Digital Marketing

Geographic segmentation

By Mary, on December 20, 2020, updated on December 22, 2020 - 5 min read

Geographic segmentation is a popular marketing strategy commonly used by business owners and marketers to group and serve their customers based on their location and preferences.

Small businesses with a broad demographic customer base use mostly geographic segmentation.

There are several types of marketing segmentation apart from geographical segmentation. Before we go further, we would love to outline the other types of segmentation used by marketers to group, market and sell their products. These segments are:

  • Behavioral segmentation
  • Psychographic segmentation
  • Demographic segmentation

Geographical segmenting is one of the easiest ways you can use to identify and group your customers. You can segment your customers using:

  • Postal codes
  • Country
  • Region/State
  • City

What Are The Advantages Of Using Geographical Segmentation For Your Business?

People residing in the same geographical areas tend to have common needs so it is easy to group them. With geographic segmentation, you can easily target your audience in a particular country, region, or city as long as you have the relevant data.

Below are some of the advantages of segmenting consumers to market your product:

Geographic segmentation Helps You Create Targeted Messages

Geographic segmentation helps you to design customized messages for your target audience. It is easy to create a targeted message when you identify your audience. Identify the needs of your customers in every segment and tailor your messages based on those needs. You don’t want to speak to a broad audience by just writing generic messages.

You want to create messages for a specific audience at the right time. Segmenting your audiences help to create messages that address the needs of your customers and their unique characteristics.

Geographic segmentation enables you to market your product effectively

There are so many marketing tactics out there and it can be hard to know which one will be effective for your marketing needs as a company. You can start by using different types of segmentation strategies then analyze them to see what works best for you. With time, you will be able to know what works best for you.

After knowing your audience and their needs, you will be able to analyze and determine the best means of reaching out to them.

Geographical segmentation helps in attracting higher quality leads

When you create messages that are understandable and direct, you attract the right people. With clear messages, you can be able to convert your potential clients to real customers. Well crafted messages are good for targeting both local and international audiences.

Geographic segmentation makes your business stand out from your competitors

Geographical segmentation is a good way of promoting brand awareness in local markets and also international markets. Knowing about the varying needs and wants of your customers will help you come up with a strategy and focus on your customer needs rather than comparing yourself to other brands. The unique approach of serving consumer needs will help you stand out from similar brands.

Gain Customer Retention

Once you know what consumers want and you communicate with them and agree with them, you create a tight bond that cannot be broken easily. Creating unique messaging and delivering your services according to your customer preferences establishes a lasting affinity with your customers.

Example Of Geographical Segmentation

You might find it a bit complicated to understand what geographical segmenting means. With this example below, you can get a clear picture of what this strategy entails:

  • A company selling winter wear can increase their marketing efforts in areas that experience harsh weather conditions while a company that sells beachwear can target areas that seem to have hot climates.
  • Conduct your research and collect data in every location you intend to market your product to avoid disappointments. If you sell raincoats in dry areas or summer season chances are you will not sell a single piece.

What Are The Aspects Of Geographic Segmentation

Geographic segmentation is highly objective. If your aim is to target the right audience, then you have to gather geographic data because it is very important for your marketing needs.

Although most businesses dismiss geographic segmentation, there are geographical variables that may affect product marketed to consumers. Geographic segmentation holds five aspects that are very essential for your market success. These are:

Location

Geographical segmentation is a strategy used for both small and big business entities. In geographic segmentation, location means more than your customers country or state. Big businesses that have a wide market like international markets can try segmenting to spot and target the needs of their potential customers in remote locations. On the other hand, small businesses can use geographical segmentation to focus on specific areas of consumer interests because it is an affordable way to market products.

Climate

As a company, climate is one of the biggest things you should take into account. Climate is a key factor of geographic segmentation. Segmenting might not be effective if climate is not put into consideration. Products that rely on different climatic conditions are likely to be very different.

For instance, if your business on raincoats and heavy jackets and you market in tropical regions, you can never be out of business. Climatic or weather conditions can be divided into five groups. These are:

  • Tropical
  • Dry
  • Continental
  • Mild
  • Polar

Tropical climates can be further split into three sub groups:

  • wet and dry
  • monsoon
  • wet
    Temperate climates offer moderate or favourable weather. The Mediterranean climate is easy to predict because summers are hot and winters are cold. Businesses that have market in Mediterranean climate don’t need to carry out critical analysis because they know what to focus on and when to focus on that product or service.

For a person whose business is based on outdoor outfits , geographical segmentation on polar climates is going to be pretty easy and straightforward.

Most companies have learned to segment their market taking advantage of the climate conditions. With that said, climate can affect your company’s income, and thus it is a very important factor to consider if you are using geographical segmentation.

Cultural Differences

Culture has a very huge part to play in geographic segmentation. Culture cannot be defined by where a person lives because the culture is influenced by norms, religion, environment, or social behaviors. Cultural preferences are what make people have different morals.

Culture influences the things we do. A good example is the food we eat and our dressing and even the kind of music we listen to.

Big brands have tapped into the secret of using geographical segmentation to ensure that each customer’s needs are met in different geographical locations. A good example is McDonalds. This company is well known throughout the world but it doesn’t sell the same type of food in all the countries. McDonalds sell their products to specific customers who use that product.

The food you will get in China is not the same you will find in India because these regions have different cultures.

Just like McDonald’s, you can segment your consumers into different groups based on their cultures.

Language

Although English is a primary language across the World, some countries prefer their first language. There are people who would love to read ads in their first language than in their second language. It is very important to note that language affects marketing efforts like labelling and even digital communication.

If you are dealing with a global market, you have to work on your translation ensuring that it is precise and clear. A diligent geographic segmentation is an integral part of any international brand. You might use some words which have different interpretations on different regions. A misinterpretation blunder can bring about shame on your brand. With proper research will definitely boost success for your business.

Population Density

Population density is an important variable to consider just like the other variables. People residing in rural areas will have different needs than those in urban, exurban, and even suburban areas. If your business is based on home and garden products, it would be a good idea to create segments using population density.

For example, you own a shop selling both tractor lawn and manual lawn. It would be insane for you to promote your electric riding lawn tractor to a customer who is in the urban areas. However, you can easily promote the manual push lawn and easily get customers who will be interested to buy it.

Final Word

Marketing segmentation is a robust tool which assists you to reach your potential customers in a most efficient and effective ways to them. Segmenting your audience is one of the easiest ways to get you started.

efore you start, collect the right data and analyze how your company can benefit from this tool. If you have a big company, you can reach out to broader market by using unique messaging targeting different regions.

The size of your business doesn’t matter, how you benefit from geographical segmentation is what matters.

Mary