The term “marketing engineering” was first used in Gary Lilien’s book The Age of Marketing Engineering to describe the process that marketers use in applying knowledge-based data to making marketing decisions. Its goal is to use computer decision models and information technologies to improve marketing efficiency and effectiveness. Companies are collecting more marketing data than ever before and marketing technology is advancing at an increasing rate. Marketing engineering is becoming a more valuable tool for helping marketing managers to make more informed marketing decisions based on constantly changing environmental factors.
Let’s dive into using marketing engineering to make more informed marketing decisions.
- Marketing engineering is the future of marketing due to advancements in the use of marketing technology
- The marketing engineering model consists of five stages from data collection to action
- Marketing engineering applies to problem solving, data analytics, information technology, and data-based decision-making
Reasons for the Growing Use of Marketing Engineering
Marketing engineering is the future of marketing for several key reasons:
- Marketers are using increasingly complex technology to communicate with clients and customers, which involves understanding search engine procedures, data analysis, marketing automation systems, email marketing regulations, and using various applications
- Marketers require extensive experience to develop marketing tools or mobile applications
- Marketers are collecting data and using various technologies to run social media campaigns
- Digital marketing is one of the fastest growing fields, requiring growing expenditures in technology and acquisition of talents in multiple fields
How the Marketing Engineering Model Works
The marketing engineering model consists of five stages:
- Data: Collect objective and subjective data about the marketing environment
- Information: Select, summarize, and report on the data, and generate reports
- Insights: Identify insights with modeling, communication, and introspection about the data
- Decisions: Make decisions using the insights about different marketing functions
- Implementation: Apply your decisions in implementing your marketing strategies
Applications of Marketing Engineering
Marketing engineering can be applied to different aspects of the marketing process to help with decision-making.
Businesses can use marketing engineering to make decisions about their marketing. Marketers will often face issues that require them to make decisions about price, packaging, and promotion. For example, marketing engineering could help with determining the right path in solving problems related to:
- Whether a specific package type will produce the most sales
- What will happen to sales and profit if you increase the price of a product
- Which marketing campaign or media will be the best option for increasing sales for a target audience
Marketing engineering enables companies to advance their technology from basic reporting and query tools to data analytics software. Data analytics software enables marketers to identify and test multiple options to determine which one would be most effective. It also enables marketers to drive key marketing objectives, such as increasing awareness and trial of new products. Marketing engineering employs an analytical approach to select the best strategy and make more informed decisions.
Information technology is integral to the success of marketing engineering. Marketers are constantly collecting data from various sources on their customers. Marketing intelligence programs collect, measure, and analyze sales data, trend information, purchasing patterns, awareness and trial indicators, and data on the effectiveness of their marketing mix. The marketing engineering process enables marketers to perform detailed analysis of the data and arrange the information into a usable context. Modeling software also enables marketers to make better marketing decisions and develop effective strategic plans.
Marketing engineering eliminates uncertainty and opinion from the decision-making process. Marketers can use acquired knowledge to make all marketing decisions. For example, if your marketing teams are divided between two packaging options, they can use marketing engineering to provide the framework for choosing the optimal package. Marketing engineering enables decision-makers to analyze data and present gathered information to make their case rather than relying on emotional factors and stakeholders’ various opinions.
Using Marketing Engineering to Improve the Decision-Making Process
With companies constantly accumulating data and the increasing use of technology that can analyze that data, companies should be making greater use of marketing engineering. Understanding how the process works can help marketers to make better, more informed marketing decisions.
Need help with understanding how to use marketing engineering in your business? Sellerant can guide the way.