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Segmentation/Targeting Model (Classification)

on . Posted in Software Models

What you put in... What you get out...
  • Customers' importance ratings for each measure of value for offerings in a product class
  • Customer descriptors (demographic or firmographic variables)
  • Number, size, and profile of needs-based market segments
  • Identification of factors that differentiate segments, both in terms of needs and descriptors
  • Classification tool to allocate any potential customer to a segment based on customer descriptors

Resource Allocation Model

on . Posted in Software Models

What you put in... What you get out...
  • Number of market segments, products, geographies or other basis for resource allocation
  • Current level of spending and associated sales
  • Profit margins
  • Response functions - how sales would change if spending were higher or lower than current spending
  • Constraints (minimum / maximum) for each basis unit
  • Optimal level of total spending
  • Optimal allocation of spending across units
  • Profit associated with optimal plan versus current plan
  • Incremental gain or loss associated with changes from current or optimal plan