Benefiting From Multiple Marketing Models, Part 1
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Paul Becker
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Often used with geographic markets by CPG manufacturers, you can use almost any market segmentation criteria. I used demographics and geography for a manufacturer selling online and through nationwide retailers.
The first step was to look at industry sales by state, listed as an index per 10,000 women between the ages of 25-34 (the core demographic) vs. for the country in total, arriving at a CDI for each state. Next, we looked at the manufacturer's sales, also as an index of sales per 10,000 women ages 25-34 for the country overall and for each state, creating a BDI for each state.
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Paul Becker
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