For established units, a predictive gravity model can lead
your target marketing.
- Identify neighborhoods (as small as a few
hundred households) where penetration is below forecast.
- Identify the psychographic segment of these neighborhoods.
- Design a target marketing program for this market segment.
- Use direct mail or telemarketing to reach the households in these neighborhoods.
When analyzing potential locations, a predictive
model can help you select the most profitable locations.
- Once a model is developed, it can be
automated and inexpensively applied to numerous locations.
- Forecast sales based upon the spending potential of each neighborhood.
- Forecast the market share a new unit could expect in the face of existing and
potential competition.
- A large geography implementation can rank micro-markets with the most favorable
balance of demand and competition.
How is a predictive gravity model developed? Go to
next page.
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