Notes on TGI Index (Target Group Index)

Introduction

The Target Group Index (TGI) is a market research tool used to analyze the characteristics, behaviors, and media usage habits of specific target groups. Below are the key points about the TGI Index:

  1. Data Collection:
    • TGI Index is based on large-scale consumer surveys. These surveys cover various demographic information, consumer attitudes, lifestyles, purchasing behaviors, and media usage.
  2. Target Group Analysis:
    • TGI helps businesses and advertising agencies identify and analyze their target groups. Through detailed data analysis, companies can understand the preferences, habits, and needs of their target audience, leading to more effective marketing strategies.
  3. Media Planning:
    • TGI Index is widely used in media planning and buying. It helps advertisers understand which media their target groups use, how frequently they use them, and their level of engagement across different media, optimizing ad placements.
  4. Market Segmentation:
    • Using TGI, the market can be segmented into different sub-markets, each with unique characteristics and needs. Businesses can tailor marketing strategies to these specific segments.
  5. Competitive Analysis:
    • TGI can be used for competitive analysis to understand the target groups of competitors and their market strategies, providing a competitive edge.
  6. Application Areas:
    • The TGI Index is applied in advertising, market research, brand management, product development, and more, helping businesses understand market dynamics and consumer behaviors better.

By leveraging the TGI Index, companies can more precisely target their audience, improving marketing effectiveness and efficiency.

TGI Formula

The TGI Index measures the relative concentration of a specific behavior or characteristic within a target group. The formula is as follows:

\[\text{TGI Index} = \left( \frac{\text{Percentage of behavior in target group}}{\text{Percentage of behavior in total population}} \right) \times 100\]

This formula can be broken down into the following steps:

  1. Determine the Percentage of Behavior in the Target Group:
    • Calculate the percentage of individuals within the specific target group who engage in a certain behavior or possess a certain characteristic. For example, if 30% of young adults aged 18-24 prefer a particular brand of drink, this percentage is 30%.
  2. Determine the Percentage of Behavior in the Total Population:
    • Calculate the percentage of individuals in the entire survey sample or total population who engage in the same behavior or possess the same characteristic. For example, if 10% of the total population prefer the same brand of drink, this percentage is 10%.
  3. Calculate the TGI Index:
    • Using the formula, divide the target group's percentage by the total population's percentage and multiply by 100. For example: \[\text{TGI Index} = \left( \frac{30\%}{10\%} \right) \times 100 = 300\]

Interpretation

  • TGI Index greater than 100: Indicates the target group has a higher preference or concentration for a particular behavior or characteristic compared to the general population. The higher the index, the greater the concentration.
  • TGI Index equal to 100: Indicates the target group’s preference or behavior concentration matches that of the general population.
  • TGI Index less than 100: Indicates the target group has a lower preference or concentration for a particular behavior or characteristic compared to the general population.

Example

Suppose we want to analyze the preference of young adults aged 18-24 for a particular brand of drink:

  • In the target group (18-24 years old), 40% like this brand.
  • In the total population, 20% like this brand.

The TGI Index calculation is as follows:

\[\text{TGI Index} = \left( \frac{40\%}{20\%} \right) \times 100 = 200\]

This indicates that young adults aged 18-24 have twice the preference for this brand of drink compared to the general population.

The TGI Index provides a concise metric for marketers to identify and understand the characteristics and behaviors of their target groups, thereby optimizing market strategies and advertising placements.