In the Internet age, it is possible to amass huge quantities of information and then pull conclusions from the process. Data mining is the process of sifting through independent points of information, such as each pair of shoes purchased at a clothing store, to create a business and marketing strategy based on the information.
Four Part System
Data mining is the broad term for four different processes. The first, data management, collects the information that a company has available from their sales, records, and customer reports. Model management attempts to create conclusions from existing business strategies to see whether or not they are successful. A knowledge engine looks to create new paradigms to interact with trends. Finally, user interface allows for interaction in the data itself. Each part of the system can drive another part.
The Future Of Research
Three out of four researchers feel that data mining will play a key role in the methods of market research and marketing in the near future. New research, while still profitable, will be less important than research gleaned from available data. Major web-based companies that have access to consumer data, like Google and Facebook, will likely power this change.
Why Data Mine?
The picture of data mining is big — really bit. Trillions of bits of information can be processed and utilized, but it is quite inexpensive since the data is available. It allows for new patterns to be understood and new means of targeting audiences.
To learn more about the power of data mining and decision support systems when it comes to marketing take a look below at the infographic below created by the New Jersey Institute of Technology.