Geographic segmentation is a marketing strategy used to target products or services at people who live in, or shop at, a particular location. It works on the principle that people in that location have similar needs, wants, and cultural considerations.

What is geographic segmentation and why is it important?

Geographic segmentation allows large companies to target the varying wants and needs of customers in different regions. … Consumers that live in different geographic regions typically display varying needs, wants, and cultural characteristics that can be specifically targeted for more efficient and better marketing.

What companies use geographic segmentation?

Geographic Segmentation Example McDonalds McDonalds divides its market into geographic segments, for example, different countries, states, regions and cities. McDonalds sells burgers and target local markets and with customized menus.

Why do marketers use geographic segmentation?

Geographic segmentation is a component that competently complements a marketing strategy to target products or services on the basis of where their consumers reside. Division in terms of countries, states, regions, cities, colleges or Areas is done to understand the audience and market a product/service accordingly.

How geographic segmentation can influence customer choices and trends?

Geographic segmentation divides a target market by location so marketers can better serve customers in a particular area. … Matching those products and advertising techniques to specific geographic locations means you’re reaching more relevant audiences and not wasting your time or budget.

How do you write a geographic segmentation?

1. Focus on One Area. …
2. Exploit Regional Preferences. …
3. Segment Markets for Seasonal Cycles. …
4. Target Geographic Characteristics.

How does Nike use geographic segmentation?

Nike uses geographic segmentation to market nations, regions, cities, and population density differently. … In these geographies Nike’s marketing efforts are largely focused on urban areas with high market densities. Behavioristic Variable. Targeting based on this attribute is the genius of Nike.

What is geographic segmentation example?

An example of geographic segmentation is an ice cream company segmenting a country by how hot different regions are and targeting those specific areas that are hottest and therefore more likely to buy ice cream.

What does geographic market mean?

Geographic market definition is the use of economic analysis to identify that set of firms. … Many products can be readily moved about in geographic space. People sometimes cannot. In service markets such as healthcare, the analysis of the relevant geographic market may be more important than the relevant product market.

What is Starbucks segmentation?

The demographic segmentation by Starbucks is between 25 and 40 years of age with high incomes, the second target group is 18 to 24 year of age and belongs to richer families. … Starbucks has also segmented its markets by demographically and geographically selecting the store location with educated and coffee lovers.

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How is geography used in marketing?

Geography suggests to businesses the places where products, goods and services are likely to succeed. With the help of data, it can also tell companies what customers in particular locales want.

What are the variables of geographic segmentation?

geographic segments: Segmentation of consumers based on geographical factors such as location, weather, topography, population density, etc.

What are the disadvantages of geographic segmentation?

Companies often do not rely solely on geographic segments to determine their target market. That is the main drawback of geographic segmentation. They will usually combine with demographic and psychographic variables such as population density, consumer income, and lifestyle.

What is Nike's geographic market?

Nike’s new geographical areas are North America, Western Europe, Eastern/Central Europe, Greater China, Japan and Emerging Markets. Formerly the Nike brand used four regions: U.S., Asia Pacific, Americas and an area comprised of Europe, the Middle East and Africa.

What is Nike's market segmentation?

Nike utilizes psychographic segmentation to target customers based on. lifestyle, personality, activities and interests. Specifically, Nike aims to active. individuals who take pleasure in sports, gym regularly, are athletes and. passionate with sports, which tend to be part of their life.

What segmentation does Nike use?

Nike customer segments comprise four categories which are demographic, geographic, psychographic, and behavioral market segmentation. For demography segmentation, Nike has included different age groups, gender and based on their targeted customer’s financial status.

Which of the following is geographic base of market segmentation?

Geographic segmentation is when a business divides its market on the basis of geography. You can geographically segment a market by area, such as cities, counties, regions, countries, and international regions. You can also break a market down into rural, suburban and urban areas.

What are examples of geographic?

An example of geography is the study of where the states are located. An example of geography is the climate and natural resources of the land. The study of the physical structure and inhabitants of the Earth. The physical structure of a particular region; terrain.

Where is geographic segmentation most useful quizlet?

Not surprisingly, geographic segmentation is most useful for companies whose products satisfy needs that vary by region. groups consumers according to easily measured, objective characteristics such as age, gender, income, and education.

How do you find the geographic market?

The elements to be taken into consideration when defining the relevant geographic market include the nature and characteristics of the concerned products, the existence of entry barriers, consumer preferences, differences among the market shares of undertakings in the neighboring geographic areas, as well as …

What is geographic market development?

Geographic expansion is an internal growth strategy in which an entrepreneurial business grows by simply expanding from its original location to additional geographical sites. … For example, a small business that has a successful retail store in one location may expand by opening a second location in a nearby community.

What is the relevant geographic market?

Relevant geographic market is a geographical territory in which competition conditions in a relevant market of a product are sufficiently the same for all participants in such market and therefore this territory can be separated from other territories. … locations are regarded to be in different geographic markets.

What are the 4 types of market segmentation?

Demographic, psychographic, behavioral and geographic segmentation are considered the four main types of market segmentation, but there are also many other strategies you can use, including numerous variations on the four main types. Here are several more methods you may want to look into.

What is McDonald's market segmentation?

Type of segmentationSegmentation criteriaMcDonald’s target segmentDemographicAgeAll ageGenderMale/FemaleIncomeLow and Middle

How does McDonald's use market segmentation?

Dudovskiy (2016) claims that McDonalds uses these segmentations and segmentation criteria: Geographical; region, density. Demographical; age, gender, life-cycle stage, income, occupation. Behavioural; degrees of loyalty, benefits sought, personality, user status.

What is the method of segmentation of McDonalds?

Type of segmentationSegmentation criteriaMcDonald’s target segmentDemographicIncomeLow and middleOccupationStudents, employees, professionalsBehavioralDegree of loyalty’Hard core loyals’ and ‘Switchers’Benefits soughtCost benefits, time efficiency

What is geographic segmentation quizlet?

Geographic Segmentation. Segmenting markets by region of a country or the world, market size, market density, or climate.

How do you determine market segmentation?

A good market segment should be: Identifiable (or differentiable). It should be possible to describe a segment according to descriptive characteristics (geographic, demographic and psychographic) or behavioral considerations (consumer responses to benefits, usage occasions or brands).

What are market segmentation techniques?

The four bases of market segmentation are: Demographic segmentation. Psychographic segmentation. Behavioral segmentation. Geographic segmentation.

How do you write market segmentation?

1. Identify the target market. The first and foremost step is to identify the target market. …
2. Identify expectations of Target Audience. …
3. Create Subgroups. …
4. Review the needs of the target audience. …
5. Name your market Segment. …
6. Marketing Strategies. …
7. Review the behavior. …
8. Size of the Target Market.

How geographic segmentation affects the goods and services provided by KFC?

Geographic Segmentation KFC sells its products according to the geographic needs of the customers, worldwide and it is measureable. For example in Australia its geographic segmentation is wide. … KFC has reached this segment as it is present in so many countries and in many cities of Australia.