Advertising: Claritas, Inc. Case

Graciela Garcia

September 18, 2014

Claritas Inc. Case

1. What is geodemography and why is it useful?

Geodemography was the term given to the linking of demographic data and local neighborhood geography (such as Zip codes, Zip+4 Codes, Census Tracts and Block Groups) to create classifications of actual, addressable, mappable neighborhoods where people live and shop. This provides a wealth of survey data. This can also link vast amounts of demographic and lifestyle data to actual neighborhoods. Every US neighborhood is classified into a segment based on demographic characteristics of the people who live there.

2. Using Exhibits 2 and 3 in the case, answer the following questions:

a. What information does the MPI scores in Exhibit 2 provide, how is this information useful, and who would use it?

Exhibit 2 provides the MPI Report for Alternative Rock Music in the District of Columbia. It shows the Number of Households and their Median Household Income and MPI for each Zip Code Area in DC. This allows marketers to identify geographic areas in which households often listen to Alternative Rock Music. This can be helpful for someone establishing a Alternative Rock Music store to find a neighborhood in which there would be a greater amount of consumers and who can afford the disposable income to purchase the albums. This can also be useful when deciding on a venue for an Alternative Rock Music concert and in establishing ticket prices.

b. Who should be targeted based on the alternative rock music MPI?

This MPI shows that Zip code 20050 has the highest market potential index for alternative rock music.

c. What is the relationship between median household income and potential alternative rock listeners in Exhibit 2?

There is a weak positive correlation. The highest median household incomes have MPIs of 165 and 155. The lowest have MPIs of 40 and 84. Most of the higher income households have higher MPIs.

d. How would...