Geographic Segmentation Variables
Following are the geographic segmentation variables:
Climate – Market is geographically segmented based on climates. Since what consumers need depends a lot on which climate they hail from, this type of segmentation allows companies to decide what products are to be marketed in certain areas. For example, a company selling swimwear would be wasting its time marketing to customers from Alaska.
Cultural Preferences – People from different parts of the world follow different customs and have different belief systems. This reflects very well in their purchasing habits as well. People from South Asia have food habits that are influenced by their religious beliefs. Generally, the Muslims do not eat pork, and the Hindus do not eat beef. For this reason, fast food chains such as McDonaldâ€™s have had to significantly alter their menus in these regions not to offend their religious sensibilities. Differences can also be seen in the menus of European McDonaldâ€™s and American McDonaldâ€™s.
Population Type and Density – Population density is much higher in urban areas compared to rural areas. People living in densely populated areas have different needs from those living in sparsely populated areas.
Benefits of Geographic Segmentation
Greater Insight into Customers – Customersâ€™ wants and needs and their purchasing decisions are heavily influenced by their living standards. Therefore, geographical segmentation allows companies to gain more insight into their customers.
Effective Marketing Strategies – Customers from different areas are attracted to different things. Geographical segmentation enables dividing customers based on cultural differences. Acknowledging these differences enables companies to design different marketing strategies for different areas. This allows companies to appeal to different populations simultaneously. It also allows companies to concentrate their marketing in areas where they think their product will be more in demand. For example, Nike makes different commercials for different regions to attract customers from those regions.
Easier to Implement – Geographic segmentation is fairly easy to implement since the data requirement is fairly minimal and readily available.
Better Customer Experience – Geographical segmentation enables companies to show more required products in an area to customers from that area. When customers are shown products, they are more likely to buy it translates into a better experience.
Examples of Geographic Segmentation
Segmentation Based on Location – The most prominent examples of this would be fast-food chains changing their menus depending on what location they are in. This is done to accommodate local tastes and respect cultural traditions.
Segmentation Based on Urbanity – Companies promote different products to people based on whether they live in urban or rural areas. Car companies market small compact cars with better mileage for the city dwellers while marketing bigger multipurpose cars to people in rural areas.
Segmentation Based on Time Zone – In email marketing, respecting recipients’ time zones is important. If an important announcement is to be made through the mail, it is better to send it during the day to every customer.
Segmentation Based on Climate – Soft drink companies increase their marketing activities during summertime; therefore, geographical segmentation is important since summer comes at different times and with different intensities worldwide.
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