Digital Marketing

The Importance of Statistics in Marketing: A Concise Description

Over the years, the corporate environment has cultivated a great need for research and development. While research is such an important area in other fields such as finance, sales, or human resources, the scope of research in the marketing and sales management dimension has only expanded over time. The corporations at the top are investing millions of dollars in market research that includes both qualitative and quantitative research. Regarding the latter type, marketing innovations are highly dependent on the results of quantitative research.

Statistics and Marketing

The statistical inferences derived from the development of these investigations are vital factors in determining the direction of the marketing flow of an organization. Be it product development, market development, promotional campaign plans or knowing the customer’s point of view, statistics mark the state of affairs in contemporary marketing. The field of statistics contains a whole area of ​​study relevant to marketing. The sophistication of these statistical methods goes a long way in informing the marketer on multiple aspects of marketing that aid him in the decision-making process. Different methods help in different ways.

MDPREF

For example, there is a statistical analysis called multidimensional preference analysis (MDPREF) that employs the use of columns and rows for consumers and products, respectively. With the help of this data analysis, the marketer can determine consumer preference patterns for different products. The essential elements of the target market come to light along with the potential growth areas of the market. Various ideas can also be deciphered through these patterns on product innovations.

Standing out

Then there is multidimensional scaling (MDS), which sheds light on the comparative analysis of the product and its competitors. Consumer insights generated from this analysis pave a path of illustration on the similarities and differences between different products. This, in turn, helps the marketer to distinguish the product’s competitors and thus enables him to develop the marketing foundation productively. In other words, incorporating the information obtained from this method allows the marketer to develop the unique selling proposition of the product, which makes it an advantage over its counterparts.

Spouse analysis

Furthermore, another statistical strategy is conjoint analysis, the application of which assesses consumer preference. Each product has a number of attributes. By employing conjoint analysis, the marketer is able to discover those attribute level combinations that have a high level of consumer preference. Consumers can choose between different sets of attributes, of which they must choose the one that will motivate them to make a purchase. In fact, this is valuable information that facilitates the function development process, a primary context for marketing.

A hand of courtesy

The aforementioned statistical methods are only marginal explanations of the otherwise fundamental contribution that statistical procedures are making to the field of marketing. Multiple innovations and advancements in marketing can be attributed to statistical findings, the usefulness of which has only diversified over time. Information is key to business success, and keeping that information fresh is exactly what statistics accomplish. To cut a long story short, marketing owes a lot to statistics, given the consistency of value generation that the latter continues to achieve for the former.

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