Marketing Analytics: Cluster, Choice, Conjoint and Market Response Models

Marketing
Analytics

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Cluster Analysis..........................................................................................................................1
Choice Models ...........................................................................................................................1
Conjoint Models..........................................................................................................................1
Market Response Models ...........................................................................................................2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Marketing analysis plays an improvisation role in development of a suitable marketing strategy as
it can helps in taking effective decisions in order to attain marketing objectives (John and De'Villiers,
2020). This report explains four marketing analysis tools which include cluster analysis, choice models,
conjoint models and market response models.
MAIN BODY
Cluster Analysis
The focus of this marketing analysis tool is to enhance personalization in marketing. Cluster
analysis divides consumers into different segments on the basis of similar characteristics and interests sot
at marketing efforts for each consumer segment can become more personalized. An example of common
cluster analysis method is the usage of mathematics algorithm k means cluster analysis which is also
stated as scientific segmentation.
The main aim of using cluster analysis is to divide different consumer into segments so that the
degree of association between consumers in a specific group is high and it is low if they belong to
different consumer segments. Business firms can gain profound consumer insights by performing cluster
analysis as it can be used for understanding behaviour of specific consumer segment so that marketing
strategy according to their expectations can be created and implemented.
Cluster marketing analysis is applied by businesses firms for selecting test markets, reducing
data, identifying new product opportunities and hypothesis generations. All these features of cluster
marketing analysis support businesses in effectively utilizing consumer data for enhancing level of
personalization.
Choice Models
The usage of this marketing analysis tool is for predicting a consumer selecting specific product
over other (Krishen and et. al., 2021). The consumer choice model help the company understand
individual level response made by the consumers in the market. Predicting consumer choice is one of the
primary features of choice models which is completed by identifying patterns in choices made by the
consumer.
This marketing analysis tool has has many applications in context of developing marketing
strategy because it allows the company to analyse market share impact of product configuration,
improving consumer service, prices. Promotional activities and product range according to consumer
choices so that the most likely consumer choice is in favour of the company.
Conjoint Models
This is the suitable marketing analysis tool for understanding the value placed by consumers on
features of the product. This marketing analysis tool can be used to determine the trade off consumers
are willing to use and understand which aspects of the product are essential for consumer and which are
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