Part C Effective Marketing for your SME with GIS: Customer and Competitive Analysis Brief Participant Summary Who’s the focus of your business? What’s 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? What’s the key takeaway for you? What one action will you take in the next week?

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? What’s your most critical customer related marketing problem? –Segmentation, Targeting? –Positioning –Product, Pricing –Channel Distribution Marketing Communication

“Where’s” your Most Critical Marketing Problem? Implementing Implementing ChoosingDeciding Controlling Understanding Knowledge of CustomersCompetitors PositioningProductPriceChannels CustomersCompetitors CustomersCompetitors CustomersCompetitors

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) Houldsworthhttp://

Customer Behavior and Location CustomerLocationCustomerLocation Preferences Behaviors Attitudes Interests Needs Product Offerings, Price Sensitivity Distribution Channel, Distribution Channel, Marketing Communication,

“Where’s” your Most Critical Marketing Problem? ChoosingDeciding Understanding Knowledge of CustomersCompetitors CustomersCompetitors

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

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

More factfinder maps Prepared w/ American Factfiner

“Where’s” your Most Critical Marketing Problem? ChoosingDeciding Understanding Knowledge of CustomersCompetitors PositioningProductPriceChannels CustomersCompetitors

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.

Trade Area Analysis Canada tudy/caseTradeArea.html tudy/caseTradeArea.html Example Spatial in Trade Area Analysis apers/segal /default.aspx?conten t=16 apers/segal /default.aspx?conten t=16

Retail Trade Area Analysis Source: Segal (1998) Retail Trade Area Analysis: Concepts and New Approaches Figure 2a. Patronage probability model - theoretical store trade area. Blue – green – yellow – red progression represents zones of increasing patronage probability.

Retail Trade Area Analysis: Drive Time Source: Segal (1998) Retail Trade Area Analysis: Concepts and New Approaches 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

Retail Trade Area Analysis Source: Segal (1998) Retail Trade Area Analysis: Concepts and New Approaches Trade area map - revenue concentration by block groups Trade area map - revenue concentration by block groups blue – green – yellow – red = progression from low to high revenue.

Site Modeling Existing Site Proposed Site Use information about known sites to predict performance of proposed sites Existing Site Existing Site Existing Site Existing Site Existing Site

Site Screening Models Good Bad Good or Bad? Tools to allow clients to quickly eliminate bad sites from consideration, saving time, money and effort. Good

Site Potential Models 1,200K $885K $1,723K $1,500K How Much? $1,490K $1,922K Tools to predict actual results such as sales or customers so further performance measures can be implemented (i.e., return on investment).

Site Type/Clustering Models Type B Type A Type A or Type B? Classifies sites into “types” to allow targeted venues and marketing stategies Type B

Product/Merchandise Mix Models Tools to quickly determine the optimal mix of products to meet the needs of the market. What should the mix be?

Trade Area Models 15 miles 30 miles 5.5 miles 12 miles How large or small? Determine the expected area of influence considering demographics, competition, business climate, etc. 13 miles 1.2 miles

HP Direct

BMW Lead Generation program Five levels of customization

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.

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?

“Where’s” your Most Critical Marketing Problem? Implementation ImplementationPlanningControl Analysis CustomersCompetitors PositioningProductPriceChannels CustomersCompetitors CustomersCompetitors CustomersCompetitors

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