Such a discrepancy in the calculation will ensure a low affinity index
Posted: Tue Jan 28, 2025 8:55 am
Affinity in marketing is used to decide whether to launch a new product or enter a new market.
For example, a company operates in a region where the number of sunny days per year is extremely low, the average annual temperature is less than 15 degrees Celsius, and the number of people going on holiday to other regions is less than 5%.
Should we launch a sunscreen line? Or should we set up a distribution channel, given that there is already one major supplier in the region? The answer seems obvious, but calculating the index will help to justify it with numbers.
Launching a new product to the market
Here the ratio will be useful for determining which market segment to target the product to and how best vp security email list to present it, taking into account the characteristics of that audience.
Category management
Rarely used because retailers do not always have the ability to cross-reference transaction data with customer analytics. However, a category manager can effectively integrate the affinity metric into decisions on introducing and removing certain SKUs from categories.
In this case, the compliance index is calculated for the target audience of the product and buyers of the category as a whole. For example, in category A, according to CRM reporting, purchases are made by customers with a low level of spending. At the same time, the product on which a decision needs to be made is aimed at buyers with a high income level, who are practically absent among buyers of the category.
Obviously, if the manager does not have the task of involving high-income customers in purchases in the category, then he should not include this product in the assortment matrix.
In general, the affinity index is used:
for media planning and forecasting the effectiveness of an advertising campaign;
assessing the product's potential in a new market and sales channel;
defining a promotion strategy in the channel;
justification of the marketing mix to top management or the customer.
For example, a company operates in a region where the number of sunny days per year is extremely low, the average annual temperature is less than 15 degrees Celsius, and the number of people going on holiday to other regions is less than 5%.
Should we launch a sunscreen line? Or should we set up a distribution channel, given that there is already one major supplier in the region? The answer seems obvious, but calculating the index will help to justify it with numbers.
Launching a new product to the market
Here the ratio will be useful for determining which market segment to target the product to and how best vp security email list to present it, taking into account the characteristics of that audience.
Category management
Rarely used because retailers do not always have the ability to cross-reference transaction data with customer analytics. However, a category manager can effectively integrate the affinity metric into decisions on introducing and removing certain SKUs from categories.
In this case, the compliance index is calculated for the target audience of the product and buyers of the category as a whole. For example, in category A, according to CRM reporting, purchases are made by customers with a low level of spending. At the same time, the product on which a decision needs to be made is aimed at buyers with a high income level, who are practically absent among buyers of the category.
Obviously, if the manager does not have the task of involving high-income customers in purchases in the category, then he should not include this product in the assortment matrix.
In general, the affinity index is used:
for media planning and forecasting the effectiveness of an advertising campaign;
assessing the product's potential in a new market and sales channel;
defining a promotion strategy in the channel;
justification of the marketing mix to top management or the customer.