Big data can help professionals optimize marketing attributes such as product, price, place, and promotion. According to Kopalle et al. (2021), the use of price optimization for a specific good or service is becoming more feasible as a result of developments in big data algorithms and sophisticated analytics methods. Today’s commodity-driven industries with inelastic products are also streamlining routine pricing decisions (Davis et al., 2021). Media buying and analytics are changing in the marketing industry due to the abundance of data on consumer purchasing habits, online activity, social media use, and sociodemographic profiles. First, by combining the data into a single data management platform, media companies may segment viewing audiences more precisely, which will increase the effectiveness of buying and targeting digital media (Cain, n.d.). Second, machine learning techniques are being used more frequently to produce marketing insights due to the sheer volume and complexity of the currently available data (Davis et al., 2021). This often includes consumer segmentation, classification, forecasting, network analysis, and correlation-based model construction.
By improving the marketing mix elements, companies can leverage this tool to adapt the supply chains. This is because businesses can use the attributes of products that are valued most by the consumers and work with suppliers to enhance those, such as the color, packaging, and others. Moreover, by knowing how the consumer prefers to shop for the product, for instance, online and offline, the company can direct efforts into having more stores or faster delivery. By analyzing big data from promotion campaigns, the business can eliminate those that are not effective. The goal of “know your customer” (KYC) was originally to stop bank fraud many years ago (“Big data, bigger marketing,” n.d., para. 5). KYC offers information about client behavior that was previously only available to major financial firms. Now, due to cloud computing and big data, even small and medium-sized enterprises can profit from KYC because of big data’s accessibility (“Big data in marketing 101,” n.d.). Thus, big data can serve as an important leverage for companies that aim to optimize their marketing mix and supplier relationship management.
References
Big data in marketing 101. (n.d.). Web.
Big data, bigger marketing. (n.d.). Web.
Cain, M. (n.d.). Marketing mix modelling and big data. Web.
Davis, B., Grewal, D., & Hamilton, S. (2021). The future of marketing analytics and public policy. Journal of Public Policy & Marketing, 40(4), 447–452. Web.
Kopalle, P. K., & Lehmann, D. R. (2021). Big data, marketing analytics, and public policy: Implications for healthcCare.Journal of Public Policy & Marketing, 40(4), 453–456. Web.