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.

• Ansoff Opportunity Matrix

  • Market development targets non-buying customers in currently targeted segments.
  • It also targets new customers in new segments in order to expand the potential market.
  • New users can be defined as: new geographic, demographic, institutional, or psychographic segments.
  • At the business unit level, diversification is most likely to expand into a new segment of an industry that the business is already in.

• 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.

• Conclude with Action Plan

  • It includes developing the content; describing the product or services and special features, creating a marketing budget that includes advertising and promotional needs, describing the business-its location any advantages or disadvantages it may have, the staffing developin a pricing strategy, forecasting the company's financial future and defining the market segment as well as the competition
  • Situational Analysis - the current situation - the macro-environment - the Economy, legal, technological, ecological, socio-cultural and supply chain oriented, market analysis, market definition including segmentation and size, industry structure, strategic groupings, competition strengths and weaknesses and their market share, a Porter 5 Force Analysis, a consumer analysis, the nature of the buying decision, staffing, demographics, psychographics, buyer motivation and expectations, loyalty segments and company resources.
  • Marketing Strategy- segmented - product mix, perceptual mapping, product life cycle, branding information, customer, geographic, distribution channels, pricing, discounts and allowances, price elasticity and customer sensibility promotional goals advertising reach that includes frequency, flights, theme and media types, electronic and online promotions, public relations, word of mouth (buzz marketing), viral opportunities,

• 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.

• Defining the Target Market

  • Next, break this large market down into smaller sections (segmentation): There are people who restore classic automobiles.
  • You reject these segments as unsuitable for your niche market.
  • After consideration, you decide that your market segment will be automobile owners who have both the time and the interest to do their own detailing work--people who enjoy puttering with their vehicles, who have the time to spend, and who take pride in their vehicle's appearance.
  • Where are they situated geographically?
  • In other words, use primary and secondary sources to find out how many potential customers there are in the geographic area you have defined, and how many businesses are directly or indirectly competing with you.

• Evaluating Market Segments

  • Segmentation involves classifying people into homogeneous groupings and determining which of these segments are viable target markets.
  • Rather, one or more target markets (segments) must be selected.
  • Thus, market segmentation is a twofold process that includes:
  • An ideal market segment meets all of the following criteria:
  • The other segmentation strategy is a multisegment strategy.