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1 How Business Intelligence and Mapping can Improve Your Business: Customer and Competitive Analysis Monica L. Perry
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2 “Where’s” your Most Critical Strategic Marketing Problem? Implementing Implementing ChoosingDeciding Controlling Understanding Knowledge of CustomersCompetitors PositioningProductPricePlacePromotion CustomersCompetitors CustomersCompetitors CustomersCompetitors
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3 Why Location is Critical to Customer Behavior WhereCustomerOperates,Lives, Works, Plays WhereCustomerOperates,Lives, Preferences Behaviors Attitudes Interests Needs What, Where, When and How Customers Buy Impact and Availability of Competitors
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4 Target Markets: The value of knowing “Where” ChoosingDeciding Understanding Knowledge of CustomersCompetitors CustomersCompetitors
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5 Profiling Customers’ Mean Travel Time (by Census Tract for 91711 Zip)
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6 Profiling by Block Group Men’s Apparel NYC http://www.mappinganalytics.com/consulting/site-selection.html
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7 Marketing Mix Decisions: The value of knowing “Where” Geodemographic Segmentation Estimating Potential and Sales Forecasts Customer Cloning ChoosingDeciding Understanding Knowledge of CustomersCompetitors PositioningProductPricePlacePromotion CustomersCompetitors
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8 Site Market Modeling - Known to Unknown Forecasting, Sales Potential High Revenue Site Low Revenue Site Use information about known sites to predict performance of proposed sites Forecast High or Low Revenue?
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9 Site Market Modeling - Known to Unknown Customer Cloning, Marketing Mix Geo-Customization High Revenue Site Low Revenue Site Use information about known sites to predict performance of proposed sites Forecast High or Low Revenue?
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10 Retail Trade Area Analysis Source: Segal (1998) Retail Trade Area Analysis: Concepts and New Approaches http://www.directionsmag.com/features.php?feature_id=5 Figure 2a. Patronage probability model - theoretical store trade area. Blue – green – yellow – red progression represents zones of increasing patronage probability.
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11 Retail Trade Area Analysis: Drive Time Source: Segal (1998) Retail Trade Area Analysis: Concepts and New Approaches http://www.directionsmag.com/features.php?feature_id=5 Figure 3b. Drive time analysis showing the location of demographic samples. Blue dots = sample within a 10-minute drive. Green dots = sample within 5-mile radius, but outside 10-minute drive time polygon. Red colored dots that fall within the 15-minute drive time polygon represent demographics that would not be included using a traditional 5-mile radius approach
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12 Marketing Mix Decisions: The value of knowing “Where” Which Sites, Territories are Underperforming? Overperforming? Profiling Customers ChoosingDeciding Understanding Knowledge of CustomersCompetitors PositioningProductPricePlacePromotion CustomersCompetitors
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13 Retail Trade Area Analysis Source: Segal (1998) Retail Trade Area Analysis: Concepts and New Approaches http://www.directionsmag.com/features.php?feature_id=5 Trade area map - revenue concentration by block groups Trade area map - revenue concentration by block groups blue – green – yellow – red = progression from low to high revenue.
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14 Marketing Mix Decisions: The value of knowing “Where” ChoosingDeciding Understanding Knowledge of CustomersCompetitors PositioningProductPricePlacePromotion CustomersCompetitors A few examples…. Hewlett Packard BMW Lead Generation Direct Mail Albertson College
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15 Some Geo-Customization in Marketing Communications Hewlett Packard BMW Lead Generation Direct Mail Albertson College
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16 HP Direct Email
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17 BMW Lead Generation program Five levels of customization
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18 The right creative: Albertson College The small town location offered different advantages to different students. What creative differences are apparent? What additional geographic variable(s) could be used in deciding which creative to send to prospective students?
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19 “Where’s” your Most Critical Marketing Problem? Implementation ImplementationPlanningControl Analysis CustomersCompetitors PositioningProductPricePlacePromotion CustomersCompetitors CustomersCompetitors CustomersCompetitors
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20 What Questions Do You Have?
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