Understanding Geographic Segmentation to Reach Consumers

We live in a highly globalized “flattened” world. Thanks to the growing accessibility of the internet.

There are definitely still some kinks that need work, but we’re getting there.

With the opening of new markets, small businesses find new opportunities to sell their products outside of their zip code, time zone, or even country.

But when you’re targeting a new audience, understanding their location, culture, and preferences are integral in your small business’s success.

Take McDonald’s, for example. If you’ve been to another country and have seen and eaten at McDonald’s, you know they serve food items that are relevant to the country or region. It’s almost unthinkable to know that McDonald’s Philippines serve spaghetti, fried chicken, rice, and other yummy goodies that Filipinos love.

image via McDonald's Philippines Instagram

This strategy is called geographic segmentation.

Today, we’re sharing how understanding geography plays a vital role in identifying a new consumer base.

What is geographic segmentation?

Simply put, geographic segmentation is the grouping of consumers based on their location. The goal of segmenting is to improve a brand’s marketing strategies by pairing products to consumers’ needs and desires wherever they may be.

Why is geographic segmentation important?

You don’t have to be opening a new market in another country. This is crucial for small businesses working to grow their brand with a tiny budget. It helps them allot time and effort to specific areas.

Geographic segmentation is also simpler to implement than, say, understanding people’s mind and behavioral tendencies in a particular state, region, or country.

Variables of geographic segmentation

Culture

Grocery stores and restaurants practice geographic marketing.

McDonald’s in the Philippines has adapted its menu to the Filipino people’s taste, as shown earlier. In India, however, they don’t offer beef or pork products on their menu. Instead, they have more vegetarian, chicken, and fish options.

Big grocery stores in the US, depending on their location, will have a varied size of Asian or Hispanic specialty foods.

Climate

This kind of segmentation includes merchandise based on a region’s climate or maybe season.

We don’t see much beach apparel being sold in colder areas. Big retail stores like Target switch out their clothing that’s appropriate to the coming or current season.

Brands like Quiksilver, Patagonia, or Volcom advertise their snowboarding gear in the fall and winter seasons, their swimwear in spring and month.

People

We all have different needs. Depending on our location – urban, suburban, and rural areas – some of these needs are more important than another. So, geographic segmentation plays a significant role.

Take lawnmowers, for example. It makes more sense to market lawnmowers to areas or regions where they have a front yard, backyard, or both. City folks have little to no use for lawnmowers.

Geographic segmentation is a great idea to incorporate into your marketing strategy. It helps you understand how to create a plan to promote your products or services, especially if you’re targeting a new audience.

You’ll be able to develop a more personalized approach that would resonate with your target audience.

Let us help you create a geographic marketing segmentation plan for your small business. We’ve helped many companies identify their brand persona and grow their brand’s reach and sales.

Let’s talk!