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1-What is Data Mining?
Data mining is the explorations and inquiry of great value of data in array to discover meaningful prototypes and rules. The aim of data mining is to aid organizations to improve their marketing, sales, and customer nourishing procedures in analyzing their customers. In reality first data mining algorithms were invented for marketable petitions. Data mining in marketing consists of 2 ways; directed and undirected. Directed data mining tries to categorize some target fields such as income or buyer answer. Undirected data mining is for pattern admission or similarities in groups of data without the utilization of a target field or classes. The cardinal purpose of data mining is to construct models. A model is an algorithm that connects a accumulation of inputs to a particular outcome. A model can result in forthcoming by providing an explanation of how outcomes of particular interest [link widoczny dla zalogowanych], such as placing an array or defect to pay a bill. Models are likewise used to depict scores. There are six missions can be fulfilled with data mining that are;
"Classification
"Estimation
"Prediction
"Association Rules
"Clustering
"Description and profiling.
Classification consists of investigating the characteristics of a newly blank item and assigning it to a predefined set of classes. Simply discrete results: yes alternatively not. Estimation deals with perennial results that given some data, appraisal comes up with a amount for some unidentified continuous variable such as income or honor card poise. Prediction is no different from category and appraisal except that the records are classified along to some foresaw future behavior. The intention of union rules is to determine which items go attach. As one sample determining what items work together in a shopping cart by the supermarket. Clustering is sectioning a assorted population into a digit of more alike clusters. Clustering does not depend above predefined classes. Profiling is describing what is happening in a complex database in a large part that additions our understanding of folk, productions [link widoczny dla zalogowanych], or processes that produced the message. Decision trees, association rules, and clustering tin be utilized for profiling clients for a particular result in marketing.
2-Data Mining Applications in Marketing
Data mining application utilized in commerce environment to be of value. The topics covered in this section are prospecting [link widoczny dla zalogowanych], data mining to select the right place to proclaim, and data mining for customer relationship treatment.
"Prospecting
A prospect is a human who may be an expected to be a customer in the future. Data mining is used accomplish the organizational goal of ascertaining people who ambition be essential customers in the future. Comparatively, few of world"s more than 6 billion people are in fact prospects for a corporation. The exclusion based on geography, age, ability to disburse, absence for product/service, etc. A newspaper wants to target people who read the appropriate language and ambition be of amuse to its advertisers. Data mining can be utilized in many ways in prospecting and some of the major ones are as the following;
"Identifying nice prospects
"Choosing a communication channel for approaching prospects
"Picking applicable messages for different teams of prospects.
The most warmhearted used role here is the identifying good prospects.
"Data mining to Choose the Right Place to Advertise
One of the ways of discovery prospects is to look for people who are alike to new customers. Majority of the companies that sell products and services need to advertise and subserve their products and services in order to aggrandize their share in the average mall. There are chiefly two approaches to advertising and promotion; mass and straight marketing. Mass marketing uses television, radio, and newspapers, broadcast messages. Direct marketing analyzes the customers" characteristics and needs and choose cer