Astute or Peeping Tom Companies? Embracing Location-Based Marketing

Aug 15

posted by Angela Serna in STUDENT MARKETING POSTS | 19 Comments

Location-Based marketing is the use of mobile marketing to target mobile users within a certain geographic area. This practice can be used by businesses to send mobile ads, paid searches or other forms of mobile advertising to people who have been located using GPS or cell tower triangulation. For brands using this type of marketing, there a thin line between “astute” and “peeping tom” that they have to cross each day. A survey provided from messaging technology Company Brainstorm and Mobile Marketing Association found that 74% of users are ok with sharing location based data with third parties. But aren’t we still a little creeped out?

As marketing moves towards the future, embracing location-based marketing will be a wise move to engage with consumers. According to Paul Berney, former CMO of the Mobile Marketing Association, a mobile marketing strategy relies on earning consumers’ trust, and to do so, three steps should be followed – transparency, notice, and choice. Consumers must know when their location is going to be tracked, get a notification about it, and consequently opt-in. Well, that’s good news!

Major brands that have adopted location-based marketing argue that this is a two-way street. Do people really want to push notifications walking down the aisle of a store? When does it become intrusive? An approach that seems to be working for some major players is to use verified social media posts from consumers. By using key information and context, brands can have a more informed communication and increase their chances of engagement and interaction. Heineken’s recent @wherenext campaign, encouraged people to geo-tag their Tweets to receive location-based advice on the best places to go near them in real time. This inspires conversation between brand and user and gains a mutual benefit. Cheers Heineken!

So there you have it, consumers, brands, and technology interacting all at once – now that’s the future, so consumers who want to benefit from personalized services and suggestions are already starting to embrace it!

Angela Serna is an MBA student in the Huizenga College of Business and Entrepreneurship, Nova Southeastern University. She can be reached at as2053@nova.edu

This entry was posted on August 15, 2016 at 11:47 AM and has received 2983 views. There are currently 19 comments. Print this entry. Download attachment.

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• #1 by Albany Castro on 8/31/16 - 6:04 PM

  

  Between the traditional channels of marketing and the boom of social media, being a target consumer is definitely overwhelming. People are already consumed by technology for recreational purposes to deal with products and services they might not even need or want. I found very interesting the recommendations on this post on how to approach customers and gain a positive perception while doing so. While asking for permission is proper it is not enough to attract consumers. With such a wide offer of products and services in the market, I definitely agree with you that marketing nowadays must be oriented to giving an extra benefit to consumers.

• #2 by Claire Jackson on 9/1/16 - 8:41 PM

  

  I definitely think that location based marketing can be both intrusive and smart for the marketers who use them. I think that the bigger issue is that even though technology has advanced, users who turn on the "location services" on their mobile phones may not understand exactly what the functionality is and how it works. I think there is an education aspect to the use of location based marketing and it starts with being honest with the consumer regarding how it works, its benefits, and drawbacks. Super useful tool, but transparency is key.

• #3 by Stacy-Ann Hook-Osborne on 9/2/16 - 11:22 AM

  

  I found this article very agreeable. I too am quite aware of the location based marketing and use it from time to time with my iPhone. I do see the authors point in asking the question of whether companies are invading privacy or not. I am a consumer who embraces this type of marketing tool and I like the fact that its left up to the consumer to decide which apps they would like to allow to track their location. Also our mobile devices will notify us when an app is using your location so that we could decide whether or not to turn the location tracking on or off. In using apps like ibotta, I have taken advantage of the location capabilities that it provides when shopping so there are advantages and disadvantages with any technology and consumers will need to be savvy shoppers when being introduced to these types of marketing based technology.

• #4 by Shannon Glynn on 9/2/16 - 1:36 PM

  

  I have to say I absolutely love this article. In my other marketing courses this topic has come up quite often. When does location-based marketing cross the line between astute to intrusive? There are many opinions on this. My personal opinion is that as long as someone enables their location services for a certain app, they are giving the company the right to advertise locally. IF they no longer have the option to opt out of location service, then I feel as though it becomes intrusive.

• #5 by Stacey Willis on 9/3/16 - 11:31 PM

  

  I really enjoyed reading this article. Location based targeting may at first appear to be intrusive, but as the survey you mentioned shows, almost three fourths of people are ok with it. It highlights the cultural shift that has occurred spawned by reality television and social media that makes it easier for people to accept being more connected to the world now in general than before. I think the usage of comments from verified consumers is a great way to help market products. It comes across as more authentic than simply posting an advertisement.

• #6 by Thomas Bouchard on 9/21/16 - 12:38 AM

  

  Location based marketing is still taboo to a large majority of consumers as they simply do not want to be tracked. On the contrary, as mentioned in the post, those same consumers are ok with sharing their locations with third party entities – facebook location posts, twitter geoposts, foursquare check ins, etc. Location based marketing is a great way to – in my opinion – reverse window shot. Instead of the having the customer look at the store as they pass by, the text or form of marketing will remind the customer that they are there, increasing the chances for a customer to come in – the company is window shopping their clients as they – the clients – pass by the location. Obviously, the only way this will work is if the consumer as their GPS always enabled and ok with third parties constantly watching where they are. Recently, I saw an app for a music venue use their own dedicated app to location market. Every time I pass by that location (within what looks like a half mile radius), I get a text with the week’s schedule of artists. This normally triggers me to go online and look at their calendar to see what artists may be in town. This app style of marketing is my personal favorite as I do no have to use facebook or any social media. The location setup is built into the app and all I have to do is be in the area.

• #7 by Cielle Sands on 9/21/16 - 10:45 AM

  

  This article addressed embracing location based marketing. As a consumer, I personally find this type of marketing strategy to be intrusive. I do not like the idea of having persons use my location to send me ads. It reminds me of pushy salespersons in the mall. However, I can see how this type of marketing can prove successful. Unbeknown persons can certainly become engaged or interested through such a text. There is so much out there to be explored, this method is certainly a way to get the word out there. I would prefer seeing marketing through social media though, so that I am only made aware of these ads if I’m online. Thankfully there is an option to enable or disable your location if and when you wish.

• #8 by Ariel Rivero on 9/21/16 - 9:43 PM

  

  I agree with the article that location based marketing has become a hot ticket for some companies to advertise to certain customers based on where they are located and what places they visit. Is it intrusive? It can be but I think that we are past the intrusive point as whenever you have your GPS locator “on” you are essentially allowing a satellite to know where you are therefore; we are already being open about our location, so why not let companies take advantage of this feature and advertise through this. Also, the companies aren’t blowing up potential customer’s phones with notifications on a constant basis as the customers have the choice of opting out of these notifications therefore; it’s not forced, it’s voluntary which mitigates the intrusiveness aspect of it. I’ve also seen that some consumers advocate this method of advertising through tweeting out their location or posting notifications about a specific restaurant they may be in through Facebook or Instagram, which is giving publicity to that business by letting others know their location at any given time. Overall, I think that it’s a great way for companies to advertise and I don’t think it’s intrusive as long as companies have the consent of the consumers to notify them about deals or offers based on their location.

• #9 by Taylor Simmons on 9/21/16 - 10:17 PM

  

  I wholeheartedly agree with this post; I definitely think that location-based marketing is the marketing tool of the future. I don’t think location based marketing is creepy or intrusive, individual users can opt-out of sharing location based data, so if a person is uncomfortable they can keep their location private.
  
  In one of the previous posts we covered the importance of social media and location based data is now a big tactic with social media. Facebook implements things showing where people currently are, who is near you, and tailors ads to where you are. Businesses now see the importance of social media, so it is only natural for businesses to take another page from social media.
  
  I personally think location-based data is a smart move, both for businesses and consumers. I think it’s nice to get a push notification of a sale or coupon for a certain store if I am in that store. It’s advantageous for me to get an extra coupon and save some money. It helps market certain products and help build customer loyalty.

• #10 by Jennifer Gulker on 9/21/16 - 10:19 PM

  

  This blog has certainly left we with mixed feelings. The emotional side of me says YES, this is absolutely intrusive. Before we know it our phones will know exactly what we are thinking without even having to give them any direction with the clicking of buttons. This concept takes the term "Big Brother" to entire different level. Then there is the logical side of me that says this is Brilliant! I personally have used this innovative concept when traveling out of town. How cool is it that your phone can lead you in a direction you never really intended by sending an advertisement through your phone of something pertaining to the area you are in. Why wouldn't I want to know that a certain store in the mall that I just happen to be in is having an amazing sale. It might as well be a crime to not let me know that. The difficult part is if most places use this form of marketing our phones may never stop notifying us. Our heads are already so deep in our phones. I understand there are ways to enable these options on your phone but sometimes you may want to use it so what does one do? This is why I have mixed opinions of the location-based marketing.

• #11 by Joanne Pauyo on 9/22/16 - 10:53 AM

  

  I think Location-Based marketing is amazing! Great blog post analyzing the advantages and disadvantages. One business that incorporates this model is Subway. Subway sends me text alerts for weekly sales and deals at my local stores. Location-Based marketing is advantageous to consumers, but not really for businesses. In the long run, they are losing money because they are excluding other potential consumers in other geographical regions. Location-Based marketing is a great tool for small businesses that are not franchised. In other words, a store that has only one location or a few locations in distinct geographical areas. Large businesses that are located in different areas should use location-marketing tools in conjunction with other marketing tools as not to neglect other potential consumer markets.
  
  It is a little concerning to have businesses tracking consumers' locations, but, at least, most ask for permission. Personally, I don't like the businesses' ability to track consumers, but there is really nothing one can do. Every credit card transaction or phone call is able to be tracked by the United States' government or other agencies that we don't even know about. At least with Location-Based marketing, the consumer is getting coupons and special discounts. The United States is filled with a diverse population of individuals who will have differing views about Location-Based marketing. Some people will find it intrusive or annoying while others enjoy the open communication. A company must analyze the risks associated with this type of marketing. As mentioned, the best choice is to always ask for permission.
  Kotler, P. , & Keller, K.L. (2016). A framework for marketing management. Upper Saddle River, NJ: Pearson Education, Inc.

• #12 by Heather Clayton on 9/22/16 - 11:56 PM

  

  I am a consumer who waives between being “creeper out” by location based marketing but then when it is convenient to me I enjoy it. Having the ability to turn on location based ads makes all the difference for me. If the GPS setting on my phone is always on and a push notification for a certain product comes up I probably will feel stalked but when I select my GPS and search “nearby restaurants” and local suggestions and deals pop up for around me I am pleased. I think it is a hit or miss with consumers and the younger consumers may be more accepting of this new location-based marketing as some consumers are still afraid to use automatic toll payment in fear of being tracked like my mother.

• #13 by Natasha Turner on 9/23/16 - 6:16 PM

  

  I actually really enjoyed this article. I personally think location-based marketing is incredibly smart and it’s something I’m noticing more businesses incorporating into their marketing plans to get more business and to simply just get their names out there. This is especially helpful for small businesses who aren’t well known and need to expand their clientele. Marketing has to keep up to date with the newest technology and practically the newest everything. Even though this can be tedious, it helps the businesses in the long run. I do see that this form of marketing can be intrusive, but I personally feel like there’s no way to get around that no matter what form or marketing a business decides to take upon itself. The key is what will be most successful and beneficial for the company.

• #14 by Meagan Aguilar on 9/24/16 - 5:56 PM

  

  I must say this week's discussion truly spoke to me. Location marketing is absolutely the way of the future and can have many advantages. However, as the article addressed, where do we draw the line? I have to admit that I am one of those people that generally embrace the technology, but that also occasionally feels creeped out by it all. On a daily basis, I'm fine with it, but when I stop to think about it is when I feel freaked out, for lack of a better term. I was glad to read that brands are also concerned with discerning appropriate marketing from intrusive marketing. As a consumer, that is my biggest concern. If I am made aware and have a choice, then I feel empowered as a consumer and, in a way, safer.
  
  Going forward, I'll be interested to see how this evolves and whether major brands will continue to respect basic boundaries when it comes to interacting with consumers. Great read!

• #15 by Andrea Jean on 9/25/16 - 12:41 PM

  

  If I had a choice between astute or “peeping tom” marketing, I would choose astute. Just the idea of having someone “spying” on my mobile device makes me think of someone hacking my mobile device. The way I see it, this in a sense is an invasion of my privacy and with all of the information that is being stolen through technology has me paying special attention when I am on websites.
  On the other hand, when a company aggravates me with too much content on a constant basis; I get turned off and as a result, I tend to not purchase any services or products from that company or simply opt-out. It makes me feel as though the company is “desperate” so-to-speak.
  A good astute marketing company will use tactfulness and try their best to promote their products or services without pushing the customer or potential customer away.

• #16 by Kareem Virgo on 9/25/16 - 12:45 PM

  

  I agree that location based marketing can be very effective for people for companies marketing to a specific area. It allows the company to promote its services or products without having to necessarily manually showcase them to customers. If one is intrigued, they can just click on the advertisement to find out more about the company. This could allow consumers to feel that the company is promoting products specialized to them. However, I also agree that consumers could potentially feel intruded upon, so drawing the line between invasion and proper promotion is extremely difficult.

• #17 by Gomatie Chowrimootoo on 9/25/16 - 4:59 PM

  

  Location-Based marketing is certainly great for businesses as they can get information out about their company and products. This keeps individuals informed and may help them make the correct choice if looking for a specific product. There are people that oppose being tracked by GPS by their phone, so they would fight back against this type of marketing, especially because most mobile applications that these ads are pushed through list them as opt out options. So besides always having that ‘big brother’ feeling, I believe location based marketing could be very effective. I personally do not share my location on my phone any time I’m asked to. I don’t feel comfortable doing this! I feel that there’s no need for his and I also do not look at any ads that may pop up while looking for something else. These devices transmitting personally identifiable data can place the user at unexpected risk. If this is not sufficiently worrisome, “check-in” services, which provide inducement in exchange for declaring one’s presence, can pinpoint your device and the available data could be used in a variety of ways (Burgess, 2011).
  
  Reference:
  
  Burgess, C. 2011. The “Double-Edged Sword” of Location-Based Services. The Huffington Post. http://www.huffingtonpost.com/christopher-burgess/...

• #18 by Devin Ramirez on 9/25/16 - 6:45 PM

  

  I really enjoyed this article because I am very familiar with the subject. My mom's store uses a location-based marketing company to draw people in. I was iffy about it at first because I never let apps see my location and I'm the type of person that turns notifications off. I realized a lot of people aren't like me. Some of my friends have their notifications on for every app and that's how they like it. We tried the app and although it was a little slow at first, people started to come in more and more because of the notifications. I think it was slow at first because some people were skeptical about having to download a new app. According to an article I found, mobile is now the extension of a retailer's storefront, and tactics using location allow brands to send tailored, personalized messages to the consumer (Jones, 2016). One brand that uses location-based marketing is Starbucks. With this app, a customer can order and pick up their meal at the closest Starbucks location. This saves customers time because they can also pay online. I think it is important to experiment with marketing strategies because you can learn what works best for your clientele.

• #19 by Katrina Savopoulos on 11/4/16 - 10:51 PM

  

  I don' think that location based advertising is intrusive because it is just trying to give you useful advertisements. It is mostly left up to the customer to decide whether they want to participate in these services. I believe that they can actually help a customer by showing products and services near them that they might not have known about otherwise. I find the purchase tracking services to be more intrusive than location based systems.