Customers in different places often have different needs and preferences. Geographic segmentation divides a market according to location—country, region, city size, climate, or population density. A clothing company may offer heavier coats in colder regions and lighter fabrics in warmer ones. A restaurant chain may adjust menus to local tastes.

The approach is straightforward and often correlates with other useful variables such as culture, income levels, and infrastructure. Digital tools now allow very fine geographic targeting, down to postal codes or even individual stores. Media buying and distribution strategies frequently begin with geographic considerations.

Geographic segmentation is rarely sufficient by itself. Combining it with demographic, psychographic, or behavioral variables produces more precise segments. Still, place remains a fundamental and easily measured way to organize marketing effort, especially for businesses whose products or services are sensitive to local conditions.