Factor Analysis of the Results of Digital Technology

Factor Analysis of the Results of Digital Technology

The conceptual issues of conducting factor analysis of enterprise’s marketing activity are being discussed, in the example of digital marketing communications. The general rules and the algorithm for conducting such analysis are proposed, and its purpose is justified. The questions of how to define the causal relationships of marketing costs and results, the ability to search for reserves and the increase of marketing efficiency, and the determination of the contribution of marketing activities to the overall economic performance of the enterprise are being discussed. Digital Marketing Company Kumbakonam

A review of publications in the field of international and Russian practice of marketing performance management points to a number of problems in marketing performance analysis: weak use of management and financial techniques with a formalized algorithm of analysis [1], the need to quantify the marketing budgets [2], the absence of measure of marketing costs with strategic implications or the intangible results [3], lack of communication of marketing indicators with the financial results of the company [4] etc. As a result of the search for new opportunities of decision making process in the marketing field the authors consider the tools of economic analysis that has a number of merits: the high degree of structuring of the subject area, the universality of a number of methods, the unambiguous application of the method and the results, the possibility of identifying causal relationships through factor analysis. Specific features of marketing activities (the need to take into account the product life cycle, irregularity of marketing costs, the existence of temporary lags in the effects measurement, etc.) require additional measures to adapt the economic analysis methods to marketing activity. Solution to the problem of customizing the economic anal-ysis methods might be considered as an example of a study of the results of digital marketing communications application, as one of the most required marketing communications tools according to [5].

The urgency of use of digital marketing communications has been confirmed by research project [5], in 2016. 95% of participants in market of advertising of Russia used Internet advertising, 57% mobile advertising, 77% of companies ex-pected to increase the share of interactive advertising in the marketing budget (Fig. 1). However, there is a gap in the study of the results of digital marketing communications and the factors influencing them, and the methodologies described in the analysis and evaluation of marketing in the enterprise [6] due to the lack of quantitative methods and the subjectivity of the formation of values it’s impossible to apply to digital marketing communications analysis At the same time, in the context of the dynamic develop-ment of the information economy and Internet technologies, it is possible to trace the “route”, the consumer’s actions, and thus new possibilities are opening for investigating the causal relationship between the advertising impact and the consumer response, in particular through factor analysis.

 Factor Analysis of the Results of Digital Technology

The features of the factor analysis of the results of digital technology applications in the marketing activities of the enterprise are as follows: 1. Marketing activity is a part of a higher level system, namely economic activity. Marketing objectives are subordinated to the objectives of the enterprise, which makes it necessary to measure the results of digital technologies in the form of contribution indicators to the performance of the enterprise. 2. The formulation of the findings of the factor analysis of digital technologies depends on the strategic and operational marketing objectives pursued. 3. The existence of threshold effects, such as a minimum level of sales incentives, time lags (consumer response to ad-vertising has time lag). 4. The need to identify the economic impact of such digital technology application as a company recognition and image, loyalty, customer satisfaction. 5. The difficulty of measuring the cost ratios and strategic or social results of digital technology applications. These features identified the research problem-the devel-opment of a methodology for factor analysis of the results of digital technology applications in the enterprise’s marketing activities, in the case of Medexport – Severnaya zvezda, a limited liability company under the laws of Russian Federation (Pharmakopejka pharmacy chain brand, which includes more than 600 pharmacies). The methodology developed is based on the idea of considering marketing activities as a process of converting resources through a certain technics to the results https://arudhrainnovations.com/

Leave a Reply

Your email address will not be published. Required fields are marked *