CIMA E1 Syllabus C. Data And The Finance Function - Sales and Marketing - Notes ^{4 / 8}

What is marketing?

Marketing can be defined as the management process that identifies and satisfies customers needs efficiently and profitably. 

Sales and marketing functions are using big data analytics to improve their understanding of customers wants and needs and identify features of products the add value to the customer. 

This is leading to the following changes:

• Pricing

  This is a critical decision and must be correct the first time it is set. 

  Real time data allows a company to compare and benchmark prices across an entire industry as well as seeing the rate of sales.

• Products

  There is no need to purchase in huge quantities anymore. 

  Retailers are always testing the market and monitoring what it selling for themselves and customers. 

  Products can now be ordered and delivered almost immediately.

• Segmentation

  By analysing buying patterns and social media trends, new market segments can be identified by grouping similar data points.

• Promotions

  Analysing data from past product launches combined with subsequent sales of those products gives huge insight into what works best and when.

• Customer relationship management

  Data on customers provides a profile which, together with their past purchasing patterns can make adverts more customised to meet the customer’s specific needs.

• Targeting

  This can be done based on segmentation.

If a company with limited funds is experiencing a market downturn due to market trends and competition being able to obtain cheaper imports.

Due to the limitation of funds, it should use its funds for the immediate survival of the business. It should not invest in marketing  strategies that involve the implementation of big data analytics.