Geographic Marketing is when a business divides its marketing on the basis of geography. There is a new philosophy about how and where to find clients. It used to be that marketing was based on all the people in the world. But now so many businesses are local, and they don’t need international or national exposure to find clients.
There are so many ways that you can divide your market. Yes, you can do it by local geographical areas, such as by city, county, state, region, (like the West Coast), country, or international region, (like Asia). You can also divide your market into rural, suburban, and urban market segments. You can use demographics, age, gender, income. And, you can segment markets by climate or total population in each area.
The market segmentation is huge! Look at your business and find out who your clients are. What is their lifestyle? Where do they live? What purchases do they make? Where do they get their information from?
Why is Geographic Marketing Important?
Geographic Marketing or Market Segmentation is the practice of dividing consumers into groups based on shared needs, desires and preferences. Using these categories, a business can adjust its product lines and marketing techniques to appeal to each group more effectively by addressing their specific needs. This strategy is called targeted marketing. Conversely, mass marketing is when a business uses one advertising and marketing campaign to sell the same product to everyone. Geographic marketing is more about where the consumer is located.
It’s an effective approach for companies with large national or international markets because different consumers in different regions have different needs, wants, and cultural characteristics that can be specifically targeted.
It can also be an effective approach for small businesses with limited budgets. They can focus on their defined area and not expend needless marketing dollars on approaches ill-suited for their target geographic segment.
It works well in different areas of population density. Consumers in an urban environment often have different needs and wants than people in suburban and rural environments. There are even cultural differences between these three areas.
It’s relatively easy to break your market down to geographic segments.
Pay less for advertising when you know where your market is.
Some examples of business who might want to use Geographic Targeting:
Restaurants and Food
Clothing and Apparel Suppliers
Real Estate Offices & Agents
Car Sales Companies
Can you see why these types of companies might want to spend their money in or on a geographic targeted market?