Our Services Learn More. Partnerships Become a Partner. What is XM? Back Platform Security Overview. Back Survey Tool Overview. Back Partnerships Overview Become a Partner. Back Resources What is XM? Back What is XM? Experience Management. What is Geographic Segmentation? What is Geographic Segmentation and how to put it to work 4 min read Geographic segmentation is a marketing strategy to target products to people who live or shop in a specific location. Survey research One of the first tools businesses turn to in order to understand the geographic preferences of their customer base is to conduct survey research.
Here are some survey research approaches you may want to consider: Take a random sample of your customer base and ask about their product preferences. Filter the results by region to breakout geographic preferences.
Use conjoint analysis methodology to rank order product traits using trade-off questions and filter results by state or region to understand which regional differences exist. Test your messaging and advertising concepts with prospects in different areas to understand where different messages are well or poorly received.
Survey your employees in different regions to understand how engagement may affect the customer experience they are providing per region. Sales data Check your operational sales data to see where product sales are increased or decreased by region Consider trends in seasonality to understand how they affect your sales by region Combine your sales operational data with your customer experience and survey data to pick up trends by region Website data Use web traffic tracking patterns by region to see where your traffic is coming from Conduct analysis on the types of products that ship to various regions to pick up differences in purchase preferences Mobile usage data Mobile devices present unique opportunities to better understand customers by very specific location — sometimes down to the foot.
Social media profiles Social media data can provide tremendous insights into the location preferences of your customers and prospects. Secondary data sources Many third-party technologies and agencies specialise in helping you to build and execute a geographic segmentation strategy. Related resources. Checking is simple:. Certain products are peculiar to specific seasons — for example, winter coats and other heat-generating clothing are best for the winter.
On the flip side, beach wears are specific to the summer season and to locations that have beaches. Hence, companies that sell beach wears are likely to record the most sales during summer. Beach wears also sell more in locations that have beaches and are likely to attract tourists. Winter wears are sold during winter and in locations that experience the winter season. These kinds of clothes will record low sales in Africa. Organizations depend on geographic variables to determine pricing, product availability, and marketing strategies, among other things.
Let's examine common geographic segmentation variables. Prevailing climate and weather patterns can influence the market's demand for specific products. Organizations that deal with goods and services that are climate-specific need to market these products based on the prevailing weather conditions in a specific region or location.
Consider businesses that sell warm clothing like jackets, coats, and gloves. These businesses would typically market their products to cold regions as these places have the highest sales-potential for them. In the same way, businesses that sell beach wears are more likely to record increased sales during the summer and in warmer climates. Cultural preferences also dictate and influence market behaviors.
Individuals in a particular geographical location often exhibit certain characteristics that are either peculiar to the tradition and religion of the place or simply a way of life. To get the most out of the market, you must understand how your customers are affected by cultural differences. For instance, in countries where Islam is the predominant religion, it may be almost impossible to sell pork-based products and alcohol.
However, in Western countries, pork-based products are readily embraced — bacon is an essential part of the English breakfast. Population density and demography plays a huge role in geographic segmentation. In some societies, there are more men than women and this influences the marketing strategies put in place by the businesses in such areas and the kind of products that are sold there. Also, rural and urban areas have different needs and as a business, you need to understand these peculiarities and tailor your marketing campaigns to appeal to different geographic segments.
For example, a lawn mowing service may appeal more to people in the rural areas who actually have lawns. This is the most common geographic segmentation variable. Consumers' choices and market behavior can be influenced by their location in different ways — for example, users may choose one product over the other due to its proximity to their physical locations. Example 2: Lets take another example where a government body wants to segment its geography based on the use of plastic bags in its region.
The goal is to conduct a use of plastic bags survey and based on actionable insights on geographical spread of the use of plastic bags, the governmental body can reinforce administrative supervision to reduce use of plastics and add new plastic recycling plants in areas of heightened usage. Each continent or country is further divided into places with distinction in terms of culture, traditions, languages etc. Geographic location is an integral factor that determines market positioning and product sales.
Learn about: Demographic Examples. Learn more: Demographic Survey Questions. Though you're welcome to continue on your mobile screen, we'd suggest a desktop or notebook experience for optimal results. Survey software Leading survey software to help you turn data into decisions.
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Geographic Segmentation: Definition, Characteristics and Examples. Geographic Segmentation Characteristics People in different parts of the world, display different characteristics. Geographic Segmentation Examples Products based on season: Regions such as Canada and Russia, that are cold throughout the year, will see a huge number of warm clothing traders promoting and selling their products.
They focus on targeting their products only to locations in Canada and Russia. Due to such targeted selling, it becomes easy for traders to make profits.
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