Understand the importance of geographic segmentation
Posted: Sun Jan 19, 2025 10:27 am
Knowing and understanding the market in which you operate is the first step for a business to thrive. To do this, there is nothing better than dividing it into smaller parts and studying each of them and their characteristics. This is what we call segmentation .
Even with the advent of globalization, which has brought different contexts and cultures closer together, diversity is still a determining factor and must be considered before defining any strategy . Geographic segmentation is one of the most important, especially for regional businesses . Read on to find out why!
Understanding Market Segmentation
The segmentation process consists of studying and researching a market in order to understand common needs and expectations and thus divide it into specific groups. These divisions provide, in addition to more effective strategic direction, a reduction in costs.
Companies that choose to serve smaller market segments can facebook database more targeted communication with their target audience and obtain greater profits by reducing administrative and logistics expenses. But where to start? Among so many possible divisions, we will focus on geographic segmentation.
How is geographic segmentation done?
Since it is not yet possible to be present in all places at the same time, geographic segmentation was created. From this, it is possible to observe the differences of each part and choose the one or ones that the company will serve. This division can be done by:
countries;
states;
regions;
counties;
cities;
neighborhoods;
streets;
and specific locations (such as shopping malls, commercial centers, etc.).
As a complement, it is also possible to evaluate the territorial extension of the areas, the availability of infrastructure, proximity to economic hubs, possible climatic factors that may influence sales, cultural aspects, among other characteristics.
Geographic segmentation is usually accompanied by other segmentation factors. Learn about some of them below.
Demographic segmentation
Market division based on characteristics such as nationality, gender, age, income, educational background, occupation, religion, ethnicity, family size and life cycle. These variables are widely used because they are easy to identify and measure and because they are directly associated with consumer desires and frequency of use of products or services.
Psychographic segmentation
Psychographic segmentation involves dividing the public into groups based on their lifestyle, personality and personal values. Lifestyles are perceived through the goods people consume and are more informative than social classes. The personality of an audience can correspond to the personality of a brand. Finally, personal values determine behaviors, attitudes and choices in the short and long term.
Behavioral segmentation
At this stage, the division occurs according to the consumption behavior of a product, which involves:
occasions: moments chosen to buy something, such as special dates;
benefits: advantages sought when consuming a certain product;
user status : regular, beginner, potential, former users and non-users;
loyalty status : how dedicated they are to the exclusive use of a certain product or brand (convinced loyal, divided, inconsistent and unfaithful);
usage rates: light, medium or heavy users;
attitude towards the product: enthusiastic, positive, indifferent, negative or hostile;
readiness stage: how much information about the product and willingness to buy a person has.
Even with the advent of globalization, which has brought different contexts and cultures closer together, diversity is still a determining factor and must be considered before defining any strategy . Geographic segmentation is one of the most important, especially for regional businesses . Read on to find out why!
Understanding Market Segmentation
The segmentation process consists of studying and researching a market in order to understand common needs and expectations and thus divide it into specific groups. These divisions provide, in addition to more effective strategic direction, a reduction in costs.
Companies that choose to serve smaller market segments can facebook database more targeted communication with their target audience and obtain greater profits by reducing administrative and logistics expenses. But where to start? Among so many possible divisions, we will focus on geographic segmentation.
How is geographic segmentation done?
Since it is not yet possible to be present in all places at the same time, geographic segmentation was created. From this, it is possible to observe the differences of each part and choose the one or ones that the company will serve. This division can be done by:
countries;
states;
regions;
counties;
cities;
neighborhoods;
streets;
and specific locations (such as shopping malls, commercial centers, etc.).
As a complement, it is also possible to evaluate the territorial extension of the areas, the availability of infrastructure, proximity to economic hubs, possible climatic factors that may influence sales, cultural aspects, among other characteristics.
Geographic segmentation is usually accompanied by other segmentation factors. Learn about some of them below.
Demographic segmentation
Market division based on characteristics such as nationality, gender, age, income, educational background, occupation, religion, ethnicity, family size and life cycle. These variables are widely used because they are easy to identify and measure and because they are directly associated with consumer desires and frequency of use of products or services.
Psychographic segmentation
Psychographic segmentation involves dividing the public into groups based on their lifestyle, personality and personal values. Lifestyles are perceived through the goods people consume and are more informative than social classes. The personality of an audience can correspond to the personality of a brand. Finally, personal values determine behaviors, attitudes and choices in the short and long term.
Behavioral segmentation
At this stage, the division occurs according to the consumption behavior of a product, which involves:
occasions: moments chosen to buy something, such as special dates;
benefits: advantages sought when consuming a certain product;
user status : regular, beginner, potential, former users and non-users;
loyalty status : how dedicated they are to the exclusive use of a certain product or brand (convinced loyal, divided, inconsistent and unfaithful);
usage rates: light, medium or heavy users;
attitude towards the product: enthusiastic, positive, indifferent, negative or hostile;
readiness stage: how much information about the product and willingness to buy a person has.