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Definition of Marketing

The activity, set of institutions and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners and society at large


Different Types of Analytics

  • Descriptive Analytics
  • Diagnostic Analytics
  • Predictive Analytics
  • Prescriptive Analytics 


Tasks of descriptive analytics

What happened?

  • Correlation on aggregate level
  • Data visualization: Display and summarize data
  • Clustering: Group individuals by similarity
  • Co-occurrence grouping: Find associations based on transactions involving them


Task of diagnostic analytics

Why did it happen? 

  • Causation on aggregate level
  • Causal inference: Determining the effect of a larger phenomenon that is part of a larger system: 
  • Modeling/Simulation: Determine the behavior of a system based on a model


Tasks of predictive analytics

What will happen?

  • Correlation on individual level
  • Classification
  • Regression
  • Link prediction: Predict connections between data items


Tasks of prescriptive analytics 

How can we make it happen?

  • Causation on individual level
  • Uplift modeling: Predict behavior based on action performed
  • Automation: Determine optimal action based on predicted action of individual


Definition of marketing analytics

  • A discipline that seeks to find patterns in data
  • to increase actionable knowledge
  • critical to understanding and predicting user behavior and optimizing user experience 
  • to drive sales


Four dimensions of data

  • Volume: data at rest
  • Velocity: data in motion
  • Variety: different data types
  • Veractiy: data in doubt



  • Highest paid person opinion.
  • Opinions are often wrong. We should back them up with data.


Organizational metrics

In a data-driven organization, metrics and the accompanying data analyses can be used at multiple levels:

  • Goal metrics: reflect what the organization ultimately cares about
  • Driver metrics: more short-term, faster-moving, and more sensitive
  • Guardrail metrics: guard against violated assumptions (protect the business)


Importance of aligning goal and driver metrics

  • multiple teams
  • each with their own goal, driver and guardrail metrics
  • must be aligned with the overall company metrics


Customer lifetime value (CLV)

  • represents the total amount of money a customer is expected to spend during their lifetime
  • helps to make decisions about how much money to spend on new/existing customers