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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.
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Z., Nešić, I., Bulut, M., Radojičić