CHAPTER ONE

INTRODUCTION

• Background of the study

Marketing, according to Kitchen (1999), will involve a group of certain processes, namely anticipation, management and the satisfaction of a customer’s need all of which constitutes a group of activities undertaken during an exchange process. The basis for these activities is to make a product or service appealing enough to an individual or group, causing them to part with cash in exchange for such goods and/or services. Kitchen further argues that, ‘the thoroughly understood need and inherent behaviour of the customer, as well as being able to initiate a critical analysis of existing and likely opportunities with this customer, with the aim of gaining a competitive advantage, should and may be considered the perfect theory to marketing’. This would be tenable if such a theorem were ever to exist, but at this point no such perfect theory of marketing exists. In another vein, Baines et al. (2008) reviewed concepts of marketing and concluded that ‘marketing had changed over the years’. They infer the process of marketing as one that has gravitated from a ‘transactional concept’, such as pricing, promotion and distribution, to a ‘relationship concept’, which is marketing hinged on gaining or gained customer trust. A relationship concept to marketing is understood as offering limited organizational risks and also provides an improved commitment to the customer. This may be considered an attempt by Baines and colleagues to validate the proposed ‘perfect theory to marketing’, as suggested earlier by Kitchen (1999)

Geomarketing describes any form of marketing that incorporates location intelligence in order to improve the odds of a particular message reaching the right consumer at the right time. This can be achieved in a number of ways, but the common factor is that location data or awareness is used as part of the marketing effort that’s the “geo” element. Geotargeting is one common form of geomarketing, which is simply defined as delivering content to users (commonly via mobile, but cross-device as well) based on where they are or on what locations they have previously visited. Geofencing is an example of a real-time geomarketing tactic designed to target uses within an established geographic area. More on the applications of geofencing.

The guiding principle behind these geomarketing efforts is that, in the words of location platform Sonata’s Lara Mehanna, “where you are being whoyou are.” Essentially, the idea is that the places a customer has visited tell a lot about them, and they can be a great predictor of intent.

In marketing, geomarketing (also called marketing geography) is a discipline that uses geolocation (geographic information) in the process of planning and implementation of marketing activities. It can be used in any aspect of the marketing mix the product, price, promotion, or place (geo targeting). Market segments can also correlate with location, and this can be useful in targeted marketing.

Geomarketing is applied in the financial sector through identifying ATMs traffic generators and creating hotspots maps based on geographical parameters integrated with customer behavior. Geomarketing has a direct impact on the development of modern trade and the reorganization of retail types. Site selection becomes automated and based on scientific procedures that saves both time and money. Geomarketing uses key facts, a good base map, Who is data layers, consumer profiling, and success/fail criteria. GPS tracking and GSM localization can be used to obtain the actual position of the travelling customer. (en.wikipedia.org)

With geomarketing, the general data of a company changes to be more specific regarding their customers and market trends. This allows companies to use secondary data wisely, providing excellent results at low cost compared with traditional market research methods. All data is acquired accurately with GPS equipment and geographical information software, once the data is acquired, this information is processed by professionals in the field. Geomarketing has helped companies to acquire valuable information such as transit behaviors, most visited places or areas, etc., this information will help these companies to deliver the right message (or promotion), at the right time and place. Most companies use their mobile apps to obtain this information. Mobile apps became more sophisticated using GPS, Bluetooth, and also social networks to obtain their market information, this information helps to improve their promotional campaigns.

1. 1. This material content is developed to serve as a GUIDE for students to conduct academic research work
2. 2. As a source for additional understanding of the subject.
3. 3. As a source for ideas for your own research work (if properly referenced).
4. 4. For PROPER paraphrasing (see your university definition of plagiarism and acceptable paraphrase)
5. 5. Direct citing (if referenced properly)
Thank you so much for your respect to the authors copyright.