Class Notes (922,233)
CA (542,774)
UTSG (45,887)
Geography (1,039)
GGR252H1 (76)
Lecture 8

Lecture 8-March 5-Market Penetration Techniques

2 Pages
142 Views

Department
Geography
Course Code
GGR252H1
Professor
Herbert Kronzucker

This preview shows half of the first page. Sign up to view the full 2 pages of the document.
Lecture 8: March 5
Market Penetration Techniques: "Customer Spotting"
What proportion of the residents/households in a given area shop at the subject store/shopping centre? ie
what is the market penetration? These approaches differ from the normative models such as Thiessen and
Huff because they attempt to meausre the actual performance (penetration) rather than suggest "what
should be" given certain assumptions.
In order to apply market penetration techniques we need:
A list of customers who actually use the store from areas (eg CTs, FSAs) around the store:
"Customer Spotting" (Applebaum 1968) eg affinity cards: air miles. and
For the same spatial units (CTs, FSAs): the total number of potential customers.
Customer spotting data can be obtained by compiling sales slips, in store contests, affinity cards, surveys,
vehicle registrations, credit cards, retailers, own credit cards, data mining, etc.
Total potential number of customers can be obtained from: CTs, EAs, FSAs, FAMEX (family
expenditure data), enumeration areas.
Market Penetration:
Actual Performance in particular areas (compare these two data sets)
Potential
Primary market: first 60% of customers (grid cells are ranked by penetration rate and aggregated to first
60%)
Secondary market: next 25%
Compare to spatial monopoly normative models.
Disadvantange is that getting data is expensive and data doesnt answer what if questions.
Site Seletion Approaches (Ch. 11)
1. Rules of Thumb: intuition, experience, observation, "gut feeling", trial and error.
2. Descriptive inventories: list of key factors, which site has most?
3. Ranking: rank sites on the basis of key factors thought to be important.
4. Ratios: of existing outlets, eg. population per store, sales per square foot. (how are variables/factors ID
above?) how do you know those factors are important?
5. Regression models: simple regression, multiple regression.
6. Location Allocation: best set of sites to serve existing population. Firehall strategy. Public sector vs
private sector. Often used in public sectors (ie hospitals)
Qualitative vs Quantitative
Subjective vs Objective
Verification of the relevance of factors.
Regression Models: Simple Regression
www.notesolution.com

Loved by over 2.2 million students

Over 90% improved by at least one letter grade.

Leah — University of Toronto

OneClass has been such a huge help in my studies at UofT especially since I am a transfer student. OneClass is the study buddy I never had before and definitely gives me the extra push to get from a B to an A!

Leah — University of Toronto
Saarim — University of Michigan

Balancing social life With academics can be difficult, that is why I'm so glad that OneClass is out there where I can find the top notes for all of my classes. Now I can be the all-star student I want to be.

Saarim — University of Michigan
Jenna — University of Wisconsin

As a college student living on a college budget, I love how easy it is to earn gift cards just by submitting my notes.

Jenna — University of Wisconsin
Anne — University of California

OneClass has allowed me to catch up with my most difficult course! #lifesaver

Anne — University of California
Description
Lecture 8: March 5 Market Penetration Techniques: Customer Spotting What proportion of the residentshouseholds in a given area shop at the subject storeshopping centre? ie what is the market penetration? These approaches differ from the normative models such as Thiessen and Huff because they attempt to meausre the actual performance (penetration) rather than suggest what should be given certain assumptions. In order to apply market penetration techniques we need: A list of customers who actually use the store from areas (eg CTs, FSAs) around the store: Customer Spotting (Applebaum 1968) eg affinity cards: air miles. and For the same spatial units (CTs, FSAs): the total number of potential customers. Customer spotting data can be obtained by compiling sales slips, in store contests, affinity cards, surveys, vehicle registrations, credit cards, retailers, own credit cards, data mining, etc. Total potential number of customers can be obtained from: CTs, EAs, FSAs, FAMEX (family expenditure data), enumeration areas. Market Penetration: Actual Performance in particular areas (compare these two data sets)
More Less
Unlock Document


Only half of the first page are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

Log In


OR

Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit