Geographic Segmentation

Subdivisions in the geographical distribution and demographic compositionof the population are widely used bases for segmenting consumer markets.

The reason for this is simply that consumers' wants and product usage often are related to one or more of these subcategories. Geographic and demo­graphic groupings also meet the conditions for effective segmentation—that is, they are measurable, accessible, and large enough. Let's consider how the geographic distribution of population may serve as a segmentation basis.

REGIONAL POPULATION DISTRIBUTION

Many firms market their products in a limited number of geographic regions, or they may market nationally but prepare a separate marketing mix for each region. Supermarket chains such as Alpha Beta and Winn-Dixie concentrate their marketing efforts in specific geographical regions. Even supermarket giants such as Kroger and Safeway are unknown in some parts of the country. Campbell Soup Company has altered some of its soup and bean recipes to suit regional tastes, and General Foods has developed regionally oriented promotional campaigns for Maxwell House coffee.

The regional distribution of population is important to marketers because people within a given region generally tend to share the same values, atti­tudes, and style preferences. However, significant differences do exist among regions because of differences in climate, social customs, and other factors. Thus bright, warm colors are preferred in Florida and the Southwest, while grays and cooler colors predominate in New England and the Midwest. Peo­ple in the West are less formal than Easterners, and they spend more time outdoors. Consequently, in the Western region there is a large market for patio furniture, sports clothes, and barbecue equipment.

Marketing executives should understand existing patterns and projected trends in regional population. Figure 4-2 shows the population distribution in 1990 and its projected growth from 1980 to 2000 by census regions. The big­gest markets are in the East North Central, South Atlantic, and Middle Atlan­tic census regions. These three areas together account for a little over half of the nation's population. However, the greatest rate of population growth over the past four decades has occurred in the "Sun Belt"—the Southern and Western regions. By the year 2000 the three most populous states will be California, Texas, and Florida, in that order

Producers of outdoor furniture typically segment their markets by geographic region.

FIGURE 4-2 Regional distribution of population, 1990, and projected growth, 1980-2000.

The East North Central, South Atlantic, and Middle Atlantic census regions account for the largest part of our total population. However, the Southern and Western regions show a more rapid growth rate. Movement of the population center of the United States is still generally south and westward.