An exploration into the effects of Data-Driven Marketing: The Failure of Cambridge Analytica. Research Proposal on Data-Driven Persuasion Marketing.

1. Exploration into the Effects of DataDriven Marketing: The Failure Of Cambridge Analytica
INTRODUCTION
By surpassing crude oil in 2017, Data became the “World’s
Most Valuable Asset”, (The Economist, 2017). Around the
world, one marketing truth has emerged as universally clear:
Data Matters !
This valuable commodity is used when major business
decisions are made and is key to help organisations better
understand their customers and the market(s) they are in.
The 7P’s of marketing mix when blended within a market
enriched with data, would help us provide the Right Product
with the Right Message, to the Right Person, at the Right Place
and at the Right Time. The process of collecting, organizing &
analysis of data for the implementation of a successful
marketing strategy for the growth of an enterprise is Data
Driven Marketing. (Kotler and Armstrong, 2018)
Research Questions
• Is customer data the most important competitive
advantage in the 21st Century?
• Why is trust a key factor in preventing unethical practices
in a data driven market? (Moutinho & Chien, 2008)
Research Aims
• To evaluate the growth of product sale in a data rich
market.
• To understand the effects of unethical practices within a
data driven marketing organization.
Figure 1.0 Process of data driven marketing
LITERATURE REVIEW
For creating value and building relationships with the customers, it is
necessary for the marketer to have the deep insights into customer’s
marketing data to find the customer’s want. Companies use these customer
insights to develop a competitive advantage. (Kotler and Armstrong, 2018),
(Lee and Kotler, 2019)
The actual value of information lies in the use of data. Companies like
PepsiCo, McDonalds and Google have restructured their marketing
information and research function by creating customer insight teams, whose
job is to develop actionable insights from marketing information and work
strategically with marketing decision makers to apply those insight. (Kotler and
Armstrong, 2018)
The dread that marketers may utilise refined systems to test customers most
profound sentiments, through their internet and smartphone utilisation, or track
us as we shop and later utilise this information to manipulate customers
buying.(Moutinho and Chien, 2008), (Kotler and Armstrong, 2018)
Cambridge Analytica got acclamation by dealing with information investigation
for the Trump presidential crusade. Engulfed by controversy after reports that
it got data on a large number of online users through multiple platforms and
then used the data for persuasion marketing.
It is feasible for advertisements to give an incorrect image of the items they
are selling. The disclosure activated government hearings in both the United
Kingdom and the United States. (Solon and Graham-Harrison, 2019)
Figure 2.0 Comparison of Amazon’s revenue growth (Blue) to
advertising charges(Red) (Data Driven Organization)
METHODOLOGY
There are numerous approaches to social research, but
since the company is ‘Permanently Closed’ and in
endeavouring to identify, understand, and evaluate the
impact of data driven marketing in a particular field –
• Both primary and secondary data collection method
is proposed to be used.
• Primary data would be collected from at least 100
random people through the method of sampling
using questionnaires and surveys.
• Use of pragmatic approach along with the uses of
statistical analysis and predictive analysis taking
into consideration the quantitative data through the
use of Google Analytics 360.
• Research design is conclusive.
REFERENCES
•Baker, S. (2004). New Consumer Marketing. 2nd ed. John Wiley & Sons Ltd.
•Dolnicar, S. (2002). A Review of Data-Driven Market Segmentation in Tourism. Journal of Travel & Tourism Marketing, 12(1), pp.1-22.
•Jeffery, M. (2013). Data-driven marketing. Hoboken, N.J.: Wiley.
•Karnik, A. (2019). Council Post: The Rise Of The Data-Driven Marketer: Why It's Beneficial And How To Hire One. [online] Forbes.com.
•Kotler, P. and Armstrong, G. (2018). Principles of Marketing, Global Edition. 17th ed. Harlow, United Kingdom: Pearson Education Canada.
•Lambin, J. and Schuiling, I. (2012). Market-driven management. 3rd ed. London: Palgrave Macmillan.
•Lee, N. and Kotler, P. (2019). Social marketing. 6th ed. SAGE Publications.
•Marr, B. (2019). Amazon: Using Big Data to understand customers. [online] Bernard Marr. Available at: https://www.bernardmarr.com/default.asp?contentID=712.
•Moutinho, L. and Chien, C. (2008). Problems in marketing. 2nd ed. Los Angeles: SAGE.
•Mulvenna, M., Norwood, M. and Büchner, A. (1998). Data-Driven Marketing. Electronic Markets, [online] 8(3), pp.32-35.
•Solon, O. and Graham-Harrison, E. (2019). The six weeks that brought Cambridge Analytica down. [online] The Guardian. Available at: https://www.theguardian.com/uk-news/2018/may/03/cambridge-
analytica-closing-what-happened-trump-brexit.
•Wedel, M. and Kannan, P.K. (2016). Marketing Analytics for Data-Rich Environments. Journal of Marketing, 80(6), pp.97–121.
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