Area marketing is a measure to expand the market and improve corporate performance.
In theory, it is efficient to carry out marketing by narrowing down the area targets, but in reality, it needs to be backed up and determined by market analysis.
This time, we will focus on area marketing and explain its concepts and strategies.
What is area marketing?
Area marketing is a method of developing business by narrowing down the area.
For this purpose, an analysis of the target area is required.
Area marketing analysis requires a comprehensive analysis of the target area, a trade area analysis to determine whether your company’s business is viable, and a determination of whether your company can produce results by expanding into the area.
Determining which area to do business in
To start area marketing, you need comprehensive information about the area.
Census data is often used for area analysis.
The National Census is conducted by the Statistics Bureau of the Ministry of Internal Affairs and Communications every five years, changing the survey items and surveying Japan’s population, households, industrial structure, etc.
Census data can help you find out which areas are suitable for your business or provide basic information about the areas you are considering setting up your business.
We also request research and analysis from companies that specialize in area analysis, and also refer to analysis materials published by companies that conduct area analysis.
Trade area analysis
In BtoB marketing, in addition to basic area information, information such as the number of establishments and company size of the client’s industry is also required.
“Trade area analysis” is the process of finding out which areas are suitable for your business based on data, and specifically analyzing the areas where you are considering expanding your business.
In some cases, “trade area analysis” involves dropping information onto an actual map.
Will you have your own physical store, or will you set up an area for your sales staff to conduct sales? The market volume of your target client, the location of your business office, the location of your physical store and the area where your sales staff will operate, and your competitors. By plotting physical store locations on a real map, it is expected that the overall picture of the market will emerge visually.
The following three steps are examples of procedures for trade area analysis.
① Clarify your company’s commercial area in the target area
For area marketing, if your company is already doing business in an area, you need to understand the location and size of your business partners, the scope of activities of your sales staff, etc.
If you are expanding into an area where your company does not have any business, consider the location and size of your target company to determine your desired future business area.
② Further analyze the trade area information of the target area
Once the data that your company knows has been organized and clarified, use census data and data from companies that specialize in area analysis to numerically aggregate information on trade areas. I’m going.
③ Utilize and share the results of trade area analysis in area marketing
The results of the trade area analysis are summarized as data that can be used in area marketing, such as whether the area is suitable for the company’s business or whether it is an area that should be considered for business expansion. Make and share reports and suggestions.
Analysis of whether you can achieve results by expanding your business
It is important whether or not you can achieve results by applying area marketing to the area where you have conducted the trade area analysis.
In order to reduce the probability of failure as much as possible, it is common to conduct a trade area analysis on multiple area candidates to determine the optimal area.
If you are opening a physical store, there will be access issues, and if you are adding it to the sales area of a salesperson, information such as traffic conditions will be necessary information.
Additionally, information about your competitors in your target area is also important.
Area marketing strategy
“Trade area analysis”, which determines which area to set up business in, is the basis of area marketing strategy.
Area marketing strategies based on trade area analysis include the following four points.
1.Forecasting sales, demand, etc.
By conducting area marketing in the areas that have come up as candidates for trade area analysis, you can predict how much sales your company will receive and how much demand your company’s products and services will have in the area. , plan goals and set action goals.
2.Sales promotion
In areas where area marketing will be carried out, sales staff will conduct sales intensively and conduct area-specific advertising.
3.Customer company measures
We analyze our own clients in the area, improve the quality of client services, and strengthen support for excellent clients.
4.Sales support
In areas where area marketing is carried out, we optimize and subdivide the territories in which we are responsible so that sales staff can carry out efficient and optimal activities.
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summary
◆Area marketing is a method of developing business by narrowing down the area.
◆To start area marketing, comprehensive information about the area is necessary.
◆The process of finding out which areas are suitable for your business based on data and specifically analyzing the areas where you are considering expanding your business is called “trade area analysis.”
◆ Examples of steps for trade area analysis include “clarify your company’s trade area in the target area”, “further analyze the trade area information in the target area”, and “utilize and share the results of the trade area analysis for area marketing”.
◆Area marketing strategies include “forecasting sales and demand,” “sales promotion,” “customer company measures,” and “sales support.”