Geographic segmentation involves segmentation your audience based on the region they

live or work in. This can be done in any number of ways: grouping customers by the country
they live in, or smaller geographical divisions, from region to city, and right down to postal
code.

Why is it important to segment customers based on geographical

variables?
• It makes your brand relevant: targeted marketing campaigns attract customers and
increase revenue because they appeal to the needs and wants within a geographic
location, triggering purchases.
• You save money: your marketing budget is more efficient when it offers appropriate
and available products and services, rather than being wasted on promoting things
that nobody needs
• It’s easy: Location information is objective, easy to measure and analyse, and
cheaper than psychographic, demographic or behavioural segmentation
• Larger companies: can offer different or more relevant products in different
geographic areas, and market them more efficiently there
• Smaller companies: can target marketing directly at their specific areas of interest
and target audience, rather than taking an inefficient blanket approach

Geographic segmentation advantages

As you have a finite amount of money to spend on marketing, geographic segmentation will
give you the best chance of successfully connecting with specific audiences.

• Increase profits: As geographic segmentation allows you to target specific

audiences and deliver tailored marketing campaigns, you can generate profits faster
while saving time and money.
• Drive growth: By targeting the right people, you can increase sales and drive
business growth. Ensure you revisit your geographic segmentation regularly —
especially when entering new markets or advertising new products — to get the best
value from your campaigns.
• Focus efforts: Geographic segmentation allows you to target location-specific
keywords and demands. This is incredibly useful if you’re operating with a smaller
budget or want to develop awareness in a particular region.
• Improve communication: Every region has different needs, shopping habits and
ways of doing business. Geographic segmentation takes into consideration the way
people communicate within regions and communities. With this kind of insight, you
can move forward with confidence and ensure a high engagement rate from the start.

There are several geographic parameters (or types of market segmentation) you can use to
focus your marketing efforts and target your customer base. Each geographic segmentation
example explores the different variables, to give you a better picture of how to use it in
practice in your target market.