How Customer Derived Trade Areas (Business Analyst) works

This tool calculates the size and shape of the market area based on your customer points or a numeric field contained within your customer file, such as sales. This method accurately represents each store's actual area of influence, and the detail and extent of the trade area is based on the type of analysis you select.

ESRI Business Analyst allows you to create one, two, or three market areas around your store—primary, secondary, and tertiary markets, respectively. More than three are not often used but are possible with Business Analyst.

These market areas can be determined by the following:

How the outline is created

Business Analyst creates a boundary around the outermost set of customer points that meet the specified criteria. This is the most accurate method of defining a market area.

There are four types of analyses available when creating customer-derived trade areas.