geographic segments

Examples of geographic segments in the following topics:

• Determining Segmentation Variable(s)

  • Markets can be segmented primarily according to geographic, demographic, usage, and psychological segments--or a combination of the above.
  • As noted, religion is an interesting basis for demographic segmentation.
  • Closely associated with geographic location are inherent characteristics of that location: weather, topography, and physical factors such as rivers, mountains, ocean proximity, and population density.
  • Another problem is that members of a geographic segment often tend to be too heterogeneous to qualify as a meaningful target for marketing action.
  • The heavy user is an important basis for segmentation.

• Developing a Market Segmentation

  • There are two major segmentation strategies followed by marketing organizations: a concentration strategy and a multi-segment strategy.
  • In the multi-segment strategy, a company focuses its marketing efforts on two or more distinct market segments.
  • Geographic criteria—nations, states, regions, countries, cities, neighborhoods, or zip codes--define the market segments.
  • The geo-cluster approach combines demographic data with geographic data to create a more accurate profile of a specific consumer.
  • Markets could also be segmented by usage rates.

• Identifying the Target Market

  • In addition to the above segmentations, market researchers have advocated a needs-based market segmentation approach to identify smaller and better defined target groups.
  • Identify clusters of similar needs - Demographics, lifestyle, usage behavior and pattern is used to differentiate between segments.
  • Apply a valuation approach - Market growth, barriers to entry, market access, and switching is used to valuate segments.
  • Test the segments - A segment storyboard is created to test the attractiveness of each segment's positioning strategy.
  • Modify marketing mix - The segment positioning strategy is expanded to include all aspects of the marketing mix.

• Target Market Characteristics

  • The different characteristics of a target market are geographic, demographic, psychographic, behavioral, and product related.
  • The different characteristics of a target market are geographic, demographic, psychographic, behavioral, and product related.
  • A geographic target market can be consumers in a city, state, or country.
  • Product related segmentation describes a target approach for customers who already own a specific product.
  • A geographic target market can include a city, state, or country.

• The Target Market

  • Demographic segmentation divides the market into groups based on variables that include the following:
  • Geographic segmentation divides a market according to such variables as climate, region, and population density (urban, suburban, small-town, or rural).
  • Behavioral segmentation divides consumers by such variables as attitude toward the product, user status, or usage rate.
  • Companies selling technology-based products might segment the market according to different levels of receptiveness to technology.
  • Explain how demographics, geographics, behaviors, and psychographics are used to identify a target market

• Marketing Data Types

  • Markets vary in form, scale (volume and geographic reach), location, and types of participants, as well as the types of goods and services traded.
  • Marketing campaigns can then be designed and implemented to target these specific customer segments The market is segmented according to geographic criteria- nations, states, regions, countries, cities, neighborhoods, or zip codes.
  • Geo-cluster approach combines demographic data with geographic data to create a more accurate profile of specific.
  • The process of segmentation is distinct from positioning (designing an appropriate marketing mix for each segment).
  • Segmentation according to occasions.

• Segmentation for B2B

  • B2B firms will segment their customers differently, due to different buying habits and procedures between businesses and end-users.
  • Machinery and equipment (e.g. computers, bulldozers) are end products sold only to OEM and end user segments.
  • Industrial marketers may segment markets by looking at the different ways and situations in which a product is used.
  • Marketers may segment markets by identifying groups of customers who consider the same buying factors important.
  • If the previous approaches are not useful in a particular situation, market advantages may still be realized by segmenting based on account size or geographic boundaries.

• Genetic Variation

  • Genetic variations are the differences in DNA segments or genes between individuals and each variation of a gene is called an allele.For example, a population with many different alleles at a single chromosome locus has a high amount of genetic variation.
  • Some species display geographic variation as well as variation within a population.
  • Geographic variation, or the distinctions in the genetic makeup of different populations, often occurs when populations are geographically separated by environmental barriers or when they are under selection pressures from a different environment.
  • One example of geographic variation are clines: graded changes in a character down a geographic axis.

• GIS

  • One geospatial technique is known as geographic information systems, or GIS.
  • You can address five types of geographic questions with GIS and other geotechnologies.
  • Example: All geographic phenomena vary in their intensity over space.
  • For example, think of an individual street segment and how it is most likely physically connected to at least one additional street segment at one or both of its ends.
  • These adjacent street segments are in turn connected to additional segments, forming a network of connected streets.

• The Importance of Market Segmentation

  • Market segmentation allows for a better allocation of a firm's finite resources.
  • Market segmentation can be defined in terms of the STP acronym, meaning Segment, Target and Position.
  • While there may be theoretically 'ideal' market segments, in reality, every organization engaged in a market will develop different ways of imagining market segments, and create product differentiation strategies to exploit these segments.
  • To increase marketing efficiency by directing effort specifically toward the designated segment in a manner consistent with that segment's characteristics
  • Rather, one or more target markets (segments) must be selected.