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Different people in different places have distinct wants and needs. Geographic segmentation is used by marketers to decide market positioning and product sales.
How can geographic segmentation be used in marketing?
Find out.
What is geographic segmentation?
Geographic segmentation allows marketers to cater to specific needs by dividing the target market into geographical units, such as countries, states, cities and more. This technique divides the target market into geographic units such as states, countries, cities and more. It goes beyond geographical boundaries to include factors such as climate, cultural preferences and population demographics.
These factors are important when designing for your Micro-audiences, or certain segments of your audience.
Businesses can customize their marketing to better meet the needs and preferences of specific areas by using geographic segmentation. This ensures a more relevant and personalized approach. This improves not only customer satisfaction, but also engagement and ultimately the success of marketing campaigns.
This ad was served to the searcher after they searched for “Solar Power.” Even though they didn’t specify a location, their location was determined and this ad appeared:
This ad is linked to this landing page, which highlights how this service is tailored to Washington, DC residents.
It’s important to understand the importance of geographic segmentation for marketing.
You can offer a better value proposition by knowing your customers. This allows you to address specific needs and topics. It all starts with their location, but can expand from there. Let’s explore a few types of geographic segmentation!
Different types of geographical segmentation
It is important to incorporate different types of geospatial data into marketing campaigns for several reasons. This data can be used to improve customer engagement and marketing strategies, as well as gain deeper insights about their target audience.
Businesses that understand the impact of geographic segmentation on consumer behavior can stay competitive in a globalized, data-driven marketplace. Let’s look at the different types of geographic segmentation, and how to use them in marketing campaigns.
Location
Geographic variables can have a significant impact on the effectiveness of advertising and product relevance. By matching those products and advertising methods to specific geographical locations, you can reach more relevant audiences without wasting time or money.
This is particularly true for large multinational companies, as it allows them to understand the location-based characteristics of a particular target market. They can then better meet the needs and wants of their customers in different regions.
Comparing geographic segmentation to other types of segmentation, such as demographic segmentation, psychological segmentation, or behavior segmentation segmentation, it is relatively simple to implement.
It is much easier to pinpoint someone’s exact location than to understand their personality or behavioral tendencies. Geographical location is objective. However, personality traits and interests are subjective.
Remember that geographic segmentation does not only rely on the units of geography like the location, as was mentioned earlier. Other variables are also important to take into account. Now let’s look at them.
Climate Change
Climate-based segmentation is a marketing strategy that focuses on products according to climatic conditions in a specific region.
Brands that sell winter clothing (like Burton or North Face), should target areas where it is cold year-round, as they would not be able to make a profit if they targeted warmer climates.
Brands of swimwear, on the contrary, should focus their marketing efforts in areas with warmer climates — such as resorts and beaches. Because that’s the place where they will generate the most revenue:
The products can be categorized as seasonal instead of regional. In the north of the United States, for example, retailers that sell products to suit multiple climates should promote their winter gear during the fall and winter, and their summer gear during the spring and summer.
Cultural Preferences
Many companies use cultural-based geographical marketing because they recognize the importance of cultural nuances when it comes to shaping consumer behavior and preferences. Brands who incorporate cultural-based geographic segmentation in their marketing campaigns are able to tailor their messaging and imagery, as well as their product offerings, so that they align with the customs and values of specific regions. This is particularly helpful for brands which have a global presence.
Culture-based geographic marketing can be demonstrated by running campaigns around festivals, local customs and traditions. These can serve as inspiration for targeted promotions and foster a sense authenticity and connection to the local audience. These companies strengthen their market position by recognizing and respecting the cultural diversity of each community they serve.
Fast food and restaurants are excellent examples of companies marketing to cultural preferences.
McDonald’s offers beer in German restaurants, but not in US. This reflects the differences in drinking habits between the two cultures. In some places, they’ve even incorporated local food on their menu, such as the McArabia, the banana pie, and other unique items, in Poland.
The US east and west coasts are heavily marketed with seafood. Since there is always a supply of fresh fish throughout the year.
In Asian countries eating habits are heavily influenced by religious ceremonies. Marketing strategies should be based on that.
Instacart is a service that delivers:
Type and density of population:
Geographic segmentation is a good way to personalize advertising. People in rural, suburban and urban areas have different wants and needs. A brand that markets bikes to various communities is an interesting example. Here is how they could market their varied product line:
Urban areas: lightweight bikes with thin tires for commuting and riding in traffic.
Race bikes that are comfortable, long-range and suitable for suburban areas.
Mountain bikes for rough terrains: durable mountain bikes with thick rubber tires.
You can see in the example that each area has different biking needs.
Type and density of population
Geographic segmentation is a good way to personalize advertising. People in rural, suburban and urban areas have different wants and needs. A brand that markets bikes to various communities is an interesting example. Here is how they could market their varied product line:
- Urban Areas: Lightweight bicycles with thin tires for riding in traffic and to work.
- Suburban areas Comfortable race bikes with long range.
- Rural areas: Durable Mountain bikes with thick tires on uneven terrains.
You can see in the example that each area has different biking needs.
New Territory
When an organization launches its product or service into a new geographical location, geographic segmentation can be used effectively.
Shipt’s Facebook advertisement is based on the most popular grocery stores near the user.
The company may be looking to grow its customer base in different areas, as grocery delivery is a relatively new service. By embracing geographic segmentation, businesses can connect effectively with their target audiences and ultimately achieve sustained success and growth across various territories.
Today, start incorporating geographic segmentation.
A marketing strategy is strengthened by the addition of geographical segmentation. You can use it either in conjunction with other segmentation methods or by itself. Targeting products and services according to where consumers live is crucial. The better you understand your customers, the more personal you can make the offer, and the greater the chances that you will achieve the desired result.
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