Geographic Segmentation

This is perhaps the most common form of market segmentation, wherein companies segment the
market by attacking a restricted geographic area. For example, corporations may choose to market
their brands in certain countries, but not in others A brand could be sold only in one market, one
state, or one region of the United States. Many restaurant chains focus on a limited geographic
area to achieve concentration of force. Regional differences in consumer preferences exist, and this
often provides a basis for geographic specialization. For example, a company might choose to
market its redeye gravy only in the southeastern U.S. Likewise, a picante sauce might concentrate
its distribution and advertising in the southwest. A chain saw company might only market its products
in areas with forests. Geographic segmentation can take many forms (urban versus rural,
north versus south, seacoasts versus interior, warm areas versus cold, high-humidity areas versus dry
areas, high-elevation versus low-elevation areas, and so on). These examples also reveal that geographic
segmentation is sometimes a surrogate for (or a means to) other types of segmentation.