What are geographic factors in marketing?

Geographic segmentation is a marketing strategy used to target products or services at people who live in, or shop at, a particular location. It works on the principle that people in that location have similar needs, wants, and cultural considerations.

What are geographic examples in marketing?

Geographic Segmentation Examples

An example of geographic segmentation is an ice cream company segmenting a country by how hot different regions are and targeting those specific areas that are hottest and therefore more likely to buy ice cream.

Why is geographic important in marketing?

Geographic segmentation allows small businesses with limited budgets to be more cost effective. The findings that result from geographic segmentation allow small businesses to focus their marketing efforts specifically on their defined area of interest, therefore avoiding inefficient spending.

What is geographic area in business?

Geographic segmentation is when a business divides its market on the basis of geography. You can geographically segment a market by area, such as cities, counties, regions, countries, and international regions. You can also break a market down into rural, suburban and urban areas.

What does geographical area mean in business?

Geographic Area means those states in which the Company or any of its subsidiaries conducts business or in which its products are being sold or marketed at the time of the termination of Executive's employment.

Geographic segmentation explained with examples.

How does Mcdonalds use geographic segmentation?

Geographic Segmentation Example — McDonald's

The fast-food chain divides its target markets into segments by country, region, and cities, then customizes the menu by local preferences. These different market segments have very different preferences and McDonald's does an excellent job of localizing its products.

What are geographic variables?

area or regional differences used to segment a market.

What is the geographic variable in segmentation?

Geographic segmentation is the process of placing your customers into groups or categories based on their locations. Apart from physical location, this type of market segmentation also categorizes customers using geographical variables like climate, population, food habits, and clothing, etc.

How does Nike use geographic segmentation?

The presence of physical stores in different parts of the world is one of Nike's strategies under its geographic segmentation. This segment acknowledges that each country has varied lifestyle habits and cultures. The company introduced different products for various countries that meet the customers' needs.

What is the difference between geographic and demographic?

Geographic Segmentation- Segmenting by country, region, city, urban, rural, or another geographic basis. Demographic Segmentation- Segmenting based on identifiable population characteristics, such as age, gender, income, education, ethnicity, occupation, marital status, and so on.

What are the 4 types of market segmentation?

Demographic, psychographic, behavioral and geographic segmentation are considered the four main types of market segmentation, but there are also many other strategies you can use, including numerous variations on the four main types. Here are several more methods you may want to look into.

How are geographic variables identified?

Geographical variables are defined as variables that provide information about the characteristics of a place, instead of just the location of that place. One example would be a rural-urban identifier, which may have a number of classes, from the most urban metropolitan centres to the most remote rural areas.

What is Tesla's segmentation method?

Tesla uses behavioral and psychographic segmentation as part of its segmentation strategy. It targets determined and ambitious middle and upper-class consumers, seeking status, the perception of being environmentally friendly, and the automobile's long-term cost-effectiveness.

How does Nike target their customers?

Nike's target market includes a demographic of those aged 11-45 but put a greater emphasis on teens to cultivate long-term customers. Their psychographic segment includes active, fashionable individuals that consider physical activity as part of their lifestyle.

What is the method of segmentation of KFC?

KFC uses geographic, demographic, behavioural and psychographic segmentation. With regards to geographic segmentation KFC has a large market as it is an international fast food outlet. Within each country they have divided their market into two main segments, urban and semi-urban.

What is Tesla Model 3 target market?

Tesla products are considered to be expensive for average consumers and thus, the target customer segment for the company is wealthy individuals and households.

What is tescos target market?

Tesco's target market is, thus, cost-conscious individuals who are interested in bargains and sales, and value variety.

How does geographical location affect business?

Location can impact the hiring process

The location from which you operate will either encourage potential employees to apply for your job vacancies, or it will discourage them and send them running for the hills (i.e. a company that is situated in a much more appropriate location).

What are the 5 bases of segmentation?

The five basic forms of segmentation are demographic (population statistics), geographic (location), psychographic (personality or lifestyle), benefit (product features), and volume (amount purchased).

What are the 5 methods of market segmentation?

There are many ways to segment markets to find the right target audience. Five ways to segment markets include demographic, psychographic, behavioral, geographic, and firmographic segmentation.

What are the 3 target market strategies?

The three strategies for selecting target markets are pursuing entire markets with one marketing mix, concentrating on one segment, or pursuing multiple market segments with multiple marketing mixes.

Is geography a demographic factor?

The main difference between demographic and geographic segmentation is that demographic segmentation categorizes customers based on factors like age, education, income level, and ethnicity, while geographic segmentation categorizes customers based on their geographical location.

What is the difference between Geographics demographics and psychographics?

Demographic information tends to focus on external or physical factors such as age, ethnicity, gender, location, etc., while psychographic information focuses on psychological factors such as motivations, beliefs, priorities, etc.

What are demographic geographic psychographic and behavioral characteristics?

Demographic segmentation refers to segmenting an audience according to demographic factors like age, race, gender, family size, income or education. Psychographic segmentation is a method used to segment customers by their personality traits, attitudes, interests, values and other lifestyle factors.