Neural Network in Market Segmentation: A Descriptive study of Market Segmentation using Artificial Neural Networks

Artificial Neural Networks (ANNs) are distributed information-processing systems and powerful general-purpose software tools, composed of many simple computational elements interacting across weighted connections. They are computer-based representations of mathematical models that are composed of a large number of simple, highly interconnected units, called processing elements. In structure, a neural network is made up of many processing nodes called neurons, which accept values from other neurons through input arcs. The neurons process these inputs using a transfer function and then release the output to other neurons using output arcs. The seminar focus upon neural networks, their different applications, advantages and disadvantages over statistical methods and particularly in the field of market segmentation. Market segmentation deals with dividing a market into small groups called as marketing zones according to various techniques like customer behavior, perception etc. Number of articles and published researches are taken into consideration for review of the advancement in science and technology.