Geographic segmentation

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Geographic segmentation by Mind Map: Geographic segmentation

1. Benefits

1.1. Save money: your marketing budget is more efficient when it offers appropriate and available products and services, rather than being wasted on promoting things that nobody needs

1.2. Attract customers and increase revenue because they appeal to the needs and wants within a geographic location, triggering purchases.

1.3. Location information is easy to measure and analyze and cheaper than psychographic, demographic or behavioral segmentation

1.4. For larger companies: can offer more relevant products in different geographic areas, and market them more efficiently there

1.5. For smaller companies: can target marketing directly at their specific areas of interest and target audience, rather than taking an inefficient blanket approach

2. Geographic variables by which to segment

2.1. Location

2.1.1. This can be as small as a neighborhood or as large as a continent

2.2. Climate

2.2.1. involves selling products that are appropriate for the climate, weather, and season in a particular area

2.3. Culture

2.3.1. You may have to adapt your products to take account of cultural variations and sensitivities

2.4. Population

2.4.1. A brand may choose to market in cities rather than rural areas

2.4.1.1. there are simply more people to buy, and urban distribution is easier.

2.5. Urban, suburban and rural

2.5.1. These different environments require different marketing strategies

2.5.2. customers in cities and suburbs have more purchasing power than rural areas

2.5.2.1. products can be more expensive

2.6. Language

2.6.1. Not everyone can, or wants to, read marketing in English

2.6.1.1. It’s essential to use languages of targeted areas for labeling, online communication, and promotion

3. Definition

3.1. Marketing strategy used to target products or services at people who live in, or shop at, a particular location

3.2. Works on the principle that people in that location have similar needs, wants, and cultural considerations

4. How to build a geographic customers profile

4.1. Survey research

4.2. Sales data

4.2.1. Check your operational sales data to see where product sales are increased or decreased by region

4.3. Website data

4.3.1. Conduct analysis on the types of products that ship to various regions to pick up differences in purchase preferences

4.4. Mobile usage data

4.4.1. By using app-based location services available with most smartphones, you can send the right message at the right time with pinpoint accuracy

4.5. Social media profiles

4.5.1. Provide tremendous insights into the location preferences of your customers and prospects

5. Examples of how organizations use geographic segmentation

5.1. A pool supplies manufacturer targets warmer, sunnier climates

5.2. A clothing retailer adjusts its inventory according to the weather and styles of its store locations

5.3. Restaurant chains customize their menus according to the local tastes and ingredients available in their areas

5.4. Retail businesses are more likely to be successful in high-population areas