A map is worth a thousand words: a Geomarketing business application

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1 A map is worth a thousand words: a Geomarketing business application Nunatac: A. Saccardi, M. Tosi Il Gruppo 24 ORE: P.Vigliercio, A.Carrassi

2 The company The 24 ORE Group is a multimedia publishing company specialized in business, financial, professional and cultural information. It operates through various means and channels: standard newspapers, specialized and professional publications, press agency, training activities, seminars, conferences, radio, cable tv, financial products, Internet. Its most popular and best-selling newspaper is Il Sole 24 ORE, the business daily with the highest circulation in Europe, leader in business, financial and regulatory information and key driver of the high brand profile of the Group's operations as a whole. NUNATAC was formed at the beginning of 1994 in response to a specific need in the market: the computerisation of organisations produces an increasing quantity of data. The fundamental challenge for competitiveness is to transform the detailed mass of numbers in strategic information. NUNATAC is a Silver European Quality Partner of the SAS Institute.

3 Objectives What is the distribution of customers and prospects? Where is the concentration of targeted customers? Therefore, where can an immediate growth develop? Do points of attraction exist? These and many more business-related questions can be answered efficiently and graphically by means of Geomarketing tools. Territorial analyses give an overview of the market organization within the context of existing sales structures. We present a territorial analysis concerning the estimation of territorial potential sales growth of the economic newspaper Il Sole 24 ORE. The newspaper is a helpful tool for a thorough and complete analysis of the major Italian and international events regarding politics, economy, legislation and financial markets. It provides useful information and guidelines to professionals, companies and households. We stress the importance of performing territory planning through a goaloriented collection of smaller geographical units in higher territorial units in order to provide the market with the best possible sales performances.

4 Methodology & Tools Geographical Information Systems (GIS) take into account company-owned data as well as population and economic data that have all a spatial component which can be displayed and analysed by means of digital maps. The analysis was carried out within a test area and was eventually spread all across the country. The tools that have been used are SAS Base and SAS Guide for company data mining and ArcGIS Desktop for cartography purposes. Analytical steps: In order to make a choice of the test area a cluster analysis of the Italian provinces has been carried out following territorial factors like population density, urban developments, accommodation venues, banks, etc. Definition of the primary and secondary targets Attribution of the targets to both customers and prospects in the DB Identification of the points of attraction Collection of data of the overall sales related to each retailer (newsagents) Collection of outside structural data which refer to the micro-territory (i.e. segments of the population like age groups, education levels, etc.) Georeference Simulation of service areas

5 Results GIS makes it easier for sales and marketing staff to make a decision through its visual appeal and expressiveness. The set up of the service areas enabled us to build up a geographical-oriented data mart with a wide range of Key Performance Indicators (KPI) through which it was possible, for example to segment the areas to quantify and compare the potential of the different targets with regard to their concentration and coverage

6 Results The visualization of company data could spot relationships that would otherwise go unnoticed. to assess the impact of the points of attraction on the sales related to their density and average distance between points of attraction and retailers to carry out ad hoc analysis (i.e. special focus on banks)

7 Benefits Geomarketing provides a comprehensive and insightful overview of the relevant factors of a company s structure and business operations. Geomarketing enables us to define more accurate and measurable sales and marketing strategies in terms of micro-territory. It is a crucial component for success in businesses of all sizes and types. It allows companies to optimize their market, minimize risk and realize untapped potential. MELISSA.TOSI@NUNATAC.IT ALBERTO.SACCARDI@NUNATAC.IT Via Crocefisso Milano, Italy Tel. (+39) Fax (+39)