Geographical Segmentation In 21st Century

Chapter 1IntroductionBackground of the StudyThe purpose and background of the study is to trace the causes as why geographic segmentation is Important in the contemporary business scenario? It will also evaluate if globalization has an effect on geographic segmentation? Another important issue that will be explored through research would be what is the stage of economic globalization in the 21st century? All the relevant prospects will also be highlighted in the due course of discussion.

Objectives of the StudyThis study will cover all the issues related to geographic segmentation. It will design and enumerate as how to access the role of geographic variable on the segmentation variable. Furthermore, it will also find out the content of economic globalization on geographic segmentation.

Definition of Geographical Market SegmentationMarket segmentation is the process of grouping a market into smaller subgroups. This is not something that is arbitrarily imposed on society: it is derived from the recognition that the total market is often made up of sub markets that are subsequently called segments.

Industrial market segmentation

Figure 1

English: LOHAS Consumer segmentation model 2007

These segments are homogeneous within i.e. people in the segment are similar to each other in their attitudes about certain variables. Because of this intra-group similarity, they are likely to respond somewhat similarly to a given marketing strategy. That is, they are likely to have similar feelings about a marketing mix comprised of a given product, sold at a given price, distributed in a certain way, and promoted in a certain way. Through the process of market segmentation, there are certain variables to identify customer groups, such as needs, income geographical, location, buying habits and other characteristics as well, we can focus on the parts of the market that it can serve best and make great profit.(Hassan, 2001)The Aim Of Geographical Market SegmentationThe aim of segmentation is to arrive at clusters...