Direct Marketing Assignment Example | Topics and Well Written Essays - 1500 words

Direct Marketing - Assignment Example1) Cost As the cost of per target promotion in coach merchandise tends to be substantially higher than that in case of mass marketing, marketers must send their message to a limited audience only, as move the message to general audience at large with very few of them likely to respond positively or getting converted may ontogenesis the cost manifold and thus cause a lot of marketing dollar wastage.2) Customer irritation As direct marketing communication tends to be longer and more involving i.e. seek active participation of the client, than traditional mass marketing communication, thus unnecessary and unsolicited message may lead to customer frustration, resultantly eroding brand equity.Thus in direct marketing it is important to come up with a list of the customers who would be most interested in the product offering and thus will be most likely to respond positively rather than non-responding or responding negatively by avoiding further c ommunication. data Mining is the process of discovering interesting knowledge from large unions of data stored either in databases, data warehouses, or other information repositories. Simply stated, data exploit refers to extracting or mining knowledge from large amounts of data. (Han and Kamber, 2006).According to Fayyad et al (1996), Data mining is an important process of discovering novel, implicit, useful and comprehensive knowledge from large amount of data. For Direct marketing it translates in to a description of likely buyers or responders and thus Data mining helps in securing better results, for a direct marketing campaign than a traditional mass marketing campaignFor example - To develop marketing and service delivery strategy, Harrahs entertainment Inc., the gambling and hotel strand uses Data mining to target customers on individual basis for direct marketing. Using its sophisticated