[Maeil Business News] SKK GSB Prof. Nah Lee 'Data-Driven Marketing'
The explosive growth in the field of data science has significantly elevated the importance of outcome-oriented marketing, driven by diverse data analysis and tools, as well as marketing strategies grounded in quantitative insights. Professor Nah Lee at SKK GSB teaches courses in Digital & Social Media Analytics and Pricing Strategy, helping MBA students build essential marketing competencies and skills required in the data-driven era. Her lectures actively engage students by delving into contemporary business cases from leading media and entertainment companies.
One such case study from 2022 is Netflix's introduction of an ad-supported pricing plan. Despite its previous reluctance to incorporate advertisements, Netflix adopted a pricing strategy in April 2022 that involved reducing existing membership fees and introducing ads following a more than 30% drop in its stock price. Additionally, the marketing strategy shifted from content promotion to branding the 'Netflix' name, as evident in the tagline, "What's on Netflix these days?" To understand the validity of such strategies and their impact on business decisions, it's crucial to grasp Netflix's revenue determination structure and the variables influencing it.
As competition to attract customers among various platforms increased, Netflix also significantly increased its investment in original content, which resulted in heightened content prices. Consequently, the importance of advertising revenue became more pronounced, making it no longer optimal for Netflix to stick exclusively to ad-free plans, even if users dislike ads. Following the introduction of advertising, Netflix's revenue improved, and its stock price saw an upturn in the latter half of 2022. Professor Nah Lee emphasizes in her lectures that platform management decisions are outcomes of economic theory and thorough data analysis, showcasing the limitless possibilities of analytics and data in the business field.
The course, Digital & Social Media Analytics, revolves around team projects where students collect and analyze social media data firsthand. They explore what insights can be derived from real data and how those insights can impact businesses. For instance, projects involve analyzing the impact of Elon Musk's tweets on Tesla, cryptocurrency, Twitter stock prices, and more. Students also analyze social data from before the introduction of Apple Pay to predict potential synergies between Apple Pay and Apple devices, as well as Hyundai Card.
MBA students reflect on instances from their professional experience where they could have benefited from utilizing digital data more effectively, experiencing firsthand the process of using data to arrive at more concrete conclusions.
Professor Lee’s background in systems engineering, coupled with her doctoral degree in marketing after passing through operations management, equips her with strengths in data science and quantitative marketing models. She emphasizes that in the era of vast data, marketers should have the ability to selectively analyze data and make comprehensive judgments based on precise theories within complex contexts. She underscores that, "In this era, interdisciplinary thinking is more critical than technical education, and MBA talents who can think comprehensively based on theory and data analysis skills will be increasingly needed.
Original article (Korean): https://www.mk.co.kr/news/special-edition/10837476