GEOMARKETING

WHAT IS GEOMARKETING?

• using geographic information in marketing activities

• integration of geographical knowlegde and various aspects of marketing, e.g. sales and distribiution

• it is a modern method of analyzing business data in conjunction with the geographical space

• geomarketing is set of tools and methods based on Geographic Information System (GIS)

WHAT CAN BE ANALYZED AND WHAT FOR?

Geomarketing is focused mostly on three aspects: analyzing spatial customer behavior, retail location and marketing management.

Application areas and examples of analyses:• location analyses – based mostly on present stores location and

demographic data• analyses of the atractiveness of points of sale • competition analyses – location of other objects providing similar

services, analyses of ‚cannibalism’ effect• target group analyses (clients characteristics, consumer behavior)• generating the access zone by time and distance• spatial analyses of sale• planning and supervising regionalization of distribution network• planning advertising campaigns (e.g. billboard placement)• analyses of the distribution network

THE BENEFITSOF GEOMARKETING

• properly prepared business strategies based on present activity area and delimitation of future activity areas

• visualisation and integration data on map simplifies recongnition of current market needs

• geomarketing analyses can be used for all types of business and all aspects of them

• increasing the accuraccy of business decisions

• supporting optimalisation of distribution network

• better efficiency and lower costs of transport which results from route planning optimalisation

• reduction of costs of advertising campaigns by directing them to proper reveivers group

• more complete comprehension of the market

WHY DO YOU NEED GEOMARKETING?

• no business analyses should be contucted in isolation from geographical space in which the company operates

• visualisation of data, collecting so far in tabular form, in geographic space and integration of this types of data allows to faster and easier business data interpretation

• presenting some business data, e.g. sales, in spatial context provides easier interpretation and reveals correlaction between business operations and the space in which it operates

IT NEEDS TO BE HIGHLIGHTED THAT:

• geomarketing analyses are closely related to company needs

and specification

• types of the analyses depends on type of the data which company is

collecting.

• to make a full geomarketing analyses, company data from different

departments are necessary – depending on the aim

of analyses

• the scope of the analyses is very broad but the business needs to

decide what specific analyses is performed

• using Open Source sofware provides flexibility and low cost

of system implementation.

EXAMPLES OF GEOMARKETING ANALYSES

There are few examples of simple analyses used in geomarketical studies. All of them were based on public data:• Open Street Map (OSM) – large base of map data, creating by

anyone who wants to. The OSM Community cares about accuraccy and timeliness of the data, verifyng them based on e.g. sattelite images or GPS data. OSM is a good source of local spatial knowlegde

• demographic data for Poland from Central Statistic Office• geographical data, like Borders State Register, from Central Office of

Geodesy and Cartography

Analyses were made using free and open source software QGIS. QGIS is an official project of Open Source Geospatial Foundation (OSGeo). It works on many operating systems and supports multiple functions and data format.

There are only few examples of free geographic data available for area of Poland and world also.

LOCATION ANALYSES

Location analyses provide answers to questions like:• Where new stores should be located?• Does the present land use allows to locate a certain type of

business?• Is the area inhabited by an adequate number of potential

customers?• What is the level of market saturation by certain type of business?• Is the present distribution network meets the needs

of the customers?

The main task of the location analyses is to find an optimal location for business. They are based mostly on present stores location and demographic data.

AVAILABILITY OF MARKETS IN POZNAŃ

The map presents three categories of availability markets within the borders of Poznań.

COMPETITION ANALYSES

Competion analyses can be part of the location analyses. They provide information about location of points providing similar services.

This map presents an analyses of „cannibalism” effect between points with similar profile service. Overlapping areas presents zones, in which the stores influence is duplicated. The ‚convex hull” line means maximum range of influence of points (stores)in city area.

Presentation of impact of the competitive stores. The size of impact depends on size of the competitive object.

COMPETITION ANALYSES

TARGET GROUP ANALYSES

Demographic analyses are significant part of geomarketing. With the knowlegde of age structure of inhabitans or household income classification and taking into account consumption habits enable better identification of potential markets.

The map provides two types of information:• number of inhabitants per store in every voivodeship

in Poland • volume of consumption of some basic products for every voivodeship

TRANSPORTATION ACCESSIBILITY

Transportation accessibility is a very broad issue and one of the main subject of geomarketing research. It enables planning and optimalisation access routes for providers, which directly effects in shortening delivery times and costs reduction.Communication availability (by car, public transport or on foot) is very significant factor in market potential analyses and new stores location.

This map presents shortest path beetwen stores, including mid-points. This is simply example of optimization of access routes.

TRANSPORTATION ACCESSIBILITY BY TIME AND DISTANCE

Maps presents spatial distribution of transportation accessibility for specific point from different places in the city by time and distance.

Accessiblity by time

Accessibility by distance

TRANSPORTATION ACCESSIBILITY

Evaluation of accessibility of the area by road and rail network. Values presents network (rail and road) density in each cell. The scale of this valorization is abstract.

WHAT DO WE OFFER?

SUPPORT, CONSULTATION AND ANALYTICAL SERVICESin geomarketing studies of problem, which will require analyses

also

TRAINING COURSESGIS theory, geomarketing basics and software use for people who will collect the data and create geomarketing analyses. Trainings will provide knowledge and and skills which will be helpful and useful in creting big company’s databases.

We train with use of free, Open Source software, which provides flexibility and low cost of system implementation.

WHAT DO WE OFFER?

SUPPORT, CONSULTATION AND ANALYSES SERVICESin geomarketing studies of problem, which will require analyses

also

TRAINING COURSESGIS theory, geomarketing basics and software use for people who will collect the data and create geomarketing analyses. Trainings will provide knowledge and and skills which will be helpful and useful in creting big company’s databases.

We train with use of free, Open Source software, which provides flexibility and low cost of system implementation.

WHO ARE WE?

Company was founded in 1990 as computer and cartographic business and personal consulting. Based on many years of experience in cooperation between science and business, provides high-quality GIS solutions and management for the public sector and businesses.

Our company is engaged in:• creating spatial analyses• production of digital thematic maps and digital databases• providing tranings with the subject of e.g. GIS cartography,

GIS software• many others services in GIS

GEPOL belongs to a QGIS Sponsorship Program as Brown Sponsor. We appreciate inovating and valuable projects, that is why we support the development of an open source sofware, which QGIS is.