Recognizing Market Penetration
Geomarketing Makes Your Markets Transparent.
With penetration analyses using geomarketing software, you can examine your market for untapped potential: internationally, nationally and regionally depending on your needs. Regardless of which industry and which market, with the right WebGIS software you can boost your turnover penetration and lead your company to success.
Analyze Your Market Penetration with Geomarketing
You Will Find Answers to Fundamental Business Questions
Geomarketing and GIS* help to answer essential questions about customer share and sales penetration. For behind every potential and customer is a real location with an address. The spatial reference is therefore a very important component in the analysis. With geomarketing, it is possible to cleverly analyze different and increasing amounts of data that can then be visualized to provide realistic insights.
*Geographic information system, e.g. browser based WebGIS
Therefore, geomarketing and GIS software are ideal for analyzing your market penetration. Market data is analyzed geographically and displayed on a digital map. The visualization of data using GIS is remarkably intuitive. With a glance at the map, you can see where you have strengths, weaknesses, threats and above all opportunities.
Advantages of Penetration Analysis with WebGIS Software
With WebGIS software, data is processed in cartographic form, i.e. analyzed geographically and displayed on a map. The GIS (Geographic Information System) runs in the browser and can therefore be accessed at any time and from different devices (PC, laptop, tablet). In addition, automated reports can be generated with the relevant key figures and analysis results.
WebGIS can help you:
- recognize spatial patterns,
- identify regional differences,
- exchange information with colleagues and/or departments and
- generate status reports quickly and on short notice.
Find Target Groups and New Customers
Penetration analysis helps you find target groups and new customers. Geomarketing offers you several approaches:
- Find areas in which defined target group characteristics occur more frequently.
- Enrich your own customer data with geodata and market data, learn more about your own customers (for example education level, lifestyle, specific purchasing power) and then find areas in which people live who have socio-demographic characteristics and affinities that are similar to your current customers. Advertising your products in these identified areas could be promising.
- Analyze catchment areas. The results of the environmental analysis provide hints for not yet discovered potential demand
Geomarketing helps to answer all the questions about the market penetration that make a reference to location, i.e. where?
✔ Where do I have new customer potential?
✔ Where do the target groups with the strongest purchasing power live?
✔ Where do my customers come from, what is their regional distribution?
✔ Where are my sales higher, where are they lower and where are the white spots?
✔ Which customer structures are present in strong sales areas?
✔ Which relationships exist in the strong sales areas?
✔ To what extend has my customer and sales penetration already been exploited?
✔ Where do I need focused advertising activities?
✔ Where was the last advertising campaign successful?
✔ How many people have not yet been reached by the customer campaign?
✔ Are sales slumps the result of competitor locations?
GIS-based penetration analyses place your company key figures and your KPIs in a small-scale relationship with demographic and economic data. Your sales and turnover penetration are determined. Geomarketing is perfect for target-performance comparisons, target planning and market or SWOT analyses.
The current strengths and weaknesses of your company are made visible and measurable on a small scale on the basis of objectively measured values.
Penetration Analyses Work
“Map-based SWOT analyses help make strengths and weaknesses visible and understandable so that you can decide on the best operative measures. Due to our many years of experience, we can say: Geomarketing-supported penetration analyses work! Take advantage of these methods and optimize your sales penetration.” Georg Magenschab, Managing Director and CTO, WIGeoGIS
VDMA - WebGIS supports tractor manufacturers
VDMA Agricultural Machinery uses WebGIS to support tractor manufacturers with geomarketing analyses for the optimization of sales and service structures.
Geomarketing optimises sales structures
Using WIGeoGIS geomarketing software, UniCredit Bank Austria is optimising its sales structures based on physical branches.
In WebGIS, you can use the classic methods of penetration analysis for sales and turnover. These include SWOT analyses (strengths, weaknesses, opportunities, threats), the determination of market shares, market structures, turnover penetration, etc. The advantage of the spatial analysis by means of WebGIS is that you can visualize your penetration on a small scale on digital maps and see your own strengths and weaknesses at a glance.
As a rule, you have a total market penetration and a market share to be achieved. On the basis of these key figures and your current sales/revenue, you can determine your penetration for each area.
Using a GIS system, you can analyze the penetration of your market at different spatial levels, e.g. for Europe, for the provinces of a country, for counties, districts or even smaller areas.
Yes, because the following key figures are calculated for each sales area: penetration and sales. (The penetration per sales area is calculated on the basis of the total market penetration.) With this information it is possible to determine the extent to which the sales penetration per sales area has been exploited. It is important that this does not happen linearly, but based on the customer potential in the respective sales area, and these can of course vary greatly. When analyzing the calculated key figures, your WebGIS once again provides you with outstanding service.
With the GIS system, e.g. WebGIS, you have the tool to determine the regional penetration from the entire market. The “fuel” you need is the data you feed the system with. This data is on the one hand your company data and on the other hand external market data. Contact me for more information.