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GGR252H1 Lecture Notes - Root Beer, Distance Decay, Choropleth Map

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Stephen Swales

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Marketing Geography Lecture #1 (January 10th, 2013)
Marketing: How to best reach the consumers of goods and services
Marketing Geography: How to locate to best reach the consumers of goods and services
QUESTION: Why do most restaurants fail within a few short years?
Restaurants, very risky business
Why they fail?
Main reason: choosing the wrong location
Case Study: Snow’s Study of Cholera Households
Cluster patterns
Distance decay
More deaths around Broad Street
Hypothesis: something is wrong with the water pump on broad street
When the pump is shut down, the deaths dropped
Intervening Opportunities what is it ?
How did people that did not live near the contaminated pump die? (Possible reasons)
o Worked near the contaminated pump
Ancillary what is it?
Substitution effect
o Some people had wells at home so didn’t use the water from the pump, therefore they
didn’t die
o Some people had the decision of drinking root beer or drinking water, and they chose
Map, data, clustered, distance decay
Why stores ask you for your postal code?
They wanna locate and map you and find the geographical location the shop serves
Choropleth map
Big circles supply
Small dots are clustered near the big circle
o Customers cluster around the closest supply
Convention: Higher value, the darker the shade ; Lower the value, the lighter the shade
CMAs ? what is it?
Census tracks??
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