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DATA4500

Marketing and Social Media Analytics

Lesson 1
Marketing Frameworks and Evolution
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Course roadmap

Twelve weeks. We start with foundations (why marketing exists at all), then move into analytics tools, social media data, generative AI, and predictive modelling.

WEEK 1
Marketing Frameworks and Evolution
WEEK 2
Marketing Analytics, Trends and Software
WEEK 3
Social Media Analytics: Methods and Capabilities
WEEK 4
Social Media Content and Engagement Analysis
WEEK 5
Assessment
WEEK 6
Influencer Marketing and Network Analysis
WEEK 7
Generative AI for Marketing Analytics
WEEK 8
Data Visualisation and Storytelling
WEEK 9
Marketing and Social Media Strategy Optimisation
WEEK 10
Customer Lifetime Value and Churn
WEEK 11
Predictive Modelling
WEEK 12
Assessment
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What you'll get out of today

OutcomeBy the end of this lesson you should be able to…
LO1Explain the three core marketing frameworks (3Cs, STP, 4Ps) in plain language.
LO2Use data about customers, your own company, and competitors to make better marketing decisions.
LO3Describe how promotional channels have shifted from billboards and TV to mobile-first digital experiences.
LO4Map the consumer decision journey (ABCDE) onto the company's conversion funnel (AIDA).
Why this matters
Frameworks are the scaffolding. Every data-driven marketing decision later in the course (recommender systems, sentiment analysis, churn prediction) plugs into one of these three frameworks.
Section 1

What is Marketing?

The one-line definition, and why analytics changed the game
1.1

Marketing in one sentence

Definition
Marketing is the work of matching what customers need with what a company can profitably offer — and communicating that match convincingly.
Analogy — the matchmaker
Think of a marketer as a matchmaker. On one side there are people with problems, wants, and budgets. On the other side there are companies with products, services, and expertise. The matchmaker's job is to find pairings that make both sides happy — and to do it more reliably than the matchmaker down the street.

Marketing is not just advertising. Ads are the tip of the iceberg. Underneath is research, segmentation, pricing, distribution, and post-purchase service.

1.2

Where analytics fits in

Historically, marketers made educated guesses. Today, they measure.

Then (pre-2000)

  • TV ratings from small survey panels
  • Rough sales figures by region
  • Quarterly customer surveys
  • "Half the money I spend on advertising is wasted; the trouble is I don't know which half." — attributed to John Wanamaker

Now (data-driven era)

  • Every click, scroll, and pause is logged
  • A/B tests run continuously on live traffic
  • Real-time dashboards per campaign, per segment
  • Recommendations personalised per user
Data point
Netflix has publicly stated that around 80% of what viewers watch comes from its recommendation system — not from browsing or search. That is marketing analytics doing the matchmaking, at scale, for over 300 million subscribers.
Section 2

Framework #1 — The 3Cs

Customers, Company, Competitors
2.1

The three lenses

To find where you can win, you need to look at any business problem through three lenses at once.

Customers Company Competitors Sweet spot
Figure 2.1: The 3Cs overlap where a winning strategy lives.
2.2

Customers — what problem are we solving?

Every product exists to solve some problem or satisfy some want. If you can't finish this sentence in one line, you don't understand your customer yet:

Try this test
"Our customer struggles with ______, and today they solve it by ______, which is bad because ______."
Worked example — Uber (2009)
Customer struggles with flagging a taxi in the rain. Today they solve it by standing on the curb waving. Which is bad because it's slow, unreliable, and they can't see how far away the car is. Uber's whole product design came from that one sentence.
2.3

Company — what can only we do?

The second lens turns inward. What resources, skills, or history does your company have that competitors don't?

Data point — Amazon's advantage
Amazon operates over 175 fulfilment centres worldwide and holds roughly 200 million Prime members. A new e-commerce entrant can copy the website in a weekend. Copying that logistics network and membership base takes decades.
2.4

Competitors — who else is playing?

The third lens asks: who else is chasing the same customer, and how do we look different?

Direct competitors sell essentially the same thing (Coca-Cola vs Pepsi). Indirect competitors solve the same problem differently — orange juice, water, and energy drinks also compete for "thirsty consumer" spend.

Analogy — the food court
Imagine you own the sushi stand in a food court. Your direct competitor is the other sushi stand. But your indirect competitors are the burger place, the pho stand, and even the person who packed a sandwich from home. Miss the indirect ones and you'll lose share without knowing why.
2.5

Worked example — Sam flies MEL to ADL

Sam needs to get from Melbourne to Adelaide next Friday. Let's run the 3Cs from Qantas's point of view.

LensWhat Qantas asksData that helps answer it
CustomerWhat matters to Sam? Speed, price, luggage, timing, frequent-flyer points?Booking history, search queries on qantas.com, survey NPS scores
CompanyWhat can Qantas offer that hits those needs? Lounge access, direct flights, mobile check-in.Route profitability data, on-time performance stats, capacity by day
CompetitorWhat do Virgin Australia, Jetstar, coach services, and driving offer at the same time?Competitor fare-scraping data, industry route-share reports

The MEL–ADL route is roughly 725 km. Driving takes about 8 hours; flying takes about 1 hour 20 minutes. That gap is Qantas's core promise on this route — but only for time-sensitive travellers.

2.Q

Knowledge check — Section 2

Q1. A student asks, "Isn't the 3Cs framework just common sense?" What's the best response?
A framework's power is not novelty — it's discipline. Companies routinely build great products (strong Company view) that nobody wants (missed Customer view) or that a competitor has already dominated (missed Competitor view).
Q2. Coca-Cola treats bottled water as which type of competitor?
Bottled water solves the same underlying "quench thirst" need. That's why Coca-Cola actually owns several water brands (Dasani, Smartwater) — competing with itself is safer than losing the customer entirely.
Section 3

Framework #2 — STP

Segmentation, Targeting, Positioning
3.1

What STP does for you

The 3Cs tell you where to look for a winning position. STP tells you how to actually pick and reach the right customers.

StepQuestion it answers
SegmentationWhat natural groups exist in the market?
TargetingWhich of those groups should we go after?
PositioningWhat do we want to be known for in the minds of that group?
Analogy — fishing
Segmentation is figuring out which species live in the lake. Targeting is deciding which species you actually want to catch. Positioning is choosing the right bait so those fish bite you and not your competitor's line.
3.2

Segmentation — divide the market

Definition
Segmentation uses data to divide a market into groups of people who share similar characteristics — and who differ meaningfully from other groups.

A good segment is:

Data point — Spotify Wrapped
Every December, Spotify's "Wrapped" campaign is essentially segmentation made public: it slices ~600 million users into playful groups ("Top 0.1% of Taylor Swift listeners", "Indie folk enthusiast") based on 12 months of behavioural data. Users love sharing which group they landed in — free viral marketing built entirely on segmentation.
3.3

Four types of segmentation factors

TypeWhat it capturesExample variables
DemographicWho they are on paperAge, gender, income, education, family size
PsychographicHow they think and feelValues, lifestyle, personality, interests
BehaviouralWhat they actually doPurchase frequency, brand loyalty, price sensitivity, feature usage
GeographicWhere they areCountry, city, climate, urban vs regional
Rule of thumb
Demographics tell you who someone is. Behaviour tells you what they'll actually do. When you have both, behavioural data almost always predicts better — but demographics are easier to collect.
3.4

How data scientists actually segment

Segmentation used to be done with intuition and simple crosstabs. Today, it's done with cluster analysis — unsupervised machine-learning algorithms that group customers automatically based on many variables at once.

Spend per month Frequency Casual Regular Power users
Figure 3.4: A 2-D projection of three clusters found by k-means on customer behaviour data.

Common algorithms: k-means (fast, needs number of clusters upfront), hierarchical clustering (produces a dendrogram tree), DBSCAN (finds arbitrarily shaped groups). We'll implement these in later weeks.

3.5

Targeting — which segment(s) do we chase?

Once you have segments, targeting picks the ones worth pursuing. Two questions decide it:

  1. Can we serve this segment better than anyone else? (Company fit)
  2. Is this segment financially worth it? (Size × spend × margin, minus cost to serve)
Worked example — Tesla's early targeting
In 2008, Tesla launched the Roadster at ~USD 109,000. They targeted a tiny segment: wealthy, environmentally conscious early adopters. That segment was small, but the margin per unit was huge and the buzz created demand for later mass-market cars (Model 3, Model Y). This is called a beachhead strategy — win one small segment first, expand later.
3.6

Positioning — own a spot in the mind

Definition
Positioning is the single idea you want your target segment to associate with your brand — the reason they'd pick you over the alternatives.
Analogy — mental shelf space
Every customer has a mental supermarket. Each product category is an aisle. On each shelf, only a few brand names fit. Positioning is a fight for shelf space — not in the actual store, but inside the customer's head. Once a brand owns "safest car" (Volvo) or "cheapest flights" (Jetstar), it's very hard for a competitor to bump them off.
Positioning examples you already know
3.Q

Knowledge check — Section 3

Q1. A retailer segments customers using k-means on purchase-frequency and average-basket-size. Which segmentation type is this?
Both frequency and basket size describe what customers do — that's behavioural data. Demographics would be age/income; psychographics would be lifestyle/values.
Q2. Aldi positions itself as low-cost. Why is this a strong positioning?
Great positioning is (i) a single sharp idea, (ii) consistent across all touchpoints, and (iii) backed by real capability. Aldi's private-label focus and small store footprint make the low prices real, not just advertised.
Section 4

Framework #3 — The 4 Ps

The Marketing Mix: Product, Price, Place, Promotion
4.1

What the 4 Ps are for

Once you've picked your target segment and positioning (STP), the 4 Ps are the levers you actually pull to deliver on that positioning.

Analogy — a recipe
Positioning is what dish you promised the customer. The 4 Ps are the ingredients you use to actually cook it. If you promised a fine-dining experience but chose cheap ingredients (Product), a fast-food price (Price), a food-truck location (Place), and billboard ads at a truck stop (Promotion), the customer walks away confused. Every P must support the positioning.
PCore question
ProductWhat features and quality does the offering have?
PriceHow much do we charge, and how do we discount?
PlaceHow do we get the product to the customer?
PromotionHow do we tell the customer we exist?
4.2

Product — data guides what to build

Product decisions used to be driven by executive intuition. Today they're driven by usage data, A/B tests, and voice-of-customer analytics.

Data-driven product example — Netflix thumbnails
Netflix personalises the artwork you see for each show. It runs a multi-armed bandit that shows different thumbnail images to different viewers and learns which image drives more clicks for each user segment. A rom-com might appear with a romantic scene for one viewer and a comedic scene for another — same product, different presentation, tested with data.

Data questions marketers ask:

4.3

Price — data reveals what people will pay

Price is the fastest lever to move revenue — and the easiest to mess up. Analytics helps in three ways:

Data point — Uber's surge pricing
Uber's surge algorithm adjusts prices in real time when demand outpaces driver supply. When New Year's Eve hits Sydney at midnight, prices can spike 2–3×. That isn't greed — it's an elasticity experiment running every minute of every day, using GPS-tracked supply and demand signals to clear the market.
Data point — The Big Mac Index
The Economist's Big Mac Index shows that a Big Mac costs about USD 5.69 in the US but only USD 3.50 in South Africa (2024 figures). Same product, geographically differentiated pricing — Place and Price interacting.
4.4

Place — where and how the product reaches the buyer

"Place" covers distribution channels: physical stores, e-commerce, marketplaces, apps, third-party retailers. Data-driven questions:

Data point — 7-Eleven Japan
7-Eleven Japan uses point-of-sale data from ~21,000 stores to restock each store three times a day with a mix tailored to that store's local demand — different sandwiches near office districts, different snacks near schools. Place, powered by data.
4.5

Promotion — how the message reaches people

Promotion is the P we'll spend most of this course on, because it's where digital and social media analytics live. It has two halves:

ComponentQuestion
MessageWhat are we saying about the product?
ChannelWhere do we say it — and does our audience actually live there?
Key point
A great message on the wrong channel is invisible. A weak message on the right channel is annoying. You need both.
4.6

The 4 Ps must be consistent

The classic mistake is treating the 4 Ps as independent knobs. They aren't — they must line up with the positioning.

BrandPositioningConsistent 4 Ps?
RolexPrestige and heritagePremium product ✓, high price ✓, jewellers only (Place) ✓, magazine + tennis sponsorship (Promotion) ✓
AldiLow price, no frillsPrivate-label product ✓, low price ✓, small stores ✓, weekly catalogue promotions ✓
TeslaTech-forward, direct-to-consumerSoftware-heavy product ✓, transparent price ✓, own showrooms (no dealers) ✓, CEO tweets instead of ads ✓

Each row is internally coherent. Break one P and the story falls apart — imagine Rolex being sold on Amazon at a discount.

4.Q

Knowledge check — Section 4

Q1. A boutique gym sets its monthly fee at AUD 249 and only opens in premium suburbs. This is an example of…
Both the high price and the exclusive locations signal the same message — this gym is for a premium segment. That's the 4 Ps working together.
Q2. Which of these is a Product-level (not Promotion-level) data question?
Churn caused by a feature is telling you something is wrong with the product itself. The other two are about how you promote or acquire — Promotion decisions.
Section 5

The Evolution of Promotional Channels

From billboards to your pocket
5.1

Three eras of promotion

EraDominant channelsData available
Pre-digital
(pre-1995)
TV, radio, print, billboards, direct mailPanel surveys, Nielsen ratings, coupon redemption
Web era
(1995–2010)
Websites, banner ads, email, search enginesPage views, click-through rate, session logs, cookies
Mobile / social
(2010–present)
Mobile apps, social platforms, influencer content, videoReal-time location, in-app events, social graph, ad IDs
Data point — where ad money goes
Global digital advertising spend surpassed traditional (TV, radio, print combined) around 2019. By 2024, digital accounts for roughly 70% of all global ad spend, with mobile taking the majority of the digital share.
5.2

What changed with digital: measurement

The biggest shift is not where ads run — it's what we can measure. In the pre-digital era, a billboard's impact was inferred. In the digital era, every impression can be tied to a specific user's later behaviour.

Billboard on a highway

  • Estimated eyeballs from traffic counts
  • No idea who actually looked
  • Can't tell if any viewer bought later
  • Same message for everyone

Instagram ad

  • Exact impressions, per-user
  • Knows demographics, location, interests
  • Click → landing page → purchase all linked
  • Different creative per audience segment
5.3

Traditional channels going digital

Traditional channels haven't died — they've absorbed digital capabilities. Modern billboards can now change content in real time based on weather, sports scores, or time of day.

Real example — Target Pharmacy pollen billboards
Target ran digital billboards that displayed the day's local pollen count and promoted allergy medication from the pharmacy. High pollen days triggered the ad automatically. The channel is old (billboard); the data trigger is new. This is contextual advertising in physical form.

Even TV has become data-driven: connected TVs let advertisers show different ads to different households watching the same show.

Section 6

The Consumer Journey

ABCDE — how customers decide
AIDA — how companies convert
6.1

ABCDE — the customer's five steps

From the customer's point of view, buying anything more than a snack usually follows five stages:

A — Awareness B — Browsing C — Consideration D — Decision E — Evaluation (after purchase)
6.2

Real journey — buying a new phone

StageWhat the customer doesData trail they leave
AwarenessTheir old phone battery keeps dying — friend mentions a new Pixel.WhatsApp mention, social feed exposure
BrowsingGoogles "best phone under $1200 2026", reads reviews on JB Hi-Fi, watches YouTube reviews.Search queries, product page views, video watch time
ConsiderationNarrows to iPhone 17 vs Pixel 10 vs Samsung S26. Reads Reddit threads.Repeat visits, side-by-side comparison clicks
DecisionBuys the Pixel 10 online during a Boxing Day sale.Purchase event, credit card, shipping address
EvaluationLoves the camera, tells friends, writes a 5-star review.Review text, social posts, referral link clicks

Every column-3 signal is a data point marketers can capture and act on.

6.3

AIDA — the company's four steps

From the company's point of view, the same journey looks like a funnel that leaks at every stage.

A — Attention I — Interest D — Desire A — Action
6.4

ABCDE and AIDA side by side

Consumer view (ABCDE)Company view (AIDA)Common label
AwarenessAttentionConsumer
BrowsingInterestLead
ConsiderationDesireProspect
DecisionActionCustomer
Evaluation(Customer service / retention)Advocate
Two sides of the same table
Both frameworks describe the same journey. ABCDE looks at it from the buyer's chair; AIDA looks at it from the marketer's chair. Neither is more correct — but knowing both lets you design campaigns that actually match how customers behave.
6.5

The funnel leaks — and that's where analytics helps

Analogy — a leaky bucket
Imagine pouring water into a bucket with holes at every level. Attention brings 100 people. Only 40 become interested. Of those, 15 develop desire. Only 3 take action. Marketing analytics is about finding which hole leaks the most and patching it first.

Typical funnel metrics:

Fixing the biggest leak often gives more revenue than doubling the ad budget.

6.Q

Knowledge check — Section 6

Q1. A customer adds an item to their cart but doesn't check out. Which funnel stage has failed?
Adding to cart shows desire is there. The failure is at Action — checkout. That's why abandoned-cart emails are one of the highest-ROI marketing tactics.
Q2. Why does the ABCDE model include an "Evaluation" step even though the sale is already done?
Retention and word-of-mouth are cheaper than acquisition. Companies with strong evaluation-stage performance grow faster because each new customer brings referrals — turning customers into advocates.
Section 7

Wrap-up

What to remember from Lesson 1
7.1

The three frameworks at a glance

FrameworkPurposeMnemonic
3CsWhere can we win?Customers, Company, Competitors
STPWho do we serve, and how do we look?Segmentation, Targeting, Positioning
4 PsHow do we deliver the promise?Product, Price, Place, Promotion

And the customer journey

Next week
Week 2 dives into marketing analytics software and trends — the concrete tools (Python, GA4, Tableau) that turn today's frameworks into real dashboards.
7.2

One-sentence takeaway

If you remember only this

Marketing is a matchmaker between customer problems and company solutions. The 3Cs help you spot the match, STP helps you choose whom to serve, and the 4 Ps let you deliver on it — all measured, tested, and refined with data at every step.

See you in Week 2.

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