Simulation of Marketing Mix – Placement of Business Mendel Chen TJHSST Computer Systems Lab Senior Research Project 2009-2010 1

Abstract Purpose: to create a program that finds the optimal location of a business given competition and ease of access to customers Methods: Marketing mix Distribution channels Heuristic Language: Java/Python 2

Background Flaws of previous models Location problems Flexible heuristic Maximizing profit and market share Factors Economic variables Marketing mix Ceteris Paribus 3

Discussion Fluid heuristic Adjustable weighting Multiple variables/inputs Testing through previous businesses models 4

Goals Third Quarter Local business finder Fine tuning of heuristic Testing for multiple applications Improved run time Adjustable heuristic Long Run More variables (possibly outside distribution channel) Higher accuracy 5

Current Results GUI (shown below) Raw data processors Basic heuristic Checks density of neighboring pixels and checks the distance Coordinate system Output image 6

Map displayed on GUI with marked optimal point Raw population density map Optimum location was calculated to be at 288406. Image is 780 x 780 pixels so the row is 288406/780 = 369. Column is 288406 – 780 * 369 = 586. Heuristic value is 849,841. 7