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Geographic segmentation refers to the practice of dividing a market based on various geographic criteria, which can include regions, cities, nations, or neighborhoods. This approach recognizes that consumers in different locations may have distinct needs and preferences shaped by local culture, climate, and economic conditions. By segmenting the market geographically, businesses can tailor their marketing strategies to meet the specific demands of each area, ensuring that their product offerings, advertising messages, and promotional strategies resonate well with local consumers.

For example, a clothing retailer might stock heavier garments in colder regions and lighter clothing in warmer areas. This targeted approach can lead to more effective marketing efforts and greater customer satisfaction, as consumers feel that the products cater to their particular circumstances. In essence, geographic segmentation allows marketers to leverage location as a key factor in their strategic planning and execution.