Location-Based Marketing. Gérard Cliquet

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      Spatial Marketing and Geomarketing

      The terms “spatial marketing” and “geomarketing” call for the following questions:

       – What is space?

       – Why introduce space in marketing in an almost systematic, if not systemic way?

       – Why expand the already vast field of geomarketing?

      What is space? The recent French “yellow vest” crisis has shown how much making decisions without taking into account space or, as we now say, territories, can lead decision-makers to provoke reactions that are then very difficult to manage. Can we say that this “yellow vest” crisis invokes “geography is destiny”, as the American thriller writer James Ellroy likes to talk about? Making decisions today, either for private or public institutions without caring deeply about local issues can lead to a profound crisis. Everybody is not supposed to be mobile as expected.

      Defining space and quickly understanding the consequences of these decisions on the “territories” for which we are responsible, whether at the level of a State or a company, are today prerequisites for good management of the organization for which we are responsible. However, the principle of subsidiarity (Martini and Spataro 2018) had been defined at the European level in the 1980s: “a central authority can only carry out tasks that cannot be carried out at a lower level” or “the responsibility for public action, when necessary, lies with the competent entity closest to those directly concerned by this action”, a recommendation that most companies cannot deny today. This principle has even been associated with the sustainable nature of economic activity in particular (Gussen 2015).

Why introduce space into marketing in an almost systematic, if not systemic, way? The reason is not only the need to localize all market characteristics (Rigby and Vishwanath 2006): customers, suppliers, points of sale, logistics and many other aspects revealed in this book. Even technological change requires us to take into account geographical space. The almost systematic use of GPS (Global Positioning System) and soon of the European Galileo system, is becoming increasingly present and is forcing all actors, suppliers and demanders as well as market facilitators to introduce spatial considerations into their reasoning, decisions and actions. The term systemic can also be used insofar as, if the company is considered as a system, it must now adapt as well as possible to its environment, whether for economic or environmental, or even social and cultural reasons.

      Why expand the already vast field of geomarketing? In fact, this term was coined in France by the professional world when eponymous software spread to companies and local authorities; the technical dimension is therefore strong.

Wikipedia gives this definition: “Geomarketing is the branch of marketing that consists of analyzing the behavior of economic individuals taking into account the notions of space.”¹ And the same source confirms this technical side:

      Geomarketing is present in various applications, such as studies of trading areas, store location studies, potential studies, sectorization, optimization of direct marketing resources (phoning, ISA, direct mail, etc.), network optimization, etc. Geomarketing frequently uses Geographic Information Systems (GIS) to process geographic data using computer tools.

      Wikipedia also reports that

      English speakers use the term Location Business Intelligence (or geo-business intelligence), which is more appropriate when the approach concerns marketing; but the discipline also applies to territory development in the context of socio-economic studies.

      In local authorities, geomarketing has become an essential tool for the development of their territorial marketing for the management of public spaces from a social, economic or tourist perspective. But reducing geomarketing to location choices undoubtedly limits what will be the common thread of this book: the introduction of space into marketing decisions regardless of the sector of activity.

The objective of this book is therefore to broaden this field in a strategic perspective while addressing the main technical aspects of geomarketing in relation to the elements of the marketing mix for all companies. It will therefore take into account the specificities of sectors such as retailing, services and technology.

      While mapping is certainly helpful, it is not the only means available to decision makers. The accelerated development of mobile marketing thanks to the rapid spread of smartphones reinforces the need to expand the field of geomarketing; indeed, can we imagine a smartphone without GPS? And even if the geolocation of smartphone owners poses legal problems, it is essential and many techniques have been developed to refine the accuracy of its geographical location.

      Tracing a future perspective on the use of space in marketing decisions requires studying the historical trajectory of this idea. And even if it is possible to go even further back in the history of thought, as we will see, authors such as von Thünen, Hotelling, Reilly, Christaller, etc., in the 19th Century and in the first half of the 20th Century, whether economists or geographers, were able to trigger “spatial reflection”. This chapter, after a few definitions, traces the consideration of space in order to understand where the fields of geomarketing and spatial marketing come from before better understanding them.

1.1. Defining space

      Space has long been reduced to a mathematical notion: “a geometric concept, that of an empty environment” (Fischer 1981). Today we talk about social space, and the space treated here is in fact the market. But before coming to this notion, it is important to clearly identify all the variants of this concept of space. We talk a lot about territory, about countries (within a country in the sense of a nation) and about “spatial surface”. A space can be defined both in geographical terms and in relational terms (Duan et al. 2018), or even in historical or political terms (Paquot 2011). We then have a better understanding of the polysemy surrounding the notion of space. Space would be “a place, a reference point, more or less delimited, where something can be located, where an event can occur and where an activity can take place” (Fischer 1981), but to which it would be appropriate, in order to conceptualize it, to associate all the spatial practices of individuals (Lefebvre 2000) thus showing the close relationship between individuals and space (Fischer 1997). However, this relationship is currently undergoing major upheavals due on the one hand to societal changes (Levy 1996; Oliveau 2011) and on the other hand to extremely rapid technological change.

The territory has received several definitions resulting from two different meanings: a first one defines a territory as a place where a population resides, while a second one, more precise and legal, not to say more political, considers the territory as a place where power is exercised that can be justly political or judicial (Paquot 2011).

      From these two meanings, definitions will be added that are increasingly out of step with each other. This drift may also explain some misunderstandings, with the State preferring to put forward the second meaning, favoring time over geographical space in order to establish its domination, when the people understand the first one which prefers living space over the time of power. It is then easier to understand why historians and geographers do not necessarily speak the same language when describing territories.

      A country is a French administrative category defined by the law of February 4, 1995, on guidance for spatial planning and development (LOADT), known as the Pasqua law, and reinforced by the LOADDT (known as the Voynet law) of June 25, 1999. But it is now prohibited to create new countries (article 51 of law no. 2010-1563 of December 16, 2010, on the reform of local authorities). A country is defined as follows:

      A territory that presents a geographical, economic, cultural or social cohesion, on the scale of a living or employment area in order to express the community of economic, cultural and social interests