MARKETING ENGINEERING FOR EXCEL TUTORIAL JANUARY 2007

999MARKETING ENGINEERING FOR EXCEL • TUTORIAL • VERSION 1.0.11 Tutorial Segmentation and Classification Marketing Engineering for Excel is a Microsoft Excel add-in. The software runs from within Microsoft Excel and only with data contained in an Excel spreadsheet. After installing the software, simply open Microsoft Excel. A new menu appears, called “ME XL.” This tutorial refers to the “ME XL/Segmentation and Classification” submenu. Overview Segmentation and classification is an analytic technique that helps firms compare and group customers who share common characteristics (i.e., segmentation variables) into homogeneous segments and identify those particular customers in a market on the basis of external variables (i.e., discriminant variables). Segmentation refers to the process of classifying customers into homogenous groups (segments), such that each group of customers shares enough characteristics in common to make it viable for the firm to design specific offerings or products for it. This application identifies customer segments using needs-based variables called basis variables. Cluster analysis helps firms: Better understand their customers. Identify different segments in a market. Choose attractive customer segments for classification with its marketing programs. SEGMENTATION AND CLASSIFICATION TUTORIAL 1/21 JJƒƒƒ Getting Started To apply segmentation and classification analysis, you can use ...