Geocommerce – What is it, definition and concept | 2022

Geocommerce is a new discipline with enormous potential that provides information for companies to make business decisions based on spatial or geographic variables.

In other words, for organizations to make more effective business decisions, they use the geographical position of their customers and their markets as a basis. That way, it is easier to determine where the company’s outlets and branches can be located.

Indeed, it is a new concept that focuses on conducting studies that provide geographic information, which serve as support for making more effective and profitable business decisions. For that reason, companies that operate in geographical markets that are very large are the ones that use geocommerce the most.

Important terms to understand geocommerce

The word geocommerce is made up of two terms: the prefix geo and the word commerce. For this reason, to better understand its definition, it is important to define each of the terms separately:

1. Geo

To begin with, the term geo is basically a prefix that refers to the earth and everything that has any relation to it.

2. Trade

For its part, the term trade is the exchange of goods and services. Also, it could be considered as the process of buying and selling goods and services. Of course, it is considered as an economic activity.

3. Geocommerce

Now, when we put both terms together we could say that it refers to the process of exchanging goods and services throughout the earth. Or the process of buying and selling goods and services throughout the space of the earth.

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Effectively, this implies that marketing throughout the entire planet requires very well-structured coordination and logistics. Above all, in the processes of production, distribution and consumption of goods and services. This also involves the transfer of property rights.

Similarly, geocommerce allows you to locate potential customers who want or need your products. This, with the purpose of focusing all its marketing strategies based on the consumer, including the product, price, communication and distribution strategy to better satisfy the user’s needs.

Additionally, geocommerce makes it possible to satisfy large markets located anywhere on earth and obtain large levels of profits or profits.

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Important terms to understand

How is the geocommerce process carried out?

First of all, the first thing to do is make a map of the area you are interested in knowing. In this map the most important points of the studied area are identified. Among some of the important points that can be identified are:

1. Customer location

Naturally, any company is interested in prospecting new customers. The mapping allows an adequate identification and location of potential potential customers. A potential customer is one who hopes to solve a need with the good or service that the company sells.

In the same way, the location of customers is a key factor in achieving the commercial success of a company, since it helps to plan concrete actions that focus on better satisfying customer needs.

2. Perform a geocode

Undoubtedly, the geocoding process transforms the addresses into coordinates that allow the location in a real point on the earth’s surface. In other words, geocoding converts data into a format that is compatible with geographic location.

3. Get location data

Location data is known as geospatial data. These data provide information that is related to the objects that are present in a geographic space. Here you can define specific localization areas that a company is interested in. With the help of technology it is very easy to do this location and location process.

4. Plan logistics

On the other hand, logistics planning will add value to the customer and increase the efficiency of the company. This, given that it allows to improve the processes of storage, distribution, inventory management and, in general, the control of the company’s products.

GeoCommerce 2
What is the mapping for?

How does GPS help geocommerce?

The GPS (Global Positioning System) is a service that provides information to interested parties on positioning, navigation and timing. It is a service that belongs to the United States and works through satellites, a receiving device and a series of algorithms that allow the synchronization of data on location, speed and time.

GPS is a sensor that is installed in vehicles, computers, tablets and mobile phones. For this reason, it is very easy for any company to know where its customers are located in real time.

Conclusion of geocommerce

In conclusion, we can say that geocommerce has benefited the most from the development and use of technology. Thus, with the use of the Internet, companies can know in real time where their users and customers are located. Of course, this can cause certain controversies, especially with regard to customer privacy, so it is required to use this information safely. However, people are becoming better adapted to this new way of interacting, as large companies operating in large markets increasingly use these methods. Undoubtedly, geocommerce is an instrument that allows the company to relate to its markets around the world, allowing them to achieve their global expansion in a profitable manner.

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