| Data mining is also known as Knowledge | | | | database and guides marketing professionals to a |
| Discovery in Databases (KDD). Data mining is the | | | | better understanding of the customer psychology. |
| process of automatically searching large volumes | | | | Data mining software enables users to analyze |
| of data for patterns. Data is derived from the | | | | large databases to provide solutions to business |
| word datum, being its plural term. Data comprises | | | | decision problems. Data mining is a technology and |
| of a class of large number of significant | | | | not a business solution like statistics. The data |
| statements that are measurements or | | | | mining software uses the information that is |
| observations of a variable. Data mining works on | | | | stored in a historical database of earlier |
| the basis of computational techniques from | | | | interactions with the customers and about other |
| statistics machine learning and pattern recognition. | | | | aspects such as age, zip code, their feedback etc. |
| Data mining is the crucial process that helps | | | | Thus the data mining software provides an idea |
| companies better comprehend their customers. | | | | about the customers that would be intrigued by |
| Data mining can be defined as 'the nontrivial | | | | the new product. This enables the marketing |
| extraction of implicit, previously unknown, and | | | | manager to choose appropriate customers to |
| potentially useful information from data' and also | | | | target. |
| as 'the science of extracting useful information | | | | Data mining is also linked with privacy concerns |
| from large sets or databases'. Data mining is | | | | particularly regarding the source of the data |
| interpreted differently in different contexts but | | | | analyzed. For instance an employer can screen |
| most often it is used in the context of a business | | | | out people with diabetes or heart attack and |
| or other organization's need to acknowledge | | | | create ethical and legal issues and elimination of |
| trends. | | | | costs of insurance. Besides this data mining is also |
| Just like mining for gold, data mining navigates | | | | used in the field of medicine to find combinations |
| through large databases and extracts a wealth of | | | | of drugs with harmful results. |
| customer data, which is then translated into useful | | | | Data mining should be interpreted to give |
| and predictive information. A paradigm instance of | | | | beneficial results. When the data collected involves |
| data mining is its use in a retail sales department | | | | individual people, the issues concerning privacy, |
| where a store tracks the purchases of a | | | | legality and ethics crop up. |
| customer who buys ample of cotton trousers. | | | | Data mining can bring pinpoint accuracy to dales. |
| The data mining system will make an association | | | | Creating big central stores of customer data to |
| with customer and cotton trousers and might | | | | be used all through the entire enterprise are |
| either directly market or sale the cotton trouser | | | | becoming quite usual but the data warehouses are |
| to that customer or try to get the customer to | | | | of no use if there are no proper applications for |
| buy a vast range of products. Data mining also | | | | accessing and using the data in the companies. |
| enables automatic detection of the patterns in a | | | | |