Dynamic Market Planning Areas Using Block Groups and Trade Anchors
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Solution Overview
Problem
Existing market planning systems rely on CBSA and DMA, which are rigidly tied to county boundaries and television station locations, failing to accurately define relevant market areas for business locations, leading to inconsistent population sizes and inaccurate market analysis.
Innovation Solution
A system and method for dynamically generating local trade areas and market planning areas by identifying block groups, trade anchors, and defining local trade areas and market planning areas based on geographic coordinates, population data, and trade anchor types, allowing for more granular and accurate market planning.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If CBSA or DMA boundaries are used to define market areas, then the market areas are well-defined and freely available (CBSA) or cover the entire United States (DMA), but the market areas are rigidly tied to county boundaries and television station locations, resulting in inaccurate market area definitions for specific business locations
Solution Approach 1:
The patent segments the market area definition from rigid administrative boundaries (counties, CBSAs, DMAs) into flexible geographic zones defined by actual business travel patterns and consumer behavior. Instead of using pre-defined administrative units, the system creates customized market areas that segment populations based on their actual economic relationships with business locations, allowing accurate definition of market areas for any specific business location regardless of county boundaries.
Solution Approach 2:
The patent implements dynamic market area boundaries that adapt to each specific business location rather than using static administrative boundaries. The market areas are dynamically generated based on factors such as travel time, transportation modes, and consumer preferences specific to each business, allowing the system to flexibly adjust to different business types, locations, and industries while maintaining accuracy.
2Ease of operation
If CBSA boundaries are used, then the market areas are freely available to the public, but the population sizes range from 14,000 to 19 million people, resulting in notably inconsistent population sizes
Solution Approach 1:
The patent changes the defining parameters of market areas from fixed administrative boundaries to flexible geographic and behavioral parameters. By using parameters such as travel time thresholds, transportation mode preferences, and demographic characteristics, the system generates market areas with consistent population sizes tailored to specific business needs, while maintaining data availability through integration with existing census and geographic information systems.
3Reliability
If DMA boundaries are used, then every county in the U.S. falls within a DMA, but the market areas are beholden to county boundaries and television station locations, resulting in inaccurate market area definitions
Solution Approach 1:
The patent introduces an intermediary layer between administrative boundaries and actual market areas. Instead of directly using DMA or county boundaries, the system employs geographic information systems and travel pattern analysis as intermediaries to translate administrative boundaries into accurate market areas that reflect actual consumer behavior and business travel patterns, maintaining coverage of all counties while improving accuracy.
Data Source
AI summary
A market planning system and associated methods are disclosed for dynamically generating an at least one local trade area and/or market planning area for an at least one business location. In at least one embodiment, a central computing system identifies a plurality of block groups proximal to the at least one business location. For each of the identified block groups, the computing system identifies at least one trade anchor located within said block group. The computing system defines a plurality of local trade areas based on the identified block groups and associated trade anchors, and subsequently defines an at least one market planning area based on the local trade areas.