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1st International conference on Quality of Life June 2016 Center for Quality, Faculty of Engineering, University of Kragujevac Zoran Nešić1) Ivana Bulut2) Miroslav Radojičić1) 1) University of Kragujevac, Faculty of Technical Sciences Cacak, Serbia [email protected], [email protected], [email protected] 2) Faculty for Business Studies, Belgrade, Serbia [email protected] DEVELOPMENT OF A DATA MINING SYSTEM FOR ANALYZING DATA IN MARKETING ACTIVITIES Abstract: This paper demonstrates an approach to applying the Data Mining methodology for the improvement of the quality of marketing activities. The paper demonstrates a methodological approach to the development of the computer support to the analysis of social networks which is universally applicable in the improvement of a company’s business. The paper indicates the possibilities of information analyzing on social networks which, today, are greatly significant in companies’ marketing activities, and are about to undoubtedly be even more so in the future, due to the exceptional development and popularity of this communication segment. Keywords: Marketing Quality, Data Mining, Social Networks 1. INTRODUCTION Since the beginning of the new millennium, we have witnessed great changes in the history of marketing. These changes are caused by advances in technology and the development that led to the growth of communication through interactive media, especially the Internet. Internet, a global system of connecting computers in a network, has become an integral and indispensable part of the life of modern man. Its increasing use of the world has led to the fact that consumers today have more power than ever, they are the ones who dictate changes in the business and the company they adapt and personalize the relationship with them is the key to success. Social media are media created by consumers (consumer-generated media), who represent the diverse sources of information they use intended to inform one another about products, brands, services and the problems they face. Their increasingly important role is reflected in the facts that in addition to consumers through them communicate with each other, and encourage companies to communicate with their consumers. In fact, with the arrival of social media, visitors to the virtual world are no longer just passive recipients of information, but participate in their creation, update, design and transmission. Some social networks have a user base larger than the population of most countries. Thanks to this extremely large database of users and their attitudes, companies have come into the situation to establish direct contact with a precisely defined target group and potential consumers. On the other hand, consumers are in a position to get more personally tailored offers that have a much greater chance that they attract attention. 2. PROBLEM STATEMENT Contemporary business inevitably imposes a need for using information technologies in the process of obtaining relevant and prompt information. Apart from that, a contemporary company’s business operations also imposes requests for data processing and their disclosing, leaving it to users to form various inquiries and to enable the generation of results in real time. In that sense, the application of business intelligence techniques, such as Data Mining, enables a significant analysis of data obtained on the basis of social networks from a large number of different aspects. The application of the business intelligence techniques enables us to synthetize significant information from a huge amount of data. This enables the processing of data and their disclosure by posting different inquiries and by obtaining results in real time. Amongst the business intelligence methodologies, Data Mining represents the 1st International conference on Quality of Life June 2016 285 analysis of “a large amount of data in a database, as to discover patterns or relationships” [1]. Hand, Mannila and Smyth (2001) [2] point out the specificity of the use of already collected data for secondary data analysis. The Data Mining component of business intelligence is primarily intended for obtaining information of an unstructured nature. By applying the Data Mining technique, one is enabled to find out information starting from general data. By searching for information, the user comes to detailed information, to the needed level. Due to a large number of information and their heterogenic structure, the Data Mining technique has found its ideal application in the analysis of social networks, too. By Gundecha and Liu (2013) [3], one of the significant potential of social media is just discovering patterns of users, which may be of importance for the improvement of business. In that sense, this methodology allows access to a large range of data, which that can be used for business purposes [4]. Analyzing the methodology of the application of Data Mining in social networks, the basic theoretical tenets of this problem area have been defined [5] - [10]. Due to the inevitable belonging of social networks to the Internet platform, the application of Data Mining is based on the Web Mining concept in a wide range of analyzed data obtained on the basis of the specificity of the Internet technology, using the document content, hyperlink structure, usage statistics for obtaining needed information [11] - [14]. The significance of the application of Data Mining in social networks is highlighted by numerous authors. Kleinberg (2007) [15] emphasizes importance of research of on-line communities and analyzing their social structure with the use of information technology. Jamal, Coughlan and Kamal (2013) [16] point out possibilities of application of data mining methodologies in the analysis of social networking sites and the implementation of these data for business and marketing activities. 3. METHODOLOGY OF THE DESIGN AND DATA ANALYSIS OF THE SOFTWARE SOLUTION This paper displays a software solution for analyzing data connected with social networks. 286 In order to achieve that goal, an analysis of the most significant groups of information – cities, companies, persons, capabilities, education, work experience and groups – is carried out, which simultaneously represent the tables of a rational model of a database and the initial data for connecting with social networks in different forms and for obtaining more detailed information. The geographical segmentation of a market is very much important for any company’s business. The “Cities” table can be one of the first steps in such an analysis. It contains the basic record of cities where current or potential companies or consumers significant for the company’s business, together with their profiles on social networks, are kept a record of. Figure 1 accounts for a large number of possibilities of the analysis of these pieces of information, as well as the automation of connecting with profiles on corresponding social networks. Figure 1. Data analysis After the selection of a certain city, the company will have at its disposal all companies whose seat in in that city or which are doing business in that region. The analysis of the existing or potential competition, as one of the important marketing activities, has a great significance for the successful performance of the company in a market. The “Companies” table contains important information about the companies having an influence on business – Z., Nešić, I., Bulut, M., Radojičić the target group, the activity, a competitive advantage and, which is very much important, a link to their website and profile on a social network. The most important information which is kept a record of are as follows: • Company’s name • Company’s activity • Number of Company’s employees • Company’s target group • Company’s competitive advantage • Company’s website, Hyperlink • Company’s social network link, Hyperlink The Company’s social network link represents the basis for connecting the software solution with the page on the company’s social network and the possibilities of gaining a further insight into and obtaining detailed information about the company’s business. Apart from available companies on the given market, the company will have at its disposal all persons, too, who are connected with them in different manners – employees, consumers, fans on social networks. Given the fact that the company will mainly analyze companies from the same field of activity, current or potential competitors, their consumers are certainly a potential target group for the company as well. The “Persons” table represents the most significant table with the records of data about persons who are significant to the company. Apart from the record of the most important data about them, the software solution enables an automatic connection with personal pages on social networks and the obtaining of further more detailed information. In that manner, one can make a contact with them, follow their activities, send them different conveniences and promotions and perform a series of other marketing activities. Apart from the pages on social networks, the company will also have at its disposal other significant information about persons, such as their education, capabilities, work experience, so, in that manner, persons can be grouped on different bases for different needs in business doing. The most significant data about persons are as follows: • Name • Surname • Place of residence • Person’s position in the company • Person’s social network link, Hyperlink • Mail, Hyperlink The consumer profile is important for business operations of any company. In that sense, capabilities represent one of the more significant elements of the analysis which should be paid special attention to. Capabilities are recorded in a special table with the structure as follows: • Name of capability • Description of capability • Capability social network link Apart from capabilities, education certainly represents one of the key elements in an analysis of the consumer. The record of the basic data about education represents the basis for a further analysis of information. The structure of this table is as follows: • Faculty’s name • Faculty degree • Faculty’s social network link, Hyperlink The next important element which should be paid attention to is work experience. Due to the significance of the work experience factor, a special table is separated with the basic data needed for an analysis of this information. Its structure is as follows: • Company • Job Description • Work experience social network link Finally, groups of social networks represent yet another important element in the analysis. Social network groups make the basic characteristic of all social networks. Due to this, the specificity of the characteristics of social networks imposes paying special attention when analyzing these pieces of information. Membership in certain groups indicates persons’ interests in certain things. Also, a forum as the basis of the corresponding groups enables companies to follow and become involved in different discussions on different bases. The table for entering and displaying data about social network groups has the following basic structure: • Group’s name • Group’s activity on a social network • Social network group type • Social network group website • Group’s social network link, Hyperlink 4. CONCLUSION This paper indicates the significance of social networks for the process of an information analysis, with the aim to improve companies’ marketing activities. Due to a big expansion of social networks, it is incontestable that such a segment of analyzing information 1st International conference on Quality of Life June 2016 287 has been becoming extremely significant and inevitably applicable in business doing. The paper indicates the possibilities of information analyzing on social networks which, today, are greatly significant in companies’ marketing activities, and are about to undoubtedly be even more so in the future, due to the exceptional development and popularity of this communication segment.. Acknowledgment: Research presented in this paper was supported by Ministry of Education and Science of the Republic of Serbia, Grant III-44010, Title: Intelligent Systems for Software Product Development and Business Support based on Models. REFERENCES: [1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12] [13] [14] [15] [16] 288 The American Heritage® (2005). New Dictionary Of Cultural Literacy, Third Edition. Mifflin Company, Houghton, Retrieved from: http://dictionary.reference.com/browse/data mining Hand, D., Mannila, H. & Smyth, P. (2001). Principles of Data Mining, MIT Press., Cambridge, Retrieved from: ftp://ftp.sbin.org/pub/doc/books/Principles_of_Data_Mining.pdf Gundecha, P., & Liu, H. (2013). Mining Social Media: A Brief Introduction. P.Mirchandani, ed. 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