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Marketing Basics - Kotler Philip

SEGMENTING BY THE GEOGRAPHICAL PRINCIPLE

Geographic segmentation involves breaking down the market into different geographical units: states, states, regions, counties, cities, communities. The company may decide to act: 1) in one or more geographical regions or 2) in all areas, but taking into account differences in needs and preferences determined by geography. For example, General Foods Corporation ground coffee, Maxwell House, is sold nationwide and tasted depending on the region. In the West, they prefer stronger coffee than in the eastern regions of the country.

Some firms further divide large cities into smaller geographic areas. So, the firm “R. J. Reynolds ”divides Chicago into three separate submarket2. In the areas of the North Coast, the company offers brands of cigarettes with a low tar content, since the inhabitants of these areas are more educated, knowledgeable and health-conscious. In a conservative southeast blue-collar neighborhood, the firm advertises Winston cigarettes. And in the southern part of the city "R.J. Reynolds promotes Salem high menthol cigarettes, giving rich advertising in the black press and through billboards.