Geomarketing, also known as territorial marketing or geographic marketing, is a very recent discipline in academic and professional literature. In fact, the concept was born in the late 1990s, with research on the influence of geographical distance on purchasing behaviour, and has evolved rapidly in the last, say, two years. Human behaviour has always had a “spatial” component.
In early times, human settlements were created near water, for example. Now, with the development of technology, some intend to take the water, make transfers, to where the settlements are. That the latter is reasonable and sensible would be the subject of another article and many debates.
And, This Geomarketing, What Is It For?
Currently, the analysis of geolocated data allows us to know details of our clients that were unthinkable until now. We can know their nationality, their economic capacity, the age pyramid of a neighbourhood and even what they spend their money on.
Geomarketing applications to business strategy are multiple and very profitable. Especially important are its implications for any business, hospitality company or tourism sector.
For example:
Selection of more efficient points of sale. Before a new implementation of an establishment or a commercial expansion, geomarketing will allow us to generate a selection of points of sale with a greater probability of success.
Based on the geolocated data, we will visualise those locations with the highest concentration of potential clients, we will locate our competitors and we will be able to select those places that are most suitable for business management and logistics.
Solve The Problem Of Franchise Growth Cannibalization
A study carried out using geomarketing techniques would allow a balance to be reached between the interests of the franchisor and those of the franchisees, avoiding those areas of geographical intersection in which customers are undecided between the different establishments of the same brand.
Detect customer migrations in time
The population is usually not stable. New neighbourhoods, the appearance of new areas of commercial attraction, changes in the city’s transport systems or even subsidies or legal measures could cause our clients to migrate outside our area of influence.
Optimise penetration in new markets
Analysing the competition already established in a geographical area, its sales figures and crossing these data with those that describe the behaviour of potential customers, the company can locate potentially very profitable sub-markets that are neglected by currently established companies.
New technologies, social networks and the improvement of mobile phones have created a new competitive context where strategies linked to geolocation are becoming much more important. Having so much information, channels so close to our clients, so direct, opens up new possibilities for marketing and communication professionals.
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