Geographic-segmentation
  • Geographic segmentation is a type of market research. Marketers use geographic segmentation to group their target market according to location.
  • Marketers use geographic segmentation to increase the relevance of their campaigns, enhance competitive advantage and optimise their marketing budget.
  • A target market can be broken down by location, population density, time zone and more.

Has your marketing strategy fallen flat? Maybe it doesn’t bring in the conversion rates that you expect, despite your investment. Location may be a culprit.

A puffer jacket might not be a sought-after item during Christmas in Australia, when temperatures peak. Similarly, an egg-based product may not sell well in India, where many followers of Hinduism – the prominent religion – adhere to a lacto-vegetarian diet that excludes eggs. It’s all about location.

Geographical segmentation is a powerful tool for businesses to tailor their marketing efforts to specific locations. By understanding the unique characteristics of each area, companies can address local needs more effectively, improve the relevance of their campaigns and increase conversion rates.

By leveraging geographic data, companies can create customised product offerings and marketing messages that align with local preferences, ultimately driving growth and customer loyalty.

Geographical segmentation is a type of market segmentation that divides a target market into different geographical units, such as regions, cities or local areas.

Segmentation resolves the problem of broad, one-size-fits-all marketing strategies that often fail to resonate with diverse audiences. It enables businesses to focus their resources on high-potential areas, optimise their marketing spend and stay competitive by quickly responding to regional trends and customer demands.

What’s the difference between demographic segmentation and geographic segmentation? Both are types of segmentation that is used to group similar markets. However, they have some key differences.

Demographic segmentation focuses on characteristics such as age, gender, income, education and occupation. This segmentation helps to target specific groups based on their personal attributes. It is commonly used to tailor messages to different life stages or income brackets.

Geographic segmentation divides the market based on location. Marketers consider regional factors such as climate, population density and cultural preferences. It is useful for addressing local needs and optimising marketing efforts in specific areas.

In a nutshell: demographic segmentation targets personal characteristics, whereas geographic segmentation targets a location. Demographics is about who the customer is, whereas geography is about where the customer is located.

You can combine demographic and geographic segmentation for a more precise and effective marketing strategy.

A woman looking at a laptop

Geographic segmentation variables are the specific criteria that are used to divide and analyse markets based on location-related factors.

Marketers use geographic segmentation variables to understand regional differences and tailor their approaches accordingly. Businesses also use segmentation variables to narrow down and refine their campaigns, making their strategies more targeted and effective.

There are several key geographical segmentation variables:

  • Location: Focuses on a country, county, region or city. Businesses can target areas where their products are in demand.
  • Population density: Differentiates between urban, suburban and rural areas. Marketing strategies may vary significantly according to the population concentration.
  • Climate: Considers weather patterns and seasonal changes. For example, products such as winter clothing or air conditioners are marketed based on climate.
  • Population growth: Targets areas with increasing or stable populations. Businesses can invest in growing markets to maximise returns.
  • Economic conditions: Identifies regions with varying income levels. Tailoring products and pricing based on financial status ensures affordability and relevance.
  • Time zones: Takes into account different time zones for marketing activities. This segmentation helps with promotion planning and ensures the availability of customer support.
  • Language: Recognises regional languages and dialects. Adapting marketing materials to local languages enhances communication and engagement.
  • Cultural preferences: Recognises regional cultural differences. Tailoring marketing messages to reflect local customs and traditions enhances relevance.

Geographic segmentation helps marketers to tailor campaigns to specific regions. It allows businesses to address local needs, thus increasing relevance and effectiveness. This segmentation provides several benefits for marketers and consumers:

  • Increased relevance: Tailoring messages to local preferences boosts customer engagement. Customers feel understood and valued. By understanding the unique characteristics of each region, businesses can create marketing messages that resonate with local audiences, resulting in higher engagement and better conversion rates.
  • Improved customer satisfaction: Meeting regional needs increases customer loyalty. Satisfied customers are more likely to return and recommend the brand.
  • Localised product offerings: Geographic segmentation enables companies to offer products and services that are specifically designed for local markets, thereby improving customer satisfaction and loyalty.
  • Optimised marketing spend: Businesses can allocate their budgets more effectively by focusing marketing efforts on locations with a high potential return on investment,. This reduces wasteful expenditure while increasing the return on investment for marketing campaigns.
  • Enhanced competitive advantage: Companies that use geographic segmentation effectively can respond more quickly to regional trends and customer demands so that they can stay ahead of competitors who use a one-size-fits-all approach.

The following examples of geographic segmentation from SurveyMonkey customers show how businesses tailor their strategies to different audiences.

Tech brands such as Tweezerman use agile market research to tailor their strategies to different regions. Tweezerman uses SurveyMonkey to gather real-time consumer data from various global markets.

This market research helps them understand local preferences, validate product ideas and adapt their offerings to meet regional demands. This ensures a consumer-centric approach that drives growth and engagement across diverse geographical segments.

Sakura of America uses geographic segmentation to tailor their product development and marketing strategies. By leveraging SurveyMonkey, Sakura gathers insights into regional preferences, allowing them to adapt products such as gel pens to suit different markets.

For example, understanding that North American consumers may see pens primarily as writing tools rather than artistic instruments helps Sakura fine-tune its approach, which ensures relevance and success in diverse geographic segments.

Women’s March Global (WMG) collects and analyses worldwide data about women’s issues. WMG uses SurveyMonkey Enterprise to gather real-time insights from various regions, allowing them to understand local needs and tailor their advocacy and support efforts.

This approach ensures that their initiatives address the specific challenges that women face in different geographical areas, thus enhancing the effectiveness of their campaigns and resource allocation.

Wahl Clipper uses geographic segmentation to understand and meet the needs of diverse markets. They gather insights from over 150 countries using SurveyMonkey, tailoring their products and marketing strategies to local preferences. For example, during the pandemic, Wahl Clipper identified a surge in self-grooming needs and adapted their offerings accordingly, and this ensured that they were addressing regional differences effectively.

Elephant Insurance – an American branch of the UK insurance company Admiral – conducts weekly surveys using SurveyMonkey to target specific designated marketing areas (DMAs). This geographical segmentation helps them understand regional awareness and perception, allowing them to tailor their campaigns to local demographics.

For example, Elephant Insurance uses insights from different DMAs to validate advertising hoarding and TV advertising campaigns so that their marketing efforts resonate with the targeted audiences.

A computer screen with graphs

Geographic segmentation allows marketers to create tailored campaigns for specific regions. For example, Tweezerman uses real-time consumer data to adapt its offerings to meet local preferences in order to ensure that its products resonate with different markets.

By addressing regional needs and preferences, businesses can increase customer satisfaction. Sakura of America tailors its product development to suit North American consumers, leading to higher engagement and loyalty.

Geographic segmentation helps companies to allocate resources more effectively. They can focus their marketing efforts on areas with the highest potential return, thus avoiding wasteful spending.

Targeting specific regions can help businesses penetrate new markets and discover growth opportunities. Wahl Clipper identified a surge in self-grooming needs during the pandemic and adapted their offerings to capitalise on this trend.

Collecting accurate geographic data can be challenging. Differences in regional data sources and the cost of gathering comprehensive data can hinder effective segmentation.

Although customisation is crucial, it can lead to inconsistencies in brand messaging. Maintaining a balance between local relevance and a consistent brand image is essential.

Geographic trends can change rapidly, which means that businesses need to stay agile. Women’s March Global uses real-time data to adapt its advocacy efforts, but staying updated can be resource-intensive.

Targeting different regions involves complex logistics and supply chain management. Ensuring that products reach various markets efficiently requires careful planning and coordination.

Embracing geographic segmentation allows marketers to allocate resources more efficiently, create relevant campaigns, improve customer satisfaction and increase conversion rates.

Learn more about how SurveyMonkey can support your marketing strategy.

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