Marketing Forecasting and Segmenting using Neural Networks

Neural networks are being increasingly used for marketing applications, such as predicting customer demand and segmenting customers into well-defined categories. Prime applications of neural networks include finance, management, production, operations, and business forecasting. NeuroXL Predictor and Clusterizer increase the range of applications even further by being easy-to-use, well integrated with Microsoft Excel, and requiring no knowledge of neural networks to perform complex classifications and predictions. All the analyst needs to do is specify the inputs and set a few parameters - the applications then quickly determine the optimum solution to the problem.

NeuroXL Predictor for Marketing Predictions

Producing accurate forecasts is a critical activity for any marketing group or organization. Inaccurate or misleading forecasts can result in missed targets, improperly allocated resources, and many other problems. Microsoft Excel provides a built-in tool for predictions, but the accuracy of its results is significantly reduced when non-linear relationships or missing data are present, which is often the case when analyzing marketing data.

NeuroXL Predictor, using advanced neural network technology, provides more accurate predictions than traditional methods. However, analysts are often reluctant to adopt neural networks due to their complexity and the difficulty of configuring them properly. NeuroXL Predictor removes this barrier - users require no prior knowledge of neural networks to use the application, and since users make predictions through the familiar Excel interface, learning time is minimal, greatly reducing the interval between loading the software and performing useful predictions.

NeuroXL Clusterizer for Market Segmentation

Market segmentation is the designation of groups of people who will be most receptive to a product. The most frequent methods of segmenting include demographic variables such as age, sex, race, income, occupation, education, household status, and geographic location; psychographic variables such as life-style, activities, interests, and opinions; product use patterns and product benefits. Much segmentation involves combinations of these methods.

A major difficulty faced by such analysts seeking to do segmentation is that the data to be classified can often be quite complex, with numerous interrelated variables. The time and effort required to develop a model to solve accurately such classification problems can be significant. NeuroXL Clusterizer makes solving complex classification problems easy. You simply supply the data, and NeuroXL Clusterizer implements a neural network that categorizes your data according to your preferences. Since users supply data through Microsoft Excel, learning time is minimal, greatly reducing the time between installing the software and performing classifications.

Advanced Technology for Prediction and Classification

Neural networks are a proven technology for solving complex classification problems. They are loosely modeled after the human brain, and "learn" the solution to a problem instead of using complex rules to determine a solution. A neural network is composed of a large number of highly interconnected processing elements (neurons) that work in parallel to solve the problem.

Tools for Analysts

NeuroXL Clusterizer and Predictor have become quite popular with marketing analysts, having proven their prediction and classification abilities through comparison with other applications and techniques. Using either application, all the user needs to do is to specify the inputs and outputs and set the required parameters – the applications do the rest of the work of training the data and generating a prediction or classification.

More information

For more information on NeuroXL Clusterizer and Predictor, please visit our home page .