Editing Market segmentation (section)

=== Geographic segmentation ===

Geographic segmentation divides markets according to geographic criteria. In practice, markets can be segmented as broadly as continents and as narrowly as neighborhoods or postal codes.<ref>Wedel, M. and Kamakura, W.A., ''Market Segmentation: Conceptual and Methodological Foundations,'' Springer Science & Business Media, 2010, pp 8-9</ref> Typical geographic variables include:

* '''Country''' Brazil, Canada, China, France, Germany, India, Italy, Japan, UK, US
* '''Region''' Geographic area of a nation, North, North-west, Mid-west, South, Central
* '''Population density''': central business district (CBD), urban, suburban, rural, regional
* '''City or town size''': population under 1,000; 1,000–5,000; 5,000–10,000 ... 1,000,000–3,000,000, and over 3,000,000
* '''Climatic zone''': Mediterranean, Temperate, Sub-Tropical, Tropical, Polar

The geo-cluster approach (also called ''[[geodemographic segmentation]]'') combines demographic data with geographic data to create richer, more detailed profiles.<ref>'What is geographic segmentation' Kotler, Philip, and Kevin Lane Keller. ''Marketing Management''. Prentice-Hall, 2006. {{ISBN|978-0-13-145757-7}}</ref> Geo-cluster approaches are a consumer classification system designed for market segmentation and consumer profiling purposes. They classify residential regions or postcodes based on census and lifestyle characteristics obtained from a wide range of sources. This allows the segmentation of a population into smaller groups defined by individual characteristics such as demographic, socio-economic, or other shared socio-demographic characteristics.

Geographic segmentation may be considered the first step in international marketing, where marketers must decide whether to adapt their existing products and marketing programs to the unique needs of distinct geographic markets.<ref>{{Cite journal |last=Goldsmith |first=Ronald E. |date=2012-05-08 |title=Target Marketing and Its Application to Tourism |url=https://infusemedia.com/insight/definitive-guide-to-b2b-market-segmentation/ |journal=Strategic Marketing in Tourism Services}}</ref> Tourism Marketing Boards often segment international visitors based on their country of origin.

Several proprietary geo-demographic packages are available for commercial use. Geographic segmentation is widely used in direct marketing campaigns to identify areas that are potential candidates for personal selling, letter-box distribution, or direct mail. Geo-cluster segmentation is widely used by Governments and public sector departments such as urban planning, health authorities, police, criminal justice departments, telecommunications, and public utility organizations such as water boards.<ref>Doos, L. Uttley, J. and Onyia, I., "Mosaic segmentation, COPD and CHF multimorbidity and hospital admission costs: a clinical linkage study," ''Journal of Public Health,'' Vo. 36, no. 2, 2014, pp. 317–324</ref>

Geo-demographic or geoclusters is a combination of geographic & demographic variables.