LOCATION BASED SALES PROMOTION STRATEGIES Caner Dilmener PhD student - Okan University, Business Administration Programme, Istanbul, Turkey. Onur Yazıcıbaşıoğlu PhD student - Okan University, Business Administration Programme, Istanbul, Turkey.

Keywords: Location Based Services (LBS), Location Based Marketing (LBM), Sales Promotion, Retailing, Mobile

Marketing, Permission Marketing

Abstract

Mobile devices have become an important tool in consumer’s live. Consumers start searching every product or service

detail through their mobile devices. It’s important for retailers to promote their products or services and reach

customers on the point of sales via mobile devices. Businesses become closer to the customer and it has become

appropriate to present proposals to the customers with these new technologies.

Location based marketing is still in its infancy and a new concept in literature. Location based sales promotion (LBSP)

can be defined as a process of reaching right customers, at right location, at right time with customized or mass sales

promotion offer by location based tools and technologies. As a result, new concepts and practices should be considered.

Our aim is to create a literature base on location-based sales promotion, define location based sales promotion, discuss

how to manage a location-base sales promotion campaigns regarding push and pull demand strategies with examples

for businesses. This is an exploratory research. This article highlights important issues on location-based sales

promotion and concludes an agenda for future studies.

1. Introduction

In the era of consumer centric marketing and as Kartajaya, Kotler and Setiawan (2010) named it “Marketing 3.0”,

consumers are hit daily by many marketing messages. Point of sale consumer engagement is crucial to affect

consumer’s purchase behavior.

2011 has been declared as the “Year of the Mobile” and as consumers spend more time with their smartphones, they

are more accessible. By knowing the position of a consumer relative to bricks and mortar retail locations, marketers

can trigger relevant alerts and reminders, and provide relevant value-added information, discounts or deals when the

consumer needs it at the right place and at the right time(PwC Report, 2011). This situation has continued to accelerate

after 2012.

According to Sultan et. al. (2009), brand managers view mobile devices as an attractive platform from which to

interact with consumers through various forms of marketing communications, including location based promotions.

Through increased used of location-aware technologies and the development of branded mobile networks, global

wireless and mobile marketing platforms and applications have begun to create fundamental changes in the ways

brands and consumers interact.

The developments in mobile technologies and the increased use of smart phones had led marketers to do targeted

marketing activities easier through mobile devices.

According to a 2009 Gartner report, location targeting will be one of the primary types of marketing predicted to

explode in upcoming years, and by 2013, mobile advertising expenditure will surpass $13 billion. Fueling this growth

are improvements in GPS technology and rapid adoption of smartphones, including iPhone and Blackberry (Davis,

2009). There is an importance of mobile devices for mobile marketing applications.

The mobile device has three important characteristics: ultra portability, location sensitivity and untetheredness (not

restricted with a tether) (Shankar and Balasubramanian, 2009). If a person uses mobile devices, he/she becomes

better equipped and informed as a consumer; consumers start searching every product or service detail through their

mobile devices therefore it’s important for retailers to promote their products or services via mobile devices.

According to Harvey and Needham (2011) the dramatic growth in the social networking, proliferation of smart phones

and drive to create commercial opportunities based on location have led to several new services. According to Winter

(2009), marketers are more interested in “behavioral targeting” that is focusing on developing personalized messages

based on what people are doing on the web or the paths that people take when surfing the web or where they are by

their personal GPS ”system”, the cellphone. More than 80 % of brick and mortar retailers will have wireless networks

available in their stores by 2017 (Motorola Solutions, 2012). Customer’s lives are "internetized" and mobilized in a way

that businesses should use it in order to maximize their profit. Customers also came into position ready to search ,

select and/or purchase.

Location based services had made retailers to target a specific group of customers within a specified location. Location

based sales promotion (LBSP) can be defined as a process of reaching the right customers, at the right location, at the

right time with customized or mass sales promotion offer by location based tools and technologies. Retailers can

increase their sales, attract new customers and collect permission driven database. Location based services (LBS) tools

enable small firms to manage sales promotion campaigns inexpensively. Location based services (LBS) is subject to

change conventional sales promotions. Our study limited only for location-based consumer sales promotion via mobile

devices. Location-based services have great potential for growth; while estimates vary, most research indicates that

revenues are expected to triple in the next five years. In June 2011, Foursquare (the location-based social networking

company) reported that it had exceeded ten million users who have “checked-in”, posting their location to friends over

750 million times (Wireless Communications Bureau, 2012).

Location based marketing is still in its initial stage and it is projected that in the future, as use of smart mobile devices

and tablets increase, retailer’s investment in location based marketing technologies will enhance consumer shopping

experience. Therefore in this article we would like to explain some basic concepts of this issue and then we focused on

strategies that can be used and give some examples of some implications.

2.1. Sales Promotion

Sales promotion is the direct inducement or incentive to the sales force, the distributor, or the consumer, with the

primary objective of creating an immediate sale (Shultz and Robinson, 1982). Sales promotion consists of short term

incentives to encourage purchase or sales of a product or service (Kotler,2006). There are several articles on sales

promotion: Blattberg and Neslin(1990), Kotler (2006),Gedenk and Neslin (2002), Kwok (2005), Low and Mohr (2000)

studied on types of sales promotion tools; Florence et. al. (2011), Buil et al. (2013) studied relationships between sales

promotion and brand equity; Haans and Gijsbrechts compared effectiveness of sales promotion between smaller and

larger supermarkets; Gamliel and Herstein (2011) studied the effects of price promotion on consumer’s purchase

intentions; Jayasingh and Eze(2009), Muk (2012), Im and Ha (2012), Banerjee and Yancey(2010), Sanches et. al. (2012)

studied mobile coupons.

What seems to be consensual is the fact that promotions thought to surprise de the consumers are an important

element of competitive advantage in retail markets with retailers using different promotion techniques to attract

consumers. Some of the most commonly used tools are price promotions, “loss leader” promotions (deep discount

deals), feature advertising (store flyers), and in-store displays (Ailawadi et al., 2009).

2.2. Location Based Services

According to Roebuck (2011) location based services (LBS) is an information or entertainment service, accessible with

mobile devices through the mobile network and using the ability to profit from the geographical position of the mobile

device. Location-based services are information technology services for providing information that has been created,

compiled, selected, or filtered taking into consideration the current locations of the users or those of other persons or

mobile objects (Küpper, 2005).

Location based services enable marketers to provide location relevant information to their customers via mobile

devices; they’ve emerged in the mid-1970 in the US by indentifying the location of callers who dial the 9-1-1 emergency

phone number (Nichols, 2009).

Location services are mainly used in three areas: military and government industries, emergency services, and the

commercial sector (Schiller and Voisard,2004). There are several recent articles on location based services (Dey et.

al.,2010;Phillips et. al.,2010;Zipf et.al.,2012;Zibuschka,2011,Li et. al.,2012). Research by Kühn (2004) illustrated that

new class of services, based on location and context awareness such as a dynamic navigation support is feasible using

GPRS data communication.

Table 1. Categories and examples of LBS applications.

Push Services Pull Services

Person-oriented

Communication Ex. 1: You get an alert from a friend zone application that

a friend has just entered your area.

Ex. 2: A message is pushed to you asking whether you

allow a friend to locate you.

Ex. 1: You request from a friend finder application

who is

Information Ex. 3: You get an alert that a terror alarm has been issued

by the city you are in.

Ex. 2: You look for the nearest cinema in your area

and navigation instructions to get there.

Entertainment Ex. 4: You have opted to participate in a location-based

''shoot 'em up'' game and are being attacked.

Ex. 3: You play a location-based game and look for

another opt-in in your area to attack.

M-Commerce and

Advertising

Ex. 5: A discount voucher is being sent to you from a

restaurant in the area you are in.

Ex. 4: You look for cool events happening in the

area you are in.

Device-oriented

Tracking Ex. 6: An alert is sent to you from an asset-tracking

application that one of your shipments has just deviated

from its foreseen route.

Ex. 5: You request information on where your

truck fleet currently is located in the country.

Ex. 7: You get an alert that your child has left the

playground.

Source: SCHILLER, JOCHEN., VOISARD, AGNES. (2004). Location-based Services. Morgan Kaufmann Publishers.

Location-based services (LBS), allow people to report their current location in real time to a given platform. It is

accessible with mobile devices through the mobile network and can be used in a variety of applications. Although

location- based services have been around since 2000, they were mainly used in commerce with a subscription-based

business model; with the releases of a new generation of smart phones, developers were able to introduce location-

based services to use of the mainstream consumer (IBM Corporation 2012).

Location based services are defined as context-aware services that use the location of the user to adapt the service

accordingly (Kaasinen, 2003 in Pannevis, 2007). From the marketer’s point of view, location based services are the

technologies developed to direct to a product or service while individuals moving or in a particular position

(Yamamoto, 2012).

2.3. Location-based Marketing

Location-based Marketing is a new concept in literature. LBM can be defined as targeting mobile users within a

specified geophone area or a location via mobile marketing tools. Location-based marketing (LBM) targets the user

directly and most of the time, the consumer receives a message on their mobile device containing a call to action (such

as enter a competition, visit a website or order a product) and an incentive, such as a coupon (Gartner IT Glossary,

2012). According to PWC Report (2012), location-based marketing (LBM) bridges the gap between all forms of

marketing media, inclusive of social media and the internet. LBM covers the utilization and /or integration of all media

to engage and market to people in specific places with specific offerings. LBM uses location-based services to reach and

engage with customers based upon where they are located (PwC, 2012).

Figure 1. Types of Location-based Marketing

Source: Adapted from BUCZKOWSKI, A. (2012). Location-Based Marketing: The Academic Framework (Master’s Thesis). Universidade Nova de

Lisboa, Portugal.

According to Stacy DeBroff (2011), real-time discounts delivered to mobile devices will also accelerate, often altogether

with location-based services. Foursquare and Old Navy partnered on a promotion that allowed customers to realize

substantial savings if they checked in to a participating store using the location-based service (Verna, 2011). According

to Bruner & Kumar (2007), location-based advertising (LBA) is the presentation of marketer-controlled information at

a special and certain point where users can receive the advertising campaign.

Here, issue location has the most important attribute because the given advertising and the location are connected in a

way; for example, being very near to the place of discount or being in the store. Such advertisements can turn into

portable elements when the customer does not like the advertisement or read. Because, when the customer is moving,

the device is also moving (Yamamoto, 2006).

Pulling and pushing demand strategies is discussed based on advertising and location-based consumer sales

promotion. Unni and Harmon (2007) study favored pull approach location-based advertising . "Marketers have to rise

Location-based Marketing Location-based analytics

Location-based sales promotion (Dilmener and Yazicibasioglu,2012)

Location-based advertising

to the challenge by providing tangible benefits of LBA and get people to request or “pull” this type of marketing"(Unni

and Harmon, 2007).

2.4. Optimizing Location-Based Marketing

It can be a challenge for any business or brand without a store or physical location to create location-based campaigns,

but the ideas and creative examples below can get a campaign started, including (Carpenter,2012):

• Marketing businesses with no brick-and-mortar location;

• Expanding the definition of a location;

• Choosing the appropriate medium;

• Optimizing location-based marketing with creativity, motivation and value.

Location-based marketing does present challenges, and there are many campaigns failing to really engage the

consumer in a location-based experience. The following aspects are very important when optimizing a location-based

mobile marketing campaign.

2.4.1. Creativity: Putting a QR code on a product or billboard and a QR code that only leads to a webpage does not

create a location-based mobile experience. Creating a scavenger hunt where consumers need to find and scan the QR

codes on billboards around the city is considered as an experience. Using geolocation to create a virtual pop-up store so

users can only purchase a limited-edition product when they are standing in front of an advertisement is an experience:

Heineken’s campaign with the StarPlayer mobile game is a good example. The app let fans interact in real-time during

the Champions League soccer games by asking questions and predicting outcomes throughout the actual game. In this

scenario, the games had a location, but not every viewer could be there. Instead, Heineken made the location wherever

the consumer was watching the game. Using mobile, they brought a location-based experience to every consumer.

2.4.2 Motivation: One of the hardest things on location-based marketing is getting people to take action—to pull their

mobile device out of their pocket and engage with a campaign. This can be even harder when a company doesn’t have

the resources to offer 20 percent off for just walking through their doors and checking-in to their store. The most

successful campaigns motivated their consumers by being easy, timely and solving an immediate need.

The Red Cross operates blood drives at all kinds of locations, many of them mobile and temporary. Working with

Foursquare, the Red Cross introduced the “Blood Donor Badge” which can be unlocked from any blood drive, at any

location. The user simply needs to check in at their location, and then give a shout-out using the words “Red Cross”

“blood” and “donate.”

2.4.3. Value: Foursquare badges and mayor hoods are successful because they’re exclusive; a person can’t get a badge

just by visiting a website, and only one person can be mayor at a time. If a campaign is going to ask the consumer to

take an action, they need to be motivated with something valuable. For example, if a campaign where five billboards

around the city each have a different text code, consumers can be rewarded with an SMS coupon tailored for something

in the immediate vicinity of each billboard. If consumers can pull the same coupons off of marketer’s website, they’re no

longer receiving something unique and valuable from marketer’s location-based mobile campaign.

2.4.4. SoLoMo - Social-Local-Mobile Marketing: we have only discussed the tip of the iceberg for location-based

mobile marketing for non-brick-and-mortar businesses. Even without a permanent location, there are lots of ways to

create an alternative location – at an event, becoming associated with another place, using ad space as a location and by

using consumer as the location. At the very least, it’s essential that marketer’s website is mobile friendly and monitor

the amount of mobile traffic marketer’s business is getting.

Marketers can connect with consumers wherever they are. Mobile devices are key to connecting a campaign to a

consumer’s physical location. That’s why we have buzzwords like SoLoMo or LoSoMo – successful marketing now

makes things Social, Local, and Mobile. While location-based mobile marketing isn’t ubiquitous for mobile users, it’s a

growing trend marketers can – and should – be using. Location-based mobile marketing connects the consumer to a

campaign because it’s real-time, personal and engaging; it’s marketer’s brand wherever they are (Carpenter, 2012).

Later on, marketers don’t have to be a brick-and-mortar business to operate a great location-based mobile campaign.

Location-based campaigns allow marketers to make more than just a static ad. This is the opportunity to create a truly

engaging experience.

2.5. Location-based Consumer Sales Promotion Pull Strategies

In a pull strategy, customers wants to have the product. The intention comes from the customers. As the privacy and

opt-in marketing issues becoming important, pull stragies are important for retailers in order to promote their sales

promotion. A retailer can manage a promotion campaign through a social networking mobile application such as

Foursquare, Facebook Places and Gowalla (which was closed in 2012). Location based consumer sales promotion

campaign can give monetary incentives such as discounts, vouchers, price pack deals, buy 1 get one free or non

monetary incentives such as gift products.

In social networking sites, promotion has been offered to the customers on a conditional base. In order to make a

consumer sales promotion via social networking sites, retailers should acquire the control of it’s virtual location page

on social networking site. The retailer should decide on the type of promotion. Any kind of consumer promotion can be

done by a retailer providing consumer check-in at their retail store. The period of the promotion, the number of the

promotion rewards and the place of the promotion is under the control of the retailer. According to Kaplan (2012),

location based promotions done via Foursquare do not necessarily need to be associated with tangible benefits.

The advantage of doing sales promotion via social networking sites means to get two objectives at one go: the retailer

can gain new customers and, at the same time, promotes its brand/store, which creates brand awareness. Pull based

consumer sales promotion can be done by mobile applications such as Vouchercloud in UK and PlaceCast in USA.

Consumers can choose to receive text messages in a variety of ways—at the store, online, via text-message, mobile

websites or on Facebook and geofences are virtual areas set around physical locations; when an opted-in consumer is

inside a geo-fenced area (a virtual fence that has been specified on a real world map), he/she receives a message from

a business, including a discount, notice of a sale, directions to a store or other content

(http://techcrunch.com/2011/08/22/placecast-brings-location-based-shopping-alerts-to-smartphone-apps). There

are more examples for this kind of implementations. In May 2012, US retailer Target launched a campaign with mobile

couponing app Shopkick that enabled shoppers to collect and exchange points for rewards; customers could earn 60

points just for walking into a store, with even more on offer for certain promotional days throughout the year: points

were also on offer in return for scanning certain products (http://econsultancy.com/tr/blog/11303-eight-great-

location-based-mobile-campaigns-from-2012).

Starpet also started a promotion campaign through Facebook in November 2012. Starpet provided different discount

rates at different Starpet branches, allowing the Foursquare users to check in at Starpet and show their tablet or mobile

device screen to the salesperson: Foursquare users could benefit from discounted fuel prices

(http://otomobil.milliyet.com.tr/starpet-ten-foursquare-kullanicilarina-akaryakit-indirimi/otokampanya/haberdetay/

07.11.2012/1623383/default.htm). Considering the fact that Turkey has one of the highest petrol prices in the world,

sales promotions in the gas sector is highly attractive to the consumers.

2.6. Location-based Consumer Sales Promotion Push Strategies

In a push strategy, the retailer push their products. The intention comes from the retailer who collaborates with GSM

operators. GSM operator has been paid to share itss customer database and afterwards the retailer decided which

persons to target. The selected targeted customers received information about the sales promotion, when the targeted

customer came nearby the retailer’s location (retailer’s geofence).

The geofence can be decided by the retailers. The advantage of this strategy is that retailers can offer customized sales

promotions to the customers. Mobile application technologies offer the potential for location based price promotions,

in which customers receive coupons and promotions directly on their cell phones when they are near a store that sells

items they may be interested in purchasing (Grewal et al., 2011).

There are several mobile advertising tools: Short Message Service (SMS), Multimedia Messaging Service (MMS),

Interactive Voice Response (IVR), Wap Push and others. Short Message Service (SMS) is one of the most used type of

mobile advertising. A text message about sales promotion can be send to customers.

In the last quarter of 2011, Vodafone and Caffé Nero Turkey have managed to attract the attention of customers with an

interesting campaign; Vodafone users, passing nearby a Caffe Nero had received a free coffee offer via SMS, allowing

them to give a free coffee gift to their friends. Within 3 days, over 500 coffee cups have been consumed by the campaign

users. The aim of the campaign was to receive instant feedback from the customers and it was achieved

(http://sosyalmedyabulteni.com/vodafone-ve-caffe-nerodan-basarili-bir-pazarlama-ornegi). Multimedia Message

Service (MMS) enables sending pictures, videos and other type of multimedia to mobile devices. Interactive Voice

Response (IVR) is a technology that allows retailers to call customers with an automated sales promotion message.

WAP Push enables retailers to add a link to a promotion offer. Location-based mobile coupons are getting popular.

According to Prosper Mobile Insights research, 67% of mobile users agree that location-based coupons on a mobile

device are "convenient and useful", while 42% say that they have already used a mobile coupon of some kind

(http://www.trendwatching.com/trends/dealerchic).

2.7. Opt-in / Opt-out, Permission Based Marketing

According to Smith (2004), opt-in means that a prospect or customer has not granted permission to be interrupted

with mailings, e-mails and telemarketing (telephone calls) unless he has made the effort and decided to ticking an opt-

in box; this is a proactive agreement to receive electronic communications and opt-out assumes that a customer has

given permission to receive marketing communications unless he has actively made the effort and “opted out” by

ticking an “opt-out” box.

In addition to get sure that consumers receive proper notice of privacy practices, companies also face the challenge

of making sure that consumers are afforded with the opportunity to exercise meaningful choice with respect to the

collection and use of their personal information. The concept of “choice” in privacy policies refers to providing the

consumer with the opportunity to tell a company what it can and cannot do with his/her personal information. Choice

can take the form of “opt-out,” where the default option permits the company to use personal information in a

particular way unless the consumer objects, or “opt-in,” where the company cannot use personal information without

the advance consent of the consumer.

In the LBS business environment, companies encounter unique challenges to ensuring that consumers have the

opportunity to make meaningful choices. One issue these companies face is whether consumer choice should be opt-out

or opt-in for location information, although there appears to be a developing consensus in the LBS industry that opt-in

is appropriate for such sensitive information. A Zogby International Survey commissioned by Common Sense Media

and conducted in August 2010 found that “the vast majority of respondents say that search engines and online social

networking sites should not be able to share their physical location with other companies before they have given

specific authorization.” Another particular challenge facing companies is minimizing interference with the user

experience while concurrently offering meaningful choice to consumers. As noticed at the FCC Forum, there is a

“tension between granularity and simplicity” between the desire to ensure that consumers are provided the

opportunity to make meaningful choices in real time regarding the use of their location-based information and the

desire to ensure a seamless user experience. Companies and third party intermediaries are developing creative choice

mechanisms having this in mind, including utilizing uniform language that would allow consumers to make their

privacy preferences known by categories or characteristics.

Individually, companies have taken a variety of approaches to consumer choice. Apple acknowledges the importance of

“providing its customers with the ability to control the location-based services capabilities of their devices” (Letter

from Bruce Sewell, Apple General Counsel and Senior Vice President, Legal and Government Affairs, to The Honorable

Edward J. Markey, U.S. House of Representatives (July 12, 2010)).As Microsoft has stated (Letter from Andy Lees,

President, Microsoft Mobile Communications Business, to The Honorable Fred Upton, U.S. House of Representatives

(May 9, 2011))Microsoft does not collect information to determine the approximate location of a device unless a user

has expressly allowed an application to collect it. Users that have allowed an application to access location data always

have the option to access the location at an application level or they can disable location collection altogether for all

applications by disabling the location service feature on their phone. Google states that “opt-in consent and clear notice

are required for collection and use of location information on Android” (Google Inc. ex parte, WT Docket No. 11-84 (July

8, 2011)

2.8. Security / Fraud and Limitations on Location Based Services (LBS) – Location Based Marketing (LBM)

The promise of LBS, however, comes with challenges and concerns. Because mobile devices have the ability—and often

the technical requirement—to regularly transmit their location to a network, they also enable the creation of a precise

record of a user’s locations over time. This can result in the creation of a very accurate and highly personal user profile,

which raises questions of how, when and by whom this information can and should be used.

In light of these developments, the staff of the Federal Communications Commission (the “FCC” or “Commission”) has

prepared this report on LBS. As discussed in greater detail below, drawing upon its experience in protecting consumer

privacy, Commission staff believes:

LBS have tremendous potential to provide value and foster innovation to benefit the economy and consumers;

LBS industry players face challenges as they attempt to provide consumers with appropriate notice and choice

with respect to the use of the data generated by LBS and the devices and networks that host them;

Industry is taking steps to answer these challenges but the degree of responsiveness varies among companies

and industry segments; and

New issues continue to emerge that need to be addressed, timely and responsively.

Consequently, in collaboration with federal partners and industry representatives, Commission staff will continue to

monitor industry compliance with applicable statutory requirements and evolving industry best practices to ensure

LBS evolves to meet its fullest potential while protecting the legitimate interests of consumers in safeguarding their

personally identifiable information.

Location-based services are transforming the ways people across the country conduct business, organize their lives,

and have fun. They can save time, money, and even lives. However, because of the technologies that enable them, LBS

have the inherent ability to create accurate snapshots of their users’ activities that can contain very personal

information. As both the potential and the challenges of LBS have become more understood, the US Federal

Communications Commission, along with other federal agencies and Congress, has begun to assess ways to best ensure

the LBS users enjoy all their benefits and that their confidential information is secure. Industry has also played an

important role. The Commission has a long tradition of ensuring that the privacy of consumers is protected (The

Consumer Privacy Protection Act of 2011, H.R. 1528, 112th Cong. (2011)). Consumers have opinions and want to be

heard, yet sometimes, they would prefer to be anonymous in sharing these opinions or their whereabouts. With

location verification it's possible to ensure a person’s privacy and still consider their insight credible and worthy and

many international software companies are still working on such software regulations (Rush, 2012).

3.Conclusion

Mobile marketing is a new area, and SMEs (Small and Medium Enterprises) should be careful before spending too much

money in such a new area; businesses need to be cautious and keep some crucial issues in mind before running a

mobile marketing campaign. Location based marketing is an integrated and collaborative marketing process. Mobile

analytics, location-based advertising and location-based sales promotion should be managed in an integrated way.

Businesses can conduct a successful location-based sales promotion campaign through a good collaboration with

service providers and GSM operators.

Location based marketing is one of the fastest developing and versatile direct marketing strategy. This versatility also

makes location based marketing sales promotion a strategy way of acting with a lot of advantages and innovations.

Location based services has shown that its impact on sales promotion with correctly narrowed down target groups is

also working very efficiently as far as costs are concerned. Location Based Marketing is also considered not only as a

short time marketing strategy but it’s one of the strongest long term player on the Integrated Marketing

Communication area. The brilliant future of LBM has also some question marks related to it and one of the biggest one

is the customer’s privacy and security; companies/brands and international commissions are working hardly to offer

different choices.

The key to achieve success on location based marketing (LBM) is knowing the customers, observing what they are

doing and then matching marketing strategies to the customer behavior. There is a huge opportunity for businesses to

get ahead of the game as mobile marketing is still in its childhood.

This paper has thrown up many questions in need of further research. Further research might explore whether location

based sales promotion cause brand switching. It would be interesting to study the effects of gender, age and sector

factors. Further research should try to determine which location-based advertising tool is the most effective. Another

research question might be: are location based sales promotion effective on convenience products?

4.Acknowledgements

Prof. Dr. Gonca Telli YAMAMOTO encouraged us to research location based marketing. The authors wishes to express

their gratitudes to Prof. Dr. Gonca Telli YAMAMOTO for guiding and reviewing their article.

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