Geographic segmentation is the division of a market into distinct geographic units—such as nations, states, regions, counties, cities, or even neighborhoods. A company may decide to operate in one or a few geographic areas, or it may operate in all of them, taking into account geographical differences in needs and wants.
The effectiveness of this method is due to the fact that needs and demands often vary depending on the climate, culture, and population density of a given region. This method allows companies to adapt their products, advertising, promotion, and sales efforts to the specific needs of local markets.
