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What Is Geographic Segmentation in Marketing? - Definition, Advantages & Examples

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  • 0:01 What Is Geographic…
  • 0:33 Advantages of…
  • 1:22 Examples
  • 2:20 Lesson Summary
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Lesson Transcript
Instructor: Shawn Grimsley
During your travels across the country, you may have noticed that store shelves are not stocked exactly the same. In this lesson, you'll learn about geographic segmentation and its advantages. A short quiz will follow.

What is Geographic Segmentation?

Geographic segmentation is when a business divides its market on the basis of geography. 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. And, you can segment a market by climate or total population in each area.

Advantages of Geographic Segmentation

So what are the advantages of geographic segmentation? Let's look at some.

  • It's an effective approach for companies with large national or international markets because different consumers in different regions have different needs, wants, and cultural characteristics that can be specifically targeted.
  • It can also be an effective approach for small businesses with limited budgets. They can focus on their defined area and not expend needless marketing dollars on approaches ill-suited for their target geographic segment.
  • It works well in different areas of population density. Consumers in an urban environment often have different needs and wants than people in suburban and rural environments. There are even cultural differences between these three areas.
  • It's relatively easy to break your market down to geographic segments.

Examples

Let's look at some examples of geographic segmentation.

A multinational clothing company divides its market geographically based upon climate between the Southern Hemisphere and the Northern Hemisphere. It will rotate its marketing efforts in the Northern Hemisphere between the seasons. However, in the Southern Hemisphere, it will focus on marketing for warm weather clothing.

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