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In the digitalized business setting of the 21st century, marketing analytics is gaining high popularity among various business undertakings. Marketing analytics can be defined as the practice of measuring, managing and accessing the market performance to optimize its overall effectiveness and maximize the return on investment (www.wordstream.com). With the rapid advancement in technology and innovation, marketers are making the use of new techniques so that they can get a detailed insight into the experience of the target market audience and customers. Unique and creative tools are being used by marketers that can interact and communicate with the customers at each of the touchpoints throughout their lifecycle. Hauser (2007) has stated in his research paper that innovative tools such as marketing analytics and data mining empower the businesses to comprehend the customers, their needs, and the experience they have while interacting with a brand.
In the 21st century, how marketers carry out market research has undergone a paradigm shift. In the current times, the intensity of competition among the business players is exceptionally high. Any wrong move in the dynamic market setting can have a detrimental impact on the very survival and sustainability of a business entity. So, marketers are always on the lookout for innovative techniques so that they can carry out thorough market research and communicate and interact with the customers in a better way. According to Krishen and Petrescu (2018), marketing analytics has a strong association with the marketplace, the marketing research process, and marketing metrics. Even though the concept of marketing analytics is not exactly new, but the explosion of technology has acted as a catalyst and increased its popularity in the existing marketing landscape. In the words of Krishen and Petrescu (2018), the digital explosion has given rise to a widespread interest in big data, data mining, and digital analytics. Marketing analytics has a significant implication on various aspects of business activities such as decision-making process, marketing activities, management, management information system (MIS), operations management, finance, and economics. The various business disciplines which are influenced by marketing analytics have been captured in the below Figure 1.
Figure 1. Application of marketing analytics in business activities. Source: (Krishen & Petrescu, 2018)
In recent times, many business concerns, irrespective of the industry in which they function, are moving towards the use of marketing analytics. One of the main reasons is that this innovative approach allows business undertakings to monitor their marketing campaigns and the outcome of the marketing approach. Thus, it will enable marketers to spend every dollar effectively so that it can create value for the business entity. As per a study that was carried out by Lenskold Group in the year 2008, companies that can effectively measure and improve their Return on Investment (ROI) capabilities can outgrow their industrial competitors (www.wordstream.com).