Friday 14 December 2018

What is Geomarketing


A Geo marketing is a discipline that uses geolocation 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. Geomarketing it can be defined as a discipline that appears to support business decisions, when the strategic information or business the spatial variables incorporated.

This surprising world that I like so much. in this corner we have already spoken of many important concepts within this discipline. But it is obvious that the world changes, evolves, and also very quickly always influenced by new technologies. Today's theme is really interesting: geomarketing and has much to do with what we have just said.

The concept of geomarketing.

Obviously, we starting from a first definition to begin to focus the subject.

Born from the confluence of the marketing and the geography, geomarketing enables companies to incorporate a new dimension to its analysis of the information processes such as the geographical dimension. The tools and systems that manage the information for this purpose are referred to as GIS (Geographic Information Systems). In its most generic aspect, the GIS are tools that allow users to create interactive queries, analyze spatial information, edit data, maps, and present the results of all these operations.

All enterprises, in greater or lesser extent, need to know how the geography affects different areas of your business. In general, all companies have in the geographical vector a factor that influence in one or several components of its value chain: the location of the offices and their areas of influence; its network of distribution and logistics; the location of your customers and markets; the situation and the place where its competition is...

Predict behaviors.

Geomarketing is a methodology based on the segmentation of the target audience, with geo-demographic criteria. It offers an approach to the marketing oriented relationships one-to-one, which allows the identification of specific groups (targets) and that also find them on a map. Therefore, geomarketing is a part of the micromarketing that combines criteria geographic and demographic, offering Geo Demo Graphics of market segmentation data.

One of the variables that can predict the behavior and attitudes of consumers is their place of residence. The combination of demographic and socioeconomic. As statistical data information such as age, level of income, employment status... That have geo-codes (metadata for geographic information such as coordinates). To be link with the information geographic, — develop models geo statistical classified form categorized into markets, according to its most significant social-demographic characteristics.

Micro Marketing

In addition, identify them grouped shape on micro zone where the resident population, having features more or less homogeneous, behaves and acts in the same way, i.e., is a lifestyle, a behavior and a class social similar, so their acts of purchase and the type of products and services required are similar. This produces a specific target located in the same place and that you can access commercially with actions and high precision or micro marketing techniques.

For companies of all types.

Up to now, studies of market via the geomarketing remained out of the reach of small and medium businesses, the technology costs and consulting that used to be associated. However, the emergence of new technologies has provided that such services are now accessible to all kinds of enterprises, including SMEs. This is possible thanks to the development of geomarketing online platforms that is easy and intuitive, allow smaller companies to begin to enjoy the benefits provided by this tool. In addition, it's payment platforms by use, so adapt fully to the needs of any type of business.

Business Development & Decision making

In this way, these tools allow SMEs use these techniques for decision making for business development or commercial actions link to a given territory plan. These decisions may include, for example, determine the suitability of an area. To open a new store or relocate the current toward an area. Where there is more traffic or more potential for consumption. Another example of its application is the generation of traffic at the point of sale. In this sense, geomarketing is also use as a tool for geographical segmentation. Even and determine what are the best potential customers in an area.  In order to develop more effective direct marketing campaigns.

Also, this tool is also very useful to better plan a sales network. As well as for information on sales and business opportunities, viewing them on a map. In this way, it facilitates the management of commercial equipment better administering. The territories that have assign such as zip codes, municipalities, provinces or other territorial groupings. As well as detect little covered areas or new opportunities.

The application

Applications of geomarketing integrated in GIS systems. Which joined the location detection systems that integrate mobile devices (PDA or Smartphone). It allow companies to know the exact location of their trade teams and these in turn. You can consult information from the field. In order to better prepare his trade agenda, optimize your time and better plan their routes of sales.

The combination of information from their databases from enterprise business.(customers, retail outlets, products, sales...). Market information such as population, households, companies, socio-demographic data... Allow a company to analyze and know the competitive positions on an area, place or territory. In this way, is they can identify opportunities, gaps not cover either develop. The most appropriate actions to improve their ratios and positions in an area or at a given location.

In short, the main applications of geomarketing can be summarized in the following:

  • Determine areas of influence and geographic coverage of points of sale, offices or stores of the company.

  • Know those areas of cannibalization between offices or points of sale.

  • Identify areas not covered by the network, with potential market for future expansion plans.

  • Decisions of closure or reorganization of the network of points of sale.

  • Know where customers are located and where are the potential consumers. Where it generates business and other indicators key for it. As for example: frequency of purchase, buy media... in a given territory.

  • Know the market share of the company in a territory.

  • Optimize routes for sale or distribution.

  • Optimize direct marketing activities and optimize trade marketing actions.

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