Research Insights 3.3 Marketing Analytics for Data-Rich Environments

Marketing Research and Customer Insight

Source: Wedel, M., and Kannan, P.K. (2016). Marketing analytics for data-rich environments. Journal of Marketing, 80(6), 97–121.

Abstract: The authors provide a critical examination of marketing analytics methods by tracing their historical development, examining their applications to structured and unstructured data generated within or external to a firm, and reviewing their potential to support marketing decisions. The authors identify directions for new analytical research methods, addressing (1) analytics for optimizing marketing-mix spending in a data-rich environment, (2) analytics for personalization, and (3) analytics in the context of customers' privacy and data security. They review the implications for organizations that intend to implement big data analytics. Finally, turning to the future, the authors identify trends that will shape marketing analytics as a discipline as well as marketing analytics education.

Insight: This article introduces a theoretical framework for when and how big data can lead to sustainable competitive advantage. More specifically, it discusses how three resources—physical, human, and organizational capital—moderate the processes of (a) collecting and storing evidence of consumer activity as big data, (2) extracting consumer insight from big data, and (c) utilizing consumer insight to enhance dynamic or adaptive capabilities.