Using Statistical Models For Market Selection

Abstract

Managers responsible for corporate development in growing firms are often called upon to identify promising new markets. Selecting such markets is a complex problem requiring the simultaneous consideration of many demographic, economic, business and competitive factors (Craig, et al, 1984). The need to examine a large pool of possible markets in order to identify those with the greatest potential further complicates the selection process. This article provides an overview of a statistical technique known as general linear modeling and explains how it can be successfully applied to the task of selecting markets.