#15 Key Question: What is Geo-Targeting, and how does it support market success?

Geo-Targeting projects the complexity of the consumer market with its diverse buyer typologies onto geographical areas using address-based reference parameters such as houses and streets. By utilizing digital data, it becomes possible to define small-scale local market segments, such as residential neighborhoods, where homogeneous consumer groups with similar social backgrounds, needs, and purchasing behavior patterns reside. The local topographical segments can be defined or differentiated based on the following information, for example:

1. Local market volume (e.g., population, households, purchasing power)
2. Physiological and psychological characteristics of target groups
3. Area typology: building structures, public services, infrastructure
4. Distribution forms, density, and structure
5. Presence of providers and competition

Geo-Targeting leads to localized market transparency, enabling targeted and specific alignment of marketing instruments to the target groups living in each geographical cluster while considering the existing market and living conditions. This includes:

1. Sales: Precise development of physical sales locations; cost-optimized retailer support
2. Product offerings: Local differentiation, such as varying assortment priorities, revenue-optimized usage-driven pricing structures
3. Marketing communication: Target group-specific, optimized reach, reduced scatter loss

All in all, Geo-Targeting supports value creation in market development through a focused customer-centric market approach with high efficiency, reduced cost and investment risks, and agile control. Furthermore, by multiplying the Geo-Targeting strategy in comprehensive market penetration, the experiences gained from already developed localized target group markets can be leveraged for the optimization of future local target markets.