Geographic segmentation is a fancy term that means dividing people based on where they live, and it’s a smart way for businesses to sell their products or services to the right people in the right places.
Like how you wouldn’t sell winter coats in a hot place like Australia, businesses use geographic segmentation to determine who might be interested in what they’re selling based on where they live.
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What Makes Geography Segmentation Special?
Different parts of the world have different people with different habits and preferences.
So, businesses use geography segmentation to understand these differences and create marketing strategies that make sense for each place.
Geographic Segmentation Examples
There are four examples of geographic segmentations:
Products based on season
If you live in a place that’s cold all year round, like Canada or Russia, you’ll see a lot of stores selling warm clothes. They won’t waste their time trying to sell coats in a warm place like Australia because nobody there needs them!
Size and type of region
In some countries, like India, people speak different languages in different states. So, like McDonald’s, fast food restaurants from the West have to develop special strategies to sell their food in India that appeal to local tastes and budgets.
People in different regions have different food habits too. For example, there’s always plenty of seafood in the United States on the East and West coasts.
But in China, people have special foods they eat during religious festivals, like dumplings during the Spring festival. So, local food chains must consider these things when creating their menus.
Launching products in new regions
When a company wants to sell something in a new place, they use geographic segmentation to figure out how to adapt its products to the local culture and traditions.
For example, if a big burger chain from the West wants to open a restaurant in a country like Bangladesh, where people are used to eating bread like naan and roti, they need to figure out how to make their burgers appeal to local tastes.
Why Is Geographic Segmentation Great for Businesses?
Geographic segmentation has a lot of advantages for businesses:
Better focus on the target audience
When a business knows exactly who they’re trying to sell to based on where they live, they can create more focused marketing strategies that are more likely to turn local customers into happy customers.
Easy market growth
If a business has a successful marketing strategy for one place, it can often use the same strategy in similar nearby places. Expanding to similar places is much easier and cheaper than starting from scratch in completely new places.
When businesses understand the unique characteristics of each geographic segment, they can create marketing and promotional messages that resonate with the local audience.
Geographic segmentation can give businesses a competitive advantage in local markets, improve brand recognition, and lead to better customer service and retention.
For smaller businesses with limited resources, geographic segmentation can help them focus on the right customers and make more money.
So, next time you see a store selling winter coats in the middle of summer, you’ll know they probably didn’t use geographic segmentation!
It’s all about understanding where your customers live and what they like so that you can sell them the right stuff in the right place.
Smart, huh? 😉 And that’s what geographic segmentation is all about!