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 such an important area in other fields like finance, sales, or human resources, the scope of research in the marketing and sales management dimension has only broadened over time. Corporations at the top are investing millions of dollars in marketing research that includes both qualitative and quantitative research. Regarding the last type, marketing innovations depend heavily 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 knowing the customer’s point of view, statistics keep tabs on the state of affairs in contemporary marketing. The field of statistics contains an entire area of ​​study relevant to marketing. The sophistication of these statistical methods goes a long way in enlightening the marketer on multiple aspects of marketing that help them 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 are brought to light along with the potential growth areas of the market. Various ideas can also be deciphered through these patterns about product innovations.

standing out

Then there is the multidimensional scaling (MDS), which sheds light on the comparative analysis of the product and its competitors. The consumer insights generated from this analysis pave the way for illustrating the similarities and differences between the different products. This, in turn, helps the marketer discover the product’s competitors and thus empowers him to develop the marketing base in productive compliance. In other words, the incorporation of the information generated 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

In addition, another statistical strategy is the conjoint analysis, whose application evaluates the consumer’s preference. Each product has a number of attributes. By employing conjoint analysis, the marketer is able to discover those combinations of attribute levels that have a high level of consumer preference. Consumers are given a choice 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 accounts of the otherwise paramount contribution that statistical procedures are making in the field of marketing. Multiple innovations and advances 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 summarize, marketing owes much to statistics, given the consistency in value generation that the latter continues to achieve for the former.