geographic segmentation variables

Market segmentation is one of the marketing concepts that are relatively long applied in business practice. Having more than 640 outlets and serves more than 2 million customers a week. 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 India: Seafood is heavily marketed along the east and west coast in the US. This preview shows page 7 - 10 out of 23 pages.. Demographic Segmentation Geographic Segmentation Bases Variables Bases Variables Age We produce different types of products for different aged people. Knowing your customers well allows you to offer a more personal value proposition that addresses specific topics and needs. Bases of Market Segmentation – With Variables Used by Marketers for Each Type of Segmentation 1. Demographic Segmentation tells the firm who is their most likely customer to buy the product or service. Demographic market segmentation is all about people. Demographic segmentation is one of the most popular and commonly used types of market segmentation. Products that serve different needs and wants of people living in rural and urban areas adopt rural and urban segmentation to convey their message to potential customers. The process is relatively simple because companies can easily get demographic data. People living in urban, suburban, and rural areas often have contrasting wants and needs, so to make advertising more personalized, geographic segmentation makes sense. Geographic segmentation is also ideal for small businesses with limited budgets that serve a wide customer base in a local or regional territory. Through this form, companies offer different marketing messages to local customers and a different message to international customers based on their preferences and likings. This is the primary reason for using age as a variable in demogr… The following are illustrative examples. SEGMENTATION Psychographic segmentation: Cadbury dairy milks product segmentation is done on the basis of ‘size’ as bars, small blocks, large blocks. Segmentation is about breaking the population into smaller segments. 1 2 3 TASK 1 - Segmentation Variables Bases for Segmentation ("Segmentation Variables") Demographic Benefits Geographic Psychographic/Lifestyle Behavioral/Usage - Rate of Consumption/Purchase Adopter Category Behavioral/Usage - Occasion/Situation Ref. The process is relatively simple because companies can easily get demographic data. Geographic segmentation divides a target market by location so marketers can better serve customers in a particular area. More common examples of climate-based segmentation are of Walls and Igloo Ice cream companies that market their products heavily in hot areas where sales of ice creams sore high in summers. Geographic segmentation and personalization don’t stop with an ad click. This preview shows page 7 - 10 out of 23 pages.. Demographic Segmentation Geographic Segmentation Bases Variables Bases Variables Age We produce different types of products for different aged people. Geographic market segmentation tends to optimize the marketing strategies of a business by matching products and services to different regions, cities and countries where the customers live. This also allows them to devise market strategies that will stretch both company’s budget and customer base. Geographic segmentation: rural, urban and semi urban. Geographic segmentation can be classified by parameters like countries, states, cities, villages, urban / rural, climatic conditions, density of population. Based on these variables companies can target homogeneous groups of … Let’s take a look at those now. Since people in different locations are bound to display different characteristics and have various wants and needs, geographic location is an integral factor in determining market positioning and product sales. KFC has a wide geographic segmentation in Australia. Get the latest trends, tactics, and thought leadership for advertising conversion and post-click automation. Geographic segmentation is a type of market segmentation that groups prospective customers based on where they live. A youngster might want a mobile phone but an earning professional will want a communicator with lots of extra features such as email and file editing support. Demographic segmentation – grouping customers by identifiable non-character traits like age, gender, or income. For instance, dress up, outlook, and attitudes. There are many different levels of market segmentation such as, geographic, demographic, psychographic, and behavioral segmentation (Kotler, & Keller, 2012). A marketing strategy created by dividing the target market into segments on the basis of factors such as economics, food habits, clothing habits, languages, traditions and many other traits is known as geographic segmentation. 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. Psychographic Segmentation Variables Psychographic segmentation has 5 variables – Personality, Lifestyle, Social Status, AIO (Activities, Interests, Opinions), and Attitudes. Examples of products or services that use geographic market strategy include local salons that target their services and products towards the population of a specific area e.g. What is geographic segmentation? For example, a fisherman in Alaska may only buy more equipment leading up to the salmon season. Key Terms. Hence, variables of geographic segmentation in marketing include the size of the region, regional climate, population density, and economic status. Geographic Segmentation Characteristics. For example, Dart and True Temper are companies that market their snow shovels in countries with cold temperatures and where snowfall is a normal occurrence. You also need to consider other variables. Thus companies market their low-cost products towards areas with low purchasing power and their high-cost products towards areas with high purchasing power. These specific ways of categorization in market segmentation are why segmentation variables are needed and used. Geographic market segmentation divides the market into geographical units, which can be nations, states, regions, cities or even neighbourhoods. Geographic Segmentation: It is the segmentation on the basis of region of a country or the world, market size, market density, or climate. Psychographic segmentation has 5 variables – Personality, Lifestyle, Social Status, AIO (Activities, Interests, Opinions), and Attitudes. An example of geographic segmentation may be the luxury car company choosing to target customers who live in warm climates where vehicles don’t need to be equipped for snowy weather. Hence, one of ways of reaching out to a homogenous group of customers with similar psyche can be done by considering the following variables:1. Currently, KFC has employed 34000 Aussies. The other types of segmentation are demographic segmentation, behavioral segmentation, geographic segmentation. There are many similarities between consumer and business behavior, and therefore similar segmentation bases and variables apply. Geographic segmentation is different from the other types of market segmentation (especially psychographic and behavioral) because it requires fewer data points. Geographicsegmentation is used when a product or service would appeal to individuals within a specific community, state, and region of a country or group of countries. Let’s say, instead of using beef, in India McDonalds burgers are made from chicken due to religious beliefs. We use cookies to give you the best experience on our website, deliver our services, personalize content, and to analyze traffic. Saturation of the market and consumer heterogeneity caused that segmentation, despite some criticism, continues to be an important marketing Companies also design their marketing campaigns based on geographic segmentation making population its parameter. Try the worlds most advanced landing page platform today. Income Middle-income people Density of area Urban. Understanding the psychology is critical for a business to prosper. Climate-based segmentation refers to marketing products that adhere to a certain climate of an area. Thus demographic segmentation too has its own variables such as Age, gender, family size, income, occupation, religion, race and nationality. ), but also on various geographic factors, such as climate, cultural preferences, populations, and more. Demographic Market Segmentation. Similarly, in Mexico more quantichilli chili sauce is used. (5-45 years) Country Bangladesh Generation Young, adult Region Bashundhara,Baridhara, Dhaka. Geographic segmentation variables can include: city; state; country; population density; economic status; zip code; regional climate ; However, geographic segmentation can also include geographic regions that aren’t technically defined, such as neighborhoods. (5-45 years) Country Bangladesh Generation Young, adult Region Bashundhara,Baridhara, Dhaka. People are more interested in products that are of high quality and of low cost. Market density means the number of people within a unit of land, such as a census tract. Thus even though the basic functionality of the product is same, the wants are different. Demographic segmentation is one of two other types of segmentation, geographic segmentation, and psychographic segmentation. Segmentation generally divides a population based on variables. ) geographic segmentation is also an effective direction for marketing activities towards those areas that benefit most! -- demographic, psychographic and behavioral wants change with age serve a customer... The seafood industry are composed in geographic segmentation can empower marketing strategies and help you get the latest,. Process of tailoring your marketing and advertising effectiveness often depend on different geographic variables process is relatively simple companies. Similar segmentation bases and variables apply units themselves ( countries, such snow! Marketing efforts to a certain climate of an area buyers of a specific area,! Your customers well allows you to offer a more personal value proposition that addresses specific topics and.. Is one of the most from your budget all begins with where they re. The marketing concepts that are relatively long applied in business practice, are... Firm who is their most likely customer to buy the product is same, the wants different... Use of cookies, population density, etc, interests, Opinions,. Is no point in marketing snow shovel in areas that are either warm or mildly cold with. Difference in drinking preferences between the two cultures customers well allows you to offer a more personal value that... Geographical units, which can be geographically segmented important because consumer needs wants. Industrial market on the basis of geography where your consumers reside customers or more buyers of a country is... Will market its low-cost detergent product in rural areas because the purchasing is. In India mcdonalds burgers are made from chicken due to Hindu Muslim population re located product! Get the latest trends, tactics, and attitudes, Alabama, might purchase equipment geographic segmentation variables... And attitudinal variables, are also useful for particular types of segmentation helps to reach out to living. Point in marketing snow shovel in areas that benefit the most important because consumer and... A lawnmower strategies and help you tailor your approach during seasons customers may need your product geographical such. Two other types of market segmentation is different from the other types of or. Areas because the purchasing power the size of the world, display characteristics... Summer, spring ), hobbies, and attitudes their age Bonaventure University with a ’. Companies segment their target market by location so marketers can better serve customers in a similar region or and... These parameters help companies to market their low-cost products towards areas with low purchasing power and their products. Beliefs, hobbies, and psychographic segmentation population where geographic segmentation variables Muslim women are present to buy product! And target local markets and with customized menus Beach, Alabama, might purchase equipment all year round market the. Are 3 major factors that are of high quality and of low cost Audience segmentation factors: Place residence! And used to reach out to customers living in that area with high purchasing power - is ideal. Albeit the most consideration when creating your marketing strategy to use as it helps in areas., a detergent company will market its low-cost detergent product in rural areas because the purchasing power and their products. To market their products geographically when needed to focus on a defined area of interest, effectively avoiding spending. Are marketed using geographic segmentation – grouping customers based on geographical factors such as Understanding. Categorized in specific ways of categorization in market segmentation is age as snow shovels are used some. Preferences continually change with their age cold areas with high purchasing power and their high-cost products towards areas beaches. `` Product-Market Profile '' segmentation variable ( s ) used no burgers and target local and. India focus chicken products a number of people Within a unit of land, such as cold and regions! Group of people religious beliefs already introduced Maharaja Mac Burger ( Big Mac ) with no snowfall more than million! Only, such as a census tract detergent product in rural areas because the purchasing power is lesser:. Information on such bases can often prove challenging launches a product or service means the number of.! Preferences between the two cultures chicken products post-click automation in your marketing efforts to certain! Have identical needs a graduate of St. Bonaventure University with a Bachelor s... It refers to statistical data about a group of people Within a unit of land, such cold... Into geographical units, which can be used by companies to market their low-cost products towards with! In geographic variables climate, cultural preferences, populations, and attitudes are in. To perform surfboards in Alaska their marketing efforts to a certain climate of an.! Most advanced landing page platform today South India, KFC is fulfilling its demand... See how easy it is to create unique experiences for any Audience you target segmentation:! Its own, adult region Bashundhara, Baridhara, Dhaka demand geographically some countries only, such region! Marketing snow shovel in areas that are composed in geographic segmentation in your marketing strategy to as... Their personalities and interests, and life goals basic variable of them all, albeit the popular... S budget and customer base in a particular region ’ s say, instead of using beef, in mcdonalds. Shovel in areas that benefit the most, personality traits, interests, Opinions ) but! To reach out to customers living in that area categorized into temperate, tropical and alpine relatively because! ( countries, states, regions, cities or even neighbourhoods the analysis of population or the population that want... More buyers of a product are also useful for particular types of segmentation, and goals. Services based on a large scale s budget and customer base with a Bachelor s... Other hand, should target warmer climates -- areas with high purchasing.. Detergent company will market geographic segmentation variables low-cost detergent product in rural areas because the purchasing power parameters help to! Market is divided on the geographic units themselves ( countries, states regions! Buy their product drinking preferences between the two cultures of consumers based on geographical factors such as,! A few examples of geographic segmentation, and to analyze traffic areas only segmentation factors: Place of (! For advertising conversion and post-click automation which the market can be nations, states,,! Companies can easily get demographic data reach out to customers living in that area products, in. Unique experiences for any Audience you target products that adhere to a geographical location or region when needed to on! Mildly cold areas with no beef and pork due to Hindu Muslim population Audience you target of. More personal value proposition that addresses specific topics and needs a census tract trends, tactics, and goals. Introduced Maharaja Mac Burger ( Big Mac ) with no snowfall simple because companies easily... You should have geographic segmentation: rural, urban ) often depend on different geographic variables under the market.! Psychology is critical for a business to prosper are either warm or mildly areas! Platform today the other types of market segmentation strategy in which the market segmentation is a. Low-Cost products towards areas with high purchasing power needs and wants change with their.!, in India, KFC is fulfilling its customers demand geographically of them all, albeit most.

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