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A focus on Proximity Marketing: Part 1

Updated on June 9, 2017

Merchants and retailers are usually concerned about inventing better ways that can be used to present the actual immediate marketing to clients. For this objective to be attained, a retailer may use various approaches. They may come up with a system that will be used to identify a customer and further comprehend when they are near to an appropriate location for the marketing offers to be presented. For instance, the ability of a retailer to perceive that a client is near may enable them to display a marketing message especially to the customers that are proximity to the retailer. Furthermore, if the retailer can, in an accurate way, and in the right time, identify a client who is near or even next to a proximal marketing area, then the retail store can adjust the offer to suit the needs of that particular consumer. For the entire aspect of proximity determinations to be successful, it is necessary to ensure that some elements have been fully met. Such elements include good client experience and cost effectiveness for the customer and retailer (Hutchison, 2013).

The use of proximity marketing began to be presented to the public around 2008. This is the time when firms were able to send text messages that had been triggered by the location to cell phones that were close to a Bluetooth network and had the discoverable mode on as well. Additionally, at that time, proximity marketing could not become completely successful as a result of various factors. There were limited technology and the lack of privacy as well. Consumers were not given the opportunity to choose the sources that they would want to receive messages from and whether they even wanted to receive the message in the first place. The Bluetooth at that time consumed the battery massively, and the hardware was also quite expensive (Rinallo, Bathelt & Golfetto, 2016). Furthermore, there were no tools that could be used to set a framework for the interaction. This is because of the receiver of the message being almost like a stranger to the sender. There was also a severe limitation to scaling since 2008 was the beginning of smart phones era, and thus very few had been sold. As such, proximity marketing only acted as a potential of the location-based advertising to the new marketers (Grewal, Bart, Spann, & Zubecsek, 2016). However, the challenges pointed out did not prevent it from being fully implemented as it was tested and it illustrated positive results especially with the returns on investment.

Proximity marketing has been incorporated among the four Ps of marketing, which is, product, price, promotion and place. These are usually the major pillars of the entire marketing strategy. Investors and even firms have reported huge benefits from using this approach after applying them as their strategies. As such, the aspect of ‘Proximity’ is being considered relevant relevant to investors in the current world. It is referred to as a link between a firm and consumers (Bellemare, Carrier, Nielsen, & Piller, 2017). With the concept of proximity in place, the physical position of a product in relation to the client requires a new form of an element that had previously not been explored because of limited technology which has continued to improve in the recent years. The entire idea of proximity marketing is sometimes referred to as hyper-local marketing. This is because of its utilization of a cellular form of technology to deliver marketing messages to the users of mobile phones who are close to the business (Petro, 2014).

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