Geographic segmentation divides a target market by location so marketers can better serve customers in a particular area. This type of market segmentation is based on the geographic units themselves (countries, states, cities, etc.), but also on various geographic factors, such as climate, cultural preferences, populations, and more.
What are the advantages of Geographic segmentation?
If you have a small business or are working with a very tight budget, geographic segmentation can allow your strategy to be effective for a much more reasonable price while avoiding the most inefficient-spending traps of digital marketing.
What is Geographic segmentation in marketing?
Geographic segmentation is a type of market segmentation that groups prospective customers based on where they live. People living in the same environment tend to have similar wants and needs, and geographic segmentation allows marketers to target audiences in a country, city or region with messaging that appeals to their specific wants and needs.
What is an example of Geographic segmentation?
What is the target market of Starbucks?
- High Income, High Spenders. Starbucks' target market is often described as affluent or high income (around $90,000).
- Urban-ish, On-the-Go.
- Technology Early Adopters.
- Healthy-ish Professionals.
- Socially Conscious Customers.
- Flexible to Change.
- Reaching Beyond the Storefront.
What are some examples of marketing segmentation?
Market Segmentation Examples Coca-Cola
- Demographic Segmentation of Coca Cola. Coca Cola targets youngster from 15 to 25 years old. Both Men and Women on the target list of the company.
- Geographic Segmentation of Coca Cola
- Psychographic Segmentation of Coca Cola
- Behavioral Segmentation of Coca Cola. Occasions like wedding, festivals, birthdays etc. Benefit sought.
How does geographic is used in market segmentation?
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.
What is a geographic variable when segmenting consumer markets?
Consumer markets can be segmented using a multitude of variables from four main categories: Demographic: age, years of education, income, family size, gender, race, marital status. Geographic: Rural/urban, climate, radius, neighborhood, nearby resources and amenities.
What is geographic segmentation and why is it important?
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.
Why is geography important 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.
What dimensions are used to segment business markets?
The five basic forms of segmentation are demographic (population statistics), geographic (location), psychographic (personality or lifestyle), benefit (product features), and volume (amount purchased).
When segmenting according to the characteristics of the buyers the 4 main segmentation variables that can be used are?
What are the 4 types of market segmentation?Demographic.Psychographic.Geographic.Behavioral.
What are the requirements for effective segmentation?
Regardless of your approach, a useful segmentation should include these six characteristics: Identifiable. You should be able to identify customers in each segment and measure their characteristics, like demographics or usage behavior. Substantial. ... Accessible. ... Stable. ... Differentiable. ... Actionable.
What role do demographic and benefit variables play in the segmentation process?
Demographic segmentation is a market segmentation technique where an organization's target market is segmented based on demographic variables such as age, gender, education, income, etc. It helps organizations understand who their customers are so that their needs can be addressed more effectively.
What is geographic segmentation and why is it important?
Geographic segmentation divides a target market by location so marketers can better serve customers in a particular area. This type of market segmentation is based on the geographic units themselves (countries, states, cities, etc.), but also on various geographic factors, such as climate, cultural preferences, populations, and more.
Why should brands market their products in cold areas?
For example, brands that typically sell winter apparel (such as Burton or North Face) should market their products in areas that are cold all year-round, because they’d probably fail to profit by marketing to warmer climates. Swimwear brands, on the other hand, should target warmer climates -- areas with beaches, resorts, etc. -- because that’s where they’ll generate the most business:
What does it mean to match products to specific geographic locations?
Matching those products and advertising techniques to specific geographic locations means you’re reaching more relevant audiences and not wasting your time or budget.
Why do Chinese eat dumplings?
In Asian countries, eating habits are highly dependent on religious ceremonies. The Chinese eat dumplings during the Spring festival in honor of their relationship with God.
Is geographic segmentation easy?
Compared to other segmentation types -- demographic, psychographic, or behavioral -- geographic segmentation is relatively easy to perform. It’s much easier to identify someone’s location than it is to determine the different elements of their psyche or their behavioral tendencies. While geography is objective, personality traits, interests, and behaviors are all much more subjective.
Does geographic segmentation stop with an ad click?
Geographic segmentation and personalization don’t stop with an ad click. Get an Instapage Enterprise demo and see how our platform allows you access to a suite of tools to significantly improve your advertising ROI and streamline your post-click process.
When should retailers advertise their winter gear?
For instance, a retailer in the northern United States that sells products for multiple climates and conditions (e.g., Target or Walmart) should advertise their winter gear in the fall and winter months, and their summer gear in the spring and summer months.
What is segmentation in marketing?
In its simplest form, geographic segmentation is the division of markets based on geography. Geographic segmentation allows companies to target and customize their marketing efforts to reach potential customers based on commonality of geographic factors.
Does geography affect buying habits?
There are, of course, certain limitations to geographic segmentation. Geography does not necessarily determine buying habits or behavior , as people residing in the same geography don’t automatically need or want the same products or services. Further, shifts in geographic boundaries, climatology, and topography affect needs in these areas.
Does geographic segmentation suffice?
Rarely does geographic segmentation alone suffice for a business’s segmentation requirements. Rather, geographic segmentation exists as a needed part of your full customer profile.
How does geographic segment affect consumers?
First, the geographic segment shows you, location affects the needs and tastes of consumers. Some products are suitable for particular regions but not for others. By dividing the market according to location, companies can offer the right product. Second, geographic coverage also affects resource consumption.
What is Geographic Segmentation?
What’s it: Geographic segmentation divides consumers into segments based on where they live. It is a market segmentation alternative to demographic segmentation and psychographic segmentation. Some items may only be suitable in tropical countries like Indonesia rather than countries in Europe because they have warm and hot temperatures ...
Why do companies combine geographic segmentation with other segmentations to reveal a specific consumer profile?
It is essential for accurate market targeting and appropriate marketing strategies. For example, a manufacturer of air conditioning may target consumers in cities with middle to upper incomes. Because prices are relatively high, they see more demand coming from urban consumers with relatively high incomes.
Why is geographic segmentation important?
Geographic segmentation is important for targeted marketing . Differences in a geographic location often give rise to different cultures, tastes, and needs. Such diversity requires a different marketing strategy and marketing mix. Therefore, the company divides its market and determines the targeted segments.
What are some examples of companies using geographic segmentation?
Meanwhile, to sell it in cold countries like Europe, they modify it into space heating. McDonald’s or KFC are examples of companies using geographic segmentation. Both modify their menus according to local tastes and tastes, thus creating more demand in their respective countries.
How does geographic coverage affect resource consumption?
Second, geographic coverage also affects resource consumption. Medium and small businesses may prefer local markets over international markets. Apart from their limited budget, they have a more in-depth insight into the customers’ tastes around them.
Why is it easier to determine where consumers live?
Easy to do. Determining the location where consumers live easier because it is objective. It differs from psychographic segmentation, where companies must understand consumer psychology to segment markets. Psychological variables are subjective and, therefore, more challenging to do.
Why is geographic market segmentation important?
Geographic market segmentation is the right marketing strategy to use as it helps in targeting areas where more buyers of a product are located.
What is geographic segmentation?
Geographic segmentation is a process of grouping customers based on where they live. Companies segment their target market geographically when needed to focus on a specific area. Geographic market segmentation tends to optimize the marketing strategies of a business by matching products and services to different regions, ...
What is the parameter for marketing campaigns?
Companies also design their marketing campaigns based on geographic segmentation making population its parameter. This can be the density of population or the population of a specific area.
What is climate based segmentation?
Climate-based segmentation refers to marketing products that adhere to a certain climate of an area. Examples of this kind of geographic market segmentation include swimwear brands that are targeted for hot areas with beaches and similarly, raincoats for areas that experience excessive rainfalls, etc. More common examples of climate-based ...
Why do people use rural and urban segmentation?
Products that serve different needs and wants of people living in rural and urban areas adopt rural and urban segmentation to convey their message to potential customers. For example, a detergent company will market its low-cost detergent product in rural areas because the purchasing power is lesser. People are more interested in products that are of high quality and of low cost.
When companies market a product by region, they must keep in the mind the regional preferences heavily in one region as?
When companies market a product by region, they must keep in the mind the regional preferences heavily in one region as compared to other regions, this type of segmentation is referred to as regional segmentation.
Where is seafood marketed?
In USA, even though seafood is preferred all over the country, however, seafood is extensively marketed in the South and Southeast regions. This is due to the fact that fresh supply is available in these areas all year round, and catering to the demands of customers in these areas is easy.
Why Use Geographic Segmentation?
You can tell a lot about people by where they live or at least a lot about what they’re most likely to buy. You probably won’t see a person buying swimsuits in the middle of a frigid Ontario winter unless that person happens to be planning a vacation.
Why is geographic segmentation important?
Using geographic segmentation can help a small business concentrate its marketing budget where it matters. For example, that same swimsuit company would get more out of its marketing budget if it focused its marketing efforts on people who live in warm climates near bodies of water, but it goes a lot further than simply the weather.
Why is segmentation so popular?
Not all customers are the same, which is why marketing segmentation is wildly popular. If you cater a message to a specific type of potential consumer — whether you're using geographic segmentation or not — it's more likely to be well-received, and this is proven. Segmented email campaigns receive just over 100% more clicks than nonsegmented campaigns.
What are the four categories of geographic segmentation?
Because of the various differences in consumer habits from location to location, geographic segmentation is split into four major categories: location, climate, urbanicity and culture.
Why is it important to keep culture in mind when you're advertising across various geographic segments?
Different regions have different cultural values and beliefs that change the way certain marketing campaigns will be received , so it's important to keep culture in mind when you're advertising across various geographic segments. For example, in the United States, Carl’s Jr. was known for its racy burger ads until they decided to retire the marketing campaigns in 2017. This is a different story in New Zealand, where a raunchy ad featuring Paris Hilton and swimsuit model Hannah Ferguson was banned from television in 2014.
How much does segmentation increase email revenue?
This method is so effective that using a market segmentation strategy in email marketing campaigns has been found to increase email revenue by 760%. That seems like a lot, but not when you recognize that a small business can better reach a customer base if it is catering directly to the varying tastes and behaviors of a certain type of customer.
Why is it important to target different regions by their climates?
Different locations have wildly different weather, so it makes sense to target different regions by their climates. This is especially important for any small business selling clothing, vacations and outdoor tools and homewares. For example, a car company will probably do better marketing snow tires and vehicles with four-wheel drive to an area that has snowy, icy winters. Similarly, a small business won’t sell a lot of umbrellas and rain boots in a desert.
What is demographic segmentation?
Demographic segmentation, also known as customer or consumer segmentation, is a marketing strategy in which companies aim advertising for their products or services at portions of the population that would be most likely to purchase them. In the past, demographic segmentation was accomplished by taking out ads in certain types of magazines or commercials during certain types of TV shows. However, in the modern digital era, with the information that social media platforms and analytics software is able to gather on consumers through sifting of internet use, demographic segmentation is much more precise.
Why is demographic segmentation important?
Demographic segmentation is used in consumer markets to focus advertising more precisely on specific portions of the population based on their unique characteristics. Information to accomplish this is readily available, and the segmentation of consumers saves businesses money and helps them hone their advertising strategies. Some of the categories of demographic segmentation include gender, age, income, occupation, ethnicity, religion, family structure, interests, personalities, and lifestyles.
What are the categories of potential customers?
These include age, gender, occupation, income, religion, ethnicity, and family structure . Additionally, geographic segmentation divides consumers according to where they live, behavioral segmentation focuses on what consumers do, and psychographic segmentation considers consumers in relation to their lifestyles, interests, personalities, values, and social status.
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