What Is Geographical Segmentation? Definition of Geographical Segmentation, Geographical Segmentation Meaning and Concept

Geographic segmentation is used to divide the market into segments according to their geographic location. Grouped into regions, countries, states, municipalities, cities and neighborhoods.

Above all, the purpose of geographic segmentation is to tailor and distribute goods and services to consumers located in certain specific areas. Taking as reference important variables such as zones or regions, the size of the market and the prevailing climate in each location.

Indeed, this type of segmentation can be very useful for companies when geographical location generates significant differences. The inhabitants of a region may present cultural diversity. This forces companies to implement different strategies in each region.

Generally, the way people buy, the type of products they demand and the frequency of purchase have a direct relationship with the region where they are located. That is, each region has a language, a set of customs, a series of idioms and different physical aspects. All these aspects are related to the location of people and their behavior in the market.

Geographical segmentation

Geographic targeting types

The types of geographical segmentation that can be used are:

1. Segmentation by regions or zones

Certainly, this type of segmentation can be based on grouping its segments considering politically established regions. They can also use geographical areas using other types of criteria.

Of course, a company can decide to market its products in specific regions or areas of a country, in this case they must carry out a different marketing mix for each region. Companies must consider that the inhabitants of each region have in common a set of values, attitudes and preferences. They are also located in areas that have different climatic conditions and different social customs.

2. Segmentation by market size

On the other hand, segmentation by market size divides the segments taking into account the density of the market. Companies decide to serve certain segments depending on a certain number of consumers.

According to the density they can be subclassified in:

Urban zone

First, it is considered an urban area when the population group is greater than 2,000 inhabitants. It corresponds to large cities where the industrial and services sector development model prevails.

suburban area

Second, suburban areas are regions that are in close proximity to large cities and generally depend on them. They are all the areas that are on the outskirts of the cities where there are more favorable environmental conditions than in the cities. The air is healthier and the landscape greener.

Rural zone

Third, rural areas are located far from large cities. People live in large fields where the main activities are from the primary sector such as agriculture and livestock mainly. They generally supply cities with food and raw materials. In addition, the number of inhabitants is approximately 2,500 inhabitants, so the population density is very low.

Geographic segmentation by market size

3. Weather targeting

Surely, weather conditions can generate common patterns for people located in a certain geographic area. This creates business opportunities for companies to market their products. For example, winter or summer clothing, depending on the season or prevailing climate in a region.

Naturally, weather is a good criterion for segmenting because it can influence people's behavior and purchase choice. People buy different products depending on whether they live in a hot, temperate, or cold climate area.

Advantages of carrying out geographic segmentation

The main advantages of geographical segmentation are:

  • It allows to identify more specific and significant groups of consumers.
  • It helps to choose which group or segment of consumers the company should focus its marketing efforts on.
  • The company and the products offered to the market reach a better position.

To finish, we can say that geographical segmentation is an effective way of grouping consumers. With this type of segmentation, companies can tailor their marketing plans to the needs and desires of consumer groups located in a given geographic region.