Retail Store Segmentation for Target Marketing

Bilgic E., Kantardzic M., ÇAKIR Ö.

15th Industrial Conference on Data Mining (ICDM), Hamburg, Germany, 11 - 24 July 2015, vol.9165, pp.32-44, (Full Text) identifier identifier

  • Publication Type: Conference Paper / Full Text
  • Volume: 9165
  • Doi Number: 10.1007/978-3-319-20910-4_3
  • City: Hamburg
  • Country: Germany
  • Page Numbers: pp.32-44
  • Kayseri University Affiliated: No

Abstract

In this paper, we use Data Mining techniques such as clustering and association rules, for the purpose of target marketing strategy. Our goal is to develop a methodology for retailers on how to segment their stores based on multiple data sources and how to create marketing strategies for each segment rather than mass marketing. We have analyzed a supermarket chain company, which has 73 stores located in the Istanbul area in Turkey. First, stores are segmented in 5 clusters using a hierarchical clustering method and then association rules are applied for each cluster.