Data mining complements traditional forecasting methods by focusing on individual consumer behaviour rather than analysis of the general market. By combining the current technologies of data warehousing and powerful computer processing capability, millions of consumer records can be analysed to reveal important patterns. Many organisations keep detailed records of consumer behaviour and data mining can be used to predict where a consumer is in their lifecycle and what products they are likely to need in the future. Data mining can also be useful when undertaking category management ie. what sells well together, what should be shelved together. It can also be beneficial when trying to sell advertising space by identifying people likely to respond to the advertisement.
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