|Until recently, most marketing techniques were based on survey data. During the last two decades, however, many firms have adopted marketing methods that are based on actual customer behavior data and past marketing actions. These data include records of customers' past credit behavior, sales and price data in retail stores, advertising measures across time and markets, and the response of customers to direct mailings.
This course introduces several modern data sources, and discusses how these data can be exploited in practice to implement various elements of the marketing mix using statistical models. The following are examples of applications that we will discuss in detail: How can a credit card company exploit information on past credit behavior when targeting new customers? How should a company determine the shelf price of the products in its product line? By how much do promotional activities in retail stores boost sales, and what is the profitability from such a sales "lift"? How should a pharmaceutical company manage its promotion money to maximize the return on this budget? Which customers should a catalog retailer select to send a catalog to? How can the impact of an online display advertising campaign on consumer purchasing behavior be measured?
Disclaimer: Although many of the methods employed in the course are useful in business-to-business marketing (direct marketing, especially), the primary emphasis is on the analysis of consumer demand. Examples from the consumer packaged goods industry and direct marketing are used.
|Business 37000: strict, and 41000 or 41100 (41100 preferred). Good computer skills in data analysis, word processing, and graphics are useful.
Mathematical Prerequisites: This course emphasizes statistical models of customer response to changes in the marketing environment. Students are presumed to be at least somewhat familiar with logarithms and exponential functions.
Description and/or course criteria last updated: 06/11