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Chapter 1: Initial Description of Data Mining in Business Exercises 1. How is micromarketing different than marketing based on Super Bowl advertising?
Super Bowl advertising reaches out to the masses (everyone who tunes in to the Super Bowl, which is extensive, at least in the U.S.). Micromarketing takes a different approach, expending resources to identify those likely to be interested in the message to be delivered, thus avoiding the waste of resources spent on reaching those who have no reason to care about the message, or who are unlikely to do business with the sender.
6. Churn is a concept originating in the telephone industry. How can the same concept apply to banking? To human resources?
Churn involves turnover, especially of customers, and came from the tendency of customers to switch between competitive telephone services in the 1980s when AT&T was split up and new telephone companies would offer attractive programs to gain new customers quickly (at each others expense). The same phenomenon occurs in the credit card industry, or in banking in general. In human resources, churn would involve employees switching jobs from one firm in an industry to another as more attractive pay packages were offered (effective only during prosperous periods). It could be applied to professional athletes who gain free agency.
7. How is focused marketing different than mass marketing, such as network television? What is a television media analogy to focused marketing?
Focused marketing is micromarketing. In television, focused marketing can be attained through cable television or close-circuit television fed to particular areas such as airport or physician waiting areas.
Results depend on specific sites found. The site www.kdnuggets.com is a good starting point.. There also is a great deal of information at the web site www.datawarehouse.com. Alternate Web sites were given above for OLAP products.