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.
Quick takeaways:
Marketing engineering is the future of marketing for several key reasons:
The marketing engineering model consists of five stages:
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:
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.
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.