What is a common application of clustering in marketing?
Correct Answer: Customer segmentation
- Step 1: Understand what clustering means. Clustering is a method used to group similar items together.
- Step 2: In marketing, businesses want to know more about their customers.
- Step 3: Clustering helps businesses divide their customers into different groups.
- Step 4: These groups can be based on things like how much they buy, what they buy, or their age and location.
- Step 5: By knowing these groups, businesses can create targeted marketing strategies for each group.
- Step 6: This means they can send the right messages to the right people, making their marketing more effective.
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