Press
Release
Sales Tip Of The Week - Zip Power!
(August 25, 2000) Don't overlook
the power of ZIP code analysis. Instead of walking into
your next sales call with the classic ranker, ask your
prospective client company about its trading area.
A company's trading area is its primary marketing area.
For some it may be a 10-30-mile radius around its store,
but for others the area may be defined by counties. In
short, it's the area where the majority of an
establishment's revenue is generated. So, while it may
love to get clients from far away, 70% of the business
for "Art's Car Mart" is likely to emanate from
surrounding cities or ZIP codes. Art's trading area is
the bread and butter of its business.
How is ZIP code analysis done? An analysis can be
extracted from your current research software. Simply
combine ZIP codes or county groups to form a new
"geography." Be aware of the sample size, and
be sure to add enough ZIPs and territories to create a
large enough population. For example, if a client company
tells you that it draws from one particular city, make
sure that you expand the area by including surrounding
cities and ZIPs.
Trading-area geographies can also be created with
qualitative data. Simply define a region in the geography
portion of your software, then run your qualitative
criteria. Once again, make sure the geography is large
enough -- samples can really begin to disappear here.
In summary, examination of trading areas is another way
to stress the value of your station and keep you on the
schedule. If your station isn't No. 1 in the metro, it
may still blanket a client's primary revenue-generating
area. Now that's ZIP power!
Contact Marcella Nelson at research@bedfordgrp.com.
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