Answer to Question #226159 in Management for aqsa

Question

Suppose you are Marketing Strategy Manager at XYZ Supermarket. Your Supermarket uses Loyalty cards to maintain their customer’s data like Purchase History, Delivery Information, Contact and Personal Information etc. The Supermarket uses Loyalty card data to send regular promotional and discount offers to relevant customers. The Supermarket planned to launch their own Ready-to-Cook food items. For this purpose, they asked you to prepare predictive analysis of the products to check the sale capability and target audience for these products.

So as a Marketing Strategy Manager, which of the following Data Mining technique will you use for the above mentioned task and why? (Briefly explain in only 2-3 lines)

• Ø  Classification
• Ø  Association

Answer 1

I would use Classification data mining technique. It is used to obtain important and relevant information about data and metadata. This data mining technique helps to classify data in different classes and thus be able to predict the future of the sales promotion.

It aims to reduce the cost of spreading marketing content by targeting a set of consumers that are likely to be interested in the specific content based on their revealed past data and behavior. I will able to classify the consumers into groups such as Purchase History, Delivery Information, Contact and Personal Information which I will use to determine which group fits to be allocated regular promotional and discount offers.