What is Geocoding (or Geographic Encoding)?
- Content Type:
- Glossary
Geocoding (or Geographic Encoding) Definition
The process whereby addresses are segmented by county, MSA, postal route, etc., in order to compare them with information about the demographics and psychographics of those geographies. Geocoding is integral to demographically-enhanced mailing lists and cluster analysis.
Geocoding, also known as geographic encoding, converts addresses or location-based data into geographic coordinates, such as latitude and longitude. This enables precise mapping and visualization of data on a map. This process involves segmenting addresses by city, county and postal route, for instance, then comparing them with demographics (the study of a population-based on factors like age, race, and sex) and psychographics (classification of people according to their attitudes, aspirations and other psychological criteria in market research) of these geographies. In marketing research, geocoding helps relate customer addresses, sales data and other location-specific information to geographical points. Geocoding is integral to demographically enhanced mailing lists and cluster analysis. It adds a spatial dimension to marketing data and enhances the accuracy of research insights by incorporating location-based context.
Who relies on geocoding?
Businesses use geocoding to analyze customer demographic data, target specific regions and plan marketing campaigns. What’s more, researchers can rely on geocoded data to identify location-based trends. Also, urban planners and government agencies seek coding data for development purposes and resource allocation.
Why geocoding important to market researchers?
Geocoding is crucial in marketing research for several reasons, particularly because it enables businesses to gain deeper insights into consumer behavior, optimize marketing strategies and enhance decision-making. It is a tool that can be utilized to:
- Find customers or audiences
- Refine targeted marketing efforts and personalize messaging
- Identify growth opportunities
- Optimize business or organizational placements
- Prioritize and customize products or services to the needs of residents