What is the term for breaking people into groups based on their location?

The term that refers to breaking people into groups based on their location is geographic segmentation. This approach categorizes consumers according to various geographic factors such as country, region, city, or neighborhood. By using geographic segmentation, businesses can tailor their marketing strategies to suit the unique needs and preferences of customers in different areas, which can significantly enhance the effectiveness of their marketing campaigns.

Geographic segmentation allows companies to target specific locations where their products or services might have more relevance or demand, leading to more efficient resource allocation. For example, a company selling winter clothing would focus its marketing efforts in regions with colder climates, while a beachwear brand would direct its advertising to coastal areas. This clear association between location and customer preferences underscores why geographic segmentation is an essential strategy for businesses aiming to connect with their audiences effectively.