This corresponds to organisations operating only in certain elect marts or offering a differentiated marketing intermixture based on local factors of countries served.
These location factors, also called geographic segmentation variables, ar the contry/region/city size, its tribe density, its climate, its population growth, its economy, its culture, its politics, its natural ressources, which all influence customers lifestyle, needs and buying behaviors.
1a. Benefits of geographic segmentation
Analyzing markets by location helps in determining paramount study for marketing strategy, such as current and potential market density, available distribution channels and competitive elements within a particular area.
Small local organisations that sell common goods soft imitable can use geographic segmentation to serve markets where these kinds of products are not readily available. A jeweller or an aesthetician might decide to set up a sell outlet in a wealthy or middle class shopping street where there is no competition barely installed.
Organisations with limited resources, trading areas and distribution channels, also have much incentive to concentrate their business in certain areas.
Geographic segmentation can also be encouraged by free-trade zones such as the European Union or the northerly American Free Trade Association that reduce barriers amidst member countries.
1b. Drawbacks of geographic segmentation
The fact that the approach is widely utilize by organisations to shape their marketing strategy and determine their positioning does not give a true competitive improvement to businesses.
Global brand image can be change through excessive geographic diffentiation to adapt to local usage and needs.
Even within a geographic market, customers can vary widely, on the other dimensions of customer segmentation such as psychographic or demographic as discussed previously. Also grouped geographically close countries vary...If you want to get a full essay, tramp it on our website: Orderessay
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