The Role of Geomarketing and Characteristics on Business Development and Decision Making

The Role of Geomarketing and Characteristics on Business Development and Decision Making

Putri Seprianti Eka (Universitas Bengkulu, Indonesia)
Copyright: © 2023 |Pages: 17
DOI: 10.4018/978-1-6684-8177-6.ch001
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Abstract

This chapter describes the geographic dimensions of marketing as they relate to business development and decision-making processes. Given the complex and diverse business environment and markets of countries, it takes a lot of work for decision-makers to understand the process of identifying opportunities. Synthesizing concepts and theoretical approaches to marketing and developing it as a management system is part of the impact on business growth through consideration and evaluation during decision-making. To maximize profits, the main goal of marketing is to build profitable relationships between producers and buyers of goods depending on their geographic location. Modern geomarketing supports the comprehensive study (including marketing, logistics, and geography) of global and local economic processes, which are essential for business.
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2. Geomarketing

2.1. Marketing and Geography

Using geography in marketing is known as geomarketing. While some authors (Latour & Le Floch, 2001, p.37) describe it as “a specific application of spatial economics,” others (Cliquet, 2006, p.15) give a more detailed explanation, such as “a set of techniques enabling the manipulation of geo-coded data, can assist in analysis more than the conception of strategy and even less in decision-making” or “marketing techniques based on the premise that individuals live in” (Lehu, 2004, p. 365). According to Yrigoyen (2003), marketing can help decision-makers tackle a variety of pressing issues (geo segmentation).

Although the widespread and daily use of the Internet has resulted in the loss of geographic markets in new forms, the importance of location and space has increased inversely with market expansion. Clients continue to localize in precise geographic spaces, which explains the difficulties certain Internet distribution companies face in delivering to their clients (Cliquet, 2013). Despite being present on the web, companies still originate from a particular geographic zone (Volle, 2000). Geomarketing is a new dimension of problem-solving by integrating geographic information and knowledge by classifying, organizing data, analyzing, and modeling specific processes and relationships. Geomarketing can show geographic analysis in marketing and sales. (Nattenberg, O. 2000).

Using geography in marketing is known as geomarketing. While some authors (Latour & Le Floch, 2001, p.37) describe it as “a specific application of spatial economics,” others (Cliquet, 2006, p.15) give a more detailed explanation, such as “a set of techniques enabling the manipulation of geo-coded data, can assist in analysis more than the conception of strategy and even less in decision-making” or “marketing techniques based on the premise that individuals live in” (Lehu, 2004, p. 365). According to Yrigoyen (2003), marketing can help decision-makers tackle various pressing issues (geo segmentation).

Although the widespread and daily use of the Internet has resulted in the loss of geographic markets in new forms, the importance of location and space has increased inversely with market expansion. Clients continue to localize in precise geographic areas, which explains the difficulties certain Internet distribution companies face in delivering to their clients (Cliquet, 2013). Despite being present on the web, companies still originate from a particular geographic zone (Volle, 2000). Geomarketing is a new dimension of problem-solving by integrating geographic information and knowledge by classifying, organizing data, analyzing, and modeling specific processes and relationships. Geomarketing can show geographic analysis in marketing and sales. (Nattenberg, O. 2000).

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