ABSTRACT
Geographic segmentation is probably the oldest method for grouping markets. At its core is the assumption that people have different needs and wants because of where they live. The cliché about selling refrigerators to Eskimos is a recognition of the power of geographic segmentation (although Eskimos do use refrigerators to keep food from freezing in the cold). Because segments are created by grouping like with like, geographic segmentation makes sense: it is simple to understand, simple to perform and implement, and simple to manage. An example of geographic segmentation might be a chain of motels, with properties scattered from coast to coast, to the mountains and in urban areas. Some of the properties might be in Florida, where their prime season is between Thanksgiving and Easter; others might be in New England, with the prime season in summer. Given the geographic dispersal with the seasonal variations, the chain can no longer market all their properties as identical, even though they may be physically identical. Their different prime seasons dictate that fact. Simple geographic segmentation is often the best and least expensive method to deal with a market. The drawback to geographic segmentation is that it is not customer driven; rather, it is driven by the reality of the offering.
