Proceedings of The 1 st International Conference on Information Systems For Business Competitiveness (ICISBC) 2011 159 Market Potential Research For The Revitalization Of Traditional Markets Dwi Endah Kusrini Statistics Department Sepuluh Nopember Institute of Technology Surabaya, Indonesia Email : dwi_endah@statistika.its.ac.id Arie Kismanto Statistics Department Sepuluh Nopember Institute of Technology Surabaya, Indonesia Email : arie_k@statistika.its.ac.id Abstract— Revitalization of traditional markets is one of the programs announced by the government primarily to encourage small and medium businesses can grow. PD Pasar Surya is a traditional market managers in Surabaya, which manages 81 traditional markets and only 20% are already revitalized, but during this process of revitalization is based only on observation and intuition, unsupported by the survey results and analysis of market potential. For that reason this study examines how the potential of traditional markets in the east branch, north branch and south branch so that it can be seen how consumer preferences and segmentation in an effort to obtain data on potential markets. Statistical analysis used was cluster analysis to see the segmentation of consumers based on preferences. The way to get the data in this study is to find secondary data and primary data in BPS by a survey carried out for two months. This research result is expected to be used in policymaking by PD Pasar Surya in determining the traditional markets which are worth to be revitalized and this result will be use to make Decission Support System for next program. Keywords : component Market Potensial Research, Traditional Market, Revitalization, Cluster Anaysis. I. INTRODUCTION Revitalization of traditional markets are usually associated with physical improvements. Revitalization of traditional markets is actually a holistic concept in the market to fix, at least in terms of revitalization of vital words contain deep meaning, not just physical. Revitalization including how to make traditional markets as the icon of the nation's economy, local entrepreneurship symbol, an indicator of the economic pulse of an area, even a socio-economic identity and national culture. Revitalization to be viewed from various aspects of working in parallel and not partial. The first aspect are issues of governance and institutional markets. Bad governance traditional market barriers to revitalization. PD Pasar Surya is one of the traditional market managers in Surabaya where 81 traditional markets in the north, east and south branch are under the responsibility of PD Pasar Surya. Based on data from PD Pasar Surya only about 20% of the entry categories of primary market is the market that has been revitalized. During this process revitalization traditional markets under PD Pasar Surya based solely on observations about market conditions and the demands of the traders in the absence of prior studies that can provide accurate information about the market that may be eligible to be revitalized so that it can be imagined in advance the data that has been used PD Pasar Surya is the numbers are not accurate then used as the basis of policy decisions. Research on the condition of traditional markets in Surabaya by Kusrini et.al (2010), where most traders expressed their dissatisfaction at the traditional markets, both in terms of management of the market, as well as physical aspects of buildings. These results are similar to research conducted by Kiik (2006) in Papua is in Atambua area where lack of effectiveness of the factors that led to the revitalization of traditional markets there is no strategic effect because the market is placed in areas far from people's reach, which is an indication of where market development without any information on whether or not a potential region. Based on the description above, it is felt imperative to obtain information about the market potential of traditional markets in every area of management of PD Pasar Surya, so this study aims to determine the condition of demographic, social and economic impacts of population around the traditional markets that are the object of research, assess market potential and market needs in the areas of market development, assessing market revitalization form desired by the traders and buyers, assess the segmentation and positioning of consumers based on demographic, social, economic and consumer perceptions of the market he visited. II. MARKET SEGMENTATION Measurement of market demand in addition to using the research potential of market can be used well segmentation and potitioning research of products. Segmentation research on the classification of research into problem solving and research potitioning (or research image) into research on the classification identification of the problem however the second research generally be used simultaneously (Malhotra, 2004). Modern marketing strategy generally consists of three phases: market segmentation (segmenting), determination of target markets (targeting) and the