What is geographic segmentation? Name four reasons why a company would use a regional marketing approach. Then give a specific example of a company marketing its product(s) regionally.
What will be an ideal response?
Geographic segmentation refers to segmenting markets based on region of the country or world, market size, market density, or climate.
Marketers might adopt a regional approach for the following reasons:
| · | To meet regional preferences and buying habits. |
| · | To find new ways to generate sales volume because of mature markets characterized by slow growth and intense competition. |
| · | Computerized checkout stations with scanners enable retailers to accurately assess which brands are selling well in which regions. |
| · | Packaged-goods manufacturers are introducing new regional brands intended to appeal to local preferences. |
| · | Consumer goods companies use a regional approach because it allows them to react more quickly to competition. |
Examples of companies using a regional approach include:
| · | Cracker Barrel as it designs its product offering to meet the cultural requirements of different regions. |
| · | Any company selling climate-dependent products such as snowblowers, water and snow skis, and air-conditioning and heating systems. |
You might also like to view...
Second Chance is a paperback book exchange. For each book trade, the buyer pays a $1 trade fee. Books that are sold and not traded cost half of their original purchase price. The store has total assets of $126,000 and current assets of $40,200. Its net sales equaled $35,000, and its net profit after taxes was $9,000. Calculate the store's net profit percentage.
A. 25.7% B. 21.7% C. 22.4% D. 7.1% E. 27.7%
Performance marketing involves reviewing metrics assessing market share, customer loss rate, customer satisfaction, and product quality in the evaluation of the effectiveness of marketing activities
Indicate whether the statement is true or false
Consumers pay for necessities out of their discretionary income
Indicate whether the statement is true or false
A firm's "marketing mix" decision areas do NOT include
A. Promotion. B. Product. C. Price. D. Place. E. People.