GPS 101

GPS - Global Positioning Systems 101

What is a GPS and how does it impact my marketing plan?

What is a GPS and how does it work?

A GPS or global positioning system is generally a dash-mountable or portable navigation unit which provides road map data. Or, it can be found as a downloadable application on a handheld mobile device such as an iPhone or Google Android.  By drawing information from mulitple GPS satellites, a GPS can identify your current location, compare it to pre-loaded map data, then give you a list of Points of Interest (POI) from which to select, or, allow the entry of a desired address.  When you enter an address or search for a POI, the GPS calculates where you are and then accesses its map data to calculate a route to take you from your current position to your destination. A GPS can also estimate when you will arrive at your destination by comparing your desired route, speed and distance.

Simply put, the function of a GPS is to: Identify current location  Map a route to a destination  Supply choices of where to go

Business to consumer (B2C) businesses--shops, restaurants, service stations-- need to especially pay attention to #2 and #3.  Why?  If a customer ever complains about not finding your business on their GPS or get lost finding you, research is needed to identify why. When consumers can't find a business destination in their GPS it usually means that it isn't a POI choice, or it is categorized incorrectly and doesn't come up when they search the category they believe you would be listed in, or the GPS doesn't get customers to the correct physical location because the coordinate on the map was marked in the wrong spot. 

Businesses need to know whether their business is a POI in GPS units, is listed accurately, and is identified on GPS maps in the correct physical location so that customers can select and find them.  Remember, consumers often search with partial information...they know your name and city, but not address, or just remember the route you are on, but not the exact name or specific street number.  Others simply seek out what's nearby or by retail category...gas station, BBQ restaurant, book store.  These consumers are dependent on the data contained in their GPS unit.  So, who supplies GPS units with map and POI data?

Where does GPS data come from?

There are a handful of companies that collect GPS data.  These data providers send out vehicles with GPS receivers and video equipment to map new roads, new residential and retail developments, plus follow up on reports of incorrect mapping. The data providers also incorporate additions and corrections that are submitted online. They then enter this new or corrected data into their databases which are made available to GPS manufacturers.  GPS manufacturers acquire and convert the data into their own GPS programs which generate the routes between locations and destinations.  In turn, they offer their GPS customers updates via dvd or online downloads which are usually included immediately after purchase and for a subscription fee thereafter.

How does GPS technology influence consumer behavior and impact businesses' marketing strategies?

When you combine the number of households that own stand alone GPS units with those that own or also own a mobile device with GPS capabilities, you are looking at 90%* of all U.S. households. (*source: iSuppli) GPS units have been adopted by the masses and truly guide consumers in decisions about where to shop, dine, travel and stay.  And this very point of GPS units aiding consumer decisions, is why understanding how businesses are listed online, on GPS maps and in POI lists, is critical to future success.  

It comes down to reaching customers where they can be reached.  Like the businesses that have quickly adapted and added social media to their marketing mix, today's businesses also need to understand how to reach consumers through their GPS devices and GPS applications.  This is a world full of virtually connected, location-aware consumers that require efficient answers and solutions instantaneously.  It is time to consider your GPS profile and how it positions your business with respect to current and potential consumers.