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Location-Based Marketing Presentation
Transcript of Location-Based Marketing Presentation
1.75 Billion People around the World Use Smartphones!
Mobile Usage Stats (LBS)
LBM is a form of direct marketing and can be used for sales promotions = efficient for maturity stage of product life cycle
Increased levels of consumer engagement by delivering information and coupons to consumers at the right place and the right time to increase sales
Check-ins on Foursquare and Facebook promote locations to friends and increase buzz marketing
LBM adds value to consumers by offering coupons and discounts, and businesses must develop a pricing strategy that accommodates this
This new trend has allowed business to set competitive prices for their products to attract customers
Charging a high price can make businesses lose sales, use demographic information to determine income of target market
Information from consumer preferences help businesses to develop and deliver the best service and products
Increase in customer satisfaction when consumers receive coupons for their desired product or service
Modify the market (find new users or increase use) or modify the product (alter product to make it appealing)
Impact on Promotion :
Impact on Price:
Impact on Product:
What is location-based marketing?
Benefits of LBM
It is a marketing method that adapts to the customers' location and can provide them with information based on their location, messages about offers, deals or incentives for location-based activities delivered directly to their mobile devices, and the opportunity to share their location via social network.
- Easy to get insights on customers'
- Efficient in rewarding loyal customers
- Subway restaurant example
Impact on Place:
By sending information to consumers based on their interests and where they are located, the messages will be more relevant and useful
Direct and simple way to reach customers at their exact geographic location
Information such as user check-ins, preferences, and demographics are taken into account
Alerts users to new store locations or product availability to increase traffic to these businesses
50% of consumers feel comfortable making a large purchase in-store if Wi-Fi access is available, 91% of adult mobile phone owners have their devices within arm’s reach 24/7.
Google Wallet - stores credit cards, debit cards, loyalty cards offers and more. It allows shopping online and in stores, as well as sending money through email.
Digital signs - they are cost-effective and can accommodate multiple advertisers. Digital signs also utilizes touch-screen technology to allow for coupons to be printed.
LBM helps increase revenues by closely interacting with consumers based on location and finds ways to satisfy them.
The North American LBS market is expected to have a growth rate of 16.1% from 1.8 Billion USD to 3.8 Billion USD between 2013 to 2018.
LBS are expected to generate 10 billion dollars in revenue from consumers and advertisers by 2016. More than 50% of this revenue will come from location-based search advertising.
Consumers can use LBS to spend their disposable incomes more wisely by searching nearby locations for the best deals on products and obtain coupons and information on promotions and discounts.
The rapid increase of smartphone-related services has raises a few concerns regarding online privacy.
Majority of mobile users feel uncomfortable with personal data being collected by applications and shared with third parties for promotional purposes.
Laws such as The Privacy Act and the Personal Information Protection and Electronic Documents Act (PIPEDA) have been enacted to protect consumers’ rights to privacy regarding personal information.
As smartphones and applications advance and more personal data collected and stored in databases, more regulatory forces will be needed to protect consumers.
Improving the Business Using LBM
using social media to manage customer interactions and form positive relationships
information from consumers used in databases to determine demographics and keep track of their customers, adjusting their target market if necessary
make the shopping experience more personal and rewards loyal customers through promotions and coupons
digital signs can be updated quickly to show relevant information, promoting at the most appropriate times
Risks and Challenges
not everyone uses smartphones to shop, limiting or excluding a portion of the market
issues concerning privacy may have consumers reluctant to use this technology
mobile information needs to be sent at the right time when convenient for the consumer
businesses without a physical location will have difficulty implementing this strategy
Advertisers can serve customers better and also obtain information about their competition more conveniently.
Businesses can find out which companies in their location are successful through the use of social media, online reviews, etc.
Advertisers can monitor consumer shopping habits, such as what products they buy the most, and their preferred shopping locations.
The high level of competition caused by LBM increases stability in mature markets and help advertisers find more efficient ways of penetrating the market.
Through the use of LBM, businesses are able to communicate directly with consumers, mainly through smart phones, and present them with relevant information and offers that can persuade these consumers to shop at their businesses. Social media check-ins and other technology like digital signs are also useful promotional tools.
"The hardest part of marketing isn't coming up with new ways to change the consumer experiences -- it's coming up with new and practical ways to make it better" - Michael Caccavale
Social forces - demographic characteristics of the population and its values. LBM can influence consumers through social media sites like Facebook and Foursquare.
LBM uses demographic information, such as gender, age, and geographic location, to send more personalized and useful information to smartphones and other similar devices.
LBM makes excellent use of demographic information to help businesses custom tailor their marketing efforts to a specific audience within a geographical location and promote their products and services to specific individuals.
LBM was impossible 15 yrs ago
Palm VII Mobile Devices in 1999
AT & T "Go2 Mobile" in 2002
LBS expanded with social media