Part C Effective Marketing for your SME with GIS: Customer and Competitive Analysis

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Part CEffective Marketing for your SME with GIS
Customer and Competitive Analysis

• Brief Participant Summary
• Whos the focus of your business?
• Whats your most critical customer related
  marketing problem?
• Value of GIS for Marketing and SMEs
• What have others done with GIS to address
  marketing opportunities? problems?
• Value of Part C for You
• What are the nagging questions or open issues?
• Whats the key takeaway for you?
• What one action will you take in the next week?

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Participant Summary

• What types of customers does your business serve?
  
• Organizations or Consumers?
• Where do these customers Live? Work? Play?
• International or National or Regional or Local?
• Whats your most critical customer related
  marketing problem?
• Segmentation, Targeting?
• Positioning
• Product, Pricing
• Channel
• Distribution
• Marketing Communication

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Wheres your Most Critical Marketing Problem?
Customers Competitors
Customers Competitors
Choosing Deciding
Understanding Knowledge of
Positioning Product Price Channels
Target Market
Controlling
Implementing
Customers Competitors
Customers Competitors
How much do you know about your Customers?
Competitors?
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Why is Geographic Information Relevant to
Marketing for SMEs?

• Profiling Customers - describing characteristics
  and behavior
• Understanding and Predicting Customers and
  Competitors
• current and future behavior including what,
  where, when and how
• Extrapolating from known to unknown
• Understanding past customer and competitor
  behavior

Why Geography Matters in Marketing Strategy - The
Spatial Dimension to Customer Communications and
Marketing By Duncan Houldsworth (2003)
http//www.directionsmag.com/article.php?article_i
d362
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Customer Behavior and Location
Customer Location
Needs
Attitudes Interests
Preferences Behaviors
Product Offerings, Price Sensitivity
Distribution Channel, Marketing Communication,
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Wheres your Most Critical Marketing Problem?
Customers Competitors
Customers Competitors
Choosing Deciding
Understanding Knowledge of
Target Market
Geodemographic Segmentation Segment Profiles
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Some Census Entities

• Metropolitan Statistical Areas (MSAs)
• 1 or 1 counties w/ large population nucleus
  nearby communities that have a high degree of
  interaction
• Census Tracts (50K)
• Small geographies - generally stable boundaries
• Designed to be relatively homogeneous w/ respect
  to population characteristics, economic status,
  and living conditions.
• Block group (225K) subdivisions of census
  tracts combination of census blocks
• Block well-defined rectangular piece of land
  bounded by 4 streets
• May be irregular or bounded by rail road tracks,
  streams, or other features
• Do not cross boundaries of counties, census
  tracts, or block groups
• May cross place boundaries

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Census Demographic Updates

• Population
• Total
• Household and family
• Group quarters
• Race and Hispanic origin by Race
• Age
• Gender
• Household type
• Income
• Household
• Family
• Aggregate and per capita
• By Age of Householder

• Disposable Income by Age of Householder
• Net Worth by Age of Householder
• Labor Force
• Civilian Employment by Industry and Occupation
• Unemployment
• Housing
• Housing inventory
• Occupancy
• Tenure
• Home value

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More factfinder maps
Prepared w/ American Factfiner
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Wheres your Most Critical Marketing Problem?
Customers Competitors
Customers Competitors
Choosing Deciding
Understanding Knowledge of
Positioning Product Price Channels
Target Market
Trade Area Analysis Site Selection Marketing
Communication Direct Marketing
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Site Selection

• How good is this location?
• The site perspective is a decision about a single
  piece of real estate and includes an evaluation
  of many site specific features such as
• Visibility
• Access
• Type of location
• Parking (6 spaces per 1,000 square feet)
• The trade area is also important to the site
  perspective because any site evaluation includes
  a trade area evaluation.

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Trade Area Analysis

• Trade Area Analysis
• Canada http//www.superdemographics.com/casestudy/
  caseTradeArea.html
• Example Spatial in Trade Area Analysishttp//www.
  spatialinsights.com/company/papers/segal19990817/d
  efault.aspx?content16

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Retail Trade Area Analysis
Figure 2a. Patronage probability model -
theoretical store trade area. Blue green
yellow red progression represents zones of
increasing patronage probability.
                                                  
                                                  
                                                  
                                                  
                                     

• Source Segal (1998) Retail Trade Area Analysis
  Concepts and New Approaches http//www.directionsm
  ag.com/features.php?feature_id5

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Retail Trade Area Analysis Drive Time
Figure 3b. Drive time analysis showing the
location of demographic samples. Blue dots
sample within a 10-minute drive. Green dots
sample within 5-mile radius, but outside
10-minute drive time polygon. Red colored dots
that fall within the 15-minute drive time polygon
represent demographics that would not be included
using a traditional 5-mile radius approach

• Source Segal (1998) Retail Trade Area Analysis
  Concepts and New Approaches http//www.directionsm
  ag.com/features.php?feature_id5

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Retail Trade Area Analysis
Trade area map - revenue concentration by block
groups blue green yellow red progression
from low to high revenue.

• Source Segal (1998) Retail Trade Area Analysis
  Concepts and New Approaches http//www.directionsm
  ag.com/features.php?feature_id5

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Site Modeling
Existing Site
Existing Site
Existing Site
Existing Site
Proposed Site
Existing Site
Existing Site

Use information about known sites to predict
performance of proposed sites
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Site Screening Models
Bad
Good
Bad
Good
Good or Bad?
Good
Bad

Tools to allow clients to quickly eliminate bad
sites from consideration, saving time, money and
effort.
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Site Potential Models
885K
1,200K
1,723K
1,922K
How Much?
1,490K
1,500K

Tools to predict actual results such as sales or
customers so further performance measures can be
implemented (i.e., return on investment).
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Site Type/Clustering Models
Type A
Type B
Type A
Type B
Type A or Type B?
Type B
Type A

Classifies sites into types to allow targeted
venues and marketing stategies
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Product/Merchandise Mix Models
What should the mix be?

Tools to quickly determine the optimal mix of
products to meet the needs of the market.
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Trade Area Models
15 miles
12 miles
5.5 miles
30 miles
How large or small?
1.2 miles
13 miles

Determine the expected area of influence
considering demographics, competition, business
climate, etc.
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HP Direct Email
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BMW Lead Generation program

• Five levels of customization

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The right creative presentation Albertson
College case study

• Albertson College (Idaho)
• Small liberal arts institution
• Nationally recognized academics 6 Rhode
  scholars, 2 governors as alumni.
• Convincing potential students of its value is not
  its biggest challenge. Greatest
  challenge reaching right student prospect with
  right message that motivates to enroll.

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The right creative Albertson College

• The small town location offered different
  advantages to different students.
• What creative differences are apparent? What
  geographic variable(s) could be used in deciding
  which creative to send to prospective student?

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Wheres your Most Critical Marketing Problem?
Customers Competitors
Customers Competitors
Positioning Product Price Channels
Target Market
Customers Competitors
Customers Competitors
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Questions and Takeaways

• What are the nagging questions?
• Write down
• Key takeaway for you and your business
• Specific action you can accomplish in the next
  week given what you learned