The Application Of Data Mining In Marketing

Industry analysts expect the use of data mining (DM) to sustain double-digit growth in the 21st century. One recent study, for example, indicates that the worldwide statistical and data mining software market have been growing at a compound annual growth rate of 16. 1 percent over the past five years, reaching $1. 13 billion in the year 2002. Many large- to mid-sized organizations in the mainstream of business, industry, and the public sector already rely heavily on the use of data mining as a way to search for relationships that would otherwise be "hidden" in their transaction data. However, relationships that are counter-intuitive or highly complex can be revealed by applying only one predictive modeling techniques such as regression analysis or decision trees. Usually we choose different data mining techniques for different themes .So this paper discusses two most powerful data mining techniques cluster analysis and association rule, which are widely used especial in making product association and carrying on market segments in marketing and in most cases it is possible for relationships in data to be discovered.The paper divides into six chapters and its content and structure are as following:In chapter 1, it mainly states the domestic and international theories and research progress about data mining techniques at present, then based on them puts forward problems and how to settle them.In chapter 2, it recommends the basic conception and relevant knowledge of data mining firstly and lay the foundation for the ensuing chapters.In chapter 3, it essentially introduces two most powerful data mining techniques. One is association rule which is on the basis of database technique. And it mainly discusses the boolean association rule and its core algorithm Apriori. The other is cluster analysis that is on the basis of mathematical statistics and introduces system clustering especially.Chapter 4 introduces the application of association rules. We may discover strongly related data in product information that we get after selling in marketing by association rules and make product association. So it will be a unique advantage that managers analysis the enterprise products and make selling plans by association rules.Chapter five is the application of cluster analysis in customer relationship management (CRM). It gives a preliminary discussion on customer value, and depicts the model of customer value system. On the basis of that, the paper puts up with evaluating system of customer value in organizations according to value contribution and applies AHP and clustering analysis to analyze the customer value.It is the full text that is summarized finally, expected that the prospect of data miningIn a word, as a technique Data Mining is a process of extracting and presenting new knowledge. How to apply it felicitously in some area appears most important. In marketing Customers have become the focuses of competition among organizations. How to grasp the high value customers and further develop the potential value customers are the pursuing problems. At the same time marketing analysis and selling expectancy of the products concern are decisive factors which have great relation with the development of organizations and reproduction of society; The applications of DM techniques in marketing undoubtedly bring some new hope to organizations. After knowing the fundamental knowledge of Data Mining and analysis the theoretical basis of applying in marketing, we can try to apply to the actual cases. It will be very helpful for organizations in raising marketing efficiency and reducing marketing cost.