Geographic Marketing in Support of Decision-Making Processes

Geographic Marketing in Support of Decision-Making Processes

Maria Fernanda Augusto (Universidad Peninsula de Santa Elena (UPSE), Ecuador)
Copyright: © 2020 |Pages: 13
DOI: 10.4018/978-1-7998-2963-8.ch005

Abstract

Nowadays, geographic information and spatial aspects are essential elements for the definition of companies' strategies. With the use of different sources data, companies were able to obtain insights that they could not obtain without the spatial component and were able to use them to optimize their business. Then, geographic marketing presents itself as an added value for companies, one of the key factors being its role in supporting decision making. The main attributes of geographic marketing or GeoMarketing allow us to identify and present through digital maps the behavior and trends of certain variables based on characteristics of a market. The meticulous study of spatial and demographic information generated by GeoMarketing are crucial for important strategic adjustments in the business plan, such as definitions related to the location considered ideal for the business, target audience, price and growth prospects, among other factors. In this context, GeoMarketing will be introduced, exploring its scope, applicability, and relevance of its use in support of the decision-making process.
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Introduction

Nowadays, geographic information and spatial aspects are essential elements for the definition of companies' strategies. With the use of data from different sources, companies were able to obtain insights that they could not obtain without the spatial component and were able to use them to optimize their business. In this sense, geographic marketing presents itself as an added value for companies, one of the key factors being its role in supporting decision making.

The main attributes of Geographic Marketing or GeoMarketing, allows to identify and present through digital maps the behavior and trends of certain variables based on characteristics of a market.

The meticulous study of spatial and demographic information generated by GeoMarketing is crucial for important strategic adjustments in the business plan, such as definitions related to the location considered ideal for the business, target audience, price and growth prospects, among other factors (Rigaux, Scholl, & Voisard, 2001; Baviera-Puig, Buitrago-Vera, & Escriba-Perez, 2016).

GeoMarketing is a method based on the knowledge of the potential of a particular region, to support strategic decisions by organizations, through the manipulation and combination of data related to geographic, demographic, sociological and economic spaces. Thus, it is possible to generate information about the target market and its potentialities from a perspective linked to the geographical environment, which support the decision in the form of spatial representations (Nunes, Santana, Bezerra, & Sobral, 2014).

In addition to identifying potential sites and existing customers in the surrounding area, it is possible to rationalize processes and the logistics chain of a given commercial establishment, measure the influence of a given location on competitors, identifying consumer activities and market variables based on strategic and reliable information.

The crossing of information of interest to each business carried out by specialized software, being that of consumption potential, income, gender or competition, allows a visualization, on a map of the behavior of a group of individuals and, consequently, a more precise analysis of a situation, minimizing risks and subjectivities of a decision.

A region that is well segmented according to its cultural, demographic, economic and sociological characteristics allows for an increasingly better adaptation of strategic actions to the business.

A method that is based on the analysis of the disposition and behavior of variables in a given space is useful for the entrepreneur, as it makes it possible to make marketing decisions with greater probability of success.

In this context, GeoMarketing it will be introduced, exploring its scope, applicability and relevance of its use, in support of decision making process.

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