Configuration of Google Analytics tracking is easy in mangeto. You need to login to your Magento Admin area >> Go to System >> Configuration >> Sales >> Google API >> select Yes for option Enable and enter the Google Analytics account, now save the configuration.
Selection of suitable types of tracking is totally depending on your requirement:
If you want track popularity and hit coming to your site, you can use Page View Tracking & if you want to track the business done through your cart then use E-commerce Tracking.
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