Here’s another term for our marketing toolbox: proximity marketing. Do YOU know what this is and why we should grasp this concept?
As Marketing Tech Blog explains it:
“Proximity marketing is any system that utilizes location technologies to directly communicate with customers via their portable devices. Uses of proximity marketing include distribution of media at concerts, information, gaming and social applications, retail check-ins, payment gateways, and local advertising. Proximity marketing isn’t one single technology, it can actually be implemented utilizing a number of different methods. And it’s not limited to smartphone usage. Modern laptops that are GPS enabled can also be targeted through some proximity technologies.”
To learn more, take a look at this infographic from the UK’s Choice Loans.
RetailMeNot is a great example of Proximity marketing that I have on my IPhone.
It allows me to check automatically notifications of the stores around and its discounts,
There are a couple of advantages on letting retailers know when you are in the area: you can get promotion and coupons codes and scan in the cashier.
The disadvantage is that for an impulsive buyer you might be buying something that you do not need.
having the option to participate in these programs is key. Having every customer’s phone blow up with notifications as soon as they walk into a store may agitate some customers, making them leave the store. A huge benefit of this system is the ability to cater to each customer’s unique needs, and cut company costs of printing flyers containing all of the promotions available.
Proximity Marketing is a very interesting topic of marketing. One thing that I feel marketers do that is most interesting is they would actually buy out their competitors so that their logo appears on google maps. For example, if there is a dunking donuts and starbucks in the same area, starbucks may pay extra so that only their logo shows up on google maps and not Dunkin Donuts. Programs on laptops and cell phones are also great mediums to communicate with the customer, many applications like to track your location so they could offer you nearby deals such as Groupon, to me it is very important to implement proximity marketing in any business from restaurant play forms like grub hub to retail applications like retail-me-not and Groupon
The article fails to elaborate on the fact that one of the disadvantages of proximity marketing from the marketer’s perspective is that the consumer is in control of the process. The customer has to accept your message, and many will consider it spam. Consider entering a mall and having your phone light up with sounds and lights, alerting you to deals in the area. This may seem all well and good, but you have to take into consideration that we as consumers react badly to direct advertising. There is a difference between a soft sell and a hard sell, and I fear proximity marketing is trying too much to be a hard sell, too upfront in the consumer’s face. This excessive marketing will have the opposite of the intended effect: the customer will look elsewhere to buy their product.
I feel like the world is heading in the direction of tracking everyone all the time. There is an increased amount of people out there who are concerned with the lack of privacy that comes with these new products. Sure you can probably opt out of these types of services, however there may be other individuals/organizations/entities that may choose to exploit this information to harm people or to spy on people. Unfortunately it seems that this is the price that one has to pay for being a smartphone user.
Proximity marketing is a great system that uses location technologies to directly communicate with customers on their cell phones. Uses of proximity marketing include distribution of media at concerts, information, gaming and social applications, retail check-ins, payment gateways, and local advertising. This is a great concept because people will buy or go to where the product they are texted to is listed. When you are in a store and get a coupon from that store, it gives the buyer an incentive to buy the products in the store. There are many apps that do this and I use one that shows me the lowest gas prices in my area so I know which gas station to go to in order to get the best deal. This concept of marketing is innovative and the way of the future.