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Buying and Merchandising

In: Business and Management

Submitted By noron
Words 661
Pages 3
BUYING AND MERCHANDISING – 27/02/2014
Data warehousing: * Data warehousing is the electronic storage of all info about current customers. * Traditionally this info was used for financial and accounting purposes only. * We now use this info for marketing purposes as well. * Information is primarily gathered via the credit card base of the retailer. * Data warehouses are also used as a single source for the retailer to view key performance indicators (sales, margin, stock, profit, etc.) * This involves the transference of data from operational systems (till points) to analysis reporting systems. * Info is available with immediate effect to decisions makers (buyers/planners) and suppliers. * Data warehousing results in: * Improved selection of merchandise * Stronger partnerships with suppliers * Successful promotions * Offering the right merchandise, @ right time, right people @ right place right people! * Implementing data warehouse is the easy part. The hard part is deriving meaning from the data.

Data mining: * Involves searching through warehouse data to find trends and patterns. * Can be used to identify opportunities and threats in the company * Data mining is software capable of finding/ detecting meaningful patterns & relationships between figures. Can print specialized reports * However, it is up to PEOPLE to analyse the figures on the reports.
General types of data produced by data mining: * Associations: the system like occurrences to a single event. Example: when jeans are on sale, sales of belts increase by 20%. Retailers can evaluate the profitability of various promotional strategies. * Sequences: the system links events over time. Example: 50% of customers who purchase a suit will purchase shoes within 30 days. This allows the retailer to formulate more informed...

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