Quantitative models for direct marketing: A review from systems perspective
In this paper, quantitative models for direct marketing models are reviewed from a systems perspective. A systems view consists of input, processing, and output and the six key activities of direct marketing that take place within these constituent parts. A discussion about inputs for direct marketing models is provided by describing the various types of data used, by determining the significance of the data, and by addressing the issue of selection of appropriate data. Two types of models, statistical and machine learning based, are popularly used for conducting direct marketing activities. The advantages and disadvantages of these two approaches are discussed along with enhancements to these models. The evaluation of output for direct marketing models is done on the basis of accuracy and profitability. Some challenges in conducting research in the area of quantitative direct marketing models are listed and some significant research questions are proposed.
marketing data mining customer profiling customer targeting statistical modeling performance evaluation