What is Geomarketing?


Geomarketing is still not well defined by specialized literature. Wikipedia™ for example, shows different definitions according to the country and author (s). The Brazilian page defines Geomarketing as a “marketing approach”. Otherwise, the U.S. page describes it as “integration between marketing and geographic intelligence.” Some people suggest that Geomarketing is a special tool for marketing research, or even a collection of information. By the way, is Geomarketing a tool, a set of information, or an analysis methodology?

Cognatis considers that Geomarketing is any process of generating market intelligence where spatial context is essential for the result. Thus, Geomarketing can be a tool, a set of information, an analytical approach or any combination of them, provided that they serve marketing purposes and use a geographic approach. Let’s see a few examples:

  1. Expansion studies for a POS network: These studies aim to inform investors of the potential return and risks related to the opening of a new POS. One of the important questions is whether there is enough potential for consumption in a region to open a new unit. The response mostly depends on the characteristics of the area (spatial context), such as volume and profile of the consumers and local competitors. Geomarketing can answer this question by combining specific information, tools and analysis methods together.
  2. POS Segmentation: The objective here is to classify POSs according to the specific characteristics of the local markets. This way, POS located (geographical context) in regions with similar market characteristics will be grouped together. Note that such study may not use GIS (geographic information systems) tools, but is very likely to use statistical analysis tools. Therefore, what turns this analysis into a Geomarketing study is not the methodology or technology employed but the fact of addressing a marketing issue (to classify POS by market potential) with a geographical approach.

Several other examples can be found in this website. However, it is important to remember that Geomarketing is dynamic; it is not a method or a tool to be purchased in the market. Geomarketing is any way to solve marketing issues that depend on the geographical context considered. At Cognatis, we learn every day, with each new client, another way to put this concept in practice.