Market segmentation through zip code analysis: A case study

Abstract

Purpose of Study: Marketing Researchers have applied their tools and techniques very efficiently to traditional profit-motivated organizations. Non-business or charitable organizations, on the other hand, have been the focus of only limited amounts of research. In order to further the knowledge of marketing in this previously ignored area of organizational research, this study focused on the problem of market identification and segmentation for the Oklahoma Tuberculosis and Respiratory Disease Association. The study focused on the combination of proven statistical techniques, available research data broken down by zip code, and the historical records of the Tuberculosis Association. It was the intention of the analysis to more accurately define and predict those zip codes that would be most likely to be "heavy giver" areas. Thus, this study summarizes the field research and computer analysis of data compiled from the Oklahoma Chapter of the Tuberculosis and Respiratory Disease Association.

Findings and Conclusions: The study established the fact that statistical data complied by zip code can be a very efficient means of analyzing a market that is characterized by a mail solicitation approach. These areas can be identified as to the potential of donations based on economic characteristics of the population. The availability of data sources and statistical techniques indicate that groups such as the Tuberculosis Association should profit greatly by segmenting and identifying their donor markets.