Geographic Segmentation

Definition of ‘Geographic Segmentation’

Geographic segmentation is the process of splitting up a sales market of a business based on the geographical location of the customers. It is a particularly important marketing tool when the business is a multinational, worldwide business, but is also used by businesses to split their markets into region, county, state, city, neighborhood, or postal code.

The advantages of geographical segmentation are that the location takes into account variations due to cultural, climate, language differences. The disadvantages of using geographic data are that is does not allow for demographic differences between customers such as age, gender, lifestyle.

A geographic segmentation example would be seasonal clothing items such as coats and swimwear. In contrast, in a colder climate coats would be marketed and sold all year round whereas swimwear would be highly seasonal during the holiday period. In a hot climate swimwear would be the all year round product and winter coats might not be sold at all.

For further information see the Wikipedia geographic segmentation definition.

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Geographic Segmentation December 19th, 2015Team

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