Direct Marketing Is The Main Application Marketing Essay

Direct Marketing Is The Main Application Marketing Essay Direct marketing is the main application areas of data fusion and data mining, because the direct marketing industry collecting large amounts of data about sales, customers shopping history, transportation, consumption and services. Especially since the Web or e-business activities become much more convenient, the amount of data collected has a rapid growth. Today, many stores has a website, customers can easily purchase products online. Some companies, such as Amazon.com (http://www.amazon.com), only on the line to trade, there is no physical shopping. Direct marketing data for data mining provides a wealth of resources. Direct data mining can help the designer identify the behavior of customers, found customers shopping patterns and trends, improve service quality and achieve better relationship with customers, achieve better customers satisfaction, improve the sales ratio, design a more rational direct marketing strategy, and reduce costs (Decker, 2007). à ¢Ã¢â‚¬ ¦Ã‚  .What is Direct Marketing? In the classical works in marketing, direct marketing is a form of non-store sales, however, classified in the form of non-store sales also as mail order, TV sales, telephone sales, vending machine sales and Internet sales. In the previous theoretical study of direct selling, direct marketing definition has always been different (Bennett, 1998). Industry trade association in Washington DC gives direct marketing the definition: a method of distribution, through personal contacts to sell products and service. Not have a fixed trading site, mainly at home. This definition is different from other definitions. Direct marketing be defined in the methods of distribution. This definition means that direct marketing model attach to distribution channels incorporated direct marketing into its connotation to the concept in turn. à ¢Ã¢â‚¬ ¦Ã‚ ¡.What is Data Fusion and Data Mining? A brief definition of data fusion and data mining in marketing area is: extraction of previously unknown, comprehensible information from large storage of data, and understand it to make important business decision and support their design, including tactical development and strategic marketing plans and measuring their success (Sumathi, 2006). à ¢Ã¢â‚¬ ¦Ã‚ ¢. Why Using Data Fusion and Data Mining in Direct Marketing? Data fusion and data mining aims to obtain a sufficient understanding of market behavior patterns, to allow the benefits to be the recommended behavioral changes in the analysis obtained (Michael J. A., 2004). This involves understanding the market behavior of previously unknown facts, answering specific questions, including the prediction questions (Sirmakessis, 2005). In deciding whether to use data fusion and data mining, we must develop our policy on how to use the output, clear view. Too many data fusion and data mining projects have been conducted on IT sector initiatives. These often lead to many interesting findings, but need a number of operations. Companies with large amount of customers need to provide a reasonable degree of stability of the marketers and their marketing service providers, should be the heads of the people in their wealth of knowledge of customers and their past activities. Data mining tends to confirm their faith, improving the quantity or add more practical advantages .For example, specify the size of a long-suspect segment to identify which customers belonging to it. Some deductions are reasonable, such as purchase behavior depends on the socio-economic status, these are the data should be collected in a survey. Data fusion and data mining is more than simple data analysis. It is the understanding of a business environment, such that relevant questions can be answered by the use of the appropriate data analysis tool on the properly selected data. As such, data mining requires: Understanding the industry conditions Appreciation of specific factors which apply to the company Familiarity with a wide range of analytical tools. à ¢Ã¢â‚¬ ¦Ã‚ £.Case Study Amway Amway Global is a multilevel marketing company that produces quality consumer products. Amways direct selling pattern is the best model to considerate each person into to the marketing , everyone can do this agent, Amway has indeed brought great profits and also a considerable number of people also brought profits, not only Amway has the achievements of their own brands, but also provides some peoples wealth achievements (Wei, 2010). Amway takes one to one direct marketing strategy: one to one marketing is to understand every customer, build lasting relationships with the customers. By data fusion and data mining method, Amway grade a large number of customers into different categories, each category of customers with similar attributes. The properties of different types of customers are different. Through data fusion and data mining to understand the different customer preferences, to coordinate the products and services, greatly increased the types of customers business and product satisfaction. It is through the methods of data fusion and data mining that for customer relationship management to Amway Corporation acquired sound business strategy. For four years, the U.S. experienced two serious economic depressions, but Amway never reduced operating efficiency. In the recession period, including IBM and GM companies have massive layoffs, but Amway has never been cut-off employees. The scale of its production and operation has remained stable. It is particularly worth mentioning is that Amway has been maintained no lending operation in four years, but keep sustainable development. Keep the record has not been lending money to the bank. This proves that the advantage of data fusion and data mining in the companys development. Dell Dells direct sales in the world are using the way of Internet, there are several special models weekly promotions, and used to do advertising. Dells use data fusion and data mining method for customer profitability analysis. In the customer group, customer profitability is quite different. If you do not know the customers profitability, it is difficult to develop effective marketing strategies to obtain the most valuable customers. Data fusion and data mining technology can be used to predict activity in the different market situations change in customer profitability. From the customers transaction history to find some discipline seeking behaviors, and use these patterns to predict the level of profitability of depositors, or find new clients with higher profitability (Max, 2007). Through data fusion and data mining technology to determine their own direct sales model. For 20 years, Dell has revolutionized the industry to customers worldwide, including commercial, institutional and individual customers can access to computer products. Caused by the Dell direct model accepted by the industry, information technology becomes more powerful and easy to use, more affordable accepted to provide customers with full use of these powerful, new tools, opportunities to improve their working and living conditions. Tiens Group Tiens Group is the largest direct selling company in China, established in 1995, stepped into the international market in early 1998. Tiens Group use data fusion and data mining technology for cross-selling. Between enterprises and customers is a continuing business evolving relationship. After the client and the company set up this two-way relationship, you can use many ways to make this tends to improve customer relations. Includes, extending the time of this relationship, increasing maintenance fee of such contact during the relationship, gaining more profit in every contact during the relationship. Cross-selling aims to keep the customers that the company possess and provide new products and services to the customers. Keep cross-selling is to build a win-win principle. The customer is concerned to get more and better services to meet his needs and due to sales growth the enterprise will also get benefit. With this direct marketing business model, Tenis direct sales have a rapid growth in 3 years adds up to 300 million people. The market has now worked out a development consistent international road in 103 countries and to District established a branch, and the United States, Germany, Malaysia, Spain, Egypt, a dozen foreign enterprises industry to establish a broad strategic partnership, registered in the country of 30 provincial branches and more than 100 To the municipal office, consists of nearly 2,000 stores. Tiens brand products are exported to 190 countries and area, 1,000 million people worldwide stability of consumer groups Conclusion From the above three cases, we can clearly understand that direct marketing is a perfect way of marketing. Direct marketing companies should choose appropriate way to build. Direct selling enterprises can take a variety of direct marketing, in addition to mail, visits and other traditional marketing methods, and now the most striking is the network of direct sales. Whether a business operation pattern is success, not only depends on what sales model, but also the method hidden behind the management. Data fusion and data mining is a highly efficient enterprise sales management. Data fusion and data mining in E-commerce market has a broad and in-depth direct application of this research reflects a growing field of research value. With data fusion and data mining technology to further develop, will certainly bring a wider range of direct marketing prospects and market value.