FAQ

Geo(Area) Marketing

What is Geo(Area) Marketing?

It is about understanding the characteristics of the area and implementing an appropriate store
opening strategy and sales strategy.
Simply put, it is to find out where the customer (target) is, open a store in that area, and distribute flyers.

What is GIS?

GIS is an abbreviation of Geographic Information System.
It is a system that analyzes location data and spatial data etc. and expresses it on a map.
Most familiar application of GIS is Internet map services and car navigation systems.
In addition, it is used for infrastructure management such as electricity, gas, water supply and city planning.

What is Geo(Area) Marketing GIS?

It is a system specialized in Geo marketing and trade area analysis in GIS.
You can analyze potential locations, analyze existing and competing stores, optimize the distribution area for flyers, import customer data into a map, and easily analyze customer data.

What is Polygon?

Three-dimensional computer graphics, used to represent solid shapes.
In GIS (geographic information system), when mapping statistical data such as CENSUS and customer data to GIS, it becomes a unit to summarize data (so-called “container” of data).
There are roughly 2 kinds of unit.
There are an administrative boundary division and a grid division.

What is Administrative boundary?

Section defined as range of authority of administrative agency.
As a basic configuration, a municipality is placed under the prefecture, and under that municipality, it will be further subdivided.

What is Grid?

It is data that we maintained in section (grid) unit that divided area into square.
In order to use for statistics, it divides the area into grid of approximately the same size based on the latitude and longitude.

What is 500m grid?

In areas where the area of ​​the smalleset subdivison is large, 500m grid data is effective to determine the population density.
It is data that we maintained in section (grid) unit that divided area into 500m square.

What is Landmark?

Literal translation means “marks of land”.
In general, it often refers to targets and facilities, and TerraMap holds approximately 1.6 million points in approximately 50 categories.

What is trade area (Target Area)?

It refers to the geographical range affected by stores and commercial establishments.
You can think of how far you can get customers from the store.
Generally, the larger the store, the larger the market area, and the smaller the store, the smaller the market area.
In urban areas with a large population, it is said that small supermarkets can be reached on foot or by bicycle, and convenience stores are several hundred meters away.
The market area tends to be larger in the suburbs and regions.
In TerraMap Thailand, business area is called Target Area.

What is trade area analysis?

It is to analyze the characteristics of the trade area based on the data of population, household, family form, etc. in the trade area.
The analysis results are used for store opening strategy and sales strategy.

What can you do with Area Marketing GIS?

For example, it is possible to display and analyze on the map the population and number of households in the trading area with a radius of 1km, centering on your own store.
You can also extract areas with many women in their twenties and areas with many family households.
In addition to analysis using circles, it is also possible to analyze free-form trading areas taking into account trunk roads and rivers, trading areas that can be reached within 10 minutes by car, and trading areas along roads and routes.
You can also import customer data to view customer distribution or view graphs.

What can you use Geo( Area) Marketing GIS for?

「Store Development」
You can find out the volume of the trade area of ​​the potential location, analyze competitors, and verify the dominant strategy.

「Sales Promotion」
Mainly used to optimize the flyer distribution area.
Find out areas with many target age groups and family types, etc., and increase the response rate of flyers.
It is also used for response analysis after flyer distribution, and helps to establish the PDCA cycle.

「Customer Data Analysis」
It is possible to analyze customer distribution and area share ratio by importing member data and data such as POS system.
Imported customer data can be used not only for customer distribution but also for individual home visits and route sales.

「Other」
It is also used as a proposal tool for acquiring new customers by advertising agencies and printing companies.

What is Market share?

The ratio of sales of a particular company’s products to the sales of a certain industry within a specific period of time.
A value representing how much the market has been obtained in a specific area.
It is said that customer penetration and market penetration are also synonymous.
Market share is also called share and can be calculated using the following equation.
Market share = number of products or number of customers / number of targets × 100
The number of targets (number of mothers) changes each time depending on the services and goods provided, including the population, the number of households, and men in the early 20s.
POS data can be used to map product data and customer data to maps, and market share can be calculated for each region.
By coloring the map with that value, you can see areas with high market penetration and areas with low market penetration.

What is Cannibalization?

The same company compete for sales and profits.
It means cannibalism.
This refers to the case where sales and customers compete by having similar business style stores or stores of the same brand operated by the same company in the same trade area.
It tends to happen when there is a process of new business development or M&A of a company.

What is Scrap and build?

Organize and dispose of unprofitable and inefficient departments or old equipment, etc., and establish new departments and equipment.
In chain development stores, it refers to the opening of new stores in areas where sales can be expected by closing the deficit stores and unprofitable stores.

What is Shopping goods?

A product that a consumer purchases after considering price, quality, design, etc.
Specific examples are clothes, computers and home appliances.

What is Convenience goods?

A product that you often purchase at a nearby retail store.
Specific examples are daily necessities, tissue paper, newspaper, tobacco, drinking water and so on.

What is Store opening analysis?

In order to open a store, investigate the regional characteristics around the potential site.
When opening a store, it is necessary to select the property that is most likely to sell from some of the potential properties.
When forecasting the sales, it is necessary to forecast the number of customers and sales in the future after accurately grasping the trade area of ​​the potential property.

What is Actual trading area?

The area where customers are actually present.
By importing point cards, POS systems, membership lists, etc. into a map, you can see where the customer is actually located.

What is Dominant strategy?

One of the commercial strategies to improve popularity and delivery efficiency.
A commercial strategy that aims to become an advantage over competitors by chain stores such as food and drink and retailers opening stores in a specific area, raising awareness and streamlining delivery.

What is Daytime Population?

The daytime population = Total population of CENSUS (population living in the area)-Population to commute to other areas (outgoing population) +Population (inflowing population) who commutes to the area from other areas
It is particulalry important data for analysis in downtown and business district.

What is Income Data?

High-earning households are important targets in the trading area.
This data is active not only in high-priced markets such as real estate and cars, but also in various markets such as retail, food, service and schools.

Thailand data

■About National CENSUS
The National Thai CENSUS is conducted every 10 years and last one was in 2010.
The response rate is 99%. All persons of any nationality are eligible for the survey.
People of foreign nationality are subject to the survey if they have been in Thailand for more than 3 months on the survey date.

What is the Thai population of Thailand?

Population and Housing Census 2010 : Approx. 63 million people
Tabien baan 2019 : Approx. 66 million people

What is the Thai population of Bangkok?

Population and Housing Census 2010 : Approx. 7.6 million people
Tabien baan 2019 : Approx. 5.6 million people

How many foreigners living in Thailand?

Population and Housing Census 2010 : Approx. 2.6 million people among all foreigners, CLM : 1.8 million people

*CLM (migrant foreigner) : Cambodia, Laos, and Myanmar

How many foreigners living in Bangkok?

Population and Housing Census 2010 : Approx. 700,000 people among all foreigners, CLM : 340,000 people

*CLM (migrant foreigner) : Cambodia, Laos, and Myanmar

In which area do migrant foreigners live more?

1st:BANGKOK
2nd:SAMUT SAKHON
3rd:SAMUT PRAKAN

*CLM nationality is defined as a migrant foreigner. From 2010 Population and Housing Census.

What is the administrative division of Thailand?

Thailand’s administrative boundaries are set up in the following order:province (Changwat), county (Amphoe), village terminal administration district (Tambol), and village (Muban).
Bangkok is a special administrative area and boundaries are the district (Khet) and the last administrative district (Khwaeng).
In TerraMap, Province (Changwat), District (Amphoe, Khet) and Sub District (Tambol, Khwaeng) are used.
If the area is large for analysis, please consider using a 500m grid.