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