In the advertising world, it is becoming ever more important to justify advertising expenditures. In order to more effectively assess the impact of advertising investments, a popular strategy is to divide the market place into meaningful segments, evaluate the responsiveness and profitability of each segment and then select the “best” segments to target. Given that there are numerous methods for dividing the market place and as a result, numerous potential segmentation schemes, it is necessary to utilize an effective metric that will allow for the evaluation and selection of the most beneficial segmentation scheme. [Read more...]