People in different locations display distinct characteristics and have unique wants and needs. This is why marketers use geographic segmentation to determine market positioning and product sales.
What is geographic segmentation, and how can you use it in your marketing strategy?
Let’s find out.
What is geographic segmentation?
Geographic segmentation is a powerful strategy that allows marketers to effectively cater to the unique needs of customers in specific locations. This segmentation technique involves dividing the target market based on geographic units, such as countries, states, cities, and more. However, it goes beyond mere geographical boundaries and takes into account various factors like climate, cultural preferences, population demographics, and other geographic attributes.
All of these factors can be important to consider when you’re designing for your micro-audiences or specific segments of your audience.
By employing geographic segmentation, businesses can tailor their marketing efforts precisely to the preferences and demands of each distinct area, ensuring a more personalized and relevant approach. This not only enhances customer satisfaction but also drives improved engagement and ultimately boosts the overall success of marketing campaigns.
For example, this came up after searching for “Solar Power.” Despite not searching for a specific location, the searcher’s location was discovered and they were served this ad:
And, this ad is connected to this landing page which continues to highlight how this service is specifically catered to those who live in Washington, DC
In addition to knowing the geographic segmentation definition, it’s even more important to know why it’s necessary for marketing.
Knowing your customers well allows you to offer a more personal value proposition that addresses specific topics and needs. This all begins with where they’re located, but it can grow from there. Let’s dive into a few different geographic segmentation types!
Difference types of geographic Segmentation
Incorporating various kinds of geographic data into marketing campaigns is important for several reasons. Leveraging this data allows businesses to gain deeper insights into their target audience, enhance customer engagement, and optimize marketing strategies for greater success.
Understanding the importance of geographic segmentation and its impact on consumer behavior enables businesses to stay competitive in an increasingly globalized and data-driven market. So, let’s dive into the major kinds of geographic segmentation and how you can leverage them in your various marketing campaigns.
Location
Product relevance and advertising effectiveness often depend on different geographic variables. Matching those products and advertising techniques to specific geographic locations means you’re reaching more relevant audiences and not wasting your time or budget.
This is especially true for large, multinational businesses because it helps them understand the 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.
Compared to other segmentation types, demographic segmentation, psychographic, or behavioral segmentation, geographic segmentation is relatively easy to implement.
It’s much easier to identify someone’s location than it is to determine the different elements of their psyche or their behavioral tendencies. While geography is objective, personality traits, interests, and behaviors are all much more subjective.
Remember, geographic segmentation is not based solely on units of geography, like location as mentioned above. You also need to consider other variables. Let’s take a look at those now.
Climate
As its name suggests, climate-based segmentation involves marketing products based on a particular region’s climate.
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.
Swimwear brands, on the other hand, should target warmer climates— areas with beaches, resorts, etc. because that’s where they’ll generate the most business:
Products can also be considered more seasonal, instead of regional. 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.
Cultural preferences
Many companies practice cultural-based geographic marketing, recognizing the significance of cultural nuances in shaping consumer preferences and behaviors. Brands that incorporate culture-based geographic segmentation into their marketing campaigns can tailor their messaging, imagery, and product offerings to align with the values and customs of specific regions, which is especially helpful for brands with a global presence.
Some examples of culture-based geographic marketing would be running campaigns during festivals, traditions, and local customs, which can inspire targeted promotions, fostering a sense of authenticity and connection with the local audience. By acknowledging and respecting cultural diversity, these companies not only strengthen their market position but also build trust and credibility within each unique community they serve.
Interestingly enough, fast food and restaurant businesses are prime examples of how companies can market to specific cultural preferences.
McDonald’s serves beer in German restaurants but not in the US. It reflects the difference in drinking preferences between the two cultures. 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 Poland:
Seafood is heavily marketed along the east and west coast in the US. since there is a constant supply of fresh seafood throughout the year.
In Asian countries, eating habits are highly dependent on religious ceremonies. So marketing strategies would correlate to that.
This is what Instacart does:
Population type and density:
People living in urban, suburban, and rural areas often have contrasting wants and needs, so to make advertising more personalized, geographic segmentation makes sense. An interesting example is a brand marketing bikes to different communities. Here’s how they might market their varying product line:
Urban areas: Lightweight bikes with skinny tires, for riding among traffic and commuting to work.
Suburban areas: Comfortable, long-range, race bikes.
Rural areas: Durable mountain bikes with thick tires for uneven terrains.
As you can see from the example above, each area has a population with varying biking needs and should be addressed in such a way.
Population type and density
People living in urban, suburban, and rural areas often have contrasting wants and needs, so to make advertising more personalized, geographic segmentation makes sense. An interesting example is a brand marketing bikes to different communities. Here’s how they might market their varying product line:
- Urban areas: Lightweight bikes with skinny tires, for riding among traffic and commuting to work.
- Suburban areas: Comfortable, long-range, race bikes.
- Rural areas: Durable mountain bikes with thick tires for uneven terrains.
As you can see from the example above, each area has a population with varying biking needs and should be addressed in such a way.
New territory
Geographic segmentation can be leveraged effectively if used when an organization launches a product or service in a new geographic location.
Shipt uses the following Facebook ad based on popular grocery stores in the user’s residential area:
Since grocery delivery services are still a new market, the company is likely looking for customer growth in many different areas. Embracing geographic segmentation during market expansion ensures that businesses can effectively connect with their target audience, ultimately paving the way for sustained success and growth in various territories.
Start incorporating geographic segmentation today
The addition of geographic segmentation tactics strengthens a marketing strategy. Whether you’re using it in coordination with the other types of segmentation or on its own. It is important to target products or services based on where your consumers reside. 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.
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