Last Updated: December 27, 2024
To identify target zones for expansion, you can use market targeting mapping software.
Market targeting is a strategy used by businesses that have a deep understanding of their customer base. This approach relies on identifying customer traits and linking them to data sets for actionable insights. For example:
- An established restaurant may know its core demographic is middle-income individuals in their 40s.
- An auto repair shop might target families with 10–20-year-old cars needing maintenance.
Such insights often stem from industry experience or clear customer behavior patterns, making market targeting ideal for refining business strategies.
This article will explain how to use data and geographic analysis tools included with Maptitude mapping software to conduct actionable and thorough multi-factor market targeting analysis. In this example, consider a home improvement retailer targeting a profitable customer segment based on these criteria:
- Age of Housing Stock: At least 75% of homes are 25+ years old.
- Home Ownership: At least 75% of homes are owner-occupied.
- Income: Median household income of $100,000 or more.
Step 1: Download and Install Software
Download and install a free trial of Maptitude mapping software, or use your own license of desktop Maptitude.
Step 2: Mapping Age of Housing Stock Condition
- Right click on the census tract layer in the displayer manager and select Make Working Layer.
- Then click on Selection > Select by Condition
- In the textbox, type in the following condition:
NOT ([Built 2000 to 2009] OR [Built 2010+])/ [Housing units] > 0.75
- Under Set Name, type “Housing Unit is 25 Yr Old < 25%” then click OK.
Step 2: Mapping Home Ownership Condition
- Click on Selection > Select by Condition
- In the textbox, type in the following condition:
[Owner-occupied]/ [Housing units]>0.75
- Under Set Name, type “Owner Occ > 75%” then click OK.
Step 3: Mapping Income Condition
- Click on Selection > Select by Condition
- In the textbox, type in the following condition:
[HH_Median income] > 100000
- Under Set Name, type HH Med Inc > $100K” then click OK.
Step 4: Combining Selection Sets
Now, we will create a selection set that will contain all the census tracts that satisfy all three of our set conditions.
- Click on Selection > Combine Selection…
- Under Create Set, type “Owner Occ > 75% and HH Med Inc > $100K”
- Under By, select Choosing features in both.
- Then, in the two drop downs, select the Owner Occ > 75% and HH Med Inc > $100K sets respectively.
- Repeat this process, but now combine the recently created set with Housing Unit is 25 Yr Old < 25%. Name this new set “Inc > $100K, Own, 25 Yr < 25%”
Now, you have a clear map showing a target market area that takes into account all three of our factors. With this map, you have a foundation to interpret your analysis to for example:
- Support selection of store locations that prioritize accessibility to your target zones
- Visualize the use of physical advertising assets (such as billboard placement) for reaching households in the target zones already identified
For more information, explore Maptitude’s free trial and learn how it can support your business needs.