Geomarketing

Key takeaways

Geomarketing belongs to science; place it in that map before memorising details.
Learn the definition first, then one example that makes the definition concrete.
Connect Geomarketing to a quantity you can measure, compute or draw — that is where exam questions come from.
Reproduce the core statement of Geomarketing from memory before moving on to harder problems.

Reference excerpt

In marketing, geomarketing (also called marketing geography) is a discipline that uses geolocation (geographic information) in the process of planning and implementation of marketing activities. It can be used in any aspect of the marketing mix — the product, price, promotion, or place (geo targeting). Market segments can also correlate with location, and this can be useful in targeted marketing. Geomarketing is applied in the financial sector by identifying ATMs traffic generators and creating hotspot maps based on geographical parameters integrated with customer behavior. Geomarketing has a direct impact on the development of modern trade and the reorganization of retail types. Site selection becomes automated and based on scientific procedures that saves both time and money. Geomarketing uses key facts, a good base map, Whois data layers, consumer profiling, and success/fail criteria. GPS tracking and GSM localization can be used to obtain the actual position of the travelling customer.

Software GIS software is used to display data that can be linked to a geographic region or area. It can be used to:

Recommend nearby social events. Determine where the customers are (on country, city, street or user level). Determine who the customer is (on organisation or user level), or make a guess on it based on earlier encounters by tracking IP address, credit card information, VOIP address, etc. Visualize any data in a geographic context by linking it to a digital map. Locate a web client's computer on a digital map. Calculate summary information for specific areas. Select customers within specific areas. Select customers within drive times of a point. Select customers with a certain radius of a point. Using micro-geographic segmentation select customers similar to a specific type in the rest of the country.

Applications

Different content by choice Location-based social media marketing uses geo-specific tools to draw imaginary perimeters that will display all of the social content posted by users in that particular area. A typical example for different web content by location is the FedEx website at FedEx.com where users have the choice to select their country geo — location first and are then presented with different site or article content depending on their selection.

Automated different content Individuals can deliver different content in internet marketing, and mobile app marketing through paid or organic search results, based on the geographical geolocation of the targeted audiences.

Other applications Solve problems regarding location of a new retail outlet Map consumer demand trends to best distribute products and advertising. This links with trade zone management. Scope digital advertising towards individual consumers and producers. Research consumer shopping patterns and observe traffic within shopping centers and between retail outlets. It also helps in visualisation of market research findings and help improve the overall planning ability of organisations. Improve customer cooperation. Creation of sales territories We can define the geo-marketing as a strategy and mechanism that provides valuable information that helps in the process of making business decisions using geographical information. The functions of this to search and evaluate marketing opportunities, analyzing geographical information such as location residential areas, topography, it also analyzes demographic information such as age, genre, annual income and lifestyle. This information can be segmented as primary data and sub-segmented as secondary data; in addition, it helps us to develop successful promotional campaigns achieving our marketing goals. This also works with retail chain stores in the sales industry, real estate, and renewable energy, among others. With geomarketing, the general data of a company changes to be more specific regarding their customers and market trends. This allows companies to use secondary data wisely, providing excellent results at low cost compared with traditional market research methods. All data is acquired accurately with GPS equipment and geographical information software, once the data is acquired, this information is processed by professionals in the field. Geomarketing has helped companies to acquire valuable information such as transit behaviors, most visited places or areas, etc., this information will help these companies to deliver the right message (or promotion), at the right time and place. Most companies use their mobile apps to obtain this information. Mobile apps became more sophisticated using GPS, Bluetooth, and also social networks to obtain their market information, this information helps to improve their promotional campaigns. According to comScore, about 60 percent of all Internet activities in the U.S. originates from mobile devices and about half of total Internet traffic flows through mobile apps. One example of Geo Location is Google Maps — you can search in Google Maps Restaurants near me and it will show different options around your location. One important factor that companies (in this case restaurants) is that they must be sure to optimize their business in Google's directory list. Another mapping for-profit service that provides geomarketing solutions such as business density, commercial enhancement or employment policy for economical urban planning is the Catalan observatory EIXOS.

See also Digital marketing Geotargeting GSM localization Local advertising Location-based advertising Location-based service Location intelligence

References

Bibliography Amaduzzi S., Geomarketing. I sistemi informativi territoriali SIT - GIS a supporto delle aziende e della pubblica amministrazione, Roma, EPC editore 2011, ISBN 978-88-6310-311-3, https://web.archive.org/web/20120408195416/http://www.amaduzzi.it/geomarketing/ Maguire D., Kouyoumjian V., Smith R., The Business Benefits of GIS - An ROI Approach, ESRI Press, 2008. Peterson K., The power of place - Advanced customer and location analytics for market planning, Integras, 2004 Cliquet G., Geomarketing - Methods and Strategies in Spatial Marketing, Iste, 2002.

External links Media related to Geomarketing at Wikimedia Commons

Illustrations

Worked examples

Example 1 — a first encounter with Geomarketing

Start with the simplest possible case. Write down what Geomarketing claims or describes in one sentence, then invent the smallest concrete situation in which that sentence is true. In science, the smallest case is usually a single object, a single equation or a single measurement. Check that every symbol or term in your sentence has a meaning in that case.

Example 2 — changing one variable

Take the situation from Example 1 and change exactly one quantity: double it, halve it, or set it to zero. Predict what should happen to Geomarketing before you calculate. Comparing your prediction with the result is the fastest way to find out whether you understand the idea or only the words.

Example 3 — an exam-style question

Typical questions about Geomarketing ask you to (a) state it precisely, (b) apply it to given data, and (c) explain a limitation. Practise writing all three answers in under five minutes; the third part is what separates a full-mark answer from an average one.

Applications of Geomarketing

In research: Geomarketing appears in science research whenever the underlying quantities have to be modelled precisely. Papers usually cite it as a starting assumption and then explore where it breaks down.
In technology and industry: Engineering practice reuses Geomarketing in design rules, simulations and safety margins. Knowing the idea lets you read a specification sheet and understand why the numbers look the way they do.
In the classroom: Geomarketing is common in secondary-school and first-year university syllabi. It links to neighbouring topics Geomarketing, so understanding it makes those chapters shorter.
In everyday life: Look for Geomarketing outside the textbook — in sport, cooking, traffic, electronics or the sky above you. An example you found yourself is remembered far longer than one you were given.

How to study Geomarketing in 20 minutes

Read the reference excerpt below once, without taking notes.
Close the page and write down what Geomarketing means in your own words.
Compare your version with the excerpt and mark what you missed.
Work through the three examples above with pen and paper.
Explain Geomarketing out loud to somebody else — or to Teacher Smith in the lgStudy chat.

Frequently asked questions

What is Geomarketing in simple terms?

In marketing, geomarketing (also called marketing geography) is a discipline that uses geolocation (geographic information) in the process of planning and implementation of marketing activities. It can be used in any aspect of the marketing mix — the product, price, promotion, or place (geo targeti…

Why does Geomarketing matter?

Because it connects several science ideas at once: it gives you a definition you can apply, a quantity you can calculate, and a way to check whether a result is plausible.

How should I study Geomarketing?

Read the excerpt, restate it from memory, then work through the examples and applications listed on this page. The five-step study plan above takes about twenty minutes.

What does this page cover?

It gives you a compact reference excerpt plus original lgStudy explanations, examples, applications and study material on Geomarketing.