One of the key steps in succeeding as a business is knowing your environment. Geomarketing is a marketing technique based on the study of geographic areas. The principle is to exploit geographic, cartographic and socio-economic data of a given area in order to adapt and localize the marketing strategy.
Creating a marketing strategy
During the market research process which precedes the development of a marketing strategy, geomarketing lets you visualize the features of a specific area. Based on the area’s population, it is possible to segment and define the target audience much more precisely. With this type of target segmentation it is possible to better understand the target’s needs, and then to get closer to its expectations. This type of study allows allows you to locate clients and see where the strongest potential sales spots are. The collected data is also very useful to analyze the competition. From there, it is easy to locate development opportunities. Geomarketing tools are also used when generating a business’ catchment area.
Geomarketing is therefore an extremely efficient technique to establish a new location. Using this type of market study significantly reduces the risks inherent to new investments.
Analyzing a business
The data gathered during a geographic study can be used to analyze a business’ state. The return on investment generated by some operations can be confronted to the area’s geography, and it is then possible to measure their impact based on the chosen area.
Differences between areas can then be used to develop strategies adapted to each one, with its specific features.
Developing a localized marketing strategy
The use of localized data can be very relevant in setting up commercial operations. Data specific to an area makes it possible to deploy a direct marketing strategy completely adapted to the chosen target, and to its presence in the business’ area of action. During the sectorization work, geomarketing is also a particularly efficient tool.
Geomarketing is particularly relevant and efficient when creating a marketing strategy, implementing said marketing strategy, and analyzing a business’ performance.