This document discusses the rise of big data and data-driven marketing. It notes that data now plays a central role for organizations in maintaining customer relationships, personalizing offerings, and automating marketing processes. Big data has led to new forms of digital marketing like recommendations, geofencing, and retargeting. There is now an urgent demand for analytics capabilities to help firms make sense of new data sources and problems. The document outlines several issues that will impact data-rich marketing environments in the future, including increased privacy/security concerns limiting data collection/retention, the need for an organizational culture that values data/analytics, and the interdisciplinary nature of marketing analytics work.

1. From:
© M.Wedel & PK Kannan
A Critical Examination of
Marketing Analytics for Data-
Rich Environments
How the “big data” era started and its role in
firms in the future.
Michel Wedel & PK Kannan (2016)

2. From:
© M.Wedel & PK Kannan© M.Wedel & PK Kannan
The Era of Big Data
 Data is assuming an ever more central role in organizations
- Build and maintain customer relationships
- Personalize products, services and the marketing mix
- Automate marketing processes in real time
 Big data may have been over hyped, but now:
- Spawns data-driven decision culture in companies
- Provides them with competitive advantages
- Significantly impacts their financial performance
 Has caused new forms of marketing to emerge
- Recommendations, geo-fencing, search marketing, retargeting
 Urgent demand for analytics capabilities
- Not always clear which types of analytics work for which new problems and new data
Michel Wedel & PK Kannan (2016)

3. From:
© M.Wedel & PK Kannan© M.Wedel & PK Kannan
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Michel Wedel & PK Kannan (2016)

4. From:
© M.Wedel & PK Kannan
From:
© M.Wedel & PK Kannan
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Evolution of Data-Rich Marketing Applications
Michel Wedel and PK Kannan (2016)

5. From:
© M.Wedel & PK Kannan© M.Wedel & PK Kannan
Issues Impacting Data Rich Environments in
the Near Future
 Privacy and security concerns will limit collection/retention of data
- Focus on the development of analytics for anonymized and minimized data
- Proactive development of methods for protection of customer privacy
 For marketing analytics to have its full impact for big data
- Firms need to have a culture that recognizes the importance of data, analytics, and data-driven
decision making
- Have a governance structure that prevents silos and facilitates integrating data analytics into
overall strategy (Big Data CoE + multidisciplinary teams)
 Marketing analytics involves disparate domains
- The next generation of marketing analysts need to learn how to integrate these fields in order to
have sufficiently broad and deep knowledge
Michel Wedel & PK Kannan (2016)