by which to price their products and services. Two common
methods are cost-based pricing and value-based pricing. When a company
uses cost-based pricing, the company sets a price at a percentage above the
 cost it incurs to manufacture the product or to provide the service. Value-
based pricing takes a different approach, considering the potential value the
product or service will bring to its customers. Value-based pricing is about
setting a price that represents the value the customer receives from your
product or service - not the cost of providing it.
53. SEGMENTATION means to divide the marketplace into parts, or
segments, which are definable, accessible, actionable, and profitable and
have a growth potential. In other words, a company would find it impossible
to target the entire market, because of time, cost and effort restrictions. It
needs to have a 'definable' segment - a mass of people who can be identified
and targeted with reasonable effort, cost and time.

54. A TEST MARKET, in the field of business and marketing, is a geographic

region or demographic group used to gauge the viability of a product or
service in the mass market prior to a wide scale roll-out. The criteria used to
judge the acceptability of a test market region or group include a population
that is demographically similar to the proposed target market; and relative
isolation from densely populated media markets so that advertising to the
test audience can be efficient and economical.

55. A TARGET MARKET refers to a group of potential customers to whom a

company wants to sell its products and services. This group also includes
specific customers to whom a company directs its marketing efforts. A target
market is one part of the total market for a good or service. Target markets
are generally categorized by age, location, income, and lifestyle. Defining a
specific target market allows a company to home in on specific market
factors to reach and connect with customers through sales and marketing
efforts.
56. "SURGE PRICING" occurs when a company raises the price of its
offering if there is an increase in demand. "surge pricing" - raises prices
 when demand is strong and lowering prices when demand is weak.
EXAMPLE - UBER CASE
57. SOCIAL MARKETING seeks to develop and integrate marketing concepts
with other approaches to influence behaviours that benefit individuals and
communities for the greater social good.Social Marketing practice is guided
by ethical principles. It seeks to integrate research, best practice, theory,
audience and partnership insight, to inform the delivery of competition
sensitive and segmented social change programmes that are effective,
efficient, equitable and sustainable."
58. The SOCIETAL MARKETING CONCEPT puts Human welfare on top
before profits and satisfying the wants. Societal marketing concept holds that
a company should make good marketing decisions by considering
consumer’s wants, the company’s requirements, and society’s long-term
interests.
59. SAMPLE SIZE is a term used in market research for defining the number
of subjects included in a sample. By sample, we understand a group of
subjects that is selected from the general population and is considered a
representative of the true population for that specific study.
60. SIMPLE LINEAR REGRESSION is a linear regression model with a
single explanatory variable. That is, it concerns two-dimensional sample
points with one independent variable and one dependent variable
(conventionally, the x and y coordinates in a Cartesian coordinate system)
and finds a linear function (a non-vertical straight line) that, as accurately as
possible, predicts the dependent variable values as a function of the
independent variables.