Cluster analysis is a marketing research technique that groups consumers with similar characteristics together. This allows businesses to better target their marketing efforts and advertising spend.
There are a few different methods that can be used for cluster analysis, including:
– K-means clustering
– Hierarchical clustering
– Latent class analysis
Businesses will often use marketing software to create clusters, which can then be used to create more targeted marketing campaigns. Cluster analysis can be used for a variety of marketing purposes, including segmentation, targeting, and positioning.
When used correctly, cluster analysis is a powerful marketing tool that can help businesses save money and improve their marketing ROI.