Join us to discuss the fascinating process of double paradigm shift: revolution in data science and technology combined with revolution in marketing analytics.
The old paradigm of data analysis that completely dominated all data-driven fields was created by two great mathematicians of the early nineteenth century: Gauss and Legendre. The method that they invented more than 200 years ago is based on Gaussian distribution and focuses on mean-variance analysis. The Gaussian mean-variance way of thinking manifested itself in marketing as the outward marketing principle: marketing message is sent out to majority of the customer population.
The new paradigm appeared in the twenty first century as a result of explosion in data technology. It shifts attention from the center of the distribution characterized by mean-variance, to the tails. What that means for the marketing strategy? It becomes the inward marketing principle: listen and learn about the customer population in order to respond to any demands and preferences, regardless of the size of the group that expresses them.
We will talk about the historical development of both approaches, show examples illustrating their main characteristics and differences. We will also discuss the implication of the paradigm shift for the future.
University of Chicago Graham School