What’s geomarketing?

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Geomarketing is the use of geographic information in planning and implementing marketing strategies. This type of marketing creates maps based on defined geographic specifications to analyze customer behavior. Advertising companies can use this information at all levels of the marketing mix to target their advertising campaigns in ways that appeal to consumers based on where they can shop or live.

The marketing mix identifies the four main elements that advertising companies typically use to create marketing campaigns: product, price, promotion, and location. The product first identifies which items or services will be sold. Price determines what monetary value will be placed on the goods or services for sale based on the cost of manufacturing them versus the economic climate in which they can be sold. The promotion identifies which selling tactics and advertising devices will be used to present the goods and services and decides in which areas these tactics and devices will be applied.

Using a geomarketing approach, advertisers can more effectively use the marketing mix, offering products to specific audiences that would be highly receptive to them. Advertisers can use geographic data to determine whether a product would be well received in certain geographic areas and what price range would allow that product to sell well before testing the product in the market. This strategy also helps advertisers determine which geographic areas would be more receptive to certain products than other areas and allows them to choose the best possible promotional campaign to advertise in those areas.

Television commercials are an example of geomarketing in use. Advertisers choose the programs for which to buy ad time based on how well a television program’s target audience aligns with the product’s target audience. For example, soap operas, most often broadcast during the day, often have a large audience of non-working parents of young children or adults who work from home. Many commercials shown during soap operas offer products aimed at this socioeconomic group and offer parenting products and work-from-home opportunities.

Geomarketing research companies implement a variety of methods to obtain the data used in creating marketing maps. They can use Internet research to obtain information about the socioeconomic status of a region. They may conduct focus groups in which randomly selected individuals are brought together to provide feedback on various products. Government census data can also play a role in allowing researchers to obtain information about the racial makeup of a specific region. A census can also show the age distribution of the area and what percentage of the population is male versus female. This information can be presented visually on a map and sold to a marketing company trying to promote products in that region.

Geotargeting is the aspect of geomarketing that allows advertisers to offer products in a region based entirely on knowledge of that region. Gardening companies may offer heat-resistant plants in the south and cold-weather plants in the north based on weather conditions, for example.

Marketing based on geographic data is also very useful when marketing to Internet audiences. A server can find a computer’s IP address and determine what region the user lives in, and then place advertisements for products on the websites users visit based on the location of the IP address. The server may also track what types of websites the user visits and determine the user’s approximate age and life status, creating additional specialization in the ads presented. A user who repeatedly searches for baby furniture, for example, might start getting ads for baby clothes and baby stores. Likewise, a user who frequently visits auto-mechanics websites may begin to receive local advertising from auto parts and car dealers.

Asset Smart.

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