Geomarketing - effective support for planned activities

Service Business

When introducing a new product to the market, you would like to know whether there is a demand for it in a given city, or whether the local market is saturated with a similar assortment. Thanks to such knowledge, you would save yourself unnecessary trouble and costs for a marketing campaign that could turn out to be ineffective. Geomarketing has recently been offering such a possibility. How to use it effectively in planning?

What is geomarketing?

Geomarketing allows you to plan activities based on geospatial data. It is not a separate field of marketing, but rather a tool that helps in setting strategies and creating marketing campaigns. GIS - Geographic Information System software is used for analyzes for marketing purposes. Spatial information systems develop information about the location and spatial relationships of interesting objects. Then, such spatial information can be freely analyzed and transferred to cartographic models.

The basis for the operation of GIS programs is a database with information of interest to us - e.g. on demographic data, types of retail outlets, road network and traffic volume. The data will be presented in the form of a map, which will allow us to clearly see the situation in a given area.

What can geomarketing measure?

First of all, geomarketing allows you to profile your own marketing activities depending on local needs. Local demand may refer to both small territorial units - e.g. housing estates, small towns and large ones, such as countries or continents.

Geomarketing is also the possibility of examining the location of specific sales points, the turnover they generate or the availability of a specific assortment in a given area. Very often, such information is correlated with demographic data on the age or professional structure of the community living in a given area. We can also check the purchasing behavior of the inhabitants of the studied area, their lifestyle, and what they most often buy.

The possibilities that we can use in geomarketing research are really wide. We can conduct the research with the participation of analytical companies specialized in this field or try to do it on our own.

Geomarketing - what is needed for analysis?

  1. Specialized analytical software. Analytics companies often have their own software that allows them to conduct geomarketing research. Specialized geomarketing programs also offer, among others websites such as emapa.pl. The cost of such software with a map is approximately PLN 4,000.

  2. Digital map. They are included with most analytics software, and a good number of analytics companies use their own maps. It is also not uncommon when Google Maps is used in the analyzes.

  3. Data. In this situation, we can use our own data (e.g. customer databases) or use databases made available for research by analytical companies.

How to use geomarketing research in practice?

We already know what information we can obtain thanks to geomarketing research and what is needed to carry it out. However, what decisions does geomarketing help us to make? First of all, it is used in the strategies of locating new points of sale - analyzes make it possible to check whether it is profitable to locate a point in a given place and whether it will not meet with too much competition or little interest from local residents. It is similar with the strategies for introducing new goods to the market or with the distribution strategy - we can easily check whether there is a demand for a given product in a given area and whether the local market is overcrowded with it.

Geomarketing is also helpful when planning an advertising campaign. Taking into account the aforementioned parameters, we can adapt it to the needs and requirements of the inhabitants of a given area. We can also estimate whether it will be profitable in a given area and will meet with interest from customers. Then you will be able to optimize the campaign.

Geomarketing - advantages

Someone may ask if geomarketing is necessary, since similar data can be read from tables. Undoubtedly, it is right that it is only a different form of graphical representation of certain data, however, the form is extremely legible. Experts from the Washington American University Kogod Business School have proved that the number of errors made when analyzing map data is 40% lower than when analyzing the same data from charts, and the data itself is read from maps much faster than from charts.

In Poland, geomarketing is quite a new marketing tool. However, its dynamic development is still being observed. An additional catalyst may be the fact that more and more analyzes will also be available for mobile devices.