Using GIS and psychographic segmentation, you can evaluate a trade area neighborhood by neighborhood. Gravity modeling, using distance or drive times, can be automated for greatest cost savings.

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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