Geographic segmentation refers to the union of the market, taking into account the geographical changes between one place and another when distributing products or services. Geographic segmentation helps collect and analyze information according to the physical location of people.
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Types of Geographical Segmentation
Segmentation by Regions
Indeed, this type of segmentation can be built on grouping segments seeing politically established regions. They can also use geographic areas using other kinds of principles.
Of course, a company can decide to market its products in specific regions or areas. They must carry out a different marketing mix for each part. Companies must reflect that the peoples of each region have in common a set of values, attitudes and preferences. They are also situate in areas that have changed climatic conditions and social customs.
Segmentation By Market Size
On the other hand, segmentation by market size divides the segments taking into account the density of the market. Companies decide to serve specific parts depending on a certain number of consumers.
According to the density, they can be subclassify in:
First, it is considered an urban area when the population group is more excellent than 2,000 inhabitants. It corresponds to large cities where the industrial and services sector development model prevails.
Second, suburban areas are regions in the vicinity of large cities and generally depend on them. They are all the areas on the outskirts of the cities where there are more favorable environmental conditions than in the cities. The air is healthier and the landscape greener.
Rural areas are locate far from large cities. People live in huge fields where the chief activities are mainly from the primary site, such as agriculture and livestock. They usually supply cities with food and raw materials. In addition, the total of inhabitants is around 2,500 inhabitants, so the population density is very low.
Indeed, weather conditions can create common forms for people in a specific geographic area. For example, winter or summer clothing, depending on the season climate. It creates business opportunities for companies to market their products.
Naturally, the weather is good for segmenting because it can affect people’s behavior and purchase choices. People buy different products depending on whether they live in a hot, temperate, or cold climate.
Benefits of Geographical Segmentation
Easy to implement
Geographic targeting is different from the other types of market segmentation (especially psychographic and behavioral) because it requires fewer data.
As a result, it offers a quick and effective route to personalized marketing and can provide tangible ways to reach potential customers with their location as a starting point.
Greater relevance of the product
Geographic segmentation helps direct sales in the right way and create a better relationship between the customer and the company. Presenting relevant elements to customers in a specific area allows you to anticipate their needs and minimize the effort to find what they are looking for. Simply put, it improves the customer experience.
Learn how to measure customer effort and optimize your strategies to improve their experience.
Makes your Brand Relevant
Did you know that 76% of marketers use geographic data for online ad targeting because it drives good results?
Targeted marketing campaigns appeal to needs and also, wants within a geographic location, which helps businesses increase sales.
5 Tools to Carry out Geographic Segmentation
Many tools can help you design a geo-targeting strategy:
One of the tools companies uses to understand their customer base’s geographic preferences is to conduct surveys. Here are some you can consider. Select a random group in your customer base and ask about their product and service preferences. Filter results by region to break down geographical preferences.
Conduct a joint analysis to define the preferred attributes of your company’s products or services. Filter the results by geographic location to understand what regional differences exist.
Ask your customers their opinion about the messages and also, the type of advertising you use. Filter the results by areas to understand where different notes are best received. Survey your employees in other regions to understand how consumers behave in each room.
2. Sales Data
All though, check sales data to understand where product sales are rising or falling by region. Consider the trends in each season of the year and weather seasons to know how they affect your sales by region.
Combine your sales data with the information collected in the surveys to detect trends in each territory
3. Website Data
Use web analytics tools to understand which regions your site’s traffic is coming from. Conduct a study on the types of products you ship to different geographic areas to detect patterns in purchasing preferences.
4. Mobile Usage Data
Mobile devices are a great tool to understand better customers based on their geographic location. Through permissions granted through mobile apps, you can track customers’ locations and also, send the right message at the right time.
5. Social Media Profiles
Social media profiles provide valuable information about the preferences of your customers and prospects based on their geographic location. The pc world solution Report also revealed that 57% of companies use networks to interact with and meet their consumers.
Geographic segmentation is use to divide the market into sections according to their geographic location. They group into areas, countries, states, metropolises, cities and neighborhoods.