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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.



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

Geocoding


Geocoding is always the first step in spatial analysis. Only once spatial corporate data (branch office locations, real estate, insured persons, dealers, customers) appear as precise points on a map are further analytical steps possible. Examples are the distribution of customers in a sales territory, the total distribution of branch offices, focal points of insurance cases. Only once the positions of this information have been determined, further pertinent contents may be analysed: turnover or claims focal points, penetration analyses and exploitation of potential, examination of catchment areas by means of customer flow analyses, and much more.



Advantage:
Geocoding is always the first step in spatial analysis. Only once spatial corporate data (branch office locations, real estate, insured persons, dealers, customers) appear as precise points on a map are further analytical steps possible. Examples are the distribution of customers in a sales territory, the total distribution of branch offices, focal points of insurance cases. Only once the positions of this information have been determined, further pertinent contents may be analysed: turnover or claims focal points, penetration analyses and exploitation of potential, examination of catchment areas by means of customer flow analyses, and much more.

Spatial analyses


Example of spatial analyses that are only soluble with GIS:
  • Select all placard locations that are no further than 500m from a cinema!
  • Select all construction blocks in which the proportion of single households is smaller than 30%!
  • How many companies are there within 100m of a branch location, sorted by industry sector?
  • Select all barbers/hairdressers and hand each one our sales territory number!




Advantage:
Example of spatial analyses that are only soluble with GIS:
  • Select all placard locations that are no further than 500m from a cinema!
  • Select all construction blocks in which the proportion of single households is smaller than 30%!
  • How many companies are there within 100m of a branch location, sorted by industry sector?
  • Select all barbers/hairdressers and hand each one our sales territory number!

Density analysis


Density analysis converts point data to n-dimensional representation.

Both local technical data (e.g., customer -> turnover or competition -> sales area) and their spatial positions are thereby correlated. In addition, the spatial relation and the corresponding technical data value are translated to a colour scale and thus represent the topical-spatial weighting clearly.



Advantage:
Most people are better able to perceive and understand surfaces than a series of points.

Spatial patterns resulting from the spatial distribution of points thus quickly become clear and are more easily visually comprehensible to the viewer.

Modern GIS and geomarketing systems make use of this technique and help to make complex spatial and topical technical data more quickly comprehensible.