Geographic segmentation is a marketing strategy used to target products or services at people who live in, or shop at, a particular location. It works on the principle that people in that location have similar needs, wants, and cultural considerations.
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How can geographic segmentation be used?
Geographic segmentation involves segmenting your audience based on the region they live or work in. This can be done in any number of ways: grouping customers by the country they live in, or smaller geographical divisions, from region to city, and right down to postal code.
How are markets segmented geographically?
There are several ways that a market can be geographically segmented. You can divide your market by geographical areas, such as by city, county, state, region, (like the West Coast), country, or international region, (like Asia). You can also divide the market into rural, suburban, and urban market segments.
Why is geographic important in market segmentation?
Geographic segmentation allows small businesses with limited budgets to be more cost effective. The findings that result from geographic segmentation allow small businesses to focus their marketing efforts specifically on their defined area of interest, therefore avoiding inefficient spending.
How does geography help in marketing?
Geographical information can help marketers worldwide see the bigger picture, align with the culture in various locales, and become more agile and responsive in seizing new market opportunities to stay ahead of the competition.
How does Mcdonalds use geographic segmentation?
Geographic Segmentation Example — McDonald’s
The fast-food chain divides its target markets into segments by country, region, and cities, then customizes the menu by local preferences. These different market segments have very different preferences and McDonald’s does an excellent job of localizing its products.
How does geographical location affect business?
Location can impact the hiring process
The location from which you operate will either encourage potential employees to apply for your job vacancies, or it will discourage them and send them running for the hills (i.e. a company that is situated in a much more appropriate location).
What does geographical marketing mean?
Geographic segmentation is a marketing strategy used to target products or services at people who live in, or shop at, a particular location. It works on the principle that people in that location have similar needs, wants, and cultural considerations.
What are the 5 main different segments for geographic?
Marketers use various geographic segmentation variables that include the country, region, state, province, town, climate zone, or zip code. Culture and population density (urban or rural) are also crucial variables to include in their market research.
What does geographic mean in business?
Geographics are used by businesses to market their goods from the local to the national level. Geographics can be used by local businesses to break a single neighborhood down by the value of homes, the property taxes paid or any geographic features that may indicate consumer interest.
What does geographical area mean in business?
Geographic Area means those states in which the Company or any of its subsidiaries conducts business or in which its products are being sold or marketed at the time of the termination of Executive’s employment.
What companies use geographic segmentation?
Geographic Segmentation Example McDonalds
McDonalds divides its market into geographic segments, for example, different countries, states, regions and cities. McDonalds sells burgers and target local markets and with customized menus.
How does Nike use geographic segmentation?
The presence of physical stores in different parts of the world is one of Nike’s strategies under its geographic segmentation. This segment acknowledges that each country has varied lifestyle habits and cultures. The company introduced different products for various countries that meet the customers’ needs.
What is KFC market segmentation?
KFC uses geographic, demographic, behavioural and psychographic segmentation. With regards to geographic segmentation KFC has a large market as it is an international fast food outlet. Within each country they have divided their market into two main segments, urban and semi-urban.
How does Nike target their customers?
Nike’s target market includes a demographic of those aged 11-45 but put a greater emphasis on teens to cultivate long-term customers. Their psychographic segment includes active, fashionable individuals that consider physical activity as part of their lifestyle.
What is the impact of geography?
We find that location and climate have large effects on income levels and income growth, through their effects on transport costs, disease burdens, and agricultural productivity, among other channels. Furthermore, geography seems to be a factor in the choice of economic policy itself.
What are some geographic factors?
In general, just as climate, relief, and soil are the major factors in agricultural geography; natural vegetation in pastoral geography and in forest geography; and the mineral resources in mining geography ; so in the geography of man- ufacturing and transportation, relative location is the all-important factor.
What do you mean by geographical environment?
Geographical environment is the natural environment and contains all the components of nature such as mountains, rivers, land, water, deserts, storms, etc.
Do you think that geographic segmentation is still relevant these days?
To sum it all, geographical segmentation is just as relevant and necessary as the other types for targeting varied age groups, pitch better marketing and communication strategies, and getting impressive conversion rates.
What are commonly used methods for segmenting the market?
Demographic, psychographic, behavioral and geographic segmentation are considered the four main types of market segmentation, but there are also many other strategies you can use, including numerous variations on the four main types.
What are the advantages of geographical structure?
The advantages of a geographical structure
close communication with local customers. strong collaborative teams at each location. the ability to better serve local needs and tailor their approach to the local market. the ability to encourage positive competition between different departments.