Geomarketing – the geographical aspect of marketing.

Geomarketing – the geographical aspect of marketing.

Geomarketing analyzes current and potential markets according to spatial structures in order to plan and measurably control product sales more effectively.
Geomarketing thus expands the classic marketing mix of product, price, distribution and communication to include geographical consideration. Geomarketing applications can be found for each of the areas mentioned:

Geodata as the basis for geospatial analyses

In a first step, the company’s own company-related data on customers and sales are mapped and condensed. This can be done at different geospatial levels:
Customer addresses as point data, sales and number of customers as aggregated data, for example, at the postal code level.

This data can now be compared with external data which serves as a benchmark on the same spatial level: On the one hand, this includes socio-demographic characteristics, such as the population structure, as well as economic characteristics such as purchasing power per inhabitant. On the other hand, market or address data of specialized industry providers are a relevant data source. The data and analyses are then presented in cartographic form. In an impressively simple presentation, the company's own customer structures and areas of activity are shown. Still existing potential areas and future sales opportunities are visible at a glance.

Potential and penetration analyses

A market potential is determined for each area (e. g. postcode area) from external data sources. The comparison with internal company data now enables the calculation of the Market exploitation. From the absolute and relative number of customers in a given area the market penetration can be derived.

The absolute aggregated internal key figures can now be put into context: Absolutely high sales figures, in areas with very high potential, may be relatively worse than mediocre sales figures in areas with rather low potential. Subsequently, sales force activities and advertising measures can be targeted in areas with low potential exploitation and the results of the market activities can then be measured.

Sales territory planning and optimization

The sales structures of many companies have grown historically over time and are therefore not ideal in many respects: The territories are often neither equal (number of customers, customer structure, customer potential), nor do they have comparable accessibility indicators. An optimization with the methods of geomarketing can significantly increase the performance of the sales staff and thus help to develop additional sales potentials.

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