Geocoding

Market penetration analyses involves establishing a relation between proprietary corporate data and population and economic data at a spatial level. A company´s strengths and weaknesses based on objective measures thereby become measurable and visible at a small scale. The presentation occurs on digital maps. The corporate data are first geocoded and in most cases aggregated as well. The typical presentation forms are topical maps and density analyses.



Advantage:
Market penetration analyses give companies answers to questions such as:

• Where do my customers reside?
• Where are my customers from, and what does the regional distribution look like?
• Where do I make a high turnover, where low turnover, and which areas are terra incognita?
• What interconnections exist in the high-turnover areas?
• To what extent has my customer and sales potential already been exploited?
• Where do I need to react with targeted advertising?
• Where was the most recent advertising campaign successful?
• Did the advertising campaign really select the right ad locations?
• How many people were not reached in the new customer campaign?
• Where do the target audiences with the highest purchasing power reside?
• Can sales slumps be traced to competitors´ locations?

Reporting provides facts for making business decisions more secure.



Advantage:
Reporting provides facts for making business decisions more secure.

Eight out of ten location decisions in which geomarketing methods with geographical information systems (GIS) are employed are successful; without GIS support, only five in ten are successful.
This summary is from a site planner from the United States who has planned thousands of outlets for restaurant chains with and without GIS.

In site planning with GIS, potential locations are contrasted with one another with the aid of weighted location factors. The available geodata thereby assume a central role, for a solid data basis is the prerequisite for realistic and tenable results.

Methodologically, in GIS-supported site planning, one avails oneself of a series of analysis variants such as spatial analysis, distance matrices, accessibility analysis, etc. Which method is concretely applied and how the individual variables are weighted depends on the industry on the one hand and on the goals identified on the other.



Advantage:
With GIS, you´ll spend less time fishing in muddy waters while planning your locations.
Regardless of whether you´re performing Greenfield analysis, POS optimisation or restructuring, GIS supports site planning.

• makes objectification of comparability of various location alternatives possible
• accelerates decision making
• makes simulation and scenario formation possible and thereby helps to fine-tune the parameters relevant to the decision

Competitive analyses are used in the systematic analysis of the market. A multitude of methods are used on company-internal and -external geodata, with the goal of obtaining information about one´s market that is as sound as possible. Methodologically, geodata are commonly intersected (see also rider methods), areas calculated and simulations used to obtain as holistic a portrait of regional sales markets as is possible. The goals of substantiated GIS-based competitive analyses are:

• Obtaining information on realisable potentials (customers) in the competitive area that is as complete as possible
• Recognising information on competitors´ sales-orientated activities and being able to estimate their effects
• Being able to critically question and evaluate one´s own regional sales and marketing activities
• Obtaining facts for decisions on restructuring and expansion

As spatial problems lie at the focus of consideration, catchment areas play an important role. The following graphic conveys a typical procedure for ascertaining facts about competitors.



Advantage:

• Obtain an overview of one´s own sales market
• Comprehensive information on potentials and competitors
• Make decisions more quickly and securely

By target audience analysis, we mean the systematic, spatial analysis of a sales market in terms of characteristic target audience properties and attributes. Target audience analysis (spatial market segmentation) proceeds in such a way that target audience attributes are classified in topical maps. Areas of the highest or lowest classes then form the sales promotion area. Through overlay analysis, multiple target audience attributes can be blended with one another. Results of penetration analyses are commonly incorporated into the decision making process of market segmentation. The goal of this process is to identify unprocessed areas (“terra incognita”) in order to react—given the presence of corresponding target audience attributes—with targeted advertising.



Advantage:
Target audience analysis makes the recognition and visibility of potentials possible. Unprocessed areas with corresponding target audience attributes are identified. The spatial market segmentation helps to make marketing decisions more secure.