Why iGeography is the Easiest Form of Market Segmentation
When a person is driving on a major highway, they may pass a sign that says “Welcome to Florida.” Before they pass the sign, they are subject to Georgia rules (or Alabama). There is no argument or matter up for discussion. The line is definitive and clear. That is part of the broad appeal of geographic marketing. The lines are drawn.
Geographic market segmenting is the easiest type of market strategy to deploy. Various regions have a number of distinct characteristics when it comes to social responses, weather, needs, prices of goods, etc. There is a clear line in the sand when it comes to the market strategy. For example, coat sales are abysmal in Florida because of their seasonal nature. A clothing line may want to emphasize the sale of blazers. They have successfully segmented their market, creating a separate strategy for Floridians.
Price is a major component of geographic research segmenting. For example, the same item may cost twice as much in New York City as opposed to South Carolina. Citizens of Hawaii will have to pay triple for the same product in Southern California. Online businesses have to really look at segmenting in depth when they work on a national scale. Their focused marketing tactics need to emphasize what segments require at what time- and how much they should be paying.
A company will lose out if they price their items equally when finding local distributors and retail markets. Geographic segmenting is not easy- no segmenting is. But, it is a strategy that has clear boundaries and is based largely in a logic that is easy to explain.
Marketers are asking, is geography the best way to segment a market? The answer is up for debate. There are valuable reasons why geographic differences are tangible and generally easier to integrate over behavioral strategies or even demographics. Geography is definitive. It is clear and inarguable. Though it is the easiest method for market segmentation, it may not be the most rewarding. Brands that can integrate a mixed strategy, making geography a component but not the driving force, may reap fantastic rewards.
