Importance of Statistics in Marketing: A Concise Account
Over the years, the corporate environment has cultivated a strong need for research and development. While research is just as important an area in other fields like finance, sales, or human resources, the scope of research in the marketing and sales management dimension has only expanded with time. Corporations at the top are investing millions of dollars in marketing research that includes both qualitative and quantitative research. With respect to the latter type, marketing innovations are highly dependent on the results of quantitative research.
Statistics and Marketing
The statistical inferences derived from conducting these investigations are vital factors in determining the direction of an organization’s marketing flow. Whether it’s product development, market development, promotional campaign plans, or getting the customer’s point of view, statistics control 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 contributes to a great extent to enlighten the seller on multiple aspects of marketing that help 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 the preference patterns of consumers for different products. Essential elements of the target market are brought to light along with potential growth areas of the market. Various ideas can also be deciphered through these patterns about product innovations.
standing out
Then there is multidimensional scaling (MDS), which sheds light on benchmarking the product and its competitors. The consumer insights generated from this analysis pave the way for illustrating the similarities and differences between different products. This, in turn, helps the marketer to discover the competitors of the product and thus empowers him to develop the marketing base in productive conformity. In other words, incorporating the information generated from this method allows the marketer to develop the unique selling proposition of the product, making it an advantage over its counterparts.
Spouse Analysis
In addition, another statistical strategy is conjoint analysis, whose application evaluates consumer preference. Each product has a series of attributes. By using conjoint analysis, the marketer is able to discover those combinations of attribute levels that have a high level of consumer preference. Consumers are given choices of different sets of attributes from which they have to choose the one that will motivate them to buy. In fact, this is valuable information that facilitates the feature development process, a primary marketing context.
a courtesy hand
The aforementioned statistical methods are only marginal reports of the otherwise paramount contribution that statistical procedures are making to the field of marketing. Multiple innovations and breakthroughs 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 do. To sum up, marketing owes a lot to statistics, given the consistency in generating value that the latter continues to achieve for the former.
