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Infomation system management exam - Essay Example

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For example, Wal-Mart uses data mining to collect information about its customers. This collection of information may seem like some to be an invasion of privacy, but more and more, marketers are basing their decision on…
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Overall, companies need to use data mining in order to enhance their customer relationship management (CRM) skills. Analysis needs to focus for the company, upon any problems that its customers may be having. This is one of the basic marketing rules of customer service in action. The present analysis therefore advocates the position that not only should these standards become lucrative trade-offs. “Current emphasis on customer relationship management makes the marketing function an ideal application area to greatly benefit from the use of data mining tools for decision support.

A systematic methodology that uses data mining and knowledge management techniques is proposed to manage the marketing knowledge and support marketing decisions” (Data, 2010). Another solution is to use Customer Relationship Management to market more effectively and reach the client better. “When customer relationship management CRM) came on the health scene approximately six years ago, some viewed it with skepticism and primarily saw it as a way to refine rather than reinvent marketing.

More progressive marketers adopted the CRM techniques of compiling all consumer and market data into a centralized database and used data mining to more narrowly define target audiences based on characteristics rather than general demographics” (Paddison, 2004). Yet another solution could focus more on the management of the company than the client, and highlight management having a working knowledge of marketing and being able to work with marketers and consultants in a proactive manner that reflects the abovementioned external dynamism of the IT market.

Data mining is advocated by companies. In terms of environment that are narrowly defined by marketing parameters, the local market offers expanded opportunities that should be taken advantage of by the

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