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The terms “spatial marketing” and “geomarketing” call for the following questions:

 – What is space?

 – Why introduce space in marketing in an almost systematic, if not systemic way?

 – Why expand the already vast field of geomarketing?

What is space? The recent French “yellow vest” crisis has shown how much making decisions without taking into account space or, as we now say, territories, can lead decision-makers to provoke reactions that are then very difficult to manage. Can we say that this “yellow vest” crisis invokes “geography is destiny”, as the American thriller writer James Ellroy likes to talk about? Making decisions today, either for private or public institutions without caring deeply about local issues can lead to a profound crisis. Everybody is not supposed to be mobile as expected.

Defining space and quickly understanding the consequences of these decisions on the “territories” for which we are responsible, whether at the level of a State or a company, are today prerequisites for good management of the organization for which we are responsible. However, the principle of subsidiarity (Martini and Spataro 2018) had been defined at the European level in the 1980s: “a central authority can only carry out tasks that cannot be carried out at a lower level” or “the responsibility for public action, when necessary, lies with the competent entity closest to those directly concerned by this action”, a recommendation that most companies cannot deny today. This principle has even been associated with the sustainable nature of economic activity in particular (Gussen 2015).

Why introduce space into marketing in an almost systematic, if not systemic, way? The reason is not only the need to localize all market characteristics (Rigby and Vishwanath 2006): customers, suppliers, points of sale, logistics and many other aspects revealed in this book. Even technological change requires us to take into account geographical space. The almost systematic use of GPS (Global Positioning System) and soon of the European Galileo system, is becoming increasingly present and is forcing all actors, suppliers and demanders as well as market facilitators to introduce spatial considerations into their reasoning, decisions and actions. The term systemic can also be used insofar as, if the company is considered as a system, it must now adapt as well as possible to its environment, whether for economic or environmental, or even social and cultural reasons.

Why expand the already vast field of geomarketing? In fact, this term was coined in France by the professional world when eponymous software spread to companies and local authorities; the technical dimension is therefore strong.

Wikipedia gives this definition: “Geomarketing is the branch of marketing that consists of analyzing the behavior of economic individuals taking into account the notions of space.”¹ And the same source confirms this technical side:

Geomarketing is present in various applications, such as studies of trading areas, store location studies, potential studies, sectorization, optimization of direct marketing resources (phoning, ISA, direct mail, etc.), network optimization, etc. Geomarketing frequently uses Geographic Information Systems (GIS) to process geographic data using computer tools.

Wikipedia also reports that

English speakers use the term Location Business Intelligence (or geo-business intelligence), which is more appropriate when the approach concerns marketing; but the discipline also applies to territory development in the context of socio-economic studies.

In local authorities, geomarketing has become an essential tool for the development of their territorial marketing for the management of public spaces from a social, economic or tourist perspective. But reducing geomarketing to location choices undoubtedly limits what will be the common thread of this book: the introduction of space into marketing decisions regardless of the sector of activity.

The objective of this book is therefore to broaden this field in a strategic perspective while addressing the main technical aspects of geomarketing in relation to the elements of the marketing mix for all companies. It will therefore take into account the specificities of sectors such as retailing, services and technology.

While mapping is certainly helpful, it is not the only means available to decision makers. The accelerated development of mobile marketing thanks to the rapid spread of smartphones reinforces the need to expand the field of geomarketing; indeed, can we imagine a smartphone without GPS? And even if the geolocation of smartphone owners poses legal problems, it is essential and many techniques have been developed to refine the accuracy of its geographical location.

Tracing a future perspective on the use of space in marketing decisions requires studying the historical trajectory of this idea. And even if it is possible to go even further back in the history of thought, as we will see, authors such as von Thünen, Hotelling, Reilly, Christaller, etc., in the 19th Century and in the first half of the 20th Century, whether economists or geographers, were able to trigger “spatial reflection”. This chapter, after a few definitions, traces the consideration of space in order to understand where the fields of geomarketing and spatial marketing come from before better understanding them.