Geographic Segmentation
The ultimate aim of any business is making profits. In order to achieve this goal, a perfect marketing strategy is very necessary. Marketing is a very wide concept, which involves various activities, like studying the buyers’ minds, their needs and preferences, designing products according to customers’ needs, and promoting and selling the products using various techniques. However, different customers have different needs and preferences and it will be a folly on the part of the seller to treat them alike. You cannot develop and sell a product on assumptions only. While bad products fail to lure the customers, good products may also fail in a low demand market. Hence, a study of the market is indispensable, especially for global brands. One such marketing strategy is target marketing, which recognizes the diversity of customers and identifies the needs of separate segments of a market. In other words, the market is divided into segments and the marketing efforts are concentrated on a few vital segments.
Market Segmentation Strategy
Now we know that in target marketing, the market is divided into distinct segments. Dividing the market into groups of individuals, who share similar needs and preferences, in relation to goods and products is called market segmentation. Market segmentation is done on the basis of various factors, like, culture, economic status, geographic differences, behavior, etc. A market segmentation strategy is aimed at dividing a heterogeneous market into different segments of buyers. Each segment have individuals who have similar interests. The interests of each segment may vary with regard to products. So it would not be wise to offer them with the same marketing mix. It should be tailored to fit the needs of each segment. Hence, detailed studies are conducted and the results are evaluated in a proper manner, before evolving a market segmentation strategy. Read more on psychographic segmentation.
What is Geographic Segmentation?
As mentioned earlier, marketing segmentation can be based on any factor, like culture, economic status, geographic differences, etc. If the market segmentation is based on geographic units, it is called geographic segmentation. As per the dictionary of marketing terms, geographic segmentation definition is as follows: Market segmentation strategy whereby the intended audience for a given product is divided according to geographic units, such as nations, states, regions, counties, cities, or neighborhoods. Marketers will tailor marketing programs to fit the needs of individual geographic areas, localizing the products, advertising, and sales effort to geographic differences in needs and wants. Geographic segmentation can be a very important process, especially for multinational businesses with global brands. They have to formulate different marketing programs, which are intended to lure the customers of different geographic units, which are formed after careful study and evaluation. It may also happen that the products, advertising techniques or means of promotion vary with the different geographic units, as per the taste of the customers that are categorized to form that unit. For example, a global business organization which specializes in clothing may divide the market on the basis of the climate. This geographic segmentation of the market results in the sale of winter clothes in a country with cold weather, but at the same time may promote other types of clothing in some other country. Hence, geographic segmentation variables include regional climate, population density, economic status, etc.
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