Geographic segmentation is based on targeting people in certain locations. This can be done through segments such as cities, county’s, countries and regions, as well as rural, suburban and urban.
The wants and needs of consumers also depend on the type of location, whether that be rural, suburban or urban. Someone who lives in an urban location will probably not need products such as a sit on lawnmower or greenhouse as space can be pretty lacking in the city. Cultural difference can even be seen throughout these different segments, even if they’re all in the same area.
The same can be seen in different cities, people who live in London have different wants and needs to people who live in Glasgow. It can even be narrowed down to different places within a city, as people who live in Partick may not have the same wants and needs as people in Govan.
Geographic segmentation can also be split up into other sections;
Segmenting your audience geographically also has cultural value, as everywhere has a slightly different culture. This can be things such as holidays – Christmas for the UK, Diwali for India and Thanksgiving in the US and Canada (to name a few.) People in different places also have a slightly different way of thinking – some places are more health conscious than others, some are more environmentally friendly.
People in different countries have different wants and needs to others. For example in India when you go to McDonald’s you will not find a beef burger in sight, why? Because in Indian culture and religion it is believed that the cow is sacred. If McDonald’s went in and tried to sell beef people would be outraged, so they changed their menu for that country only – so suit the peoples want and needs.
Seasonal factors are also important when it comes to geographic segmentation, and this is based on the products or services you’re trying to sell. For example, it would be pretty pointless to put copious amounts of time, money, and resources into promoting snow boots in LA or Australia.
Geographic segmentation can also be used to target new territories or regions. Companies may open up new stores and then offer promotions in those specific locations. For example, Starbucks hand out coupons in certain regions where they have opened a new store to generate interest and get people in the door.
The advantages of geographic segmentation include;
- It’s effective for companies on a large national or international scale because people in different regions and countries may need to be targeted differently.
- It can also be useful for small companies who don’t have as much money or resources to use and can, therefore, target a very specific geographic segment, saving them time and money.
- It’s relatively easy to break your market down into geographic segments.