Target Marketing involves understanding your customers and market area by dividing them into segments. Specifically, Target Marketing uses Esri Tapestry Segmentation to classify neighborhoods into segments based on demographic and socioeconomic characteristics. These segments describe neighborhoods in easy-to-visualize terms such as Soccer Moms, Laptops and Lattes, and Barrios Urbanos. For example, Soccer Moms describes a population that is predominately white, college educated, and married with children, whereas Barrios Urbanos describes a population of lower to medium income, non-white, families with children. Understanding the characteristics of your market area helps you better understand who your customers are and how to effectively reach them. Target Marketing can also help you identify new markets containing population clusters of demographically similar consumers with comparable lifestyle and spending patterns.
Target Marketing is supported only with locally installed Business Analyst data and contains segmentation data. Esri specifically uses Tapestry Segmentation, but other segmentation systems, such as PRIZM, are also supported. Target Marketing is not supported with ArcGIS Online or Portal for ArcGIS.
Analyze your markets using Target Marketing
The Target Marketing wizard guides you through the process of creating customer segmentation and market segmentation profiles, analyzing the profiles using Four Quadrant Analysis, creating a Target Group, and mapping the analysis results in a Target Market analysis layer.
- To start the Target Marketing wizard, on the Analysis tab, click the Business Analysis menu, and click Target Marketing Wizard.
- On the first page of the Target Marketing wizard, select your Target Profile and Base Profile. The Target Profile is the profile of your existing customers. The Base Profile is the profile to compare to (for example, the profile of the base market area). If you do not already have a customer profile or base profile, you can click New to open the Generate Customer Segmentation Profile tool or the Generate Market Area Segmentation Profile tool. Once you have created the profiles, click the Target Marketing tab to return to the Target Marketing wizard.
- Click Next to go to the next page of the Target Marketing wizard. A pane appears with four targets (Core, Developmental, Niche, and Void) and a Four Quadrant Analysis visualization that contain tapestry segments.
- The Four Quadrant Analysis is based on how segments score based on index or percent composition. By default, Index is set to 100 and Percent to 4. As needed, adjust the index and percent composition by updating the text box in the Four Quadrant Analysis pane or by adjusting the axis in the chart.
- On the second page of the Target Marketing wizard, provide a name for the Target Group. The target group will contain four targets (Core, Developmental, Niche, and Avoid).
- Additional targets can be added to the target group. Click the plus next to Targets.
- Assign segments to targets by selecting one or more segments, right-click, point to Assign To, and select the new target.
- Click Next on the second page of the Target Marketing wizard.
- The third page of the Target Marketing wizard allows you to the map the results of the analysis. For Select Level, select the level of geography that you want to map.
- Select the Type of map you want to create.
- Target Map and Penetration Map require you to select a target. For Choose Target, select one of the default targets created from the Four Quadrant Analysis, or one of the custom targets that you created.
- Click Finish to create a map of the analysis.