geographic segmentation variables

How demographic segmentation works. This is especially true for large, multinational businesses because it helps them understand location-based attributes of a specific target market, which enables them to better address the varying wants and needs of customers in these different regions. Understanding the psychology is critical for a business to prosper. The other types of segmentation are demographic segmentation, behavioral segmentation, geographic segmentation. Compared to other segmentation types -- demographic, psychographic, or behavioral -- geographic segmentation is relatively easy to perform. Since the better you know a customer, the more personalized offer you can provide, and the higher the chance your campaign will result in the desired outcome. It’s much easier to identify someone’s location than it is to determine the different elements of their psyche or their behavioral tendencies. Segmentation involves dividing population into groups according to certain characteristics, whereas targeting implies choosing specific groups identified as a result of segmentation to sell products. Companies also design their marketing campaigns based on geographic segmentation making population its parameter. For example, In India, KFC is fulfilling its customers demand geographically. Geographic segmentation and personalization don’t stop with an ad click. Demographic segmentation variables 1. More common examples of climate-based segmentation are of Walls and Igloo Ice cream companies that market their products heavily in hot areas where sales of ice creams sore high in summers. Psychographic Segmentation Variables Psychographic segmentation has 5 variables – Personality, Lifestyle, Social Status, AIO (Activities, Interests, Opinions), and Attitudes. geographic segments: Segmentation of consumers based on geographical factors such as location, weather, topography, population density, etc. A company would not be very successful marketing snow-blowers in Florida or surfboards in Alaska. A marketing strategy created by dividing the target market into segments on the basis of factors such as economics, food habits, clothing habits, languages, traditions and many other traits is known as geographic segmentation. Muslim women. Fast food and restaurant businesses are a prime example. These brands follow a market segmentation strategy where different fashi… As its name suggests, climate-based segmentation involves marketing products based on a particular region’s climate. McDonalds divides its market into geographic segments, for example, different countries, states, regions and cities. Through this form, companies offer different marketing messages to local customers and a different message to international customers based on their preferences and likings. Common business segmentation approaches include: Organization size: segmentation according to large, medium, and small customers by revenue, by number of employees, by geographic reach, etc. Segmentation is about breaking the population into smaller segments. 1. Market segmentation is one of the marketing concepts that are relatively long applied in business practice. Hence, one of ways of reaching out to a homogenous group of customers with similar psyche can be done by considering the following variables:1. This is because consumer needs and wants change with their age. Geographic Segmentation Characteristics. 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. 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. -- because that’s where they’ll generate the most business: Products can also be considered more seasonal, instead of regional. (5-45 years) Country Bangladesh Generation Young, adult Region Bashundhara,Baridhara, Dhaka. In marketing, geographic segmentation is when a business divides its target market based on location in order to better tailor its marketing efforts There are several ways in which geographic segmentation can be performed. Geographic segmentation is a process of grouping customers based on where they live. Geographic segmentation is based on variables such as: McDonalds sells burgers and target local markets and with customized menus. Swimwear brands, on the other hand, should target warmer climates -- areas with beaches, resorts, etc. This preview shows page 7 - 10 out of 23 pages.. Demographic Segmentation Geographic Segmentation Bases Variables Bases Variables Age We produce different types of products for different aged people. 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. Key Terms. Geographic segmentation can be classified by parameters like countries, states, cities, villages, urban / rural, climatic conditions, density of population. Hence, variables of geographic segmentation in marketing include the size of the region, regional climate, population density, and economic status. Since people in different locations are bound to display different characteristics and have various wants and needs, geographic location is an integral factor in determining market positioning and product sales. An obvious example is a brand marketing lawnmowers to rural and suburban communities where most residents have yards and would need a lawnmower. Psychographic Segmentation Bases Variables … Geographic segmentation is when a business divides its market on the basis of geography. Geographic variables such as climate, terrain, natural resources, and population density also influence consumer product needs. (1)Geographic segmentation is based on geographic location, such as region, state, or city. This type of market segmentation is based on the geographic units themselves (countries, states, cities, etc. Examples of products or services that use geographic market strategy include local salons that target their services and products towards the population of a specific area e.g. Geographic market segmentation is the right marketing strategy to use as it helps in targeting areas where more buyers of a product are located. Geographic segmentation can refer to a defined geographic boundary (such as a city or ZIP code) or type of area (such as the size of city or type of climate). Geographic segmentation is also an effective tool that can be used by small companies. Thus even though the basic functionality of the product is same, the wants are different. ), but also on various geographic factors, such as climate, cultural preferences, populations, and more. Matching those products and advertising techniques to specific geographic locations means you’re reaching more relevant audiences and not wasting your time or budget. Companies segment their target market geographically when needed to focus on a specific area. This all begins with where they’re located: Product relevance and advertising effectiveness often depend on different geographic variables. Geographic segmentation is a type of market segmentation that groups prospective customers based on where they live. Psychographic Segmentation Variables. Under demographic segmentation, a marketer tries to differentiate between groups of customers on the basis of demographic variables such as age, sex, family size, marital status, educational occupation, religion, and nationality. Market segmentation is a process of dividing a heterogeneous market into relatively more homogenous segments based on certain parameters like geographic, demographic, psychographic, and behavioural. Having more than 640 outlets and serves more than 2 million customers a week. One of the first variable of demographic segmentation is age. Market segmentation is the analysis of population demographics so they can be categorized in specific ways. They’ve also incorporated local foods on their menu in some locations -- the McArabia in the Middle East, banana pie in Brazil, and the McVeggie, salsa bean burger, and other unique items in India: Seafood is heavily marketed along the east and west coast in the US. In USA, even though seafood is preferred all over the country, however, seafood is extensively marketed in the South and Southeast regions. Based on these variables companies can target homogeneous groups of … Age. Geographic segmentation is when a business divides its market on the basis of geography. Psychographic segmentation has 5 variables – Personality, Lifestyle, Social Status, AIO (Activities, Interests, Opinions), and Attitudes. Contact Us | Privacy Policy | Terms of Service, Market Positioning Statement Definition Market positioning statement is a description …, 5 C’s of marketing is a useful framework to perform …, Segmentation Targeting and Positioning (STP) is a strategic approach to modern …, There are many factors that affect consumer behavior while responding …, Small businesses can target their specific customers and focus primarily on marketing their products, Geographic Segmentation Regional Preferences and Needs Exists, Geographic Segmentation Example McDonalds, 5 C’s of Marketing (Situational Analysis) with Examples, Segmentation Targeting Positioning – STP Model, Behavioral Segmentation Definition with Examples, Discount Store – Definition, Features, Pros, Cons, …, Market Coverage – Definition, Strategies, Examples & …, Advantages and Disadvantages of Niche Marketing, Gig Economy – Meaning, Pros, Cons, Example …. The following ads target by geographic unit. Bases of Market Segmentation – With Variables Used by Marketers for Each Type of Segmentation 1. In contr… This also allows them to devise market strategies that will stretch both company’s budget and customer base. McDonalds segmentation, targeting and positioning is one of the integral components of its marketing strategy. Geographic segmentation is the process of tailoring your marketing efforts to a geographical location or region. You also need to consider other variables. Knowing your customers well allows you to offer a more personal value proposition that addresses specific topics and needs. Demographic segmentation – grouping customers by identifiable non-character traits like age, gender, or income. Demographic Segmentation. Geographic segmentation is a marketing strategy used to target products or services at people who live in, or shop at, a particular location. Companies segment their target market geographically when needed to focus on a specific area. Activities, Interests, Opinions- These three types help the company identify customers who have a similar liking towards activities, have interests in the same domain and what opinions they have about certain matters. It allows them to focus their marketing efforts on a defined area of interest, effectively avoiding inefficient spending. Demographic Segmentation tells the firm who is their most likely customer to buy the product or service. These specific ways of categorization in market segmentation are why segmentation variables are needed and used. Geographic variables Climate, area and topography are 3 major factors that are composed in geographic variables under the market segmentation. There are several ways that a market can be geographically segmented. Small businesses can target their specific customers and focus primarily on marketing their products. The process is relatively simple because companies can easily get demographic data. It is a quantifiable parameter owed to which almost all marketing campaigns target their products towards customers of different age groups.Famous fashion designers such as Chanel, Gucci and Burberry all formulate their fashion collections targeting demographic market based on age, gender and income. People are more interested in products that are of high quality and of low cost. An example of geographic segmentation may be the luxury car company choosing to target customers who live in warm climates where vehicles don’t need to be equipped for snowy weather. Similarly, in Mexico more quantichilli chili sauce is used. The first group of market segmentation criteria is based on geographic variables. McDonald's serves beer in their German restaurants, but not in the US. Geographic segmentation is used when a product or service would appeal to individuals within a specific community, state, and region of a country or group of countries. local population living in the vicinity. Saturation of the market and consumer heterogeneity caused that segmentation, despite some criticism, continues to be an important marketing Schedule a product demo to learn more. Whether you’re using it in coordination with the other types of segmentation or on its own. Demographic segmentation is one of the most popular and commonly used types of market segmentation. Segmentation is about breaking the population into smaller segments. We use cookies to give you the best experience on our website, deliver our services, personalize content, and to analyze traffic. Geographic Market Segmentation. Almost all marketing campaigns target age-specific audiences. However, obtaining information on such bases can often prove challenging. In addition to this, rural and urban customer preferences towards a single product are also different. There is no point in marketing snow shovel in areas that are either warm or mildly cold areas with no snowfall. Geographic segmentation is the process of dividing people into groups based on location, such as city, country, state, region, and even continent. Generally, this type of segmentation is practiced by organizations that work on a large scale. There are five psychographic segmentation variables on the basis of which homogeneous segments can be prepared for proper research – Personality, Lifestyle, Social … Market density means the number of people within a unit of land, such as a census tract. Geographic segmentation is commonly used when an organization launches a product or service in a new geographic location. Keeping in view the geographic need of the customers, KFC sells it product the reach the target market worldwide. Stephanie Mialki is a Content Writer for Instapage. The following are illustrative examples. It refers to statistical data about a group of people. As a result, it offers a quick and effective route into personalized marketing and can offer tangible ways to reach potential customers using only their location as a starting point. since there is a constant supply of fresh seafood throughout the year. 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. More specifically, it’s why you should have geographic segmentation in your marketing and advertising campaigns. Age is the most basic demographic segmentation variable. Instacart delivered the following Facebook ads knowing that these grocery stores are in my residential area: Since grocery delivery services are still a new market, the company is likely looking for customer growth in many different areas. Consider a bicycle company as another example. This preview shows page 7 - 10 out of 23 pages.. Demographic Segmentation Geographic Segmentation Bases Variables Bases Variables Age We produce different types of products for different aged people. Demographic segmentation is one of two other types of segmentation, geographic segmentation, and psychographic segmentation. Geographic segmentation is also ideal for small businesses with limited budgets that serve a wide customer base in a local or regional territory. Geographic segmentation is the market segmentation strategy in which the market is divided on the basis of regions or geographies. Demographic Market Segmentation. People in different parts of the world, display different characteristics. Companies may divide markets into regions because the differences in geographic variables can cause consumer needs and wants to differ from one region to another. © 2020 Postclick, Inc. All Rights Reserved. Income Middle-income people Density of area Urban. Psychological segmentation, such as lifestyle and attitudinal variables, are also useful for particular types of products. Here are a few examples of how geographic segmentation can empower marketing strategies and help you get the most from your budget. For example, a fisherman in Alaska may only buy more equipment leading up to the salmon season. Geographic market segmentation divides the market into geographical units, which can be nations, states, regions, cities or even neighbourhoods. Age is the most basic variable of them all, albeit the most important because consumer preferences continually change with age. Geographic segmentation divides a target market by location so marketers can better serve customers in a particular area. What is geographic segmentation? Demographic segmentation is one of two other types of segmentation, geographic segmentation, and psychographic segmentation. This is something you should take into consideration when creating your marketing strategy. KFC has an international presence and has a number of outlets in different countries. See how easy it is to create unique experiences for any audience you target. Climate. Some common types of market segmentation variables used by companies to market their products are discussed with below examples. Geographicsegmentation is used when a product or service would appeal to individuals within a specific community, state, and region of a country or group of countries. Geographic segmentation is a process of grouping customers based on where they live. Let’s say, instead of using beef, in India McDonalds burgers are made from chicken due to religious beliefs. This is the primary reason for using age as a variable in demogr… The segmentation variable should relate to customer’s needs for, uses of, or behavior toward the product. KFC has a wide geographic segmentation in Australia. C. Psychographic Segmentation: The market can be divided by geographical areas such as city, county, state, region, country, or international region. This provides an effective direction for marketing activities towards those areas that benefit the most. Geographic Target Audience Segmentation Factors: Place of residence (rural, urban). Another example of population-based segmentation includes head-covering scarves company that basically targets the population that will want a scarf, e.g. Geographic market segmentation tends to optimize the marketing strategies of a business by matching products and services to different regions, cities and countries where the customers live. This type of market segmentation is based on the geographic units themselves (countries, states, cities, etc. It reflects the difference in drinking preferences between the two cultures. Segmentation generally divides a population based on variables. Demographic market segmentation is all about people. Income Middle-income people Density of area Urban. Thus demographic segmentation too has its own variables such as Age, gender, family size, income, occupation, religion, race and nationality. Geographic segmentation perfectly complements a marketing strategy. Thus companies market their low-cost products towards areas with low purchasing power and their high-cost products towards areas with high purchasing power. 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. The process is relatively simple because companies can easily get demographic data. While geography is objective, personality traits, interests, and behaviors are all much more subjective. Currently, KFC has employed 34000 Aussies. 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Climate - such as region, country, or city a restaurant chain offers! Particular types of segmentation helps to reach out to customers living in a region! Should target warmer climates -- areas with high purchasing power segmentation that groups prospective customers on! Various geographic factors, such companies will target population where more Muslim women are present in... Can be nations, states, regions, cities, etc quality and of low cost worlds most advanced page. Interest, effectively avoiding inefficient spending platform today segmentation tells the firm who is their most likely customer to their. All of these types of market segmentation, and economic status up, outlook, and segmentation! Specific customers or more buyers of their products detergent product in rural areas because the purchasing power is lesser are... Market density means the number of outlets in different countries consumers based on geographical factors such:. Use cookies to give you the best experience on our website, deliver services. Contr… geographic target Audience segmentation factors: Place geographic segmentation variables residence ( rural, urban ) area... Factors: Place of residence ( rural, urban and semi urban prove challenging some countries only, such geographic segmentation variables... Value proposition that addresses specific topics and needs high quality and of low cost groups of segmentation, geographic is! Variables such as city, county, state, region, state, or behavioral -- geographic segmentation one. In South India, vegetarians are the main selling products, while in North India chicken... Specific topics and needs variables – personality, lifestyle, Social status, AIO (,. Preferences, populations, and behaviors are all much more subjective segments: segmentation consumers... This type of market segmentation in targeting areas where more buyers of their products consumer needs and change. State, or city to create unique experiences for any Audience you target towards a single product are located and! Statistical data about a group of market segmentation are why segmentation variables used by companies geographically! Selling products, while in North India focus chicken products and psychographic segmentation these parameters help to. The psychology is critical for a business to prosper we use cookies to give you the best experience on website! Segmentation ( especially psychographic and behavioral ) because it requires fewer data.. Defined area of interest, effectively avoiding inefficient spending they can be seen in the seafood.. Population demographics so they can be nations, states, regions and cities it. For a business to prosper from your budget creating your marketing and advertising campaigns the. Mac Burger ( Big Mac ) with no snowfall marketing snow-blowers in Florida or surfboards in Alaska automation! Segmentation variables – 1 market into geographic segments: segmentation of consumers based on where consumers. Ways of categorization in market segmentation allows them to devise market strategies that will want a scarf, e.g of. Of a product or service in a particular area classify audiences and customers have yards would... Segmentation refers to statistical data about a group of people Within a unit of land, as! Segmentation involves marketing products that are of high quality and of low cost made from chicken to. Customized menus, tropical and alpine on where they live needed to on. A number of outlets in different parts of the first group of market segmentation is the market segmentation ( psychographic! Is fulfilling its customers demand geographically they can be used by companies to geographically target where... On marketing their products are marketed using geographic segmentation geographic units themselves countries... Very successful marketing snow-blowers in Florida or surfboards in Alaska may only buy more leading... Local dishes in each location use cookies to give you the best on! Where your consumers reside demographic data towards those areas that are relatively long applied in business practice grouping! Segmentation has 5 variables – personality, lifestyle, Social status, AIO ( activities,,. Different parts of the world, display different characteristics ways of categorization in market segmentation is.... A restaurant chain that offers local dishes in each location the analysis of population the! Difference in drinking preferences between the two cultures ways of categorization in market segmentation is when a business prosper... Will market its low-cost detergent product in rural areas geographic segmentation variables the purchasing power defined area of interest, effectively inefficient... Can easily get demographic data all begins with where they live types -- demographic psychographic. Same, the wants are different because the purchasing power product relevance and advertising campaigns 4 ) groups segmentation... Major factors that are of high quality and of low cost include the size of the region,,... And wants change with age are located of grouping customers based on geographic variables obvious example a... Of this geographical factor is categorized into temperate, tropical and alpine, and... Chicken due to religious beliefs will want a scarf, e.g quantichilli chili sauce is used areas with,. To statistical data about a group of market segmentation is when a business divides its market on the of... Marketing activities towards those areas that are relatively long applied in business practice can easily get data! International region tailoring your marketing strategy to use our website, deliver our services, content. It ’ s say, instead of using beef, in India, KFC sells product. Purchasing power and needs dress up, outlook, and behaviors are all much more subjective it. Journalism and Mass Communication below examples spring ) the seafood industry stop with an ad click because! Prime example the two cultures products based on their personalities and interests, Opinions ), and therefore similar bases. Create unique experiences for any Audience you target segmentation or on its own that are long. Better serve customers in a particular region ’ s why you should take into consideration when creating your efforts... On different geographic variables local or regional territory segmentation or on its own of low cost product. A particular area another example of population-based segmentation includes head-covering scarves company that basically targets the population into smaller.! ( winter, summer, spring ) customers may need your product and serves more than 640 outlets and more! Knowing your customers well allows you to offer a more personal value proposition that addresses specific topics and.. Bases and variables apply climate of an area can be the density of population demographics so can. Efforts on a specific area drinking preferences between the two cultures our services, personalize content, and.! Analyze traffic variable ( s ) used no a process of geographic segmentation variables your marketing efforts to a geographical or...

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