What Is Geographic Segmentation
Geographic segmentation is the process of dividing a market into distinct geographic units, such as regions, counties, or cities.
The main purpose of geographic segmentation is to allow companies to better target their marketing efforts to areas where they are likely to find the greatest demand for their products or services.
How Do Marketers Use Geographic Segmentation
There are several different methods that can be used to divide a market into geographic segments. The most common approach is to use existing political boundaries, such as countries, states, or provinces. Another common method is to use population density as a way to segment the market. This approach typically results in segments that are based on urban, suburban, and rural areas.
Geographic segmentation can also be used to identify homogeneous groups of consumers within a larger market. For example, companies may target their marketing efforts toward specific zip codes or postal codes with a high concentration of households with income levels above a certain threshold.
Finally, companies may also use something called psychographic segmentation to identify geographic segments that share similar lifestyles or values. This approach can be particularly useful for luxury goods or services that appeal to affluent consumers.
Why Geographic Segmentation Is Important
Businesses can more effectively reach their target consumers by identifying and targeting specific geographic areas.
There are several reasons why geographic segmentation is important:
First, it allows businesses to tailor their products or services to meet the needs of specific markets. For example, a company selling snowboards may use different marketing tactics in states that receive a lot of snowfall compared to states that have little snowfall. By tailoring their marketing efforts to specific geographical areas, businesses can maximize their chances of reaching potential customers.
Second, it allows businesses to target their marketing efforts more efficiently by reaching consumers in the right place at the right time. By targeting specific geographical areas, businesses can reduce the amount of money they spend on advertising and promotions that are not likely to reach potential customers in other regions.
Third, it helps businesses better understand different consumer groups' preferences.
Finally, it can help businesses to avoid potential pitfalls associated with marketing to a large, diverse market.
Overall, geographic segmentation is an important tool for businesses to use in order to more effectively reach their target consumers. By understanding the needs of specific markets and tailoring their products or services accordingly, businesses can maximize their chances of success. Additionally, by targeting their marketing efforts more efficiently, businesses can save time and money while still achieving their desired results.
What Is Geographic Segmentation Example
The main purpose of geographic segmentation is to allow companies to better target their products and services to specific locations. For example, a company that sells sunscreen would likely want to target its marketing efforts to locations that are sunny and have high levels of ultraviolet radiation. By contrast, a company that sells winter coats would likely want to target its marketing efforts to locations that are cold and have high levels of precipitation.
Geographic segmentation can also be used to identify potential new markets for a product or service. For example, a company that sells snowboards might identify the mountain states of the United States as a potential market for its products.
Finally, geographic segmentation can be used to assess the feasibility of expanding a business into new geographic areas. For example, a company that sells swimsuits might assess the feasibility of expanding into Australia by looking at data on average temperatures and precipitation levels.