Prediction analysis of retail store sales level using neural network algorithm method based on customer segments
Keywords:
Prediction, Retail Store Sales Level, 4P Marketing Mix, Neural Network, RapidMinerAbstract
Marketing activities are of significant importance to business operations, as they are uniquely positioned to provide value to consumers. The marketing mix represents one of the strategic approaches employed to attain these organizational objectives. However, the company's sales data is only available for consultation in the archives. By understanding customer preferences and requirements, the company can readily develop an effective marketing strategy to compete with similar businesses. Accordingly, this study employs the neural network methodology to forecast sales based on the company's historical sales data. The research method employs a neural network due to its capacity for processing substantial data sets with flexibility. Moreover, the Root Mean Square Error (RMSE) must be employed to ascertain the precision of the utilized model. The findings of this study indicate that the discrepancy between the actual and predicted values is minimal, suggesting that the model is able to accurately represent the data. Similarly, the results of the RMSE (Root Mean Square Error) demonstrate that the model's accuracy is improving, with minimal values observed in each segment. A 4P marketing mix strategy may be employed to enhance the company's sales potential. Based on the findings of the research, it can be posited that the results of the prediction data set, the visual prediction results, and the RMSE using the Neural Network method can be utilized effectively and accurately to forecast sales and assist company owners and management in considering target sales levels in the future.
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