Perform target marketing
Available with Business Analyst license.
The Target Marketing workflow analyzes the composition of your market area and compares this to your existing customers, allowing you to learn about the types of people you are reaching as well as people you should be targeting for expansion.
The workflow uses the market segmentation system in your Business Analyst dataset, such as ArcGIS Tapestry data in the United States, or PRIZM data in Canada. Segmentation data may or may not be included with your particular Business Analyst dataset. The Target Marketing workflow uses the segmentation data to identify areas where your business significantly over- and underperforms. The workflow is also used to identify the types of consumers that are your best customers and locate new areas with dense pockets of these potential customers.
Note:
Target marketing is not available when connected to an online data source. To perform target marketing, you must select a local dataset that contains segmentation data.
Use the Target Marketing workflow
The Target Marketing workflow walks you through a six-step process that profiles your customers based on their location, then the market area you are interested in, and compares the two. At the end of the workflow, your project contains the following:
Map layers you opted to create, displaying information on targets, market penetration, target groups, market potential, and gap analysis
Reports you opted to create, including a Segmentation Profile report, Developing Marketing Strategies report, Market Potential report, Market Area and Gap Analysis report, and Customer Demographic Profile report
Customer Profile, Market Area Profile, and Target Group catalog items
To perform target marketing, do the following:
On the Analysis tab, click Business Analysis to open the gallery, and click the Target Marketing Wizard button
.The Target Marketing pane appears.
Create a profile that defines your customers. The customer profile is a distribution of all segments with respective counts of customers and related percent composition. It is composed of the locations of your customers and the selected segmentation base.
Under Step One: Customer Profile, do the following:
Use the Customer Layer drop-down list to select the layer that contains the point locations of your customers.
Under Customer Segmentation Profile, do one of the following:
Select Create new profile and complete the following fields:
Name the customer profile.
Select a segmentation base that corresponds with your customer type, either Total Households or Total Adult Population.
Optionally, select a volumetric field (such as sales) in the customer layer. This field will be used for volumetric calculations.
Select Create new profile using survey data and add a profile. For more information, see Create a customer profile using survey data.
Select Use existing profile and open the drop-down list to select a previously created customer profile.
Click Next.
Create a profile that defines your market area. In most cases, the market area profile is the geographic area from which you draw close to 100 percent of your customers.
Under Step Two: Market Area, do the following:
Use the Market Area drop-down menu to define the market area:
Current Display Extent—Use the current map extent as the market area.
Area of Interest—Enter a geography, such as a state or ZIP code, or select a boundary layer from the project.
Standard Geography—Select from geographies displayed in the current map extent.
Under Market Area Segmentation Profile, do either of the following:
Select Create new profile and enter a name for the market area.
Select Use existing profile and open the drop-down list to select a previously created market area profile.
Click Next.
The wizard now assigns your customers to segments that represent the type of consumer they are, based on their location in the market area. The next step reveals which segments your most loyal, highest potential, highly interested, and least interested customers come from.
Review the target group and corresponding four-quadrant analysis. The target group is composed of the following default targets: Core, Developmental, Niche, and Monitor. Each target appears in the workflow pane in this step, as well as in the four-quadrant analysis.
Under Step Three: Configure Target Group, do any of the following:
Name the target group by entering text in the Target Group Name field.
Create or reconfigure targets. Optionally, expand a target and right-click or drag a segment to assign it to a different target. Click Add
to create a new target in the target group.Click Edit to rename a target or Delete to delete it.
In the Four Quadrant Analysis pane, do any of the following:
Adjust the Index and Percent Composition fields to alter the calculations. Alternately, drag the axes of the chart to change the values.
Click the Customer Profile
or Market Area Profile 
buttons to review the profiles that make up the analysis.Click the Outliers
button to turn outliers on or off in the chart.Click Reset Boundaries
to undo any changes made to the chart.
Click Next.
Choose the layers to create and the level at which to map them. Under Step Four: Mapping, do the following:
Use the Geography Level drop-down list to select the geographic boundaries to map.
Under Map Layers, use the check boxes to choose which layers to create. For some map layers, you can expand the section to select which targets to map.
Click Next.
Choose the reports to create. Reports are downloaded and saved in the output location you select.
Under Step Five: Reporting, do the following:
Use the check boxes to choose from Segmentation Profile report, Developing Marketing Strategies report, Market Potential report, Market Area and Gap Analysis report, and Cusotmer Demographic Profile report. For some reports, you can expand the section to select which targets to analyze.
Tip:
The Customer Demographic Profile report includes options for using a weight field and for creating other reports. To learn more about these options, see Summarize customer demographics.
Use the Export Format check boxes to specify what file format to create the reports in.
Click Next.
Under Step Six: Summary, review the settings and options you selected in the workflow and click Finish.
The analysis creates up to five layers in the Contents pane and creates and downloads up to five reports.
Create a customer profile using survey data
You can create customer profiles using market survey data rather than customer point data. This option is especially helpful if you do not have access to a customer dataset.
To create a customer profile using survey data, do the following:
Under Step One: Customer Profile, select Create new profile using survey data.
Next to Profiles, click Add
.The Select Profiles window opens, displaying the survey profiles available in the local dataset you have selected.
Double-click a category to view the profiles it contains.
Click a profile to select it and click OK.
Click Next to proceed with the workflow.
Targets and four-quadrant analysis
When you use the workflow, your customers are assigned to market segments based on where they are located. Then these segments are bundled together to make targets, which are called Core, Developmental, Niche, and Monitor. To learn more about targets, see Target group.
The targets, as well as the segments that comprise them, are displayed in the four-quadrant analysis chart. In the four-quadrant analysis, you can adjust the calculations to put targets in different groups or define the groups with different values. To learn more about the four-quadrant analysis, see Four-quadrant analysis.
Target marketing map layers
The Target Marketing workflow includes five mapping options, each powered by a geoprocessing tool. You can create the following map layers:
Target marketing reports
You can create target marketing reports within the workflow or using geoprocessing tools:
Geoprocessing tools
The Target Marketing workflow uses the Target Marketing toolset, including the following tools:
You can use these geoprocessing tools directly to perform the same analysis and build and run queries through a Python script or a model.