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Introduction to Algorithmic Marketing is a comprehensive guide to advanced marketing automation for marketing strategists, data scientists, product managers, and software engineers. It summarizes various techniques tested by major technology, advertising, and retail companies, and it glues these methods together with economic theory and machine learning. The book covers the main areas of marketing that require programmatic micro-decisioning - targeted promotions and advertisements, eCommerce search, recommendations, pricing, and assortment optimization.
"A comprehensive and indispensable reference for anyone undertaking the transformational journey towards algorithmic marketing."
¿Ali Bouhouch, CTO, Sephora Americas
"It is a must-read for both data scientists and marketing officers¿even better if they read it together."
¿Andrey Sebrant, Director of Strategic Marketing, Yandex
"The book gives the executives, middle managers, and data scientists in your organization a set of concrete, actionable, and incremental recommendations on how to build better insights and decisions, starting today, one step at a time."
¿Victoria Livschitz, founder and CTO, Grid Dynamics
Table of Contents
Chapter 1 - Introduction
The Subject of Algorithmic Marketing
The Definition of Algorithmic Marketing
Historical Backgrounds and Context
Who Should Read This Book?
Chapter 2 - Review of Predictive Modeling
Descriptive, Predictive, and Prescriptive Analytics
More Specialized Models
Chapter 3 - Promotions and Advertisements
Response Modeling and Measurement
Building Blocks: Targeting and LTV Models
Designing and Running Campaigns
Measuring the Effectiveness
Architecture of Targeting Systems
Chapter 4 - Search
Building Blocks: Matching and Ranking
Mixing Relevance Signals
Search Methods for Merchandising
Architecture of Merchandising Search Services
Chapter 5 - Recommendations
Overview of Recommendation Methods
Introduction to Collaborative Filtering
Neighborhood-based Collaborative Filtering
Model-based Collaborative Filtering
Multiple Objective Optimization
Architecture of Recommender Systems
Chapter 6 - Pricing and Assortment
The Impact of Pricing
Price and Value
Price and Demand
Basic Price Structures
Architecture of Price Management Systems