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Market ID provides market analysis services primarily for
credit unions and small to mid sized banks and thrifts. We combine industry
specific data, technical skills and decades of experience to assist our clients
in their business planning and decision making.
We analyze market data from the census bureau, local planners,
traffic engineers, regulatory reports and various government agencies. This
data frequently is used to evaluate new markets or to examine the relevant characteristics
of branch markets. These findings often lead to relocations, consolidations
or de novo office development.
Market planning activities often includes data gathering
and analysis of the following types of information.
The
demographic characteristics of a market normally are analyzed at a census tract
or planning area level (small aggregates of census tracts) to provide micro
examination of geographic areas. Working with these small areas provides flexibility
in recombining the data into larger combinations such as branch service areas.
The micro data normally is arrayed geographically in table
form while the underlying database supports the mapping software used to depict
relevant characteristics at levels ranging from a neighborhood up to county
or regional views.
The demographic attributes examined often include the number
of market households, age distribution, housing characteristics, income estimates,
education levels and interest and dividend income.
The connection between household value and market
characteristics is analyzed by combining household productivity measures with
these external market characteristics.
Forecasts of households and employment often are developed
by census tract or other planning area level and the information is organized
in table and map formats. We do not rely on national data vendors for this type
of information, instead we work with local planners who have an intimate knowledge
of local conditions. This data is particularly important for determining the
amount and direction of household and employment growth in a community or region.
Current household estimates are used to provide up-to-date
household market share calculations while forecasts are used to model future
branch balances based on alternative scenarios.
Branch
level information is extremely valuable for determining the flow of deposits
to branches in the various commercial areas within the region. Our competitor
data is developed geographically for examination in tabular form and is mapped
to show possible branch location options and the competitive mix at each location.
Branch deposits normally come as a raw database that
requires manual editing to eliminate duplicate entries resulting from acquisitions
or relocations. Our branch files are edited, local bank, thrift and credit union
offices are reorganized and a five-year deposit history developed for each reporting
branch (head office only for credit unions). Each branch is then included in
a group of direct competitors, and deposit growth and market share are computed
for each office. This tabular data provides an indication of the major financial
centers and the relative success of each concentration of direct competitors.
In addition, this information is organized by institution to determine the market
share leaders in the region.
Industry and employment data is available in several forms,
ranging from business lists to business census reports.
Employment and business information is collected every five years as part of
the Economic Census conducted by the Bureau of the Census. Economic census data
is used to evaluate the number of establishments, number of employees, payroll
and sales figures for major industry classifications in different geographic
areas.
In urban areas, local planners often provide some of the
best estimates of current employment for small geographic areas. This data normally
is classified by major industry group and includes projections for at least
the next ten years. Market ID reorganizes this information into geographically
oriented data tables and maps the most relevant information.
Where available, Market ID acquires lists of major
employers then geocodes the addresses of these employers (append a point location
and census tract identifier) prior to reorganizing the information geographically.
These lists can be used as sales tools or for analysis to determine the level
of business opportunity. Information of this type often includes an employer
name and address, number of employees, sales or other measure of size and an
industry classification. Maps are developed to show the distribution of these
employers by size, industry classification or other characteristic.
Traffic counts are used regionally to identify traffic
patterns over a large area and locally to determine potential exposure at alternative
locations. Traffic count information is developed as a database containing information
such as street names, latitude and longitude, 24-hour counts, date of counts
and nearest cross street.
The amount of traffic is presented in map form with
actual counts and symbols sized to reflect traffic volumes at each location.
This information is combined with other location data such as proposed sites,
branches and shopping centers.
The analysis of markets can include an understanding of
major retail concentrations. Shopping center information originates as a database
containing the shopping center name, address, leasable area, major tenants and
other pertinent information. For ease of use, this information is organized
geographically in tabular format and keyed to a series of maps depicting the
locations of centers by type along with other location information of interest.