Geomarketing: A New Concept or an Applied Business Tool?

Abstract

This study discusses the issues involved in the application of geomarketing as a decision-making tool for establishing or expanding a business. The development directions of the marketing mix concept with the modification of “the place” tool are offered. Several factors (i.e., geographical and marketing) used for analysis in conducting geomarketing research are de-scribed as well. A matrix grouping is presented as a comparative analysis of the most common geomarketing models, while their capabilities and limitations are highlighted. A methodical approach to conducting geomarketing research is developed, including a model for determining the probability of a client visiting a particular place (real estate object). Conclusions on the possibilities of using geomarketing for forming real estate objects from available locations for lease (purchase) and choice of the optimal variant are formulated. Results of authoring approbation are presented by the example of selecting a place for opening the city’s new barbershop.