Definition:-

Geographic segmentation is when a business divides its market on the basis of geography. There
are several ways that a market can be geographically segmented. You can divide your market by
geographical areas, such as by city, county, state, region, (like the West Coast), country, or international
region, (like Asia). You can also divide the market into rural, suburban, and urban market segments. And,
you can segment a market by climate or total population in each area.

Focus on One Area

You can use geographic segmentation in your marketing plan if your strategy is to focus your sales
locally. Geographic segmentation by country is appropriate when your marketing strategy is effective
in your home market but not in other countries. For example, a restaurant might segment its market
geographically by marketing to people within easy driving distance. A telephone service company
segments its markets by country, because the regulations are different from country to country. You
can write such geographical segmentation into your marketing plan when there are good reasons for
targeting particular geographic areas.
OBJECTIVES

Geographic segmentation allows large companies to target the varying wants and needs of
customers in different regions. Geographic segmentation is an effective methodology used by
organizations with large national or international markets to better understand the location-based
attributes that comprise a specific target market. Consumers that live in different geographic
regions typically display varying needs, wants, and cultural characteristics that can be
specifically targeted for more efficient and better marketing.
NATURE
People in different parts of the world, display different characteristics. A marketing strategy
created by dividing the target market into segments on the basis of factors such as economics,
food habits, clothing habits, languages, traditions and many other traits is known as geographic
segmentation.
5 Aspects of Geographic Segmentation that Really Count:
 Location

With geographic segmentation, location means more than just a user’s country. It also refers to
world regions, different states, counties, cities and neighborhoods.

 Urbanicity

This takes into account whether the individual lives in an urban, suburban, exurban or rural area.
Urban generally describes city areas, suburban is the area on the outskirts of the city, exurbs are
further outside of the suburbs and rural relates to the countryside

 Climate

Climate is a big one for brands to take into account. It’s such a key aspect of geographic
segmentation, as products and services that are relevant to each climate are likely to be
just so different.

 Culture

Cultural differences and preferences have a huge role to play in geographic segmentation. This is
mostly because culture in itself isn’t simply defined by the country a person lives in. Culture can
be formed or influenced by things like religion, communication, environment and agreed social
behaviors and norms.

 Language

While the primary common language of the world is English, not every country is bilingual, or
wants to read an ad in their second-tongue
Geographic Segmentation Example McDonalds
McDonalds divides its market into geographic segments, for example, different countries, states,
regions and cities. McDonalds sells burgers and target local markets and with customized menus.
Let’s say, instead of using beef, in India McDonalds burgers are made from chicken due to
religious beliefs.

McDonald's already introduced Maharaja Mac Burger (Big Mac) with no beef and pork due to
Hindu Muslim population.

Similarly, in Mexico more quantichilli chili sauce is used.

Geographic Segmentation of KFC

KFC has an international presence and has a number of outlets in different countries. Keeping in
view the geographic need of the customers, KFC sells it product the reach the target market
worldwide.

For example, In India, KFC is fulfilling its customers demand geographically. In South India,
vegetarians are the main selling products, while in North India focus Chicken products.

KFC has a wide geographic segmentation in Australia. Having more than 640 outlets and serves
more than 2 million customers a week. Currently, KFC has employed 34000 Aussies.
Advantages of Geographic Segmentation
The benefits of segmenting the market on the basis of geography, areas and regions are:
1. It helps identify people living in a similar region who mostly have similar needs and wants
2. Geographic segmentation means companies can concentrate their spending in a particular
region which can enhance brand visibility significantly
3. Since geographies are well defined through borders, climate, topography etc it becomes easier
for companies to identify them and find out potential customers
4. Densely populated areas can lead to huge market potential for a company to offers its products
or services.

Disadvantages of Geographic Segmentation

The certain drawbacks of segmenting on the basis of geography are:
1. This does not highlight the buying behavior, needs or wants of a customer. People living in the
same region can have different requirements
2. Weather in a region keeps on changing and there have been climatic changes also. Hence
simply having geographic segmentation will not be a good solution for a marketing company.
CONCLUSION
Overall, geographic segmentation is undoubtedly one of the most effective forms of market
segmentation for any brand looking to go global. Even local brands can benefit from geographic
segmentation. Much like with demographic segmentation, alone it can seem quite clinical;
objective with no insight into the personalities of consumers, but when paired with the likes of
behavioral or psychographic segmentation, the possibilities are endless.

Essentially, incorporating any form of market segmentation into your marketing strategy is going
to benefit the brand in some way. The better you know your consumers, and the more
personalized offer you can provide, the greater chance your brand has of seeing success, and
achieving those sought-after actionable insights that will put you ahead of your competitors, and
skyrocket you to success.